A Beginner's Guide to Bookkeeping for Small Business Owners

February 20, 2024
minutes to read
Jaala Alex
Table of Contents

Bookkeeping is crucial to managing your finances, but it can be overwhelming and time-consuming for small business owners. Luckily, with the rise of automated bookkeeping services, managing your finances has become much easier. In this beginner's guide to bookkeeping for small business owners, we'll cover everything you need to know about bookkeeping, including understanding double-entry accounting, choosing the right bookkeeping software, and finding bookkeeping services and prices. We'll also explain how Thriday automates bookkeeping to save time and money. By the end of this guide, you'll have a solid understanding of bookkeeping and be equipped with the tools to manage your small business finances effectively.

Double Entry Accounting 

One of the essential aspects of bookkeeping is understanding double-entry accounting. This accounting method records each financial transaction in two accounts, with one account debited and the other credited. For example, when a small business owner receives payment from a customer, the cash account is credited while the accounts receivable account is debited. 

The main advantage of double-entry accounting is that it provides a more accurate picture of a business's financial health. Recording each transaction in two accounts ensures that the books are always balanced and errors can be easily identified and corrected. 

In practice, double-entry accounting involves creating a chart of accounts, which is a list of all the accounts used to record financial transactions. Each account is assigned a unique number or code, and transactions are recorded by entering the amount in the appropriate account. 

While double-entry accounting may seem complex, it's crucial to managing your small business finances. Understanding this accounting method will help you make informed financial decisions and ensure that your books are accurate. 

Double-entry accounting - How it works


Choosing the Right Bookkeeping Software for Your Small Business 

Choosing the right bookkeeping software is crucial for small business owners to manage their finances efficiently. Several bookkeeping software options are available, and two of the most popular are Thriday and Xero bookkeeping. 

Thriday is a next-generation accounting and bookkeeping platform that saves small businesses time and money by automating financial admin. It's designed specifically for small businesses and offers a range of features such as automatic transaction categorisation, GST reconciliation and detailed financial reporting

On the other hand, Xero is a cloud-based accounting software offering features such as bank feeds, invoicing, and expense tracking. It's also designed for small businesses and provides a range of pricing plans depending on the size of your business. 

When choosing bookkeeping software, there are several factors to consider. The first is the size of your business and the complexity of your finances. If you have a larger company with more complex financial transactions, Xero may be the preferred choice for your accountant. However, Thriday is an easier and more cost-effective option if you have a small-to-medium business. 

Another factor to consider is the features offered by each software. Thriday offers automated bookkeeping, while Xero offers a broad range of features; you must consider which features are most important to you and your business. Otherwise, you run the risk of paying for things you don't.

Ultimately, the right bookkeeping software will depend on your specific business needs. It's important to take the time to research and compare options to ensure that you choose the right software to manage your finances effectively. 

Thriday Chart of Accounts


Finding Bookkeeping Services and Prices 

If you're not confident in your bookkeeping abilities or don't have the time to manage your finances, outsourcing your bookkeeping may be a good option. There are several bookkeeping services available, and finding the right one for your business is vital. 

When looking for bookkeeping services, it's essential to consider their experience and qualifications. Look for bookkeepers who have experience working with small businesses and are familiar with your industry. It's also important to ensure that they are licenced and insured. 

Another factor to consider is pricing. Bookkeeping prices can be high and vary depending on the size of your business and the complexity of your finances. Most bookkeeping services charge an hourly rate, while some offer flat-rate pricing. It's important to compare prices and services to ensure you get the best value. 

You can search for bookkeeping services online or by asking for referrals from other small business owners in your network. You can also search for "bookkeepers near me" or "local bookkeepers" online to find bookkeeping services in your local area. 

Once you've found potential bookkeeping services, it's important to interview them to ensure they're a good fit for your business. Ask about their experience, qualifications, and pricing, and be sure to ask for references. By finding the right bookkeeping service, you can free up your time and ensure that your finances are managed effectively.

At Thriday, we offer affordable, automated, cost-effective bookkeeping services for small businesses. Our automated bookkeeping software streamlines the process, saving you time and money. Contact us today to learn more about our services and pricing. 


The Benefits of Automated Bookkeeping for Small Businesses 

Automated bookkeeping is a game-changer for small business owners. With the rise of technology, manual bookkeeping is becoming a thing of the past. Automated bookkeeping software, like Thriday, can save small business owners time and money. 

