What’s a Chart of Accounts? And Why Your Business Needs One

If you're a small business owner trying to stay on top of your finances, you’ve probably heard the term “chart of accounts” thrown around, especially if you're setting up QuickBooks, Xero, or chatting with your bookkeeper.

But what is it exactly? And do you really need one if you’re just starting out?

Short answer: Yes.
Longer answer: It’s the foundation of how your finances are organized…and it can save you time, stress, and money.

Let’s break down what a chart of accounts for small business actually is, why it matters, and how to set one up (without the overwhelm).

📚 What Is a Chart of Accounts?

A chart of accounts (COA) is simply a list of categories that your business uses to classify every financial transaction. It’s like the filing cabinet for your money: organizing everything from income and expenses to assets and liabilities.

Think of it as your business’s financial map. It helps you see:

• Where your money is coming from

• Where it’s going

• What your business owns or owes

• How profitable you really are

Each account has a name and a type, and it falls into one of these main categories:

1. Assets – what your business owns (bank accounts, inventory)

2. Liabilities – what you owe (credit cards, loans)

3. Equity – your business’s net worth

4. Income (Revenue) – how your business earns money

5. Expenses – what you spend to run your business

🧠 Why Your Business Needs a Chart of Accounts

You might be thinking: “Can’t I just track my income and expenses without setting up all these categories?”

Technically yes, but here’s why that’s not a great idea:

✅ 1. It Keeps You Organized (and Sanity Intact)

Without a COA, every transaction becomes a free-for-all. A proper chart lets you track every dollar with clarity and confidence.

✅ 2. It Makes Tax Time Way Easier

Your tax deductions (meals, software, advertising, mileage) need to be tracked by category. A solid COA helps you (or your CPA) pull clean records and maximize deductions.

✅ 3. It Helps You Make Smarter Decisions

Want to know if you’re spending too much on tools? Or which service brings in the most money? Your chart of accounts gives you the data you need to adjust, plan, and grow.

✅ 4. It’s Essential for Accounting Software

QuickBooks, Xero, and Wave all run on a chart of accounts. If you’re using software (which you should), a COA is the foundation.

💡 At Breakspears Bookkeeping Services LLC, we create and customize COAs that are tailored to your business, not just the default template.

🧾 What Does a Basic Chart of Accounts Look Like?

Here’s a simplified example of what a chart of accounts might look like for a freelance graphic designer:

Assets:

• 1000 – Business Checking Account

• 1010 – PayPal Account

• 1100 – Accounts Receivable

Liabilities:

• 2000 – Business Credit Card

• 2100 – Sales Tax Payable

Equity:

• 3000 – Owner’s Equity

• 3100 – Owner’s Draw

Income:

• 4000 – Design Services

• 4100 – Template Sales

• 4200 – Affiliate Income

Expenses:

• 5000 – Software Subscriptions

• 5100 – Advertising & Marketing

• 5200 – Office Supplies

• 5300 – Professional Services

• 5400 – Internet & Utilities

Each number and category serves a purpose. Once set up, every transaction you enter will be assigned to one of these accounts.

🛠️ How to Set Up a Chart of Accounts for Small Business

1. Start with a basic template.
   Most accounting tools will give you one, don’t overcomplicate it.

2. Customize based on your industry.
   A fitness coach’s COA will look different from a photographer’s. Add or rename accounts as needed.

3. Stay consistent.
   Don’t change categories every month. Keep it simple and stick with it.

4. Review and revise annually.
   As your business grows, your chart of accounts should evolve too.

💡 Need help setting yours up? We offer custom chart of accounts creation and walkthroughs as part of our monthly packages.

🧠 Pro Tips from a Bookkeeper

• Keep it lean: You don’t need 50+ categories. Too much detail becomes unmanageable.

• Use sub-accounts sparingly for extra clarity (e.g., "Marketing" → "Social Ads," "Print Ads")

• Reconcile regularly so nothing slips through the cracks

• Review reports monthly to spot patterns or surprises

• Use your COA to inform your budget and financial goals

💬 Final Thoughts: A Small Step That Makes a Big Difference

Your chart of accounts for small business might seem like a small, technical setup - but it’s actually one of the most powerful tools in your financial toolbox.

It helps you stay organized, make better decisions, prepare for taxes, and understand your money without the overwhelm. Whether you're just starting out or you're scaling fast, your COA gives structure to your success.

📌 Need Help Setting Up Your Chart of Accounts?

At Breakspears Bookkeeping Services, LLC, we help freelancers, creatives, and small business owners:
✅ Set up QuickBooks Online
✅ Build a custom chart of accounts
✅ Categorize transactions for clarity and compliance

👉 Explore our flat-fee bookkeeping packages
👉 Book a free 15-minute call to get your books set up the right way—right from the start.

Why Most Side Hustles Fail Financially (And How to Avoid It)

Starting a side hustle is exciting. You’re finally turning that idea into income - whether it’s selling products online, offering freelance services, or monetizing a creative skill.

But while starting is easy… staying profitable is where most people stumble.

The truth? Most side hustles fail not because the idea is bad: but because the finances are messy, ignored, or misunderstood.

