Bookkeeping for Your Creative Business: Interview with Holly Neitzel of Accounting SPOT

A few weeks ago, Justine wrote Vendor Benders: Top 5 Mistakes Online Shop Owners Make and the number 1 mistake was putting off paperwork.  Well, we want to help you avoid that mistake and start this year off right so we connected with Holly Neitzel, MBA and Certified QuickBooks ProAdvisor of Accounting SPOT to cover all the proper steps to get your bookkeeping and accounting in order for your creative business.  She offers some great tips in our discussion with her today:

Meylah: Can you tell us a little bit about your background and how you got started in helping small business owners with their accounting/bookkeeping?
Holly: I started working as an accountant for a small manufacturing company when I was going to college for my BA in Accounting. Soon after I finished college I started working for the local hospital as a staff accountant. That is where I got my 'big' (not really THAT big!) business experience. While working there I studied for my MBA in Accounting. Literally 2 weeks after graduating with my MBA I gave birth to my first child...and left the corporate world. While I learned a tremendous amount and grew a great deal as an accountant, corporate work wasn't my future.  I spent about a year at home being a mom before I really needed to get back in to the business world. I started a card & stationery shop on Etsy and that went well, but something was still missing. As I was becoming more familiar with online business, micro business and the entrepreneurial spirit I saw a need that I knew I could fill. I knew that I could run Accounting SPOT and help other small business owners with their accounting, all the while remaining the main care taker of my children. My first goal had been reached!

Meylah: Your blog, Accounting SPOT, is a great resource for accounting/bookkeeping information, can you explain the services you offer to your small business clients?
Holly: Talking about my blog site makes me so excited! It is full of resources that empower small business owners to be in control of their business finances. I try to offer a variety of options so that every business owner can find a solution, from DIY spreadsheets to professional software tutorials or even having it all done for you.  The spreadsheets I offer are a simple way to track your income and expenses. The software tutorials help you set up QuickBooks to work for an online shop.  ALL of my downloadable items are for FREE and, of course, if you just don't want to deal with it at all, I am available to do it for you!

Meylah: What are the top tips you would recommend to artists and crafters to get their accounting/bookkeeping started in the right direction this year?
Holly: My top 3 tips for getting started on the right foot this year are:

1. Know the very basic.  It might go without saying...but then again it might not. Revenue - Expenses = Profit
2. Don't do your bookkeeping FOR the IRS.  Many owners do their bookkeeping 'for' the tax man. This is backwards. You do your bookkeeping for YOU and as a result, can easily share the required info with the tax man.
3. Downloading detail is your friend.  Etsy, PayPal and probably your bank and credit cards have the option to download transaction detail in to Excel and/or QuickBooks. USE THIS OPTION! The less data entry you have to do, the more time and accuracy you gain.

Meylah: What do you find are the biggest mistakes that small business owners make related to their bookkeeping and accounting practices?
Holly: The biggest mistake I see with small business owners is not getting their bookkeeping set up and going. They don't know where to start (or just don't have time to do it), it piles up and then by the end of the year it is an overwhelming mess of bookkeeping that needs to be done!  By creating a simple process and following through at least once a month, business owners can avoid getting overwhelmed and have useful business reports for their business!

Meylah: What programs or online tools do you use with your clients that you would you recommend to track bookkeeping for an artist and crafter?
Holly: I have 3 main tools I like to use and recommend for my clients:

• Excel:  This is a great tool. Many computers even come with Excel on them. You can create your own simple formulas and reports, and I've created downloadable ones for everyone to use for FREE on my blog.
• Outright.com:  This is a FREE and VERY easy profit and expense tracking solution. You can link directly to your PayPal account and not do one peck of data entry! WONDERFUL!
• And MY favorite, the all inclusive QuickBooks:  This is a great program to track income, expenses, full business reports, bank reconciliations and much more! QuickBooks ranges from a FREE online version, to a full enterprise solution.  I have created a free tutorial on Quickbooks that will help you get set up and running with the free online version and if you are in need of something a bit more robust, I have a Generic Company File and Tutorial available as well.

Wow, what great information Holly!  If you have any questions for Holly, you can reach out to her directly through her blog at Accounting SPOT or leave a comment for her below.  Thanks again Holly, we are inspired and committed to getting our bookkeeping in order for 2010.