Bookkeeping Essentials for Small Business.

This episode brings a practical deep dive into small-business bookkeeping with financial professional Jodi Arrant, who shares her journey, best practices, and the most common bookkeeping mistakes business owners make.

Henry and Jodi talk through essential topics like proper transaction categorization, the differences between Profit & Loss and Balance Sheet statements, and why regular bank reconciliation protects business owners from costly errors.

They also discuss key year-end tasks, including cleaning up uncategorized expenses, preparing for 1099s, and reviewing financial reports before tax time.

“Accurate coding and regular reconciliation are everything – your books simply can’t be trusted without them,” Jodi explains, offering practical advice for business owners who want cleaner books and clearer financial insights.

Jodi Arrant is the founder of J. Arrant Consulting, a bookkeeping and financial operations firm based in Eugene, Oregon. With over 17 years of experience in bookkeeping, payroll, and QuickBooks consulting, she helps small business owners gain clarity, confidence, and organization in their financial systems. Jodi specializes in simplifying bookkeeping for entrepreneurs so they can focus on growing their small businesses.

Bookkeeping Essentials for Small Business – FAQ:

Question: What are the most common bookkeeping mistakes small business owners make?
Answer: The most frequent issues include inaccurate transaction categorization, inconsistent record-keeping, commingling personal and business funds, and failing to reconcile bank accounts regularly, all of which can lead to inaccurate reporting and tax complications.

Question: Why is regular bank reconciliation essential?
Answer: Reconciliation ensures that all transactions are accounted for, flags discrepancies early, and prevents errors from carrying into tax filings or monthly reports.

Question: How can small business owners keep better records throughout the year?
Answer: Using QuickBooks Online with the mobile app, maintaining separate business accounts, documenting expenses as they occur, and scheduling monthly check-ins with a bookkeeper are key best practices.