bookkeeping-basics
SKILL.md
Bookkeeping Basics
Overview
Bookkeeping tracks where money comes from and where it goes. Most solopreneurs hate bookkeeping, so they avoid it — then face chaos at tax time or when applying for loans. This playbook gives you a simple system: minimal time, maximum clarity. Disclaimer: This is educational content, not professional accounting advice. Consult a CPA for complex situations.
Step 1: Choose Your Accounting Software
Don't use spreadsheets. Use accounting software. It automates most of the work and keeps you compliant.
Software comparison:
| Software | Best For | Pricing | Learning Curve | Features |
|---|---|---|---|---|
| Wave | Freelancers, very small businesses | Free (pay for payments/payroll) | Easy | Basic invoicing, expense tracking, reports |
| QuickBooks Online | Most solopreneurs, scaling businesses | $15-50/month | Medium | Full accounting, invoicing, tax reports, integrations |
| FreshBooks | Service businesses, invoicing-heavy | $17-55/month | Easy | Invoicing, time tracking, expense tracking |
| Xero | International businesses, contractors | $13-70/month | Medium | Full accounting, multi-currency, payroll |