Bookkeeping is a lot less intimidating and easier if you have the right tools and know where to go for further information. Here are some ways you can make 2010′s bookkeeping a breeze!

Invoicing & Payments
You can create an account with Freshbooks.com or other online invoicing tool. With Freshbooks I create invoices and estimates, track the time used for each of my clients, and also receive payments through PayPal. There are other options you can choose to receive payments (such as Google Checkout or Authorize.net) and you can even choose to send the invoices by snail mail.

For Sole Proprietors
If you file a Schedule C at the end of the year, you can create a free account at Outright.com to keep track of all your income and expenses. Outright works with Freshbooks and will import the invoices and keeps track of when their paid and enters the payment as income. All you have to do is manually enter your expenses and pick the category they are classified under. Then, when you click on the Reports tab, you can see your Profit and Loss statement for the year, you will also get reminders of when tax payments are due, as well as an estimate on what you might owe the IRS.

Keeping Track of Subcontractors
With Outright, once you enter an expense under the category of “Contractors” it automatically keeps track of how much money each contractor receives. This way, when it gets close to tax time, you can automatically request W-9′s through Outright, and then have the information you need to send out 1099′s.

Tax Time
This might seem like a no-brainer, but you can do your own taxes online through HRBlock.com or similar online tax preparation programs. Especially if you’ve kept good records of all the income and expenses you’ve accumulated throughout the year, doing your own taxes using software is easy. You just answer the questions on the screen and enter the information they ask for. You can also go get your taxes done at an office, but the price is usually more expensive and I don’t like to print out all the paperwork they need when I can file online myself.

Befriend an Accountant
If you have a question that needs answering and can’t find the answer through an online search, it’s helpful to know a trusted accountant or two that you can go to. I have a friend who lives about an hour away who is happy to answer any questions I have, no charge. I don’t abuse the relationship by sending her a Word document full of questions, but will occasionally send her an e-mail with one or two specific questions. In return, she knows that I’m available to answer any questions she may have about anything I’m an expert on (or perceived to be). If you don’t know any accountants, ask your friends or colleagues for a recommendation of someone they trust.

If you’re business is setup as a corporation or LLC, you really might need an accountant to do your bookkeeping for you, but for the rest of us, doing it yourself can be a solution if you don’t have a large number of invoices or entries to process.

By the way, does anyone know what H & R Block means?