3 metrics for coaches and freelancers to monitor this year
One of my favorite things about working with coaches and freelancers is how quickly insight turns into action.
You don’t have layers of management or endless approvals. When the numbers start telling a clearer story, you can adjust - this month, not next year.
As we head into a new year, here are three metrics I encourage every coach and freelancer to review and track if they want real visibility into their business (not just a bank balance that “feels fine”).
1. Revenue Consistency
Most people know what they made last year. Fewer know how predictable that revenue was.
Track:
• Monthly revenue by client or offer
• Percentage of recurring vs one-off work
• Your average “baseline” month (what comes in even when you’re not launching or hustling)
Why it matters:
Consistency is what creates breathing room. It tells you how risky your cash flow really is - and how much pressure is on future you to keep selling.
2. Burn Rate (your true monthly cost to operate)
This is the metric that surprises people the most.
Burn rate answers one simple question:
How much does it cost to run your business each month before you pay yourself a dollar?
Include:
• Software + subscriptions
• Contractors or support
• Education, marketing, and tools
• Anything required to deliver your service
Why it matters:
A healthy bank balance can be misleading if your monthly burn is high. Burn rate gives context to cash and helps you plan instead of react.
3. Profit after paying yourself
Revenue is vanity. Cash flow is relief. Profit is sustainability.
Track:
• What’s left after expenses
• What’s left after owner pay
• Profit margin
Why it matters:
If the business can’t support you, it’s not actually working. This metric tells you whether your model is viable long-term or quietly exhausting you.
The goal isn’t to stare at numbers all day.
The goal is to let the right numbers answer better questions:
• Can I take time off without stress?
• Is this offer worth the energy?
• What needs to change before I grow?
When coaches and freelancers understand these three metrics, the business stops feeling vague.
If you want, I can help you turn these into a simple monthly check-in you’ll actually use.
Receipt Management
I just wrapped up a cleanup project for a client.
Got the accounts reconciled and the reports accurate. But then we got to the receipts.
They weren’t missing because the expenses weren’t real. They were missing because they were scattered - buried in email threads. glove compartments, and the mental “I’ll get to that later” pile.
Here’s what most business owners don’t realize until audit season:
Your bank statement shows where the money went. The IRS wants to know why it went there.
Without proper documentation:
Legitimate deductions can be disallowed
Profit can appear higher than it actually is
“Clean books” can still carry hidden exposure
What the IRS expects:
• Most receipts kept for at least 3 years
• Asset records kept for the life of the asset + 3 years
• Loss-related records kept for up to 7 years
Digital records are perfectly acceptable - as long as you can actually find them when you need them.
So here is a simple system for 2026 that you can set this up this week:
1. Create one folder: “2026 Business Receipts”
2. Add 12 subfolders (Jan–Dec)
3. Commit to a weekly save routine, not “eventually”
4. Add a short note for anything that won’t be obvious six months from now
No expensive software required. Just a system you’ll actually use.
What’s your current approach to receipt management? I’d love to hear what’s working or what still feels painful for other business owners.
Systems Rather than New Resolutions
I’ve never been much for New Year’s resolutions.
Not because I don’t care about growth or goals but because I’ve learned that lasting change doesn’t come from a single declaration on January 1st. It comes from what you practice on an ordinary Tuesday in February.
Resolutions tend to focus on outcomes:
“This year I will…”
But real progress is built through repetition, systems, and consistency…the small actions we return to daily, weekly, and monthly.
Don’t get me wrong…goals are useful. They give us direction.
But systems are what actually get us there.
You don’t become healthy because you decide to be healthy once a year.
You become healthy because you:
Prepare meals regularly
Move your body most days
Sleep enough
Check in with yourself consistently
Those are systems, not resolutions.
In my own life and business, I’ve learned that the goals I care about most are achieved by structure.
The actions that create real change are rarely dramatic.
They look like:
Reviewing your calendar each Sunday
Checking your numbers monthly instead of avoiding them
Keeping your books up to date so you’re not scrambling later
Making time for rest before burnout forces it
None of this goes viral.
But it works.
Consistency compounds—slowly at first, then all at once.
Daily, Weekly, Monthly Practices (What Actually Compounds)
Instead of asking, “What do I want to accomplish this year?”
I’ve learned to ask different questions:
What do I need to practice daily?
The small things that keep me grounded—showing up, following through, doing what I said I would do, even when it feels ordinary or unremarkable.
What do I need to review weekly?
