What is Bookkeeping?
and why is it so important to keep it up to date?
Alright, you self-employed superstar — whether you’re a freelance designer, a one-man decorating show, or a landlord with a single rental — let’s have a heart-to-heart about bookkeeping.
...Yes, that terrifying word that probably makes you want to run for the hills faster than a VAT inspector at a party ...
But hang on. Before you bolt, let me break it down, so you can crack the code, stay on track, and keep your business firmly in the groove.
So… what is bookkeeping, really?
Bookkeeping is simply the habit (yep, it’s just a habit) of recording every penny that flows in and out of your business.
It’s the systematic way of tracking:
Income: Every invoice paid, rent collected, or gig completed.
Expenses: From printer ink to that suspiciously “essential” coffee machine.
Bank reconciliations: Making sure what’s in your books matches your bank.
VAT, tax, and other beasties: So HMRC doesn’t come knocking with a grumpy face.
It’s not magic. It’s not dark arts. It’s a clear, consistent record of your money ... your number story.
Why bother keeping it up to date?
(aka: why future you will want to buy past you a pint)
Here’s the tough-love bit (no sugar-coating here):
If your bookkeeping is months behind, stuffed in a shoebox or “all in my head,” you’re not running your business — you’re flying blind.
✅ Know your numbers: Up-to-date books mean you know what’s working, what’s draining you dry, and where you can grow.
✅ Avoid nasty surprises: Tax bills that appear out of nowhere are about as fun as standing on a piece of Lego.
✅ Get paid (and pay others) on time: Cash flow is the lifeblood. Without it, even profitable businesses can sink.
✅ Sleep at night: Peace of mind is worth its weight in gold (or at least fewer 3 am panic attacks).
But I don’t want to pay a bookkeeper…
Fair enough. Loads of self-employed folks would rather do it themselves to save money or stay hands-on. I respect that.
But here’s the deal:
If you’re going to do your own books, do them properly.
Because sloppy DIY bookkeeping? That’s a false economy.
You’ll end up paying extra to fix mistakes, fork out fines, or worse, make decisions on dodgy data.
How to crack the code & stay on track
Schedule it: Bookkeeping is like brushing your teeth. Not sexy, but essential. Put a recurring date in your diary. 15minutes a day / an hour a week - what works best?
Use smart tools: Forget spreadsheets if they make you weep. Xero, FreeAgent, etc — these tools can become your new best friends
File everything: Receipts, invoices, contracts — keep them organised. Digital is fine (just back it up!).
Don’t ignore your books: Even when they feel boring or complicated. Sticking your head in the sand is a terrible financial strategy
Bottom line...
Bookkeeping is the heartbeat of your business. Keep it healthy, keep it regular, and you’ll stay in the groove.
And if one day you decide you’d rather spend your Saturdays hiking, painting, or chasing after your dreams (instead of chasing receipts), well — there’s always a friendly bookkeeper ready to help.
In the meantime, keep cracking the code. You’ve got this.
Need a hand?
To really get in the groove, and master your numbers, short-term expert support does exist.
With Money Mentoring and Numbers Narration, you’ll understand the process and strategies required to keep track of your transactions AND know why you’re recording them. You’ll feel confident in your numbers story, and be able to make clear and confident decisions.
Get some 1-2-1 money mentoring, with Accounts-ability, as you continue your DIY bookkeeping and accounting journey. It’s time for you to have someone at your side - and in your corner - as you get to grips with your business numbers story, yourself.
For more details of my 1-2-1 Support program click the link.
Want to chat further about how the support program can help you Book a date here.
Not ready yet?
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