How Best to Set Up your Bookkeeping System to Manage Subscriptions: Make it easy
Photo by Pablo Arroyo on Unsplash
I created a subscription tracker that you can use to see how much you are spending on subscriptions and see them in one place. You can download it here.
When you take a look at it, you might not be sure where to get the information. If that is the case, how your bookkeeping is set up might be holding you back from accessing this information quickly and easily. Here are some tips to help you see what you are subscribed to on one report.
Your bookkeeping system should be designed to help you get the information you need to manage your business. I recommend putting all recurring subscriptions in one account in your bookkeeping system regardless of their purpose. If they are in one category, you (or your bookkeeper) can produce a report that shows you all the monthly and annual subscriptions. I call this category “Website and Software Subscriptions.”
Sometimes people categorize things according to their purpose. They might record the monthly charge for their email marketing software to a category called “Marketing” or record their bookkeeping software as “Office Expense” and their podcasting software as “Podcast Expense.” and this is perfectly correct. The problem with recording things this way is that all the subscription charges are scattered into various categories, making it hard to see them for management purposes. When you have recurring monthly or annual charges in all these different accounts, seeing and managing them becomes challenging.
Once you get all your recurring subscriptions in one category in your bookkeeping software, using the subscription tracker will be much easier.
You will gain confidence by filling it out, becoming aware of what you're subscribed to, and evaluating what your subscriptions are or are not doing for your business.
The tracker helps you make informed choices of what to keep and what to eliminate! This subscription tracker is going to improve your profitability!
In love, Carol
Get the Free Subscription Tracker here.