1. Monthly Money Management
5 tips to point you in the right direction

2. Dawn Klevesahl – Professional Bookkeeper
Bookkeeper since 2004
Founder of Stress Free Tax Season, LLC (2007)
QuickBooks Proadvisor
Xero Certified Professional
Certified Professional Bookkeeper
Dawn Klevesahl – Professional Bookkeeper
Stress Free Tax Season, LLC

3. 5 Tips to Point you in the Right Direction
Decide which QuickBooks version is best for you, the entrepreneur.
Have dedicated business bank account
Import your transactions directly into your accounting software
Be familiar with accounting terminology as it relates to your direct sales business Know what the Chart of Accounts (COA) is and how to use it
Know what the Chart of Accounts (COA) is and why it is important.
Monthly Money Management System - Stress Free Tax Season, LLC

4. Tip 1: Decide which QuickBooks version is best for you, the entrepreneur
I have heard of QuickBooks Self-employed – what is it?
Basic enter income and expenses, online banking, $5-$10/month
What other versions of QuickBooks are there?
Desktop – One time purchase – usually in the hundreds of dollars – limited updates – purchase new yearly.
QuickBooks Simple Start – Similar to self-employed but you can add two accountant users so your bookkeeper and your CPA have live access to help you when you need it. $10-$13/month
QuickBooks Essentials – 3 users, enter bills, automatic invoicing, more reports, $18- $27/month
QuickBooks Plus – 5 users – inventory tracking, more robust reporting, $24-$40/month
Visit this site to sign up
Monthly Money Management System - Stress Free Tax Season, LLC

5. Tip 2 – Have a dedicated business bank account
What do I mean by a “dedicated business bank account”?
This is a bank account that you will open solely for the purpose of tracking your business income and expenses.
It does not have to be a “business” account by bank standards. Avoid higher fees by fees by choosing a personal account for business purposes for your Sole Proprietorship. If you register as an LLC or Corporation this does not apply.
Make sure your bank can link your account to the bookkeeping software.
Make sure that you are able to view checks and deposits online.
Bank recommendations
Chase or Wells Fargo
Avoid Bank of America – lots of fees
Monthly Money Management System - Stress Free Tax Season, LLC

6. Tip 3: Import your transactions directly into your accounting software
It increases efficiency, saves time, and keeps you from making mistakes.
It puts all of your transactions into one place where you can view and adjust them as they are added to the accounting software.
** Always review and adjust these transactions before clicking add! Accounting software likes to help you by suggesting the expense or income account and sometimes it is WRONG***
It can remind you to double check your receipts
For instance, you have checked your receipts to the downloaded information and you have one or two that did not match up. What does that mean? It means that it is time to ask yourself a few questions.
Did I accidently use my personal credit card for a business expense?
Did I pay cash instead of debit/credit card for this purchase?
Is this a personal receipt that got mixed in with my business receipts?
Monthly Money Management System - Stress Free Tax Season, LLC

7. Monthly Money Management System - Stress Free Tax Season, LLC
Tip 4: Be familiar with accounting terminology as it relates to your direct sales business
Every industry has it’s own terminology and while it is useful within that industry it can also be very confusing! Upline, downline, commissions!
Fortunately, it is easy to make friends with the terminology for running your business and the terminology for managing your accounts!
As a consultant for your chosen business you likely be paid on commission for the sales that you make. To record this in QuickBooks us the “Sales Income” account.
You will purchase a website, business cards, flyers etcs. These items are “Advertising Expenses”
Samples and kit refills that are used to generate more income into your business are considered your “Office Expenses”
Any items purchased for personal use should be recorded to “owner’s draws”
Monthly Money Management System - Stress Free Tax Season, LLC

8. Monthly Money Management System - Stress Free Tax Season, LLC
Tip 5: Know what the Chart of Accounts (COA) is and why it is important.
When you first set up your QuickBooks Online Account you will answer industry specific questions and QuickBooks will set up your Chart of Accounts for you!
The COA is the list of accounts your business uses to record transactions.
This includes: things you own = Assets, thing you owe = Liabilities, and things you invested in or took from (draw) the company = Equity
It is where the information for all your reports comes from
At least two accounts for every transaction
Often QuickBooks is doing one side of the transaction while you add the other side.
For example, if you are writing a check into the check register then one side of the transaction is the BANK ACCOUNT and the other side of the transaction is the EXPENSE ACCOUNT.
Monthly Money Management System - Stress Free Tax Season, LLC

9. Your Profit and Loss Statement accounts
Income Sales Income Returns
Cost of Goods Sold*
Materials/Supplies Labor
Expenses
Advertising Automobile Expense Bank Charges Office Supplies Telephone Expense
*When supplies and labor will be used for a specific event
Net Income = Income – Cost of Sales - Expenses
Monthly Money Management System - Stress Free Tax Season, LLC

10. Your Balance Sheet accounts
Assets
Bank Accounts Cash on Hand account
Liabilities
Sales Tax Payable Credit Cards Payable
Equity
Owner’s Draw or investment
Assets = Liabilities + Equity
Monthly Money Management System - Stress Free Tax Season, LLC

11. Monthly Money Management System - Stress Free Tax Season, LLC
Added bonus! How to create a command center for your business to keep you on track.
Command Center Contents
Table of contents should:
Buy a 3 ring binder
Create a table of contents
Add tabs/dividers
Collect all of the paperwork and receipts to add to the binder
Use the collected paperwork to reconcile your bank and credit card accounts
Add a receipt holder
Include a copy of your COA
Include definitions of terms
List the items that match the tabs you created
Include a monthly checklist
Step 1: Collect Bank and CC Statements
Step 2: Enter financial data from online banking in QBO
Step 3: Enter checks written and deposit made
Step 4: Reconcile accounts
Step 5: Create Profit and Loss Statement and Balance Sheet reports
Monthly Money Management System - Stress Free Tax Season, LLC

12. Monthly Money Management System - Stress Free Tax Season, LLC
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Dawn Klevesahl
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Monthly Money Management System - Stress Free Tax Season, LLC