So if you’re growing a side hustle and want to avoid the most common money pitfalls, read on. These business finance tips for side hustles will help you stay in control, stay profitable, and build something that actually lasts.

🚩 The Most Common Financial Mistakes Side Hustlers Make

Before we dive into the fixes, here are the biggest financial red flags I see when working with new side business owners:

❌ Mixing personal and business finances

All your earnings and expenses live in one bank account, and you’re constantly guessing what’s what.

❌ No tracking of expenses or income

You might be using Venmo, your personal PayPal, or forgetting to record purchases altogether.

❌ Forgetting to save for taxes

You spend the full amount of every payment you receive and are blindsided by tax bills later.

❌ No financial planning or goal setting

You don’t know your profit margin, can’t predict cash flow, and aren’t sure how much you need to earn to make it worthwhile.

💡 Sound familiar? You’re not alone, and the good news is, these are all fixable.

✅ 7 Business Finance Tips for Side Hustles That Want to Succeed

Let’s break down what you should be doing instead….whether you’re earning $200 a month or building your side hustle toward full-time income.

1. Open a Separate Business Bank Account

Seriously, this one action will make everything easier.

Why it matters:

• Keeps your transactions organized

• Helps you track what’s actually business-related

• Makes tax time 10x less painful

💡 You don’t need an LLC to open a business account, many banks offer options for sole proprietors or freelancers.

2. Use Simple Bookkeeping Software from Day One

You don’t need a fancy setup, but you do need something to track what’s coming in and what’s going out.

Recommended tools:

• QuickBooks Online (QBO) – great for freelancers and scalable growth

• Wave – free and beginner-friendly

• Excel or Google Sheets – better than nothing, if set up right

💡 At Breakspears Bookkeeping Services LLC, we help side hustlers set up easy systems that fit their income level and goals.

3. Track Every Expense—Yes, Every One

Side hustles can have more deductible expenses than you think, like:

• Website hosting and domain fees

• Software subscriptions (Canva, Zoom, Adobe, etc.)

• Home office use

• Business coaching or online courses

• Mileage or travel for business-related activities

💡 Even if you’re earning a small amount, these deductions can significantly lower your tax bill.

4. Set Aside Taxes Monthly

When side hustlers get hit with a big tax bill, it’s often because they didn’t realize they were responsible for setting aside taxes themselves.

General rule:
Save 20–30% of your net income (after expenses) in a separate savings account.
Better safe than sorry.

💡 You don’t need to be perfect, you just need to be consistent.

5. Know Your Profit Margins

You might be making sales, but are you actually making money?

Track:

• Revenue (total income)

• Cost of Goods Sold (COGS) if you sell products

• Overhead (subscriptions, website, etc.)

Then calculate:
Profit = Revenue – Expenses

💡 If your profit margin is below 20%, it’s time to reevaluate pricing, costs, or offer structure.

6. Pay Yourself—Even If It’s Just a Little

Side hustlers often reinvest everything they earn or treat the money like “fun money.” But even paying yourself 10% shows you value your time and effort.

💡 Set a goal to increase your “owner’s draw” as your side hustle grows.

7. Check In with Your Finances Monthly

Just 30 minutes once a month can make all the difference. Review:

• Your income and expenses

• Your bank account balance

• Any overdue invoices or upcoming bills

💡 We recommend setting a “money date” each month: light a candle, pour a coffee, and treat it like a CEO check-in.

🧠 Why Side Hustles That Understand Their Finances Grow Faster

When your finances are organized, here’s what happens:

• You know what to charge (and why)

• You stop underpricing yourself

• You’re ready for tax season

• You feel more confident and professional

• You can actually turn your side hustle into your main gig—without stress

💬 Final Thoughts: A Successful Side Hustle Starts with Smart Money Habits

You don’t need to be an accountant to run a profitable side hustle. But you do need a clear, simple system for managing your money: so your business doesn’t just make income, but actually builds wealth.

The best part? You don’t have to figure it all out alone.

📌 Need Help Getting Your Side Hustle Finances Set Up?

At Breakspears Bookkeeping Services LLC, we help side hustlers, freelancers, and small business owners:
✅ Organize their finances
✅ Set up QuickBooks or Wave
✅ Track profits and prepare for taxes
✅ Feel confident about their money—even if they hate spreadsheets

👉 Explore our flat-fee remote bookkeeping packages
👉 Book a free 15-minute discovery call to start making your finances work for you—not against you.

How to Read Financial Statements (Even If You Hate Numbers)

Let’s get one thing out of the way: you do not have to be a math person to run a successful business.

But if you want to keep your business profitable, tax-ready, and growing in the right direction: you do need to understand your financial statements.

We’re not talking spreadsheets filled with jargon or pages of numbers that give you a headache.
We’re talking about simple, clear insights that help you answer questions like:

• “Am I actually making a profit?”

• “Can I afford to hire help?”

• “Why is there money in my account, but I feel broke?”

If you’ve been avoiding your financial reports, this post is for you. Let’s break down how to read financial statements for small business owners….even if you hate numbers.

