Doing your own books?

When your business is new, resources and capital are usually limited, and you often find yourself wearing many hats for which you might not be equipped. In the case of bookkeeping, while it is ideal to hire a good bookkeeper right away, sometimes doing it yourself is necessary as your business gets its footing. In these situations, bookkeeping priorities are usually focused on avoiding overdrafts and paying your taxes on time. Here are a few things to consider when you are doing your own books.

Get good software. Quickbooks is the one of the best financial softwares out there, and it is affordable and easy to use.
Track more than you think is needed. In other words, make sure that you put details in your sales and expense records. Although this may not seem necessary in the beginning, as your business moves forward, you will be building data that you can use later to track trends and patterns for decision making. It is much easier to input this data as you go than rebuilding it later.
Keep all your records! Invoices, receipts, statements...you name it. It is recommended to keep your records up to 6 years after the end of the fiscal year in which they occur.
Consult with a bookkeeper. While you may not be able to support the cost of complete bookkeeping services, you can consult with a bookkeeper to set up your software, chart of accounts and help you develop the right processes. They can also be a continued resource as you learn the ropes.
Know when it becomes too much! Your business will reach the point where it becomes necessary to delegate tasks like your bookkeeping. Business owners are typically hesitant to make this transition because they worry about trusting others with their financial information or that they may become disconnected with their fiscal activity. However, more commonly, they don't want the disruption that comes with the transferring of roles and responsibilities. Despite these things, it is still important to be able to identify when it has become counter-productive for you to spend time on administrative type tasks.