Can I Learn To Do My Bookkeeping Online On Quickbooks Online As A Youtube Content Creator?
Can I do my bookkeeping online without hiring an accountant or bookkeeper as an online content creator? Let’s find out!
In this video, I want to review this popular question in our inbox: Can I learn to do my bookkeeping online as a youtube content creator? And the short answer is absolutely.
Now, re dozens of tools and softwarareow available to help online entrepreneurs figure out how to do that- handle their bookkeeping and taxes for their online business.
To name a few of the more popular ones, we have the most popular is Quickbooks online, but then we also have Freshbook, Sage, Xero, and Wave.
Recommended: QBO Quickbooks Online
AT FCF, our recommended software is Quickbooks Online – simply because it is the most widely helpful accounting software, which means you can expect them to be always up to date with the latest; it will also have the most integration available.
Which is essential these days in the world of interconnected technology. You want something that can play nicely with most software solutions you are using. There is a learning curve to using Quickbooks Online. Still, they offer comprehensive tutorials and video guides on using the different functionalities of the bookkeeping software.
The time investment would take to set up correctly would be around 10-12 hours. Understanding your way about as you want to ensure you comply with generally accepted accounting principles is worth the effort.
I will make sure to include a link to the video guides in the description if you guys are looking into getting started on learning how to navigate within QBO.
Guide to QBO here:
Alternative 1: FreshBooks
If you want something with a lesser learning curve, I will go with Freshbooks. It is a newer face on the market. Still, one distinct advantage of using it is they aim for the users that don’t have the business or accounting to understand how to navigate around the UI and what they should be entering.
They are a great tool if your business mainly has a ton of invoices and expenses. I would not recommend Freshbook if you are running an ecom business, as it is not meant to handle that level of transactions.
However, for an online content creator, you would benefit from an easier-to-pick-up bookkeeping tool, so Freshbook should be at the top of your list. I will also include a link below for you guys to check out.
The next area I want to cover is handling your bookkeeping online; there are specific terms you should get famiarilzie with when navigating any bookkeeping software.
We want to give you an introduction to the 5 Common Terms you should know before you jump into doing bookkeeping for your business, and that is:
1. Accounts Receivable
Accounts receivable (AR) refers to a bookkeeping account that holds all unpaid sales invoices for a business. The unpaid sales invoices show the money a customer or client owes to the industry, listed on the balance sheet as an asset. Many companies offer credit terms to their customers, and accounts receivable represents the balance of money owed to a firm for goods delivered or services rendered but not yet paid for by customers. Once the customer submits payment, their invoice is removed from this group.
2. Accounts Payable
An account payable (AP) records all unpaid bill amounts owed by the business to suppliers, other companies, and vendors on any given date by a company. On the balance sheet, you will find accounts payable as a liability. Consider this an IOU to your creditors or suppliers that must be satisfied within a specific time frame to avoid default. Like an AR, this is removed from the balance sheet once the bill is paid.
3. Asset
A term found on the balance sheet is an asset that can be measured and has value or any resource or items owned by your business. Examples of an investment include the following: cash in bank accounts, cash in a petty cash box, accounts receivables, inventory, land, buildings, vehicles, and equipment. Assets also include prepaid rent.
4. Balance Sheet
A balance sheet report shows the business owners and managers how much equity lies in your business, how many assets your company owns, and what outstanding liabilities your business owes. The balance sheet falls in line with the accounting equation. This crucial financial statement provides a snapshot of your company’s financial position at a specific date. Just like taking a family portrait every Christmas and compiling a photo album, you can compare the “pictures” of your business, year to year, to identify any changes.
5. Bank Reconciliation
The final total of debits and credits must match to complete the reconciliation of your accounts. Bank recon is essential because it lets you detect fraud, prevent overdrafts, identify bank errors and forecast cash flow.
6. Break-Even Point
This is the sales volume at which a business can exactly cover its fixed and variable expenses.
7. Cash Flow
The term “cash flow” refers to a report of the movement of cash and cash equivalents (short-term, liquid assets such as treasury bills) into and out of your business. Positive cash flow allows your business to meet current obligations, reinvest and plan for future growth. A cash flow forecast can help your business estimate the income and expenses for the year ahead. These figures will be based on prior earnings and costs and can help companies to work out their sales goals and budget.
8. COGS
Also known as the cost of goods sold or the cost of sales, this metric refers to all expenses directly tied to the sale of products in your inventory. COGS also refers to the cost to your business of any parts or stock sold to customers. For a service-oriented business, this additionally represents the cost of manufacturing expenses and services rendered.
9. Expenses
Expenses refer to money spent or costs incurred to generate sales. Most purchases made by your business are categorized as an expense. These appear on the profit and loss report and can be used to reduce the tax owed to the government. Examples of a fee include wages, utilities, office supplies, and marketing.
10. Revenue
Revenue represents a company’s sales from providing a service or selling a product. Also known as Sales, this is the first line that appears in the Income Statement.
We could introduce dozens more terms here, but this would be an excellent start to get yourself going in the right direction before you start doing your bookkeeping online.
We want to end by letting you guys know WHY accurate bookkeeping matters, and we will let you know 3 reasons:
- Accurate bookkeeping means you understand your financial picture
- Accurate bookkeeping means more significant tax savings at the end of the year
- Accurate bookkeeping means you are ready to sell your business at the end of the day.
