Separate business and personal finances

 

First set up a separate small business bank account and obtain a business credit card.

While you can use paper or spreadsheets to record your finances, consider getting user friendly accounting software.   QuickBooks is widely used and training courses and experts online can help you get set up.  If you have never used accounting software, it will need some effort to learn it.  Simpler bookkeeping and billing apps are available, such as Xero or Zoho Books.  What you end up using depends on your business structure, and how much you want to get involved in managing the books and billing yourself.

 

While using accounting software does not require much knowledge of accounting, it is useful to have an accountant set up your initial chart of accounts.  This is a listing of all the accounts of your business and is the way in which you would categorize all the money coming in and going out.

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