How to Do Your Own Bookkeeping: A Beginner’s Guide for Small Business Owners
Learn how to do your own bookkeeping with practical tips on courses, accounting software, AI tools, and when to outsource your books.
Andrew Kim
10/1/20265 min read
How to Do Your Own Bookkeeping: A Beginner’s Guide for Small Business Owners
Running a small business comes with plenty of expenses, and bookkeeping is one area where many business owners try to save money by doing it themselves. The good news is that you don't necessarily need an accounting degree to keep your books organized. With the right resources, accounting software, and a little consistency, you can learn to manage your own bookkeeping.
As a bookkeeper in Edmonton, I completed the bookkeeping certificate at NAIT and took additional online training to build my knowledge. Along the way, I learned that there are several ways to get started without spending a fortune.
Here are four steps to help you take control of your business finances.
1. Learn the Basics of Bookkeeping
Before investing in software, take some time to understand what bookkeeping actually involves. At its core, bookkeeping means recording your business income and expenses, reconciling your accounts, and keeping accurate financial records.
You don't have to become an accountant, but understanding the fundamentals will help you make better decisions and recognize when something doesn't look right.
Here are a few ways to learn:
Take a course at a local technical school. Institutions such as NAIT offer bookkeeping and accounting education that can help you build a solid foundation. I completed my own bookkeeping certificate at NAIT, which helped me develop the knowledge needed to work with business financial records.
Try an online course. Online training lets you learn at your own pace, often from the comfort of your home. I took Bookkeeper Launch, which helped me develop my bookkeeping knowledge and practical skills. My tip is to watch for discounts before purchasing. Programs like these sometimes run promotions around Black Friday, so you may be able to save by waiting for a sale.
Borrow accounting books from the library. You don't need to purchase every resource you use. Your local library may have introductory bookkeeping and small business accounting books that explain the fundamentals in plain language.
Learn from YouTube. There are plenty of free videos covering topics such as bank reconciliations, categorizing expenses, understanding financial statements, and using accounting software. Video tutorials are particularly useful when you want to see how a process works rather than just read about it.
The important thing is to learn why you're recording transactions a certain way, not just which buttons to click. That understanding will become especially valuable when you encounter an unusual transaction or something that doesn't seem right.
2. Choose Accounting Software
Once you understand the basics, the next step is to choose accounting software to help you organize your records.
You could technically track everything in a spreadsheet, but dedicated accounting software can save time, reduce repetitive work, and make it easier to reconcile accounts and generate financial reports.
My recommendation is QuickBooks Online. It's the software I use for my bookkeeping work, and I've written a separate article explaining why I think it's still a great choice for small businesses in 2026.
Read my related article: Why QuickBooks Online Is Still a Great Choice for Small Businesses in 2026.
Whichever software you choose, take time to set it up properly. Connect the appropriate bank and credit card accounts, create relevant expense categories, and establish a routine for reviewing and reconciling your transactions.
Remember that accounting software is a tool, not a substitute for understanding your finances. A report is only as reliable as the information entered into the system.
3. Use AI to Work Smarter, Not Blindly
Artificial intelligence is making bookkeeping more accessible to small business owners. Used properly, it can help you save time, understand unfamiliar concepts, and work more efficiently.
Here are two ways to take advantage of it.
Use the automation built into your accounting software. QuickBooks Online, for example, offers bank transaction categorization features that can suggest categories based on transaction details and previous activity. Rules and automated workflows can also reduce repetitive data entry.
These features are helpful, but suggestions still need to be reviewed. A payment to a particular company might be a business expense in one situation and something entirely different in another.
Use an AI assistant to help you learn. Large language models can explain bookkeeping concepts, walk you through a bank reconciliation, help you understand financial reports, or suggest questions to investigate when a transaction looks unusual.
For example, you could ask an AI assistant to explain the difference between an expense and an asset, or to walk you through the steps involved in reconciling a bank account.
However, AI can make mistakes. It may give you an incorrect accounting explanation, overlook important details, or provide advice that doesn't apply to your particular situation. Avoid entering confidential client or financial information into AI tools unless you understand the tool's privacy protections.
This is why learning the basics is so important. You need enough knowledge to evaluate the answers you're given rather than automatically trusting them.
I believe AI can make you a better bookkeeper, but it cannot replace accounting knowledge, professional judgment, or careful review. Think of it as a tool that supports your work, not one that takes responsibility for it.
4. Establish a Regular Bookkeeping Routine
One of the easiest ways to make bookkeeping more manageable is to stop putting it off.
Set aside time each week or month to review your transactions and keep your records up to date. Waiting until tax season to sort through an entire year's worth of receipts and bank statements can turn a manageable task into a stressful one.
A simple routine might include:
Recording and categorizing income and expenses.
Saving receipts and keeping supporting documents organized.
Reviewing bank and credit card transactions.
Reconciling accounts to confirm that your records match your statements.
Reviewing your profit and loss statement and balance sheet.
Setting aside money for tax obligations and checking whether GST registration and filing requirements apply to your business.
The appropriate schedule depends on your transaction volume and business needs. More frequent reviews can help you catch errors early and give you a clearer picture of how your business is performing.
Also, remember that bookkeeping and tax compliance are related but different responsibilities. If you're unsure about GST, income tax deductions, payroll, or other tax obligations, consider getting advice from a qualified professional.
Is Doing Your Own Bookkeeping Worth It?
Doing your own bookkeeping can be a practical way to save money, particularly when you're starting a small business with relatively few transactions. You'll also gain a better understanding of where your money comes from, where it goes, and how your business is performing.
However, your time has value, too.
As your business grows, bookkeeping can become more complicated. You may find yourself spending hours reconciling accounts, tracking down receipts, correcting categorization errors, and trying to understand financial reports instead of focusing on customers and growing your business.
You don't have to make the decision once and stick with it forever. You can start by doing your own bookkeeping and outsource it later when your time is better spent elsewhere.
Need Help With Your Bookkeeping?
If you've tried doing your own bookkeeping and decided you'd rather leave it to someone else, YEG Bookkeeping can help.
I'm Andrew, a QuickBooks Online ProAdvisor based in Edmonton. I provide remote bookkeeping services to small businesses, helping owners keep their financial records organized and up to date without having to manage every transaction themselves.
Services include monthly bookkeeping, bank and credit card reconciliations, financial reporting, and catch-up or clean-up bookkeeping.
Whether you need ongoing support or help getting your books back on track, I'd be happy to discuss your needs.
Visit yegbookkeeping.ca to learn more about my services or get in touch to discuss your bookkeeping needs.
You can focus on running your business while knowing your books are getting the attention they deserve.
