hi Steve Crisler here from BookkeepingLife today I want to talk about how to
do bookkeeping as a freelance bookkeeper
so the question is what is bookkeeping bookkeeping is tracking transactions
which means tracking every penny every single penny that comes into a business
and goes out of a business it's tracking that money it also tracks how much money
is owed so it doesn't necessarily mean that the money has already moved but
your money is actually owed so it could be money that's owed to others or money
that's owed to the business so you're tracking money every single penny of a
business needs to be tracked and that's what bookkeeping is is tracking those
transactions every time the money moves or is owed that is a transaction that
needs to be tracked so that is bookkeeping in its most basic definition
so then the question is is what does a freelance bookkeeper do so obviously
from that definition a freelance bookkeeper would actually track those
transactions and then it's how does that but how does that bookkeeper do that
house that freelance bookkeeper do that so the in general there well a
bookkeeper can do a lot of additional things like payroll and you know collect
people's mail for them and go through their mail actually write the checks
deposit money at the bank and stuff like that but in general those are kind of
added on bookkeeping services but in general just a general bookkeeper is
going to track those transactions that a company has okay so what they need to do
first is get statements of those transactions from the client so that
they're either going to get their bank and credit card statements one way or
the other from there's a couple different ways to do that but which I
won't go into right now but you want to get those transactions from the client
so that they can record those transactions so you're going to get the
transactions from the clients so that you can record those transactions into
software then you're gonna in that software
you're gonna put them into categories so I'm gonna get the statements get the
list of transactions take that list transactions put it into software into
categories and the categories are things such as income money coming in money
going out could be likes for supplies equipment wages meals travel all those
types of different categories that you've probably heard of already so
that's that that's the transit that's the categories for the transactions so
you have all these transactions they need to be tracked track them in
software you put them into categories and once they're in those categories you
can generate reports out of that software so you've got all these nice
categories filled up with the transactions you can generate reports
out of the software and the software does this automatically it'll create
profits and losses balance sheets all kinds of different reports all just a
couple clicks of the mouse so you don't have to know how to create all those the
software does that already so that's the what is bookkeeping and what does a
freelance bookkeeper do right now why is this being done the question of why it
really comes down to a couple things one the business owners need to be able to
make wise business decisions they need to be able to determine if the business
is profitable they they need to be able to if it's really making money it's a
lot of business owners think they're making all kinds of money but they don't
because they see a lot of money coming in but they they're really unaware of
their expenses so I found that most people are really aware of how much
money they make but they're not aware of how much money they spend so this helps
the business owners see that full picture and make wise business decisions
they need to be able to set it aside money for taxes the the reports are
extremely beneficial to and necessary for a tax preparer to take that
information and prepare taxes off of that
information so this it's bookkeeping is a mandatory business activity business
has to have bookkeeping in order to not only make wise business decisions but to
be able to do taxes too but it also helps a business make decisions as far
as you know retire it's putting money into retirement for themselves and their
employees to scale the business by necessary stuff new equipment that kind
of stuff for the business supplies for the business when they can make these
purchases and not go in the negative so all this information is extremely
important for the business owner you know for for wise business decisions and
paying taxes and doing tax returns so that's the what is bookkeeping what is a
freelance bookkeeper do and why it's all done so hopefully it answers that big
question those big questions so if you have any questions just email me at
Steve@bookkeepinglife.com or you can leave a comment in the comment section
below I'm always on top of all that stuff I'll answer your questions as they
come in and you can like I said you can email me directly with any questions I
have a couple programs that I teach people how to start and grow their own
bookkeeping businesses and theirs have been very effective so you can email me
on those or see the information below on those but you can do bookkeeping it's
not a difficult thing to do as long after you know what to do and how to end
they get the tools to do it and I teach people how to do all that stuff but
anyways you can contact me if you want and if you like this video like and
subscribe and I hope you have an excellent day in the world of
bookkeeping take care hi everyone if you'd like to
learn more I have a free webinar where I teach you how to quickly set up your own
home-based bookkeeping business so you can start earning that extra thousand
dollars a month or more in that webinar you learn my step by step formula to
getting bookkeeping clients you'll learn how to set up your new bookkeeping
business from scratch so you have more control over your time
in your life and many more freedoms that come with it so if you'd like to sign up
for that free webinar just click the link in the description below and I'll
see you there also hit the subscribe button