A pause to notice what’s working and what’s starting to feel off. A chance to reset before things pile up or I drift too far from what matters.
What needs a monthly check-in?
Space to zoom out. To look for patterns. To remind myself why I’m doing what I’m doing—and adjust without judgment.
These daily, weekly, and monthly practices compound quietly over time.
They create steadiness, especially in seasons that feel busy, uncertain, or heavy.
And they take the pressure off perfection.
I don’t have to get it right every day.
This Year, I’m Practicing
Showing up consistently
Practicing the habits that support my values
Refining the systems that hold my life and business together
Trusting that small actions, done often, lead exactly where I want to go
What about you…resolutions or constant practice and slow adjustments?
Understanding Cash vs. Profit
You check your bank account and see a healthy balance. Business must be great, right? Not necessarily. Or maybe your bank account is nearly empty, but your profit and loss statement shows you’re making money. What’s going on?
This disconnect between cash and profit confuses countless business owners, and understanding the difference could mean the difference between thriving and becoming another statistic.
Your bank balance is just a snapshot of one moment in time. Profit, on the other hand, measures whether your business is viable by comparing what you’ve earned against what it cost you to earn it, regardless of when money actually changes hands.
Here’s a simple example. In January, you invoice a client $10,000 for completed work and pay $2,000 in expenses. Your profit is $8,000. But if that client hasn’t paid yet, and you only collected $3,000 from a different old invoice, your bank account only increased by $1,000.
You were profitable by $8,000, but your cash only grew by $1,000. That’s the disconnect.
Just A Few Reasons Your Bank Balance is Deceiving
1. Timing Differences: You record revenue when you earn it, not when you get paid. Invoice a client with 30-day terms? You show profit now, but won’t see cash for a month while you still have bills to pay today.
2. Loan Payments: Only the interest shows as an expense on your P&L, but the full payment (principal + interest) comes out of your bank. A $1,500 payment might only show $300 in expenses, but your bank account drops by the full amount.
3. Owner Draws: Money you take out as an owner doesn’t show as an expense. Your business can be profitable while your bank balance shrinks from regular draws.
You need both numbers because they tell you different things:
Profit tells you: Is your business model viable? Are you pricing correctly? Can you sustain long-term?
Cash tells you: Can you pay bills this month? Are customers paying on time?
Seven Action Steps
- Run both reports monthly - Review your P&L alongside your cash flow statement
- Forecast your cash - Project when money comes in and goes out over the next 90 days
- Monitor receivables - Set up a collections process and follow it consistently
- Build reserves - Aim for one to three months of operating expenses in the bank
- Know your conversion cycle - How long from spending money until collecting from customers?
- Set smart payment terms - Balance winning customers with sustaining your cash flow
- Time large purchases - Don’t make major outlays right before slow seasons
The Bottom Line
Your bank balance and profitability measure different things. A healthy business needs both positive profit (proving your model works) and positive cash flow (proving you can sustain operations).
Too many business owners panic when cash is low despite being profitable, or spend freely when cash is high despite losing money. The businesses that thrive understand both metrics and manage accordingly.
Need help understanding your business’s cash flow vs. profitability? At Just Bookkeeping, we help business owners see the complete financial picture. Our monthly bookkeeping services include both profit and loss statements and cash flow analysis, giving you the clarity you need to grow sustainably. Contact us to learn how we can help you understand your numbers.
How Quarterly Taxes Work & How to Estimate What You Owe (with an impending deadline of Jan 15th coming up).
Another quarterly tax deadline is right around the corner, and if you’re self-employed, you’ve probably felt that familiar mix of confusion and stress:
“How much am I supposed to pay?”
“How does the IRS even calculate this?”
“What if I get it wrong?”
Quarterly taxes sound complicated, but once you understand the basics, they’re surprisingly manageable…particularly when you have clean books to work from.
What Are Quarterly Estimated Taxes?
When you work a regular job, taxes are taken out of every paycheck automatically. When you work for yourself, that doesn’t happen.
Instead, the IRS expects you to pay taxes throughout the year based on your profit.
These payments are called quarterly estimated taxes, and they cover:
• Federal income tax
• Self-employment tax
• State income tax (if you live in a state like California)
If you expect to owe $1,000 or more in taxes for the year, you’re required to pay quarterly.
This includes:
• Freelancers
• Coaches
• Consultants
• Contractors
• LLC owners
• Service-based businesses
• Anyone earning self-employment income
When Are Quarterly Taxes Due?