🧾 What Are Financial Statements, Really?

Financial statements are the story of your business told in numbers.

They show how much you’re earning, what you’re spending, and how financially healthy your business really is.

There are three key financial statements every small business owner should review monthly:

1. Profit & Loss Statement (P&L)

2. Balance Sheet

3. Cash Flow Statement

Let’s walk through each one—in plain English.

📊 1. Profit & Loss Statement (P&L)

Also called the income statement, this report shows your business’s income and expenses over a set period (usually monthly, quarterly, or yearly).

💡 What it tells you:

• Are you making a profit or loss?

• What’s driving your revenue?

• Where is your money going?

🧠 Key sections to look at:

• Revenue – total money earned

• Cost of Goods Sold (COGS) – what it costs to provide your product or service

• Gross Profit – revenue minus COGS

• Expenses – operating costs like rent, software, marketing

• Net Profit (or Loss) – what’s left after all expenses

💬 If your net profit is consistently low or negative, it’s a red flag: either you’re spending too much or charging too little.

📄 2. Balance Sheet

Your balance sheet gives you a snapshot of your business’s financial position at a single point in time. Think of it like a selfie of your money.

💡 What it tells you:

• What your business owns (assets)

• What it owes (liabilities)

• What’s left over (equity)

🧠 Key parts:

• Assets – cash, inventory, accounts receivable, equipment

• Liabilities – credit cards, loans, unpaid bills

• Equity – the difference between assets and liabilities

💬 If your liabilities are growing faster than your assets, you might be relying too heavily on credit to keep your business running.

💵 3. Cash Flow Statement

This one is all about timing. You can be profitable on paper but broke in real life if your cash flow is off.

💡 What it tells you:

• Where cash is coming from (sales, loans, investments)

• Where cash is going (expenses, salaries, taxes)

• Whether you’re gaining or losing actual cash

🧠 Watch for:

• Consistent negative cash flow (means you’re spending more than you bring in)

• Big swings that could signal payment delays or seasonal dips

• Whether cash in your account matches what your profit & loss says

💬 Cash is king. If you run out of cash, even if your business is profitable: you can’t pay bills, staff, or yourself.

🧠 How to Actually Use These Reports (Without Getting Overwhelmed)

Reading your statements is only helpful if you know what to do with them. Here's a simple monthly routine:

1. Skim your P&L

   • Is your revenue trending up?

   • Any unexpected spikes or drops in expenses?

2. Look at your Balance Sheet

   • Is your cash decreasing while debt increases?

   • Any old unpaid invoices piling up?

3. Check your Cash Flow Statement

   • Are you burning through more cash than you’re bringing in?

4. Ask yourself:

   • Can I afford to reinvest, hire, or expand?

   • Should I cut costs or raise prices?

💡 At Breakspears Bookkeeping Services, LLC, we not only provide these reports: we explain them in plain, actionable terms so you can make confident decisions.

🙋‍♀️ What If You Still Don’t Understand Your Reports?

That’s okay. Most small business owners don’t learn this stuff in school, or even when starting out.

But now you know:

• These reports aren’t scary

• They don’t require financial genius

• They’re essential to building a business that lasts

You don’t need to master them, you just need to look at them regularly and know who to ask when something doesn’t make sense.

🧾 Final Thoughts: You Can Hate Numbers and Still Understand Your Finances

If you’ve ever said, “I’m just not a numbers person,” you’re not alone. But ignoring your financial statements won’t make the problems go away.

Understanding how to read financial statements for small business gives you the power to make smart decisions, grow sustainably, and sleep better at night knowing exactly where your money’s going.

📌 Want Help Making Sense of Your Financials?

At Breakspears Bookkeeping Services LLC, we don’t just keep your books: we help you understand them.

We provide:
✅ Easy-to-read monthly reports
✅ Friendly breakdowns (no jargon)
✅ Personalized advice to help you grow

👉 Explore our bookkeeping packages
👉 Book a free intro call and let’s demystify your numbers together.

Are You Overpaying? The Real Cost of Managing Business Finances

Let’s be honest: running a small business comes with a lot of hidden costs.

But one area that sneaks up on a lot of entrepreneurs? Managing your business finances.

Whether you're DIY-ing your bookkeeping, hiring a professional, or just winging it with a spreadsheet and crossed fingers, there’s a cost. And if you're not tracking that cost properly, you might be paying more than you think (in money and time).

So let’s break it down. Here's what goes into the cost of managing small business finances….and how to make sure you're getting the best return on every dollar you spend.

💼 The Three Ways to Manage Small Business Finances

There are generally three main approaches small business owners take when it comes to handling their money:

1. DIY (Do-It-Yourself)

You manage everything yourself: tracking income, expenses, taxes, and reporting.

2. In-House or Contracted Staff

You hire an in-house bookkeeper, accountant, or VA with financial experience.

3. Outsourced Bookkeeping Services

You partner with a remote bookkeeping service (like Breakspears Bookkeeping Services LLC) that handles everything for a monthly flat fee.

Let’s break down the real costs of each.

