In this episode, I'm diving into the essentials of bookkeeping specifically for small business owners who want to take control of their finances without the overwhelm. I break down accounting basics like the difference between financial accounting and tax accounting, and I explain when (and if) you actually need audited financial statements. We'll talk about how to simplify your DIY bookkeeping process, stay on top of your taxes, and make tax preparation less stressful.

If you're a small business owner, freelancer, or creative entrepreneur looking for practical tips on bookkeeping, taxes, and staying organized, this episode is packed with everything you need to build confidence and clarity around your money.

00:00 Understanding Bookkeeping for Small Businesses

00:52 The Role of Bookkeeping in Small Business

13:14 Navigating Tax Accounting vs. Financial Accounting

16:34 Creating a Simple Spreadsheet System

19:23 Tracking Deductions and Expenses Effectively

22:41 Building a Sustainable Financial Future

Takeaways

• Bookkeeping does not need to be complicated for micro businesses.

• Understanding the purpose of bookkeeping can simplify your process.

• Most small businesses do not need audited financials.

• Key reasons for bookkeeping include knowing profit and tax predictions.

• Double entry bookkeeping can be confusing without training.

• Tracking expenses in a simple way can save time at tax time.

• DIY bookkeeping is possible with the right resources.

If you enjoyed this episode, please rate, review and share it! Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.

Links:

Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You're Self-Employed.

Get your free visual guide to tax deductions

Check out my program, Money Bootcamp