I’ve recently been laid off from the oil & gas industry and am doing some remodeling jobs to pass the time until I’m gainfully employed again. I know enough to know I need to keep track of the business finances, but I don’t know enough to know the correct way to go about it. I’ve been using a spreadsheet but I think that’s quickly going to get unwieldy.
My workflow is: Meet the customer, review the job, create an estimate, sign the contract, locate & hire subcontractors, manage the job. I typically collect a deposit at contract signing and several progress payments throughout the remainder of the job. When I get a check, I deposit it into a business checking account that is only used for business transactions.
My question is two-fold: First, how should I go about entering the existing transactions (there’s only a dozen or so) to bring the books current? And second, what workflow should I use in the future to make the bookkeeping simple & accurate? (By workflow I mean, creating customers, tracking estimates, turning estimates into invoices, tracking payments and applying them to invoices, etc.)
Thanks in advance for your advice.