bookkeeping-basicslisted

# Bookkeeping Basics ## Overview Bookkeeping tracks where money comes from and where it goes. Most solopreneurs hate bookkeeping, so they avoid it — then face chaos at tax time or when applying for loans. This playbook gives you a simple system: minimal time, maximum clarity. **Disclaimer: This is educational content, not professional accounting advice. Consult a CPA for complex situations.** --- ## Step 1: Choose Your Accounting Software Don't use spreadsheets. Use accounting software. It automates most of the work and keeps you compliant. **Software comparison:** | Software | Best For | Pricing | Learning Curve | Features | |---|---|---|---|---| | **Wave** | Freelancers, very small businesses | Free (pay for payments/payroll) | Easy | Basic invoicing, expense tracking, reports | | **QuickBooks Online** | Most solopreneurs, scaling businesses | $15-50/month | Medium | Full accounting, invoicing, tax reports, integrations | | **FreshBooks** | Service businesses, invoicing-heavy | $17-55/month | Easy | Invoicing, time tracking, expense tracking | | **Xero** | International businesses, contractors | $13-70/month | Medium | Full accounting, multi-currency, payroll | **Selection guide:** - Just starting, no revenue yet → Wave (free) - Revenue < $50K/year → Wave or FreshBooks - Revenue $50K-250K/year → QuickBooks Online - International clients or contractors → Xero **Recommendation:** Start with Wave (free). Upgrade to QuickBooks when you hit $50K revenue or need more feat