Here are the four IRS deadlines:
• January 15
• April 15
• June 15
• September 15
They do not line up with normal calendar quarters, so don’t try to make sense of that part — just mark the dates on your calendar.
What Goes Into Your Quarterly Tax Payment?
Your quarterly payment is based on your profit, not your revenue.
Profit = income minus business expenses
Each payment includes:
• Self-employment tax (15.3% for Social Security + Medicare)
• Federal income tax (based on your tax bracket)
• State income tax (varies by state)
If your bookkeeping is behind, this becomes almost impossible to calculate accurately.
How to Estimate Your Quarterly Taxes
Here are two simple methods, depending on how accurate you want to get.
Option A: Quick Rule-of-Thumb Method (Good for fast estimates)
Set aside:
• 25–30% of your profit for federal taxes
• 5–10% extra for state taxes if you live in a state like California
Most small service-based businesses land in the 30–40% total range.
This isn’t perfect, but it’s safe and keeps you out of penalty territory.
Option B: More Accurate Method (If your books are current)
1. Look at your year-to-date profit in QuickBooks.
2. Multiply that number by 15.3% for self-employment tax.
3. Add the percentage for your income tax bracket.
4. Add state tax if applicable.
5. Divide that number by four to get your quarterly estimate.
This is the method most accountants use but it starts with clean books.
What Happens If You Underpay?
The IRS charges underpayment penalties if you:
• Don’t pay enough throughout the year
• Pay late
• Try to “catch up” only at tax time
The good news:
Paying something is always better than paying nothing.
And estimating based on your actual profit greatly reduces the risk of penalties.
Why Bookkeeping Makes Quarterly Taxes Easy
When your bookkeeping is up to date, quarterly taxes become simple:
• You always know your real profit
• You can calculate accurate estimates
• No guessing, no surprises
• You avoid penalties
• You keep more of your money organized for taxes, instead of scrambling later
Bookkeeping isn’t just about tracking; it’s about giving you financial clarity so you can make smart decisions all year long.
If the upcoming deadline is stressing you out, I can help.
If you’re unsure what to pay — or if your books are behind and you need a clear profit number — I can review your numbers and estimate your quarterly payment for you.
Year-End Reminder: Review Your Outstanding Invoices
As the year comes to a close, it’s easy to focus on wrapping up client work, planning for the new year, or taking a well-earned break. But before you log off for the holidays, there’s one simple step that can make a real difference in how you start next year.
Review your outstanding invoices and follow up on any unpaid balances.
This quick review can improve your cash flow, help you close the books cleanly, and ensure you’re not leaving money on the table as you head into a new year.
Why It’s Worth Doing Now
Many small business owners put off checking on unpaid invoices because they don’t want to feel “pushy.” But this isn’t about chasing people down; it’s about closing the loop on the work you’ve already delivered.
By reviewing your invoices now, you can:
• Make sure all services completed this year have been invoiced
• Send friendly reminders before clients disappear for the holidays
• Clean up your accounts receivable for a more accurate year-end snapshot
• Enter the new year with stronger cash flow and a clear financial picture
How to Review Your Invoices
1. Run an A/R (Accounts Receivable) Report
• If you use QuickBooks Online or another bookkeeping system, run a report of all open invoices.
• Look for anything past due or unpaid.
2. Double-Check Your Records
• Make sure all completed projects have been invoiced.
• If you took partial payments or deposits, confirm those are recorded correctly.
3. Send a Friendly Reminder
• A short, polite email goes a long way.
4. Decide on Any Write-Offs
• If you’ve made every effort to collect and know a payment won’t come through, flag it for discussion with your accountant before year-end.
5. Set a Process for the New Year
• Going forward, use automated invoice reminders or review your payment terms to keep things on track.
A Small Step with a Big Impact
Clearing up your outstanding invoices now gives you a clean, accurate picture of your income for the year — and helps ensure you’re not carrying unpaid balances into January. It frees up your mental space. There’s something deeply satisfying about closing the books on a year knowing your payments are current, your reports are accurate, and your business is truly ready for what’s next.
Tax-Saving Strategies That May Apply to Your Business
If you run a service-based business, the money you keep matters just as much as the money you make. One of the simplest ways to protect your profit is to understand the deductions and credits you may be eligible for. Many business owners miss legitimate opportunities simply because they aren’t tracking their expenses or no one has explained what to look for.
Below is a streamlined list of common areas to review with your tax professional to see what might apply to your small service-based business.
Home Office Use
If you use part of your home exclusively and regularly for business, speak with your tax accountant about whether the home office deduction may apply and what documentation is required.