🧾 Option 1: The DIY Approach

💰 Direct Costs:

• QuickBooks, Xero, or Wave subscription: $0–$90/month

• Receipt scanning apps or mileage trackers: $10–$30/month

• Your time: priceless… but not really

Let’s say you spend:

• 1 hour/week categorizing transactions

• 2 hours/month invoicing + chasing payments

• 2 hours/month preparing for taxes

That’s 6 hours/month x your hourly rate.
If your time is worth $75/hour, that’s $450/month in hidden costs - not including stress or mistakes.

⚠️ Common Risks:

• Misclassified expenses = missed deductions

• Late invoicing = delayed cash flow

• Tax prep panic = missed deadlines or penalties

• You’re flying blind with no accurate monthly reports

💡 DIY can be cost-effective at the beginning - but it’s not sustainable long-term if you want to grow.

🧍‍♀️ Option 2: Hiring In-House or Freelancers

💰 Costs:

• In-house bookkeeper: $3,500–$5,500/month (salary + benefits)

• Freelance bookkeeper or accountant: $40–$100/hour

• Software still needed: $30–$90/month

✅ Pros:

• High-touch support

• Can work alongside you daily

• Customizable tasks and hours

❌ Cons:

• More expensive than outsourced options

• Management overhead (training, oversight)

• May still need a CPA for taxes

💡 This is ideal for larger or high-volume businesses, but overkill for many freelancers and solo business owners.

📦 Option 3: Outsourced Bookkeeping Services (Flat-Fee)

Outsourcing your bookkeeping to a remote service (🙋‍♀️ like ours) gives you:

• Professional support

• Transparent monthly costs

• Software setup and integration

• Monthly reports and cash flow clarity

💰 Typical Flat Fee Range:

• $250–$500/month depending on transaction volume and services

• Often includes: reconciliation, categorization, reporting, light advisory

✅ Pros:

• You save 10–15+ hours/month

• No payroll costs or contracts

• No tax-time scramble

• You gain clarity, consistency, and peace of mind

💡 At Breakspears Bookkeeping Services LLC, our clients tell us the cost is a fraction of what they were losing in time, mistakes, and missed opportunities.

🧠 What You Really Pay for When You Manage Finances Poorly

If you're doing it yourself, or not doing it at all - you're probably paying more than you realize. The real costs of poor financial management include:

• Overpaying taxes (missed write-offs)

• Late fees or penalties

• Stress and burnout

• Unpaid invoices

• Missed growth opportunities (because you didn’t know what you could afford)

The truth is: you either pay to stay organized—or pay to clean up the mess later.

📈 How to Make Financial Management Affordable and Effective

To get the best value out of what you spend, follow this checklist:

✅ Use bookkeeping software (QuickBooks, Wave, or Xero)
✅ Separate business and personal accounts
✅ Set aside 20–30% for taxes monthly
✅ Run monthly reports (P&L, cash flow)
✅ Know when to delegate
✅ Choose a support system (DIY, hire, or outsource) based on your stage of business

💡 If you’re spending 5+ hours/month on your books, it may be time to outsource.

💬 Final Thoughts: Pay Less by Managing Smarter

You don’t have to overspend to get help. You just need to understand the true cost of managing small business finances - and make choices that align with your time, growth goals, and peace of mind.

At Breakspears Bookkeeping Services LLC, we offer affordable, remote bookkeeping services for freelancers and small business owners who are ready to ditch the chaos and finally feel in control of their numbers.

📌 Want to Know If You’re Overpaying?

Let’s run the numbers. We’ll show you exactly how much time and money you could save with a flat-fee monthly package.

👉 Explore our services or book a free discovery call today.

Business Budgeting 101: How to Build a Budget That Works

If the word “budget” makes you want to hide under your desk, you’re not alone.

But here’s the truth: Your budget is your business’s blueprint. It’s not about restriction: it’s about direction.

Whether you’re running a freelance side hustle or managing a growing team, knowing how to create a business budget can be the difference between coasting and scaling, surviving and thriving.

Let’s walk through a simple, no-fluff guide to creating a budget that actually works for you…not just on paper, but in the real world.

💡 Why Your Business Needs a Budget

Before we dive into how to build one, here’s what a business budget really does for you:

• Helps you make smarter decisions with your money

• Keeps spending aligned with your goals

• Prepares you for slow months or unexpected expenses

• Shows investors or lenders that you’re financially responsible

• Gives you peace of mind (yes, really)

It’s not about micromanaging every penny: it’s about knowing what’s coming in, what’s going out, and what’s left.

🧩 Step 1: Know Your Income Streams

Start with the money coming in.

Write down all your income sources, including:

• Client payments

• Product sales

• Subscription revenue

• Retainer fees

• Grants or other funding

If your income varies month to month (hello, freelancers 👋), look at the past 3–6 months and take an average.
💡 Use the lowest monthly income as your starting point if you want to budget conservatively.

