Why bookkeeping is the time-trap you weren’t expecting
As a small business owner, you wear a lot of hats. One moment you’re a marketer, promoting your brand to attract customers. Next, you’re handling customer support questions. Sometimes you’re a product developer, while at other times you’re head of HR.
All these different roles are essential to the ongoing flourishing of your small business, and you’re (mostly) excited to do them. However, there’s one ‘hat’ that, if you’re honest, is taking up way more time and energy than you want – bookkeeping.
Between endless spreadsheets, misplaced receipts, and numbers that never seem to add up, it feels like a chore you don’t have time (or motivation) for. Without streamlined systems in place, even simple tasks like tracking income or paying bills can balloon into hours of frustration.
You already know how important accurate bookkeeping is for your small business. You’ve experienced the cost of not getting it right before (trust us, everyone’s had that dreaded call from HMRC at some point!) It’s no wonder bookkeeping feels overwhelming.
After putting it off, and putting it off… Soon enough, you’re left without enough time, knowledge, or motivation to tackle the bookkeeping for your small business. It’s a drain on your productivity and peace of mind.
All you need is 15 minutes each day to transform your small business’ bookkeeping
There’s a mountain of bookkeeping issues on your to-do list, and the list just keeps getting longer. This is not what you imagined running your small business would be like.
If only you had an extra day each week, then you’d be able to sort out this mess… right?
Unfortunately, here at Starfish, we haven’t yet worked out how to warp time. If you happen to discover a time machine, do let us know, because some of the small business owners we work with would love to use it!
Instead, we’ve come up with a list of bookkeeping tasks that you can tackle in only 15 minutes each day. Will this solve all of your bookkeeping problems? Probably not. But it’s a start.
Each of these five, super-quick tasks will help you to confidently chip away at the mountain of bookkeeping duties you do for your small business. Focusing on these achievable tasks will help you to make meaningful progress in your bookkeeping, without feeling overwhelmed.
With the bookkeeping sorted, you’ll have far more capacity for doing the things that you love about your business. No more staring into the spreadsheet abyss – in just 15 minutes a day, you’ll be on track for bookkeeping success.
Mondays: tidy up your bank reconciliations
Take just 15 minutes to work through your small business’ bank and credit card transactions. Go through each one, matching it against receipts, bills and invoices. Your accounting system (like Xero) should make that straightforward. This will help you see exactly where your money is going and make sure everything is in order.
If you find any mistakes or things that don’t match, make a note of them so you can fix them later.
Doing this regularly will stop small issues from turning into big problems. There’s something so reassuring about knowing your finances are on track! Plus, it will save you time at the end of the month when it’s time to close your books.
Tidying up your small business’ bank reconciliations can feel a bit tedious. Avoid taking a snooze on your keyboard by getting a hot cuppa, and playing your favorite radio station in the background (BBC Radio 2, teatime with Sara Cox is our accompaniment of choice!)
Tuesdays: categorise and upload receipts
It’s time to dig those receipts out of that shoebox (or coat pocket, or car glove box…)
Paper receipts are a headache. They can easily get lost, damaged, or fade over time, making it almost impossible to keep accurate records. Taking just 15 minutes, once a week, to digitise your receipts will make everything more organised.
Now’s the time to scan and upload those pesky paper receipts into your accounting system (using a tool like Dext Prepare to do the heavy lifting). As you upload, make sure to categorise each receipt correctly – this will save you hours when it’s time to do your VAT return or taxes.
Having well organised receipts will not only keep your small business running smoothly, but it will also reduce stress when bookkeeping deadlines are approaching. Say goodbye to last-minute scramble sessions!
Wednesdays: review and update your invoices
Nothing quite gets your heart racing like suddenly realising you’re long overdue a payment on an invoice you sent weeks, if not months, ago! That’s why we recommend setting aside 15 minutes to go through your small business’ outstanding invoices.
Start by ensuring that all the details, like payment terms, VAT rates, and amounts, are correct. If you use an accounting system like Xero, you can easily check this and update the invoices with just a few clicks.
If you have any overdue invoices, prepare a polite reminder to send to your clients, encouraging them to make payment. By making this a weekly task, you can avoid the headache of overdue payments building up, keep your cash flow steady, and reduce the risk of any errors raising their heads.
Xero can help you here too, sending automated reminders. Don’t forget to switch them off for clients that you don’t want to chase.
Thursdays: update your financial dashboard
To get a quick snapshot of your business’ financial health, spend 15 minutes looking at your financial dashboard.
Start by comparing your income against your expenses. Are there any unexpected costs? Are your income targets being met? Next, take a look at your cash flow. Are there any red flags, like overdue invoices or cash shortages? Make sure all your transactions are categorised correctly, especially any new or unfamiliar expenses.
Keeping everything accurate in your dashboard ensures that you have a clear understanding of your business’s financial position. Spot cash flow problems or misclassified transactions, before they spiral into bigger issues.
This weekly review will give you the confidence to make informed decisions for your small business, assess your business’ financial progress, and stay on top of any bookkeeping surprises.
Fridays: tackle a quick financial win
Wouldn’t it be exciting to end the week with a win, every single week?
Let’s make the last 15 minutes you spend on bookkeeping each week really count. You need an actionable list of deeply impactful bookkeeping tasks, tailored to the exact needs of your small business.
Take our Financial Quick Wins Quiz to discover three bookkeeping items that you can tackle for long-term success. This free diagnostic test takes less than 10 minutes to complete – perfect for Friday’s first bookkeeping task.
We’ll ask you a set of in-depth questions that get to the heart of your small business. These questions will help us to understand your definition of financial success, leaving you with three tailored-to-you, actionable bookkeeping tasks.
We’ll also give you an urgency ranking, to empower you with insights on your strengths and where you can focus for future improvements.
Take the Financial Quick Wins Quiz Now
Small business bookkeeping for ambitious business owners
By spending 15 minutes a day, five days a week, tackling your bookkeeping, you’ll soon feel on top of the pile of tasks that you’re struggling with.
Will 15 minutes a day solve all your problems? No. But, if 15 minutes a day is all you have, then we think these are the 5 key areas you need to focus on:
- Tidy up your bank reconciliations
- Categorise and upload receipts
- Review and update your invoices
- Update your financial dashboard
- Tackle a quick financial win
We’re deeply inspired by small business owners like you, always striving for their best, determined to follow their ambitions. That’s why we don’t want you to be held back by endless bookkeeping tasks. If these tips don’t do the trick then reach out to your accountant or bookkeeper (or us!) and ask them to take on some of the work for you.
Starfish is here to empower you to make smarter financial decisions for your small business, so that you can continue to grow your impact. Don’t forget to take the Financial Quick Wins Quiz where you’ll discover three things to transform your small business’ bookkeeping.
