Why Bookkeeping Matters + Top Tools

I loved learning about all the best strategies and tactics to grow my business, but I wasn’t learning how to manage your business. Last year at tax time, I owed a lot more than I thought because I wasn’t managing my finances well. If you asked me how much money I had made, I could only give you a ball park… let’s just say the IRS doesn’t much care for ball park estimates.

Something had to change so I began looking at tools and solutions that were designed for an Internet marketer like me and I’m pleased to share my findings with all of you!

[B]Outright.com - Accounting Solution[/B]
If you’re like me you have multiple bank accounts, a PayPal account and a bunch of credit cards. Managing my business’s finances was time consuming and I didn’t always know my bottom line. Most other software solutions were clunky and almost just as time consuming. A friend who is a freelance blogger recommended that I check out Outright.com - an accounting solution designed specifically for Schedule C filers. I plugged in my bank account and credit cards and it tells me how my finances are doing in real-time. Not only that, but it calculates my estimated taxes and prepares my Schedule C for me. I am completely organized now and spend practically no time doing accounting.

[B]Shoeboxed.com - Paperwork Solution[/B]
If you have a lot of receipts or other paperwork sitting in a shoebox somewhere, this is the tool for you. Simply send them your paperwork and they will digitize and categorize it before making it available to you in the cloud. It’s flipping’ sweet!

[B]Freshbooks.com - Invoicing Solution[/B]
If you create invoices for clients this is the simplest way to manage your time and invoice your clients. If you want to expand and hire contractors to work for you, this is also a killer solution.

Most solutions out there are either too expensive, too robust or too complicated. These solutions are super simple and are just great for people like us.

I think this is a very healthy discussion to have during tax season. What do you find to be the best tax and accounting solutions?

I use Quickbooks to manage an S-corp and 2 LLC’s. The tools you mentioned are very useful for very small businesses, for sure. Once you begin to grow significantly, you will quickly outgrow outright.com and need to move to a more professional level system - but it’s terrific for the one-man-show that is common amongst small internet businesses.