Mileage and Vehicle Use
Business-related driving is often overlooked. Client visits, supply runs, and travel to meetings may qualify. Mileage tracking throughout the year is helpful when discussing this with your tax professional.
Tools, Equipment, and Supplies
Many service businesses invest in tools, technology, or equipment. Your accountant can advise whether Section 179 or other rules may apply to recent purchases.
Software and Subscriptions
Service-based businesses rely on online tools—such as scheduling platforms, accounting software, CRM systems, website hosting, and digital services. These recurring costs may be relevant when reviewing deductible business expenses.
Retirement Contributions
Self-employed retirement accounts like SEP IRAs or Solo 401(k)s can reduce taxable income while building long-term savings. Ask your tax professional which options fit your situation.
Health Insurance
Self-employed individuals may be able to deduct certain health insurance premiums. Your accountant can determine whether you qualify based on your income and filing status.
Business Meals
Meals tied to client interactions, vendor relationships, or business travel may be partially deductible. Be sure you understand the documentation requirements before claiming them.
Contractor and Employee Costs
Payments to subcontractors, part-time workers, virtual assistants, or seasonal help may be deductible business expenses. Your accountant will guide you on proper reporting.
Education and Professional Development
Courses, certifications, memberships, and training connected to your business may be relevant during tax review. Keeping clear records throughout the year helps ensure nothing is overlooked.
Most missed deductions come from missing receipts, untracked mileage, unclear contractor payments, or waiting until tax season to organize the books. When your records are accurate and up to date, your accountant can more easily identify opportunities that apply to your business.
A good bookkeeper can help you maintain clean, consistent books year-round, giving your tax accountant the clarity they need to advise you properly and ensure you are not overlooking potential savings. At Just Bookkeeping we also like to liaison with your tax accountant to ensure that we are staying up on top of the changing tax laws and how the deductions should be tracked.
If you're preparing for year-end or planning ahead for 2026, we’re here to support you.
The Importance of Bookkeeping
I’ll admit it, for years, I didn’t give bookkeeping the credit it deserved. As an accountant, I saw it as basic, almost administrative work. It wasn’t until I stepped back into a financial analyst role about five years ago that the picture shifted. In the analyst world, there’s a phrase we lean on: garbage in, garbage out. And nothing proves that more clearly than bookkeeping.
If the data going into QuickBooks Online isn’t accurate, customized, and consistently maintained, the reports coming out will never give you the clarity you need. You can’t make confident decisions if the numbers you’re relying on are incomplete, generic, or miscategorized. That realization is one of the main reasons I started this business. I understand the entire accounting system end-to-end, and I know how critical the front-end setup and monthly inputs are to producing meaningful financial insights on the backend.
From a tactical standpoint, this starts with building a chart of accounts that reflects your business - not a generic template that includes categories you don’t use and leaves out the ones you actually need. A standard QBO chart of accounts will never tell the full story of your business. For example, if you don’t pay rent, you don’t need a Rent Expense line cluttering your profit and loss. But if you run an executive coaching firm and purchase client kits or materials, you do need a specific Supplies or Client Materials category so you can track those costs and understand their impact on profitability.
Good bookkeeping isn’t just data entry. It’s the foundation that allows you to see what’s really happening in your numbers and make decisions with confidence. When the inputs are thoughtful, consistent, and tailored to your business, everything that flows from them becomes exponentially more useful.
Bookkeeping Is Like Going to the Gym (and Why You’ll Thank Yourself Later)
You know that feeling when you really don’t want to go to the gym but once you do, you walk out feeling strong, capable, and a little smug that you did the hard thing. That’s bookkeeping too!
Getting your finances in order is a lot like working out. It’s not always glamorous. It’s not always exciting. But it builds financial strength that powers everything else in your business.
Let’s break it down:
1. Avoidance Doesn’t Make It Go Away
Just like skipping the gym doesn’t make you magically fit, avoiding your books doesn’t make your finances any cleaner. The receipts still pile up. The bank accounts still need reconciling. The tax deadline still looms. That “I’ll deal with it later” mindset only makes the mountain taller to climb.
2. Progress Happens Over Time, Not Overnight
You wouldn’t expect visible abs after one workout and you shouldn’t expect financial clarity after one sit-down with your spreadsheet. Bookkeeping is a consistent practice. Month by month, report by report, you start to see patterns. You catch things early. You make smarter decisions.
