As a new business owner, managing accounting and bookkeeping can be overwhelming. There are countless tasks pulling you in different directions. But instead of trying to tackle everything at once, The One Thing by Gary Keller teaches us to focus on the one most important task that, by doing it, makes everything else easier or unnecessary.
Here’s how you can apply this principle to simplify your bookkeeping, one small step at a time.
The problem:You’re struggling to keep track of receipts, invoices, and expenses, and you feel like everything is in disarray.
Step 1—Focusing question:What’s the one thing I can do to organize my bookkeeping, such that by doing it, everything else will be easier or unnecessary?
The answer:Start by organizing all your receipts and invoices in one place—whether that’s a physical folder or a digital system. This way, everything is centralized and easier to find later.
Step 2—Focusing question:What’s the one thing I can do to keep receipts and invoices organized from this point forward, such that by doing it, everything else will be easier or unnecessary?
The answer:Set aside a specific day and time each week to file new receipts and invoices. This simple weekly habit keeps things from piling up and makes the process manageable over time.
Step 3—Focusing question:What’s the one thing I can do to make filing receipts and invoices even easier?
The answer:Use bookkeeping software that allows you to upload and categorize receipts instantly. This eliminates the manual task altogether, making everything easier and more organized in the long run.
The problem:You often find yourself short on cash when bills are due because you’re not keeping a close eye on cash flow.
Step 1—Focusing question:What’s the one thing I can do to understand my cash flow better, such that by doing it, everything else will be easier or unnecessary?
The answer:Create a simple spreadsheet to track your income and expenses every week. It doesn’t need to be fancy—just a place to see what’s coming in and what’s going out.
Step 2—Focusing question:What’s the one thing I can do to keep this habit going every week, such that by doing it, everything else will be easier or unnecessary?
The answer:Set a recurring 15-minute reminder on your calendar every Friday to review and update your cash flow spreadsheet. This ensures that cash flow tracking becomes a consistent habit.
Step 3—Focusing question:What’s the one thing I can do to make tracking cash flow even easier?
The answer:Link your business bank account to bookkeeping software that automatically tracks income and expenses for you, reducing the manual work and giving you up-to-date cash flow insights at any time.
The problem:Every year, tax season hits, and you’re left scrambling to find receipts, records, and documents, feeling unprepared.
Step 1—Focusing question:What’s the one thing I can do to make next year’s tax season easier, such that by doing it, everything else will be easier or unnecessary?
The answer:Start a dedicated folder (physical or digital) for tax-related documents and receipts right now. Going forward, every time you get a document that could be important for taxes, put it in this folder immediately.
Step 2—Focusing question:What’s the one thing I can do to ensure I consistently file tax-related documents throughout the year, such that by doing it, everything else will be easier or unnecessary?
The answer:Set a monthly reminder to review your tax folder and make sure all documents are filed correctly. This small, monthly task keeps you organized year-round.
Step 3—Focusing question:What’s the one thing I can do to make this process even smoother?
The answer:Consider using a scanner app to digitize all your tax documents as they come in. This reduces clutter, ensures nothing gets lost, and makes filing taxes much easier when the time comes.
The problem:You’re not sure which of your products or services are bringing in the most profit, making it hard to make decisions about pricing or cutting costs.
Step 1—Focusing question:What’s the one thing I can do to better understand my profitability, such that by doing it, everything else will be easier or unnecessary?
The answer:Start by calculating the Costs of Goods Sold (COGS) for one of your main services or products. This will give you an idea of how much it costs to deliver that service.
Step 2—Focusing question:What’s the one thing I can do to understand profitability across all my products and services, such that by doing it, everything else will be easier or unnecessary?
The answer:Once you’ve calculated COGS for one service, set a goal to calculate it for each of your other services or products. Take them one at a time until you have a clear understanding across the board.
Step 3—Focusing question:What’s the one thing I can do to make this process simpler in the future?
The answer:Set up a system where COGS is tracked regularly using your bookkeeping software. This way, you’re not having to manually calculate it every time and can make faster decisions based on real-time profitability data.
Managing bookkeeping and accounting as a new business owner can feel overwhelming. But by applying the focusing question from The One Thing—What’s the one thing I can do, such that by doing it, everything else will be easier or unnecessary?—you can break down big tasks into small, manageable steps.
Instead of trying to do everything at once, you focus on the next specific action that moves you closer to clarity and control in your business finances. One small step at a time can make all the difference.
If you’re feeling unsure about what your next step should be, we’re here to help you find your "one thing" and get you back on track.