Fun fact: if you own a business, it's important to keep records of all financial transactions related to operating that business for at least seven years.
Now, there are different ways to do this: stuff receipts in an envelope, use only a designated credit card for all purchases, or use software packages, to name a few. At Healthy Bytes, we recommend using Quicken or Quickbooks.
Accounting software packages made for small- to medium-sized businesses that don't require in-depth accounting knowledge to keep finances organized and accurate.
For small businesses, business and personal expenses are generally intertwined. For example, you probably use your cell phone for both your practice and in your private life. Am I right?
Quicken and Quickbooks will let you record such expenses as 50/50 or 80/20 percentage splits between business and personal.
The software packages will also let you download and organize other expenses, like traveling and dues to your local annual Academy conference, as well as buying office supplies. You will be able to easily organize expenses into correct categories monthly or quarterly. This is the type of information that your accountant will want to know about when it comes time to file your taxes!
We find that Quicken is best used for a smaller private practice.
Quickbooks and its features are more helpful if your practice is growing, and you feel more comfortable with accountant jargon.
Both have their pros and cons - try them out and see which fits your practice best!
Both can be easily set up online and linked to all your banking, investment, and credit card accounts. There are many other expense tracking software options out there but so far we have not found anything quite as versatile and integrated!
Check it out at: https://www.intuit.com/
This is not a sponsored post, we just love these resources and hope you find them useful.