As a handmade business owner, you’re passionate about your craft—whether it’s soap-making, jewelry design, or creating unique artisan goods.
Managing finances can be overwhelming. It is especially difficult when people use terms like bookkeeping and accounting as if they’re the same thing.
Spoiler alert: They’re not!
Let’s break it down in a way that made sense to me—so you, like me, can confidently manage your business finances without the stress.
What Is Bookkeeping?
Bookkeeping is the foundation of your financial house.
It’s all about keeping track of daily financial transactions, like:
- Sales and income
- Business expenses
- Invoices and receipts
- Bank transactions
Think of it as planting the seeds for a strong, profitable business. When you maintain accurate records, you create a clear financial picture, making it easier to plan for growth. So, then…..
What Is Accounting?
What Is Accounting?
If bookkeeping is planting the seeds, accounting is harvesting the fruits.
It’s the process of analyzing your financial data to make informed business decisions. Accounting includes:
- Preparing financial statements
- Analyzing profits and cash flow
- Budgeting and forecasting
- Filing taxes and ensuring compliance
Bookkeeping focuses on organizing financial data. Accounting helps you understand what those numbers mean. This understanding allows you to make smarter business choices.
Why You Need Both
Imagine trying to bake without measuring your ingredients. That’s what running a business without bookkeeping and accounting feels like!
- Without bookkeeping, you won’t have accurate records of your sales and expenses.
- Without accounting, you won’t know if your business is truly profitable.
Together, they ensure your business is financially stable and ready to scale.
Start Organizing Your Finances Today
Feeling a little behind on your bookkeeping? You’re not alone! Most handmade business owners struggle with financial organization—until they have the right tools.
Download our FREE Financial Toolkit to help you get started! It includes:
- A simple bookkeeping template
- A checklist for organizing business expenses
- A guide to understanding financial reports
Click here to grab your free toolkit now!
Taking control of your finances as handmade business owner doesn’t have to be stressful.
With the right system in place, you can focus on growing your handmade business—without the financial headaches.
💬 Have bookkeeping questions? Drop them in the comments below!
Let’s make finances simple and stress-free for creative entrepreneurs like you.