3. Accountability Helps
Most of us show up more consistently when we know someone’s counting on us - whether it’s a trainer or a bookkeeper. Having a professional who’s tracking your financial “form,” checking your “reps,” and making sure you’re not overextending yourself. Game changer.
4. It’s About Building Strength, Not Just Avoiding Pain
Sure, you might hire a bookkeeper to avoid tax season panic but what is gain is financial strength. Confidence in your numbers. The ability to hire, invest, or pivot because you know where you stand. That’s business muscle.
5. There Will Be Sweat (But It’s Worth It)
Let’s be honest - there are moments that feel tedious. Organizing transactions. Reviewing expenses. Asking where that random charge came from. But like the gym, the effort you put in pays off. In peace of mind. In readiness. In resilience.
You don’t have to love bookkeeping - or the gym… to appreciate what it does for you. Both build foundations that make the rest of your life better. You show up, you do the work, and before long, you’re running a stronger, more resilient business that’s ready to go the distance.
And a reminder…you don’t have to go at it alone! If you need help finding your financial discipline, Just Bookkeeping is here to help. We are happy to remind you to go to the gym too!
Year-End Review: Take a Look at Your Subscriptions and Business Expenses
As the year wraps up, there’s one task that’s often overlooked but can make a real difference in how you start the new year.
Now is the perfect time to review your business subscriptions, software, and recurring expenses. Doing this before December 31 helps you catch what you’re no longer using, cancel what’s not serving you, and begin the new year with a clean, intentional budget.
Why This Matters Now
Most small business owners subscribe to a handful of tools and services throughout the year - design apps, CRMs, coaching platforms, storage tools, and more. Over time, they add up quietly in the background.
By checking in now, you can:
• Save money by canceling unused or duplicate subscriptions
• Plan ahead for renewals or upgrades you actually need to support your evolving business
• Start the new year organized, knowing every dollar in your budget is being spent with purpose
How to Review Your Subscriptions and Expenses
You don’t need a complicated system to do this. Just set aside an hour of focused time and attention. Here’s how:
1. Pull a list of recurring charges from your bank or credit card statements for the last 3–6 months.
Look for monthly or annual subscriptions you might have forgotten about.
2. Categorize each one as:
• Essential: You use it regularly and it adds clear value.
• Nice to have: You like it, but could do without.
• Cancel: You haven’t used it in months or it overlaps with something else.
3. Decide what to keep or cancel.
• Keep what’s helping you move your business forward.
• Cancel anything that isn’t directly supporting your goals or systems.
4. Plan for next year.
• Note any annual renewals or price increases coming up.
• Consider whether a paid annual plan makes more sense than month-to-month for tools you rely on.
Many business owners are surprised by how much they spend on tools they don’t use and how freeing it feels to clean them up. Doing this now means you’ll start January with clarity and intention, instead of carrying extra costs from the year before. You’ll also get a clearer picture of your true monthly overhead, which helps you plan, price, and make decisions with confidence.
At Just Bookkeeping, we see this small step have a big impact every year. Organized, intentional spending not only improves your bottom line. If you’d like support reviewing your books or setting up better systems for tracking expenses in 2026, we can help you make it simple and stress-free.
“I can do it all…” Until I couldn’t.
When I started my photography studio, I wore every hat. Photographer. Editor. Scheduler. Bookkeeper. Marketing team. Client support. You name it, I did it. And honestly, I prided myself on being able to juggle it all.
The longer I ran the business, the more I realized I was spending less time behind the camera and more time behind a desk. I was burned out, overwhelmed, and felt like I was constantly dropping balls. But I still resisted outsourcing. Why?
Because I thought:
• “No one will care as much as I do.”
• “It’ll take more time to train someone than to just do it myself.”
• “I can’t afford help.”
Sound familiar?
Finally, I hit a breaking point. I brought on an office manager, and let me tell you… it was a game changer.
She handled the scheduling, emails, deliveries, client follow-ups,… Suddenly, I had space to breathe. I had time to create again. My client experience improved, and ironically - so did my revenue.
I learned that outsourcing isn’t about giving up control. It’s about making space to do what you do best - and letting others help you do the rest.
So whether you’re a creative, coach, or small business owner… if you’re still wearing all the hats, maybe this is your sign: it’s time to let something go so you can grow.
Why Bookkeeping Matters for Your Taxes (and Your Peace of Mind)
Tax season is almost upon us! If it makes your shoulders tense up, you’re not alone. For many small business owners, the stress doesn’t come from the taxes themselves—it comes from not knowing where things stand. Clean, consistent bookkeeping changes that entirely. It gives you clarity you can actually exhale into.