💸 Step 2: List Your Fixed and Variable Expenses

Next, identify where your money goes. Break it into two categories:

✅ Fixed Expenses (same amount monthly):

• Software subscriptions

• Rent or coworking space

• Internet/phone

• Insurance

• Payroll or contractor retainers

🔁 Variable Expenses (changes month to month):

• Supplies

• Advertising

• Travel

• Freelancer payments

• Continuing education or courses

💡 If you’ve just started your business, research average costs for your industry or ask your bookkeeper (like us!) to help estimate.

💼 Step 3: Don’t Forget the Hidden Essentials

These often get missed—but can derail your cash flow if ignored:

• Taxes: Set aside 20–30% of your net income

• Emergency fund: Aim for 1–3 months of business expenses

• Savings or reinvestment: For new equipment, rebrands, team hires, or growth

💡 Create a separate savings account for taxes and emergency cash. Out of sight = less temptation to spend.

📊 Step 4: Build the Budget

Now that you know your income and expenses, it’s time to put it all together.

Here’s a simple monthly layout:

💡 Use a spreadsheet or free tools like Wave, or sync with QuickBooks Online for live tracking.

🧠 Step 5: Check In Monthly

Your budget is a living, breathing document, not a set-it-and-forget-it task.

At the end of each month:

• Compare your actuals to your budget

• Note any major differences

• Adjust for the next month

💡 At Breakspears Bookkeeping Services LLC, we provide monthly reports to help clients see how their budget is tracking and where improvements can be made.

🔁 Step 6: Refine as You Grow

As your business evolves, your budget will too. You might:

• Add new income streams

• Drop expenses that don’t bring ROI

• Shift your marketing strategy

• Hire help or outsource tasks

Budgeting is a habit, not a one-time event. The goal isn’t to get it perfect: it’s to stay informed, make smart decisions, and avoid financial surprises.

💬 Final Thoughts: A Budget That Works With You, Not Against You

Learning how to create a business budget isn’t about becoming a finance expert. It’s about building a simple, sustainable habit that helps your business grow……and gives you the confidence to lead it.

You don’t need to track every penny, but you do need to know where your money is going, and what’s coming next.

And if you’d rather have support getting it set up and reviewed? That’s exactly what we do.

📌 Need Help Creating a Budget That Actually Works?

At Breakspears Bookkeeping Services, LLC, we help freelancers and small business owners build clear, effective budgets that support real growth.

👉 Explore our monthly bookkeeping packages
👉 Book a free 15-minute intro call to get started.

Don’t Start a Business Without Knowing These 5 Financial Basics

Starting your own business is exciting……but also a little terrifying. You’ve got the ideas, the passion, maybe even a logo. But before you dive into designing your website or printing business cards, you need to get your finances in check.

If you’re like most new entrepreneurs, you probably didn’t start your business because you love accounting. But here’s the truth:

👉 Understanding a few financial basics can be the difference between success and struggle.

Let’s walk through the five financial basics every new business owner needs to know - because skipping these can cost you time, money, and peace of mind.

💡 1. Separate Your Business and Personal Finances

This is the #1 mistake new business owners make: mixing personal and business money.

Why it matters:

• You’ll waste hours trying to figure out which Amazon purchase was for your office and which was for your dog

• It complicates tax time (and can trigger IRS red flags)

• It makes it hard to know if your business is actually profitable

What to do instead:

• Open a dedicated business checking account

• Use a separate debit or credit card for all business purchases

• Connect your account to an accounting software (more on that in a sec)

💡 Pro tip: If you’re operating as an LLC, this separation also helps maintain your legal liability protection.

📊 2. Know Your Income, Expenses, and Profit

This might sound obvious, but you’d be surprised how many small business owners don’t actually know if they’re making a profit.

You need to know:

• Revenue: How much money you’re bringing in

• Expenses: What it costs to run your business

• Profit: What’s left after expenses

Why it matters:
You could be bringing in $5,000 a month and still be losing money. That’s why profit > revenue when it comes to measuring your success.

💡 Use accounting software like QuickBooks Online or Wave to track these numbers from day one. At Breakspears Bookkeeping Services, LLC, we help you understand these reports in plain English—no accounting degree required.

📅 3. Set Aside Money for Taxes (Yes, Even If You’re Just Starting)

No one wants a surprise tax bill. But if you’re earning income and not setting money aside, that’s exactly what you’re risking.

Rule of thumb:
Put aside 20–30% of your net income (profit after expenses) for taxes. Set up a separate savings account just for this.

Also:

• Keep digital copies of receipts for deductible expenses

• Track mileage, home office use, and software subscriptions

• Consider working with a bookkeeper to stay organized year-round

💡 You don’t need to know all the tax laws—you just need to keep clean records. We can help with that.

📁 4. Learn the Chart of Accounts (Your Business’s Filing System)

Your chart of accounts is a list of categories used to track all your income and expenses. It’s like the foundation of your financial reporting.

Here’s what it includes:

• Revenue accounts (e.g., product sales, services)

• Expense accounts (e.g., marketing, supplies, subscriptions)

• Assets and liabilities (e.g., bank accounts, credit cards, loans)

Why it matters:
This structure helps you stay organized and prepare for taxes, loans, or even hiring in the future.

💡 We help new business owners customize their chart of accounts so it actually reflects how your business runs, not just a default template.

