Shiloh has grown a lot, and plenty of the businesses here started small. Someone sells crafts online in the evenings. Someone does lawn care on weekends. Someone takes a few bookkeeping, design or cleaning clients on the side of a day job. Then one year they look up and realize the side gig is bringing in real money.
I’m Miles with MilesP Bookkeeping, a certified QuickBooks ProAdvisor (Level 1, Level 2 and Payroll). I work remotely with small businesses across the Metro East, including Shiloh. This post is for people at that turning point: you’ve got a side business that’s growing, and the way you track the money isn’t keeping up.
How to tell your side gig has outgrown your system
Most side businesses start with something simple: a notebook, a spreadsheet, or just the bank app. That’s fine at first. Here are signs it’s time for something better:
- You’ve lost track of which customers have paid.
- Business and personal purchases are on the same card.
- Your spreadsheet has tabs on top of tabs, and only you understand it.
- You aren’t sure whether you’re actually making a profit after expenses.
- Tax time takes a full weekend of digging.
If two or three of those sound familiar, you’re ready for a real setup.
Step one: open a separate account
This is the most important step, and it costs almost nothing. Open a business checking account and, if you can, a business credit card. Run all of the business money through them and nothing else.
It makes your records far cleaner, it makes it much easier to see what the business really earns, and it makes life easier for whoever prepares your taxes. I explain more in how to separate business finances.
Step two: move from a spreadsheet to QuickBooks
Spreadsheets are great for a lot of things, but they aren’t built for bookkeeping. They don’t connect to your bank, they don’t reconcile and it’s easy to break a formula without noticing.
QuickBooks Online pulls in your bank transactions, lets you send invoices, tracks who owes you money and gives you reports with a click. When you switch:
- Pick a clean start date, like the first of a month or the start of the year.
- Bring over what matters: open invoices, unpaid bills and your starting bank balance.
- Keep your old spreadsheet as a record, but stop updating it.
My QuickBooks setup guide walks through the basics in more detail.
Step three: set up categories that make sense to you
New QuickBooks users often end up with either too few categories (“Expenses”) or way too many. Aim for a short list that matches how you actually spend money: supplies, software, advertising, vehicle, and so on. Here’s my advice on a sensible chart of accounts.
Step four: build a tiny routine
You don’t need hours. Something like this works:
- Once a week: review new transactions in QuickBooks and attach receipts.
- Once a month: reconcile your bank account and run a profit and loss report.
That small habit keeps you from ever facing a year-end pile. If you’d like a deeper look, see how to track business expenses.
Step five: ask a CPA about the tax side
When a side business starts making real money, your tax situation can change. You may need to make estimated payments during the year, and your CPA may have advice on how to set up the business. I’m not going to guess at the rules for your situation. That’s exactly what a CPA is for. What I can tell you is that clean books make that conversation easier and cheaper.
Paying yourself
Many side business owners leave all the money in the business account and never decide what they’re actually earning. Others pull money out whenever they need it. Both make it hard to see how the business is really doing.
Pick a simple approach, like a set amount each month, and record it consistently. Your CPA can tell you the right way to do this for how your business is set up.
When to bring in a bookkeeper
You can absolutely do all of this yourself. Some people enjoy it. But a bookkeeper starts to make sense when:
- The business is taking more of your time and your evenings are full.
- You’re thinking about quitting the day job and need clear numbers to decide.
- You’ve hired help, or you’re about to.
- You’ve tried to keep up and it keeps slipping.
I compare the options in outsourced bookkeeping versus in-house.
How I work with Shiloh businesses
I’m remote-only, which works well for side businesses because you can work with me on your schedule. Evenings, early mornings, whatever fits around your day job. We use QuickBooks Online, email, phone and secure file sharing.
I can help with just the setup, with a cleanup of what you’ve done so far, or with ongoing monthly bookkeeping. You can read more about my Illinois work on my Columbia, IL bookkeeping page.
Frequently asked questions
My business is really small. Is QuickBooks overkill?
Not usually. Even a small business benefits from bank connections and simple reports. QuickBooks offers different plan levels, so you can start small.
Can you just set it up and let me take it from there?
Yes. Plenty of clients want a solid setup and a quick lesson, then they handle the day-to-day.
I’ve been mixing personal and business money for a while. Can that be fixed?
Yes. We can go back and sort out what was business and what wasn’t, then start fresh with separate accounts.
Do I need an LLC first?
That’s a legal and tax question for your attorney or CPA. Bookkeeping works either way.
If your side business is ready to grow up, say hello on my contact page.