When your books are up to date, you always have a clear picture of your financials. You’re not scrambling for numbers or digging through emails in March. You’re not guessing at what you might owe. Instead, you’re operating from solid, accurate information all year long.
This level of organization also ensures you capture every deduction you’re entitled to. Missed receipts and uncategorized expenses add up quickly. Proper bookkeeping keeps more money in your business and helps you avoid surprises or penalties because you’re setting aside the right amounts for quarterly taxes.
And here’s something many owners don’t realize: good bookkeeping gives your tax professional the ability to actually plan. Strategy requires data. When your numbers are current, your CPA can guide you in reducing your tax burden before it’s too late—not after the year has already closed.
One more practical benefit? Bookkeeping itself is a tax-deductible expense. The support you invest in reduces the income you’re taxed on. You gain clarity, organizational support, and peace of mind—while also lowering your liability.
When tax season arrives and everything is already organized, categorized, and ready to hand off, the entire process becomes simpler, calmer, and more predictable.
Accurate books don’t just support your business growth.
They support your wellbeing.
They help you breathe easier, make smarter decisions, and approach tax season without the overwhelm.
Year-End Reminder: Collect Those W-9s Now
As the year winds down, it’s the perfect time to make sure your financial ducks are in a row — starting with one simple but important task: collecting W-9 forms from your contractors.
If you’ve paid freelancers, virtual assistants, or other service providers this year, you’ll need their W-9 information to prepare 1099-NEC forms in January. Taking care of it now saves time and stress later.
Why W-9s Matter
A W-9 gives you the key details you’ll need for tax reporting — your contractor’s legal name, address, and tax ID number. Without it, you risk delays, filing penalties, and an unnecessarily hectic start to tax season.
Collecting W-9s now means smoother reporting, fewer headaches, and a more organized January.
Who Needs to Give You a W-9
Request a W-9 from anyone who:
• Is U.S.-based
• Was paid $600 or more this year
• Is not your employee
You can skip the W-9 if:
• The vendor is a corporation (C or S Corp)
• You paid for products or subscriptions only
• You paid via credit card or PayPal (those are reported separately by the processor)
How to Collect W-9s
Getting W-9s in place is simple:
1. Make a list of everyone you paid for services this year.
2. Send them this link: irs.gov/FormW9.
3. Save each completed form securely and share them with your bookkeeper.
Pro tip: If you use QuickBooks Online, you can request and store W-9s automatically.
Best Practice Going Forward
While year-end is a great time to get caught up, the ideal time to collect a W-9 is before you send the first payment to a new contractor. Building this step into your process saves time later and keeps everything clean for tax season.
By taking care of this now, you’ll head into the new year organized, compliant, and ready — no scrambling required.
Project tracking
A few months ago, I started working with a small creative studio that was booked solid. From the outside, everything looked great - steady clients, full calendar, and a busy team.
However, when I asked, how they were tracking profitability of specific projects, there was a long pause.
They were tracking total income and expenses, but nothing by project. Every deposit went into one account, every payment came out of another, and that was the end of it. They had no way to see which work actually brought in profit and which just kept them busy.
Without project-level tracking, everything blended together. The business looked successful, but the owner couldn’t tell:
Which clients or services generated the most income
Which projects consistently went over budget
Where time and money were quietly slipping away
Relying on the bank balance instead of clear, project-based data is a common challenge for small businesses.
We restructured their bookkeeping to track income and expenses by project. Every invoice, payment, and cost was linked to a specific client or job.
Within weeks, the story changed:
Projects that seemed profitable were actually breaking even once expenses were allocated
Smaller jobs often produced higher margins
Some client relationships weren’t sustainable once true costs were visible
With clear project reports, they could finally make confident decisions:
Raised prices on low-margin services
Focused on the types of projects with the best return
Built realistic budgets based on past data
Within three months, profitability improved and for the first time, the owner could see exactly where their money was coming from.
This type of categorization can be especially useful for freelancers, photographers, coaches, facilitators,… that need to tie expenses to specific clients or projects for reimbursement or just to help track profitability to inform future pricing decisions.
If you fall into any of these categories, are you tracking this way? If not, feel free to reach out for a discovery call to see if it’s something that would work well for your business.
Don’t Close Out the Year Without Doing These 3 Things
As we approach the end of the year, now is the perfect time to get your books in order before tax season hits. Whether you manage your own finances or work with a bookkeeper, taking a few simple steps now can save you time, money, and headaches later.