📈 5. Understand the Three Key Financial Reports

Every month, you should look at three simple reports:

1. Profit & Loss (Income Statement) – shows income, expenses, and profit

2. Balance Sheet – shows your financial position (assets vs liabilities)

3. Cash Flow Statement – shows how money moves in and out

These reports help you:

• Make better decisions (like when to invest or cut costs)

• Spot trends or issues before they become problems

• Stay tax- and audit-ready

💡 At Breakspears Bookkeeping Services, we deliver these reports monthly and explain what they actually mean for your business.

🧠 Final Thoughts: You Don’t Have to Be a Finance Expert—But You Do Need a Foundation

Starting your own business is a bold move. But it’s one that only works if you have your financial foundation in place.
Understanding these five financial basics for new business owners will help you:

• Make confident decisions

• Avoid tax-time stress

• Set your business up for sustainable growth

And the best part? You don’t have to do it alone.

✨ Need Help Getting Your Finances Set Up?

At Breakspears Bookkeeping Services, LLC, we specialize in helping new entrepreneurs and small business owners build financial systems that are simple, affordable, and stress-free.

👉 Explore our remote bookkeeping packages
👉 Book a free intro call and let’s get your business finances in shape from day one.

Top Financial Tools Entrepreneurs Swear By in 2025

Running a small business in 2025 means wearing a lot of hats, and if you’re like most entrepreneurs, the finance hat often feels the heaviest.

From tracking expenses to getting paid faster to staying tax-ready year-round, the right tools can save you hours of stress and thousands of dollars. But with so many apps and platforms out there, how do you know which ones are actually worth your time?

We’ve done the digging for you. Here are the best financial software tools for small businesses in 2025 the ones real entrepreneurs (and bookkeepers like us) swear by to keep their money under control and their sanity intact.

💻 1. QuickBooks Online (Best All-In-One Accounting Software)

QuickBooks continues to lead the pack, and for good reason. It’s robust, reliable, and built for businesses of all sizes.

✅ Why entrepreneurs love it:

• Automatic bank feeds and transaction categorization

• Customizable invoicing

• Real-time profit & loss and cash flow reports

• Seamless integration with tools like Stripe, PayPal, and Gusto

💡 At Breakspears Bookkeeping Services, LLC, we specialize in QuickBooks Online and help our clients understand their numbers without the jargon.

📲 2. Relay (Best Banking Platform for Cash Flow Control)

Relay isn’t just a business bank, it’s a cash flow management tool in disguise.

✅ Why entrepreneurs swear by it:

• Multiple checking accounts for budgeting and expense tracking

• Easy-to-use dashboard for cash flow visibility

• Works beautifully with QuickBooks Online

💡 Relay makes it easy to follow Profit First or bucket-style budgeting: ideal for solopreneurs and creative business owners.

💳 3. Melio (Best for Paying Vendors & Bills for Free)

Melio lets you pay bills using a credit card, even if your vendors only take checks or ACH.

✅ Why it stands out:

• Schedule payments in advance (great for cash flow planning)

• No subscription fee

• Easily syncs with QBO

💡 Perfect for side hustlers and service-based businesses looking to extend cash availability.

📈 4. Xero (Great Alternative to QuickBooks)

If you’re not into QBO’s pricing model or interface, Xero is a powerful, clean alternative.

✅ Loved for:

• Beautiful UX

• Robust integrations

• Strong mobile features

• Affordable monthly pricing

💡 Used more commonly outside the U.S., but gaining traction among startups and consultants.

💼 5. Wave (Best Free Accounting Software for Solo Entrepreneurs)

If you’re just starting out or running a side hustle, Wave is a fantastic, no-cost option.

✅ Why it’s great:

• Completely free for accounting, invoicing, and receipt scanning

• Simple and intuitive

• Ideal for businesses with basic needs

💡 Keep in mind: it lacks some advanced features like robust reporting and scalability.

📊 6. Float (Best for Cash Flow Forecasting)

Float is a forecasting tool that syncs with your accounting software and gives visual insights into your future cash flow.

✅ What makes it stand out:

• Projects income and expenses over time

• Helps you see how decisions will impact your financial future

• Customizable scenario planning

💡 Perfect for seasonal businesses or anyone looking to plan ahead confidently.

👥 7. Gusto (Best for Payroll & Contractor Payments)

Hiring help? Gusto makes paying team members and contractors easy and compliant.

✅ Why it’s a must-have:

• Automated payroll and tax filings

• Onboarding and benefits integration

• Contractor payment tracking and 1099 generation

💡 Combines seamlessly with QBO and Xero for a smooth payroll-to-bookkeeping workflow.

🧾 8. Dext (Best for Receipt Management and Bookkeeping Support)

Tired of stuffing receipts in a shoebox? Dext lets you upload, scan, and auto-categorize receipts and bills—effortlessly.

✅ Why business owners use it:

• Snap receipts on your phone, upload to your books

• OCR reads and fills in data

• Saves hours of manual entry

💡 Especially helpful for businesses with lots of transactions or reimbursements.

