Bookkeeping Basics for Small Business

Let’s be honest! Most small business owners didn’t start their business because they were dying to reconcile bank statements. You started it to serve people, create freedom, and build something meaningful.

But here’s the truth we see every day at Oak City Accounting: your bookkeeping is the backbone of your business. And when it’s clean, current, and consistent, everything gets easier — taxes, cash flow, hiring, pricing… all of it.

Here are the bookkeeping fundamentals every owner should have on lock:
1) Create a Bookkeeping System for Your Business
We exclusively work with QuickBooks but whatever software you choose, it needs to clearly show income and expenses. Gross receipts, purchases and expenses, other assets you own as well as a summary of all the transactions that make up these numbers MUST be included for the IRS. The burden of proof is on you and the IRS can choose to disallow your deductions or even fine you

2) Centralize Your Transactions
Watch out for missed transactions because it can trigger and audit or even cost you in the long run such as missed write offs. Do NOT comingle personal and business funds. It is super easy to connect your business bank account to QuickBooks

3) Categorizing your Transactions in these 1 of 5 areas:
Sales, Expenses, Assets, Liabilities and Equity

4) Maintain Supporting Documentation
These include invoices, receipts, bank deposit slips, purchase documents and any travel related expenses all electronically or via paper

5) Reconciling Your Books
Last and important step before filing taxes...you need to match your bank statement transactions to what is in your bookkeeping software. This will allow you to catch errors or discrepancies

6) Finalize Your Financial Statements
This includes your income statement/profit and loss statement AND your balance sheet

And if this all feels overwhelming, that’s exactly why we’re here. At Oak City Accounting, we help small business owners get out of bookkeeping chaos and into clarity — so you can spend more time growing, serving, and doing the work you love.

If you want a quick, judgment-free check-in on your books, send us a message. We’ve got your back!