Here are 3 important bookkeeping tasks you should complete before December 31st—and why they matter:
Organize and Categorize Expenses
What to do: Clean up uncategorized expenses, upload missing receipts, and separate business vs. personal transactions.
Why it matters: Proper categorization maximizes tax deductions and keeps you compliant. It also prevents red flags during an audit.
Reconcile All Accounts
What to do: Reconcile your bank accounts, credit cards, loans, and payment platforms (PayPal, Stripe, Square).
Why it matters: Ensures your financial records are accurate and complete before filing taxes. It also helps catch missing transactions or potential fraud.
Review Accounts Receivable & Payables
What to do: Follow up on outstanding invoices and pay any vendor bills due before year-end.
Why it matters: Improves cash flow, ensures accurate income reporting, and helps present a clean balance sheet going into the new year.
Why Attaching Receipts in QuickBooks is a Game-Changer for Your Business
I recently wrapped up a catch-up project for a small business, and one of the biggest takeaways was how much smoother everything runs when receipts are properly attached in QuickBooks. It might seem like a small detail, but this simple habit can save hours of time, prevent headaches during tax season, and keep your business financials audit-ready all year long.
The Power of Attaching Receipts
When you attach receipts directly to transactions in QuickBooks, you’re creating a clear paper trail that shows exactly what was purchased, when, and why. This is especially helpful when:
• Reconciling Accounts: You can quickly verify charges and spot errors before they become bigger issues.
• Preparing for Taxes: Organized records mean your CPA or tax preparer spends less time sorting through documents—and you spend less money on billable hours.
• Handling Audits: Should the IRS or state tax agency ever ask for proof, you have everything stored neatly in one place.
Best Practices for Receipts in QuickBooks
• Use the Mobile App: Take a picture of receipts as soon as you get them so they never get lost.
• Keep Descriptions Consistent: Add notes to transactions so anyone reviewing your books knows the purpose of each expense.
• Don’t Mix Personal and Business: Keep your books clean by keeping personal expenses out of your business accounts.
And remember—always check with your CPA or tax preparer for the best advice on how to handle expenses and deductions for your specific business situation.
A Small Step with Big Impact
Attaching receipts might feel like a minor task, but in reality, it’s one of the simplest ways to keep your financial records accurate and complete. Whether you handle your own bookkeeping or work with a professional, this habit sets you up for fewer surprises and more confidence when making business decisions.
Am I Messing This Up?
Let’s be honest for a second—because I hear this all the time.
“I think I’m totally messing up my finances”.
Sound familiar?
Most small business owners I talk to carry around this quiet fear that they’re dropping the ball somewhere—especially when it comes to their books.
And the truth is, you might be behind.
You might have a shoebox full of receipts or a QuickBooks account you haven’t opened in six months.
But here’s what I want you to hear:
You’re not a bad business owner. You’re a busy one.
That anxious feeling around your finances? It’s not just about missed reconciliations or overdue invoices.
It’s about wondering...
Am I doing this right?
Is this going to come back to bite me at tax time?
Am I even making money—or just busy all the time?
You want to do things right. You want to feel confident. But when the backend of your business feels messy, it’s easy to feel like you’re failing—when really, you’re just doing too much on your own.
Here’s the Good News
You don’t have to stay stuck in that feeling.
The overwhelm, the avoidance, the guilt—it all starts to lift the moment you decide to get support. And as someone who knows…it’s never as bad as you think.
Once we bring your books up to date and get a clear picture of where things stand, you finally get to breathe again. You can make decisions with confidence. You stop second-guessing everything. And you start focusing on what you’re actually good at—running your business.
So… Are You Messing It Up?
Honestly? Probably not nearly as much as you think. But if it’s been weighing on you, that’s reason enough to get a little help.
At Just Bookkeeping, we specialize in working with small business owners who are ready to clean things up and move forward—with support, not shame.
We’ll meet you where you are. No finger-pointing. No financial jargon. Just clear, reliable help to get your books back on track.
Book a free clarity call here.
What to Do If You’re Behind on Your Bookkeeping
Here we are halfway through the year. Have you been keeping up with your bookkeeping?
Falling behind on your bookkeeping happens to more small business owners than you’d think. Life gets busy, receipts pile up, and before you know it, you’re months behind. First of all—take a breath. It’s fixable. Whether you’re scrambling ahead of tax time or just want to get a clearer picture of your finances, here’s what to do if your books are behind:
1. Don’t Panic—Start with a Reality Check
Take stock of how far behind you actually are. Knowing the scope of the catch-up work will help you plan your next steps. Open up your accounting software or bank statements and figure out the last time everything was up to date.
