Stay on top of your books each month with this repeatable routine. Keep everything accurate and audit-ready, week by week.

Week 1 — Review & reconcile

• Reconcile bank accounts — match statements to your books and flag discrepancies.
• Reconcile credit cards — same process for every business card.
• Review undeposited funds — make sure every payment is recorded and deposited.
• Clear duplicates — catch double entries from bank feeds.

Week 2 — Receivables & payables

• Send outstanding invoices and chase overdue balances.
• Record all income so every sale is documented.
• Pay bills on time to avoid late fees.
• Categorize expenses for a clean P&L.

Week 3 — Payroll & compliance

• Run payroll on schedule with correct withholdings.
• File payroll taxes federal, state, and local.
• Track 1099 contractors for year-end.

Week 4 — Review & plan

• Generate statements — P&L, balance sheet, cash flow.
• Review margins against prior months.
• Update your cash forecast for the next 3 months.
• Back up your QuickBooks file and key documents.

Cash flow is the movement of money in and out of your business. You can be profitable on paper and still run out of cash — these strategies keep you liquid.

7 strategies for healthy cash flow

1. Forecast weekly. Project your cash position 3–6 months out and update it every week.

2. Speed up receivables. Invoice immediately, offer early-payment incentives, accept multiple payment methods, and follow up at 7, 14, and 30 days. Ask for deposits on large jobs.

3. Slow down payables (strategically). If terms are Net 30, pay on day 30. Negotiate longer terms. Use a card for float.

4. Build a reserve. Aim for 3–6 months of operating expenses. Set aside a fixed percentage of revenue before you pay yourself.

5. Watch the right metrics. Cash runway, days sales outstanding (DSO), and operating cash flow tell you more than your bank balance.

6. Cut quiet costs. Cancel unused subscriptions and renegotiate vendor contracts.

7. Get credit before you need it. Lenders are friendlier when you are not desperate.

Knowing which expenses are deductible can save you money every year. To qualify, an expense must be ordinary (common in your industry) and necessary (helpful and appropriate).

Top deductible categories

Home office. Deduct a portion of rent/mortgage, utilities, and insurance if the space is used exclusively and regularly for business. A simplified per-square-foot method is available — check the current IRS rate and cap.

Vehicle. Use the standard mileage method at the current IRS rate, or the actual-expense method for business-use percentage.

Meals. Business meals may be partially deductible; office snacks for staff may also be partially deductible. Confirm current limits.

Equipment & supplies. Computers, furniture, software, and postage. Larger purchases may qualify for immediate expensing up to the current Section 179 limit — check the current-year figure.

Professional services. Bookkeeping, legal, consulting, and design fees.

Insurance. Liability, professional, and self-employed health premiums.

Often missed

• Bank and payment-processing fees
• Business loan interest
• Licenses and permits
• Phone and internet (business-use portion)
• Retirement contributions (SEP IRA, Solo 401k)

Set up QuickBooks Online correctly from day one to save hours later. Here is the order that works.

The 7 setup steps

• 1. Company info — name, address, business structure, and fiscal year.
• 2. Connect accounts — bank, credit cards, and payment processors (PayPal, Stripe).
• 3. Chart of accounts — review defaults, add what fits your business, remove what does not.
• 4. Customers — import your list, set payment terms, build invoice templates.
• 5. Vendors — add regular vendors and flag 1099 contractors.
• 6. Products & services — add items with prices; enable inventory tracking if needed (available on the Plus plan or higher).
• 7. Opening balances — enter starting balances and reconcile.

Good expense tracking captures every eligible deduction and keeps you audit-ready.

The essentials

• Separate business and personal — dedicated account, card, and processor. This is rule #1.
• Capture immediately — photograph receipts and note the business purpose on the spot.
• Categorize consistently — specific categories beat "miscellaneous"; set rules for recurring charges.
• Document the why — for meals and travel, record who, what, where, and the business reason.
• Keep records 7 years — store digitally and attach receipts to transactions.

Three statements tell you everything about your business. Here is what each one answers.

Profit & Loss — "Am I making money?"

Revenue minus expenses over a period. Watch gross margin (aim 50%+ for many service businesses), net margin (10–20% is healthy depending on industry), and any expense category growing too fast.

Balance Sheet — "What is my business worth?"

A snapshot of assets, liabilities, and equity. Watch your current ratio (current assets ÷ current liabilities, ideally above 1.5), receivables aging, and debt levels.

Cash Flow Statement — "Where did the cash go?"

Tracks cash through operating, investing, and financing activities. Operating cash flow should be positive; falling cash despite profit usually signals a collections or inventory problem.