You must have a separate checking account for your business. Do not mingle personal and business expenses and expect to sort them out at the end of the year. You will find it handy to have a credit card that you use only for business expenses.
- Client List: name of company, name of contact(s), street address, billing address, phone number, email address, website
- Project List: project number, project name, contact person, date received, date due, estimate, date billed, amount, invoice number.
- Income: this will probably be part of your checkbook. Every time you deposit payment for a project it is recorded as income.
- Expenses: this will also be part of your checkbook. Every time you write a check or charge a credit card, record the expense and the category it falls into. Look at IRS Schedule C to see the categories of business deductions.
- Project Tracking Form: you will have one of these forms for each project to track everything associated with it. Suggestions for what this form should include: name of project, project number, name of client, contact person, phone, email, P.O. number, estimate, description, audience, goal, specifications, and schedule. Include a grid on this form for recording the date, description, time or materials, and amount to bill for each entry. Check off each item as you transfer it to an invoice.
- Invoice and Accounts Receivable: a professional invoice says you mean business. Quickbooks allows you to customize an invoice and automatically enter the amount into accounts receivable. If you don't use Quickbooks and design your own invoices, you can make a list of invoices sent and check them off as they are paid.
- Statement: If an invoice is unpaid after 30 days, you will send a statement. This will not be as detailed as the invoice—it will state the date, invoice number, and amount past due. Quickbooks also does these automatically.
- Accounts Payable: I don't even use this. I put bills in a pile and pay them weekly.
