Knowing the numbers in your cookie business is essential to knowing everything about your business; I’m going to share some simple tips you need to know to keep your bookkeeping in the black.
Keep track of all your income and expenses
To get an accurate picture of your cookie business’s financial health, you need to keep track of all the money coming in and going out of your business. This can include sales of cookies, any expenses incurred for ingredients, packaging, shipping, and other costs associated with running the business.
Create a system for recording transactions
You can use a simple spreadsheet or accounting software to record all the transactions. Make sure you have separate accounts for different categories of expenses and income.
Keep receipts and invoices
Make sure you keep all your receipts and invoices organized and safe. These documents will help you keep track of your expenses and also serve as proof of your transactions in case of audits or legal issues.
Reconcile your accounts regularly
Make sure you reconcile your cookie business accounts regularly to ensure that your records match your bank statements. This helps you catch any errors or discrepancies early on and also keeps you on top of your cash flow.
Set aside money for taxes
Make sure you set aside a portion of your income for taxes. This will ensure that you have enough money to pay your taxes when they are due and also help you avoid any penalties or fines.
Use accounting software
If you find it challenging to keep track of your finances, you can consider using accounting software like QuickBooks, Freshbooks, or Xero. These tools can automate many of the bookkeeping tasks for your cookie business and also provide you with useful reports and insights to help you run your business more effectively.
Following tips like these will help you know the important numbers pertaining to your cookie business, and make it easier to plan and execute the steps necessary to reach your goals. When you keep track of everything and have checks in place regularly you don’t have surprises that pop up and cost you a lot of money that you weren’t expecting which can greatly impact your cookie business.
My husband is a CPA, and he shares and trains regularly within the Next Level Cookie Club and Cookie Classes to Cash memberships to help members get a better handle on how to make sure their cookie business finances are organized and ready for tax season. This is one of the most valuable parts of being a member, according to feedback I have received. I love that we are able to offer this type of LIVE Q&A session regularly to those inside these memberships and help with simple questions that cause a lot of confusion when running a cookie business.