We are entering week 7 of 7 in our mini series on setting up 17hats! This tool has changed our business and our lives in the most remarkable way, allowing us to automate our process and get hours of precious time back into our lives! If you would like to find out more about why we use 17hats, please check out our original post 17 reasons to use 17hats.
The first 6 weeks:
- Kick off | 17 reasons to use 17hats
- Week 1 | The Basic Set up
- Week 2 | Templates
- Week 3 | Quotes
- Week 4 | Workflows
- Week 5 | Dashboards
- Week 6 | Capturing Leads
This week we are talking about the bookkeeping features we love in 17hats!
No one is going to complain about making money. Keeping track of it, however, can drive a person mad. Expenses, income, profit margins, weird tax rules, not so weird tax rules... it's all very tedious to keep up with. Add-in the fact that it all needs to be categorized and recorded for monthly Virginia sales tax and end of the year federal taxes, you get a big heaping pile of nope. It's easily an area of business where there is so much to think to do and think about, that it actually causes us to freeze up and push it off, you know, "for later."
Even though I'll be the first to admit that we don't have it all figured out, I will say that 17hats has given us an incredible edge in making this painful process so much easier! After connecting our bank accounts, 17hats automatically tracks our income and expenses and can create valuable reports that help us prepare end of year taxes and shape important business decisions.
Go back to week 1 and make sure you have the basic set up completed including hooking up your business accounts to 17hats. We have our Paypal and bank account connected to 17hats.
That is pretty much the extent of the "set-up" part of bookkeeping, so instead of walking through setting things up step-by-step, I'll highlight a few of our favorite features within "Bookkeeping."
1. All income and expense can be categorized! In fact, if there are uncategorized income or expenses, 17hats highlights those for you as a signal for you to go in and add a category. The default categories in 17hats align with appropriate tax categories which makes monthly and end of the year income and expense reporting a breeze. You can also add your own categories under My Account -> Account Settings -> Bookkeeping Options.
2. Additional expenses and income that do not come through linked accounts can be added in. We mostly use this feature for reporting the portions of personal expenses that can be deducted for business (like a percentage of our home bills for our home office) and on occasion if I accidentally make a business purchase on our personal account.
3. Expenses can be assigned to a specific project. This is incredibly valuable! When we are determining our net profit per client, it helps that the income and expenses specific to the project are already linked.
4. The profit and loss report. Obviously this is huge. No longer is it necessary to pull hair out while crying into an excel spreadsheet! Profit and loss is automatically recorded by category.
5. The sales tax report. Oh this report has saved me hours of time! It automatically defaults to the previous month and since all my invoice items are recorded as taxable or not, the report automatically generates what I needs to be recorded for monthly sales tax.
6. Upcoming and aged receivables. I use the upcoming receivables A LOT more than the aged receivables since we never have aged receivables... you know, because this girl doesn't work for free! ;) Anyways, seeing the upcoming projections for the year help guide our decisions on new equipment, education, and other pertinent decisions about our business endeavors.
We have loved sharing our experience with 17hats! I hope you have found this series valuable and are ready to put a project management tool in place to automate your work flow and make your life easier. The biggest take away shouldn't be buy 17hats right now. It should be know when you need to off load part of your process and get that valuable time back in your life!