7 Bookkeeping Tips Every Small Business Owner Should Know
July 2025
As a small business owner, you’re probably wearing a dozen hats—marketing director, customer service rep, product developer… and yes, bookkeeper.
But let’s be honest: tracking income and expenses isn’t exactly the most exciting part of running a business. Still, good bookkeeping can be the difference between success and stress—especially when tax time rolls around.
Here are 7 practical bookkeeping tips to help you stay organized, make smarter decisions, and keep more of your hard-earned money.
1. Separate Business and Personal Finances
One of the most common mistakes I see? Mixing business and personal transactions in the same account. Open a dedicated business bank account and credit card—even if you’re a sole proprietor. This simple step keeps your records clean and makes reconciling a breeze.
2. Stay on Top of Your Transactions Weekly
Bookkeeping shouldn’t wait until the end of the month (or worse, the end of the year 😬). Set aside 30 minutes each week to review your income and expenses. Trust me—your future self (and your tax pro) will thank you.
3. Use a Reliable Bookkeeping Software
Spreadsheets can only take you so far. Cloud-based tools like Xero or QuickBooks Online are user-friendly and built for small businesses. They help you categorize transactions, send invoices, and generate reports—plus they integrate with other tools you might already use.
4. Know What’s Deductible
Not everything you spend on your business is tax-deductible—but many things are! Home office expenses, software subscriptions, mileage, meals with clients… These add up. Keeping track of deductible expenses year-round can reduce your tax bill and boost your profit.
5. Keep Digital Copies of Receipts
Skip the shoebox full of receipts. Instead, snap photos or upload PDFs of your receipts into a cloud drive or bookkeeping software. The IRS accepts digital records, and you’ll save time and space in the long run.
6. Hire Help Before It’s a Mess
Outsourcing your bookkeeping isn’t just about saving time—it’s about gaining clarity and confidence in your numbers. A good bookkeeper can help you avoid costly mistakes, uncover hidden tax opportunities, and give you financial peace of mind.
7. Review Your Financial Reports Monthly
Your profit & loss statement, balance sheet, and cash flow report are more than just numbers—they tell the story of your business. Take time to review them monthly so you can make smart, informed decisions (and catch any red flags early).
Final Thoughts:
Bookkeeping doesn’t have to be overwhelming. With the right systems and support in place, it can actually become a powerful tool for growth and peace of mind.
Need help getting started or cleaning up your books? I’d love to support you. At Bloom Balance, we specialize in helping small business owners like you get their finances in order—with a personal touch.
Click “Book a call” to schedule a free 30 minute discovery call or visit my Instagram or Facebook page @bloombalanceaccounting for a 30 minute free consult.
