Ohh yes! Happy #FinanceFriday yall!🤗🤑 ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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I get a lot of questions about personal bookkeeping…🤔⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“Does LB Bookkeeping do personal bookkeeping?”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“What’s the difference between business bookkeeping and personal bookkeeping?”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“Which one do I need more? Do I need both?”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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What’s the difference between business bookkeeping and personal bookkeeping?🤔⠀⠀⠀⠀⠀⠀⠀⠀⠀
Business bookkeeping is tracking all the revenue, expenses, debt, and assets in your business on a regular basis. That information gets turned into financial statements 📊 which lets you make smart financial decisions, secure loans, and file your taxes.⠀⠀⠀⠀⠀⠀⠀⠀⠀
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You can hire an online/remote bookkeeper like LB Bookkeeping to do your books (that’s me!👩🏻💻), or do it yourself using Excel or accounting software (QuickBooks). ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Personal bookkeeping, on the other hand, is staying on top of your personal finances. It’s essentially expense management and budgeting. It can help you answer questions like:⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“Am I spending too much on eating out?”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“Can I really afford to go to Ibiza this year?”⠀⠀⠀⠀⠀⠀⠀⠀⠀
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“What kind of home mortgage do I qualify for?” (Okay, you’ll need a bank to help you with this one. But if you understand your personal expenses, you’ll know how much you can handle in monthly mortgage payments.)⠀⠀⠀⠀⠀⠀⠀⠀⠀
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Doing your “personal books” just means tracking your personal spending, and making sure you have a budget that works for your lifestyle. It could also mean keeping tabs on your personal debt and assets if you have a personal loan (like a mortgage). ⠀⠀⠀⠀⠀⠀⠀⠀⠀
If you want to track your personal finances, Mint.com (I use this app) is a simple tool to help get you started. Another amazing tool is Quicken, having been around for several decades, Quicken is one of the most established of all the personal finance software on the market. 👍🏻⠀⠀⠀⠀⠀⠀⠀⠀⠀
Wana chat about personal/bus bookkeeping? Contact me👩🏻💻🙌🏻😁📊