Sole proprietor bookkeeping software

Remember Me. Lost Password Lost your password? April 6, Technology 0 Comments views. Flexibility of work location and time. Unlimited earning potential. Cons: Occasionally inconvenient work times. No work, no pay. No sick time or holiday pay. Responsible for all aspects of the business. Success is up to the owner. Lots of solitude. The Online Sole Proprietor Due to advancements in technology, many self employed people are excited about the future of sole proprietorship.

Online or cloud-based software examples include: Office or Google Apps Gmail Google Drive or DropBox Social media channels for marketing Zoom Websites The only thing missing from this list is accounting software for sole proprietors.

One typo and the entire spreadsheet is off Not scalable. Spreadsheets cannot help the sole proprietor with payroll, direct payments, nor can data be shared remotely. Accounting software grows with the business and can handle these things. Spreadsheets do not leave an audit trail. An audit trail keeps track of all entries and who made them.

Sole proprietorship accounting software does leave an audit trail — protecting you from fraud. Online Accounting Software Benefits There are many advantages to using online accounting software for business. If you need a specialized invoicing program, try to find one that integrates with Xero or QBO. Assign each transaction to an account a. Expenses not on the bank statements, like cash or personal credit card, need to be entered manually. Once each transaction is reconciled, the ending bank balance in the software should match the balance on your bank statements and credit card statements.

At the end of the year, when you are confident that the general ledger captures all your transactions and the one-page trial balance looks right, then you can give these two reports to your accountant. Or, just use the 6-step income-statement-only method unless you need a balance sheet. Wave Apps is a free invoicing program. Use Wave if all you really need is invoicing capabilities. Having clean, up-to-date books will make tax time so much easier for you! Articles of Incorporation When Should You Incorporate?

Bookkeeping for Sole Proprietors. Jun 30 Written By. Are you a sole proprietor? Step 2: Gather your business transactions On a monthly basis, log into your bank and credit card accounts and download the following: Monthly PDF bank and credit card statements All monthly transactions in an Excel or. Step 5: Income statement a. Profit and Loss You have sorted or coded every transaction for the tax year. Every transaction your business makes will need to be categorized to an account.

An account is basically a category for all of your income sales and expenses supplies, insurance, bank fees, etc. See the standard accounts we have on our simple income statement template. Add to this list to suit your business — this example is quite simplified. On a monthly basis, log into your bank and credit card accounts and download the following:. Save these files to a folder along with all of your sales invoices, bills, statements and receipts. Note that bank transactions downloads and Interac e-Transfer history are usually only available for six months from your online banking.

Assign each transaction to an account category and enter the totals of each into the Monthly worksheet of the income statement template. Use your personal bank account to pay for your personal and home operating expenses. Under the Monthly tab, add all of your sales invoices for each month. Then, fill out the expense accounts totals. Complete our home office template with your rent, utilities, property tax, cell phone and internet. A portion of these can be deducted. You can fill out invoices in seconds and send them from any device that can access the internet.

Time tracking — Track the time you spend working on projects from your cloud software. You can track time as you go, or enter it manually later. Project tracking — Stop scribbling notes on scratch paper and laboriously creating invoices in Excel. Interactive charts and graphs — Review your finances in real time when you log in every day. Share data — One day you may need to share your info with an accountant remotely.

Multiple payment options — There are cloud software companies that will allow you to offer clients multiple payment options. With so many cloud accounting developments out there, there are some companies who have figured out how to offer the same great features for free. ZipBooks is a cloud based accounting software that is free to use and sign up for.

ZipBooks is the most straightforward accounting software because it was built for you, not your accountant. Enjoy simple templates, a user-friendly interface, and a very straightforward way of bookkeeping.