One of the most significant benefits of automated bookkeeping is that it reduces the risk of errors. Manual bookkeeping is prone to human error, but with automated bookkeeping, the software takes care of most of the work. This reduces the risk of errors and, in turn, reduces the risk of costly mistakes. 

Automated bookkeeping also saves small business owners time. With Thriday, you can automatically track your income and expenses in real-time via your bank account* and Visa Debit Card. Thriday's artificial intelligence will then automatically categorise your transactions to the correct chart of accounts automatically. Now, you won't have to spend hours manually inputting data or reconciling transactions between systems. Instead, you can focus on running your business and making important decisions. 

Thriday bank accounts* and Visa Debit card*


Another benefit of automated bookkeeping is that it's more cost-effective. Hiring a bookkeeper can be expensive, but with Thriday, you can get automated bookkeeping services at a fraction of the cost. This makes it an ideal option for small businesses looking to save money. You can join Thriday for free; if you want to utilise Thriday's advanced automation, it's only $29.95 per month. 

Finally, automated bookkeeping makes it easier to keep track of your finances. With Thriday, you can access your financial reports and see how your business performs in real-time. This makes it easier to make informed decisions and adjust your strategy as needed. 

In conclusion, automated bookkeeping is a smart choice for small business owners looking to save time and money while managing their finances effectively. By using Thriday's automated bookkeeping software, small business owners can reduce the risk of errors, save time, and access real-time financial information


Choosing the Right Bookkeeping Software 

If you're interested in using bookkeeping software to manage your finances, choosing the right software for your business is essential. Several bookkeeping software options are available, including Xero, MYOB, and Thriday. 

When choosing bookkeeping software, it's important to consider your business needs. For example, if you have a small business with simple financial needs, Thriday's automated bookkeeping software is the perfect fit. However, if you have a larger business with more complex financial needs, consider more expensive software, like Xero or MYOB.   

Another factor to consider when choosing bookkeeping software is the cost. Some software options offer a free trial, while others require a monthly subscription fee. It's important to compare prices and features to ensure you get the best value for your money. 

When evaluating bookkeeping software, it's also critical you consider the user interface. The software should be easy to use and navigate, even for those unfamiliar with accounting terms and concepts. Thriday's user-friendly interface makes it easy for small business owners to manage their finances confidently. 


Why Thriday is the Best Option for Automated Bookkeeping 

Thriday is the best option for small business owners looking for automated bookkeeping software. Thriday's affordability, automation, user experience and customer support stand out.  

  • Thriday offers bookkeeping services at a fraction of the cost of traditional bookkeeping services. This makes it an ideal option for small businesses looking to save money. You can join Thriday for free and access all its features from day one. 
  • Thriday also offers a wide range of automated features, including automatic categorisation, transaction reconciliation, accounts payable, receipt scanning and invoicing. These features help small business owners save time and stay on top of their finances. 
  • Thriday's software is designed to be easy to use and navigate, even for those unfamiliar with accounting concepts. This makes it easy for small business owners to manage their finances confidently. 
  • Thriday's customer support is top-notch. Thriday offers phone, email, and live chat support to help small business owners get the most out of their bookkeeping software. Thriday's support team is knowledgeable and responsive, making it easy to get the help you need when you need it. 

The old way of managing financial admin


How Thriday Automates Bookkeeping 

Thriday automates bookkeeping using advanced algorithms to process and categorise your financial transactions. Connecting your bank account* to Thriday's software automatically imports and categorises your transactions based on pre-set rules. 

Thriday's software is designed to learn and adapt over time. This means that it will become more accurate and efficient as you use it. Over time, Thriday's software will learn to recognise recurring transactions and remember these subtle changes. Thriday's automated bookkeeping software also allows you to customise your categorisation rules. This means that you can create rules to categorise transactions in a way that makes sense for your business.

Thriday also offers powerful reporting features that give you a clear view of your business's financial performance. With Thriday's software, you can generate reports on income, expenses, and more. These reports can help you make informed decisions about your business's finances.

Thriday's automated bookkeeping software makes it easy for small business owners to manage their finances confidently. By automating the bookkeeping process, Thriday saves you time, reduces the risk of errors, and provides real-time financial information. With its advanced algorithms, customisable categorisation rules, and powerful reporting features, Thriday is the smart choice for small business owners who want to streamline their bookkeeping process. 

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).

Why waste time on financial admin when Thriday can do it for you?

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