Bookkeeping Basics You Can’t Afford to Skip (Even With Under 100 Transactions)
- Lauren Twitchell
- Sep 10
- 5 min read
Updated: Sep 18
One of the biggest myths about bookkeeping is that it only matters once your business gets “big.” If you’re a tradesperson with a handful of jobs each month or an Etsy seller shipping fewer than 100 orders, you might be tempted to think: “I don’t really need a system. I’ll just figure it out at tax time.”
But here’s the truth: the smaller your business, the more important it is to keep your books clean.
Why? Because when your transaction volume is low, every sale, every expense, and every dollar counts. Losing track of even a few receipts or not knowing how much you really made after fees can completely distort your picture of success.
The good news? You don’t need complicated software or a background in accounting to stay on top of things. You just need to focus on a few non-negotiable basics — habits that create order and clarity without taking over your week.
Today, we’re walking through the three bookkeeping basics you can’t afford to skip:
Separating your business and personal finances.
Saving your receipts and documentation.
Reconciling monthly.
Think of this as your starter checklist for keeping your books stress-free, even if you’re managing fewer than 100 transactions a month.
Why These Basics Matter (Even for “Tiny” Businesses)
Before we dive into the checklist, let’s clear up a misconception: bookkeeping isn’t about how big your business is. It’s about how clear you want your financial picture to be.
If you don’t know your real costs, you can’t price your products or services confidently.
If you don’t track your income consistently, you’ll have no idea whether you’re actually making money.
If you don’t separate business and personal expenses, you won’t know what’s deductible, what isn’t, and you risk creating chaos if you’re ever asked to provide proof of your numbers.
Think about it this way: bookkeeping is less about the IRS or tax time and more about giving you control over your own business story.
And the three basics below are the foundation.
1. Separate Business and Personal Finances
If you only take one piece of advice from this article, let it be this: stop mixing your business and personal money.
Why It Matters
Imagine you’re reviewing your bank statement at the end of the month. Mixed in with your Home Depot supply runs and Etsy shipping labels are groceries, gas, and your Netflix subscription. How will you know what’s really a business cost and what’s just life? Not only does this create confusion, it makes it far too easy to miss deductions, misstate income, or flat-out lose track of how your business is performing.
How to Do It
Open a separate account. Even if you’re not ready for a full LLC, open a second checking account dedicated to your business income and expenses.
Stop swiping personal cards for business purchases. Keep one card tied to your business account and use it consistently.
Start fresh today. Don’t overcomplicate things by trying to retroactively separate everything from last year. Start now, and keep it clean moving forward.
Pro Tip
If your bank requires extra paperwork for a “business” account and you’re not ready yet, open a no-frills personal checking account and designate it solely for business. It’s not perfect, but it’s far better than muddling everything together.
2. Save Your Receipts and Documentation
Here’s the uncomfortable reality: memory fades, but receipts don’t.
Why It Matters
Even with a separate account, there will be times when a charge looks vague. Was that $47 at Walmart for client supplies or back-to-school snacks? A receipt clears it up instantly. Receipts also provide proof that an expense was legitimate. While this isn’t about preparing for an audit, think of documentation as your safety net. More importantly, it’s your way of double-checking yourself when numbers don’t add up.
How to Do It
Pick your method. You can save receipts digitally (snap a picture with your phone, upload to Google Drive, or use a free receipt-scanning app) or keep a physical folder. The best method is the one you’ll stick with.
Make it a habit. Every time you make a purchase, either snap a picture right away or drop the paper into your designated folder.
Save monthly statements. In addition to receipts, download your monthly bank and credit card statements. These serve as your master record of business activity.
Pro Tip
Create a simple digital folder labeled “Business Receipts 2025” with subfolders for each month. That way, you never waste time searching.
3. Reconcile Monthly
The word reconcile sounds intimidating, but it simply means this: make sure what’s in your records matches what’s in your bank account.
Why It Matters
Reconciliation is how you catch errors, missed transactions, or double-charges before they snowball. Without it, you’re essentially guessing that your numbers are correct.
Even with under 100 transactions, it’s easy to overlook small things:
A customer payment that never cleared.
A bank fee you didn’t notice.
A subscription you forgot you were paying for.
Reconciling ensures your records and reality match — no surprises later.
How to Do It
Collect your statement. Download your monthly bank statement.
Compare line by line. Match each transaction on the statement to your receipts or records.
Mark differences. If something doesn’t line up, figure out why. Maybe you forgot to record it, or maybe the bank made an error.
Fix the gaps. Update your records so they match your statement exactly.
Pro Tip
Set a recurring reminder in your phone or calendar for the same day each month (e.g., the 5th). Spend 30 minutes reconciling. Over time, it will become as routine as checking your email.
A Simple Routine: 15 Minutes a Week
If this all feels overwhelming, let me simplify it:
Once a week, log into your business account.
Review transactions, save receipts, and jot down income.
Total time: 15 minutes.
At the end of the month, add in reconciliation. That’s it.
Bookkeeping doesn’t have to take hours. It doesn’t have to be perfect. It just has to be consistent.
Why Consistency Beats Perfection
Here’s the secret most business owners don’t realize: the goal isn’t to have flawless books right away. The goal is to create a routine that keeps you engaged with your numbers.
Consistency keeps the mess from piling up.
Consistency gives you confidence when you look at your numbers.
Consistency turns bookkeeping from a panic project into just another part of running your business.
Even if you only commit to these three basics — separate accounts, saving receipts, reconciling monthly — you’ll already be ahead of most small business owners.
Bringing It All Together
Let’s recap the three bookkeeping basics you can’t afford to skip:
Separate business and personal finances.
Save receipts and documentation.
Reconcile monthly.
These aren’t complicated, and they don’t require special software. But together, they give you the clarity, peace of mind, and control every small business owner needs.
Want to Go Deeper?
If you’re ready to take the next step, you’ll love the Zero Fluff Books Podcast. Each episode breaks down one bookkeeping habit in plain English, with practical examples for tradespeople, Etsy sellers, and side hustlers.
Because the truth is, bookkeeping doesn’t have to be scary. With the right basics, you can keep your business running clean, even if you only have 100 transactions or less a month.
Zero fluff. Just clean books.
Comments