2. Gather Your Financial Documents
You’ll need:
Bank and credit card statements
Receipts for large purchases
Loan or financing documents
Payroll reports (if applicable)
Prior tax filings
Any software or reports that track sales, invoicing, or revenue
Even if things aren’t perfectly organized, pull everything you can into one spot. If you work with a bookkeeper (or plan to), this will save a lot of time.
3. Decide Who’s Doing the Work
Are you going to tackle the catch-up bookkeeping yourself, or hire help? If it’s only a few months and your books aren’t too complex, you might be able to manage it. But if you’re behind more than a year, have multiple accounts, or need things clean for tax purposes, hiring a professional can save time, stress, and costly mistakes.
4. Rebuild Month by Month
If you’re doing it yourself, go one month at a time. Reconcile each account, categorize your income and expenses, and make sure your records match your bank statements. Don’t skip ahead—staying in order ensures your reports are accurate.
5. Communicate with Your Tax Professional
If you're catching up to prepare for tax filing, loop in your CPA early. They can tell you exactly what reports they’ll need and may offer guidance on how to structure your financials to make their job (and yours) easier.
6. Put a System in Place Moving Forward
Once you’re caught up, the real win is not falling behind again. Schedule time each month (or week) to reconcile accounts, or set up a monthly bookkeeping service to take it off your plate. Keeping up with your books regularly saves you time, money, and last-minute stress.
Need Help Catching Up?
At Just Bookkeeping, we specialize in getting your books up to date and setting you up for consistent, ongoing monthly bookkeeping. Whether you're a few months behind or it’s been a while, we’ll help you get clarity and control over your finances—so you can mind your business, not your books.
Disclaimer: This post is for informational purposes only and should not be considered financial or tax advice. Please consult your tax professional for personalized guidance.
Why Having Your Spouse Do Your Bookkeeping Might Not Be the Best Idea
When you’re running a small business, it’s natural to turn to the people closest to you for help. That’s exactly what one of our clients did. Her business was growing faster than expected, and with expenses piling up and client payments coming in, she needed someone to help keep things organized. Her husband offered to step in and manage the books—just until things “settled down.”
At first, it seemed like the perfect solution. He was good with spreadsheets, and they figured they could save money by keeping the task in-house. But as time went on, the cracks started to show. Transactions went uncategorized for months. Bank reconciliations were incomplete. And when it came time to file taxes, they had no clear reports to share with their CPA. What started as a thoughtful gesture quickly turned into a point of stress between them—and a source of tension in the business.
The truth is, bookkeeping is more than just data entry. It requires accuracy, consistency, and an understanding of how your financials tell the story of your business. And when a spouse takes it on without the proper background or systems in place, even small mistakes can compound. More importantly, it can blur the lines between personal and professional life—making it hard to have objective conversations about money, mistakes, or growth.
Eventually, this client came to us for help. We cleaned up the books, put consistent systems in place, and gave both partners peace of mind. Her husband was relieved to step out of the role, and she felt a huge weight lifted knowing her numbers were finally reliable. Their working relationship shifted back to support rather than strain.
There’s nothing wrong with accepting help from your spouse—but when it comes to bookkeeping, it’s worth considering whether a professional might be the better long-term solution. Your business deserves accurate, timely financials—and your relationship deserves a little less stress.
Labor as a Percentage of Revenue
Labor is often one of the largest expenses for small businesses—whether that’s payroll, subcontractors, or even your own time. Tracking how much of your revenue goes toward labor helps you:
Understand your profitability
Spot potential overstaffing or inefficiencies
Make informed decisions about pricing, hiring, and scaling
It’s especially important for service-based businesses, where labor drives revenue.
Calculation
Labor % = (Total Labor Costs ÷ Total Revenue) × 100
Include in Labor Costs:
Gross wages or salaries
Payroll taxes
Benefits (if applicable)
Independent contractor payments (1099s)
Example:
If your business earned $50,000 in revenue this month and you spent $20,000 on labor:
($20,000 ÷ $50,000) × 100 = 40% labor-to-revenue ratio
What’s a Good Benchmark?
Under 30% is excellent for many industries
30–50% is common for service-based businesses
Over 50% may indicate the need to evaluate efficiency, pricing, or workload balance
These ranges vary by industry, so context matters—but consistent tracking will help you identify trends and issues over time.