⚡ 9. FreshBooks (Best for Service-Based Invoicing)

Freelancers and consultants love FreshBooks for its simple, clean interface and invoice-first design.

✅ Key features:

• Easy time tracking + billing

• Recurring invoices + client portals

• Insightful dashboard with expense reports

💡 Not quite as comprehensive as QBO, but a solid option for solo service providers.

🧠 How to Choose the Best Financial Software for Your Business in 2025

Ask yourself:

• Do I need basic bookkeeping or robust reporting?

• Do I want to do it all myself or hire a bookkeeper?

• Am I focused on saving money, saving time, or both?

Start small. Scale up. The beauty of financial software in 2025 is that you can mix and match based on your needs, budget, and goals.

💬 Final Thoughts: Make Your Money Tools Work for You

Choosing the best financial software for small businesses in 2025 is about more than just features: it’s about finding a tool (or toolkit) that makes your finances feel less overwhelming.

Whether you're a solo entrepreneur, creative professional, or growing small business, tools like QuickBooks Online, Relay, and Float can give you the clarity and control you need to grow with confidence.

And if all of this still feels a bit much? That’s what we’re here for.

📌 Need Help Setting Up Your Financial Software?

At Breakspears Bookkeeping Services, LLC, we help small business owners get started with the right tools, set them up properly, and actually understand the numbers behind their success.
👉 Explore our remote bookkeeping packages or book a free call today.

Bookkeepers vs CPAs: Who Should Handle Your Business Finances?

If you run a business, you’ve probably asked yourself this question:
“Who handles business finances? Should I hire a bookkeeper or a CPA?”

It’s a smart question - and one that trips up a lot of freelancers, side hustlers, and small business owners.

You’re not alone if you’re wondering:

• “Aren’t they basically the same thing?”

• “Do I need both?”

• “Which one will actually help me save time and money?”

Let’s break it down simply: no accounting jargon, just straight answers - so you know who to call, when to call them, and why it matters.

💼 What Does a Bookkeeper Do?

A bookkeeper is the person who helps you organize, track, and maintain your financial records on a regular basis.

They handle:

• Recording income and expenses

• Reconciling bank statements

• Categorizing transactions

• Managing accounts receivable and payable

• Creating monthly financial reports (Profit & Loss, Balance Sheet, Cash Flow)

At Breakspears Bookkeeping Services LLC, we specialize in helping solo entrepreneurs, creative professionals, and small business owners stay on top of their numbers with flat-fee monthly bookkeeping—so you never feel overwhelmed or behind.

💡 Think of a bookkeeper as your financial sidekick, keeping your books tidy and your business running smoothly every single month.

📊 What Does a CPA Do?

A Certified Public Accountant (CPA) is a licensed professional who can:

• File your business taxes

• Offer tax planning advice

• Help with audits or financial compliance

• Create detailed financial forecasts

• Provide strategic advisory for larger financial decisions

CPAs are most valuable at tax time or if your business structure is complex (e.g. multi-member LLCs, corporations, investors involved).

💡 Think of a CPA like a financial consultant—great for the big-picture strategy and tax-saving moves, but not someone you typically talk to every week.

🤔 Bookkeeper vs CPA: What’s the Difference?

📌 So... Who Handles Business Finances?

Here’s the golden rule:
➡️ Bookkeepers handle your daily and monthly finances.
➡️ CPAs step in for tax time and long-term planning.

Most businesses - especially freelancers, solopreneurs, and creative entrepreneurs need both at some point, but they don’t need them both all the time.

💡 A bookkeeper is your ongoing partner in staying organized, saving time, and being ready for taxes.
💡 A CPA is your seasonal expert who makes sure you’re compliant and tax-efficient.

🧠 Why Bookkeepers Are Often Your First and Most Frequent Hire

When you're just getting started or growing your business, it's your bookkeeper who:

• Keeps your financial records clean and audit-proof

• Makes tax time easy by preparing everything your CPA will need

• Helps you understand your cash flow and profit month to month

• Saves you from last-minute receipt hunts and spreadsheet chaos

That’s why so many small business owners trust Breakspears Bookkeeping Services, LLC to keep their finances on track with affordable remote bookkeeping packages.

👩‍💼 When Do You Need a CPA Instead of a Bookkeeper?

Call a CPA when:

• You're filing complex taxes or have employees

• You're applying for loans or outside investment

• You're dealing with an IRS audit or notice

• You’re changing your business structure

• You want detailed tax planning strategies

In these cases, your bookkeeper and CPA can work together. Your bookkeeper provides clean, accurate records - and your CPA builds on that foundation for taxes or big decisions.

🔁 Bookkeeper + CPA = Your Dream Financial Team

You don’t have to choose one over the other.
You just need to know who does what and when to bring them in.

Think of it like this:

• Your bookkeeper keeps the machine running smoothly.

• Your CPA tunes it up when it’s time to race.

And when they work together? You get clarity, compliance, and confidence - without the financial overwhelm.

🎯 Final Thoughts: Who Should Handle Your Business Finances?

If you’re asking who handles business finances, bookkeeper vs CPA, the real answer is:
➡️ Start with a bookkeeper. Bring in a CPA when the time is right.

