Back to Basics: Understanding Bookkeeping for Your LLC
May 21, 2025
If you're a small business owner, managing your finances may feel overwhelming — but it doesn’t have to be. Understanding a few key bookkeeping basics can save you time, stress, and money. Here’s what you need to know:
1. What Is Bookkeeping?
Bookkeeping is the process of recording all financial transactions for your business — including sales, expenses, payroll, and more. It’s the foundation of your financial health.
2. Why Is Bookkeeping Important?
✅ Keeps your finances organized
✅ Helps you understand your cash flow
✅ Prepares you for tax season
✅ Supports better business decisions
✅ Ensures compliance with IRS regulations
3. What You Should Be Tracking
Income: Every dollar your business earns
Expenses: Office supplies, subscriptions, rent, etc.
Invoices & Payments: What clients owe you (and what you owe others)
Payroll: Employee wages and tax withholdings
Receipts: Keep them organized and backed up
4. Bookkeeping Methods
Single-entry: Simple method for small businesses (like a checkbook register)
Double-entry: More accurate and preferred if your business is growing — every transaction has a “debit” and a “credit”
5. DIY vs Hiring Help
You can do it yourself using software like QuickBooks, Wave, or Xero — but as your business grows, so do the stakes. A bookkeeper helps ensure your records are accurate, up to date, and audit-ready.
6. Monthly Bookkeeping Matters
Don’t wait until tax time. Monthly bookkeeping keeps you in control and helps avoid surprises — like unexpected tax bills or cash flow issues.
Need Help?
At WBC Trust Accounting & Consulting, we help LLC owners stay financially confident year-round with affordable virtual bookkeepingand tax preparation services.
📅 Book a free 15-minute consultation to discuss how we can support your business.
Bookkeeping