Most of your ongoing financial needs - like staying organized, tracking cash flow, and understanding your numbers can be handled by a great bookkeeper (🙋‍♀️ like me!).

At Breakspears Bookkeeping Services, LLC, we offer:

• Flat-fee remote bookkeeping

• QuickBooks Online expertise

• Monthly reports, reconciliations, and clarity

• Support that’s friendly, jargon-free, and personalized

📬 Ready to Take Control of Your Business Finances?

Let’s chat. Whether you’re just starting out or getting serious about growth, we’ll help you feel confident about your numbers.
👉 Explore our bookkeeping packages or book a free discovery call today.

How to Manage Business Finances Without Losing Your Mind

Let’s face it, managing business finances isn't exactly a party. Spreadsheets, tax deadlines, invoices, receipts from six months ago stuffed in a drawer somewhere... it’s no wonder most entrepreneurs feel like their brains are doing somersaults when it's time to "do the books."

But here's the good news: You can learn how to manage business finances without losing your mind….or your weekends. With the right habits, tools, and mindset, even the most numbers-averse small business owner can feel confident and in control.

Let’s break it down, step by step.

Step 1: Separate Business and Personal Finances (Immediately!)

If you only take one thing from this article, let it be this: open a dedicated business bank account.

Mixing personal and business funds is like mixing paint, it gets messy fast. Not only does it make bookkeeping harder, but it can also land you in hot water at tax time. A separate account keeps things clean, professional, and makes it easier to track income and expenses.

💡 Pro tip: Link your business bank account directly to your accounting software for automatic transaction imports.

Step 2: Choose an Accounting System That Works for You

You don’t need to be an accountant to use accounting software. In fact, platforms like QuickBooks Online, Wave, or Xero are designed for business owners with zero finance background.

Here’s what to look for:

• Bank syncing

• Invoice generation

• Expense tracking

• Mobile app access

• Financial reports (profit & loss, cash flow)

💡 Keep it simple. You don’t need all the bells and whistles, just what helps you stay organized and tax-ready.

Step 3: Set Aside Time Each Week for Your Books

Think of your finances like laundry: ignoring them doesn’t make them go away - it just makes the pile bigger.

Block out 30-60 minutes once a week to:

• Categorize your expenses

• Reconcile your bank transactions

• Send invoices and follow up on payments

• Review your cash flow

💡 Make it a vibe. Light a candle. Put on a podcast. Make a cup of tea. Turn “finance time” into a weekly check-in that actually feels good.

Step 4: Understand the Basics (without the jargon)

If you're wondering how to manage business finances effectively, learning a few key terms can go a long way:

• Revenue: What you earn before expenses

• Expenses: What you spend to run your business

• Profit: What’s left after expenses

• Cash flow: The movement of money in and out of your business

• Chart of accounts: A categorized list of all your business transactions

💡 Not sure where to start? Ask your bookkeeper or accountant to explain your financial reports to you in plain English.

Step 5: Plan for Taxes Year-Round

Waiting until April to think about taxes? That’s a trap.

Instead:

• Save 20–30% of your net income each month for taxes

• Track all deductible expenses (software, travel, subscriptions, etc.)

• Use accounting software to organize everything

💡 Bonus tip: Consider working with a tax pro once a year just to make sure you’re maximizing deductions and staying compliant.

Step 6: Know When to DIY vs. Delegate

Trying to do everything yourself is a fast-track to burnout.

Here’s when to consider hiring a bookkeeper or accountant:

• You’re consistently earning over $5K/month

• You’re behind on your bookkeeping

• You want to grow but don’t fully understand your numbers

• You hate doing it, and it’s stopping you from focusing on your actual business

💡 Hiring help doesn’t mean you’re bad with money - it means you’re smart about where your time is best spent.

Step 7: Create a Simple Budget (and Actually Use It)

You don’t need a 10-tab spreadsheet to create a budget. Just list out:

• Expected income (monthly)

• Fixed expenses (rent, software)

• Variable expenses (marketing, supplies)

• Savings goals (taxes, new equipment, rainy day fund)

Use this to guide your decisions - like whether you can afford that new course or rebrand.

💡 Check in with your budget monthly. Adjust as needed. You’re allowed to evolve.

Step 8: Review Your Financials Every Month

At the end of each month, take 15–30 minutes to look over:

• Profit & loss statement

• Bank balance

• Outstanding invoices

• Any big wins or unexpected costs

It’s a great way to spot red flags early and celebrate your progress—even if it’s just being less stressed about your finances than you were last month.

💡 Make it fun: turn it into a “money date” with yourself or your business partner.

Final Thoughts: You Don’t Have to Be a Numbers Person to Be Financially Empowered

Learning how to manage business finances isn’t about becoming a math genius: it’s about building confidence, clarity, and control.

Start small. Stay consistent. And remember: you’re not alone. There are tools, communities, and experts (👋 like me!) ready to help you ditch the overwhelm and make peace with your money.

Need help managing your business finances without the stress?
Let’s chat - Breakspears Bookkeeping Services is here to make sense of your numbers so you can focus on growing your business.