Stephanie Kochis’ Tips for Efficient Bookkeeping

Join us in a conversation with Stephanie Kochis, the owner of Savvy Steward Financial Services. Stephanie stands at the forefront of transforming bookkeeping for small businesses, bringing clarity and efficiency to what can often be a daunting aspect of entrepreneurship.

Her passion for financial management shines through in her innovative approach, making financial statements not just accessible but insightful for her clients.

Discover the story behind her successful venture and the insights that make Savvy Steward Bookkeeping a beacon for small business owners navigating the financial world.

Launching Savvy Steward Financial Services

SBS – What inspired you to start Savvy Steward Financial Services?

Stephanie – I was in tech support before the pandemic and I ended up in a very stressful job, and I was looking for a way out. I had always wanted to work for myself, and I started looking for a full-time business I could start and run from home with low overhead. I was reading an article about businesses you can run with low overhead, and it mentioned bookkeeping. The ironic thing was that I had already been working as a bookkeeper at the time and didn’t realize it. I was a volunteer church treasurer, but I didn’t realize that the actual work I was doing for them was bookkeeping. So when I read the article, I researched bookkeeping more and knew it would be a great fit. I took a class, set up the business, and gave notice at my job a few months later, and I have no regrets. It has been the best thing I have ever done. 

Early Challenges in Bookkeeping Business

SBS – What were the initial challenges you faced in establishing your bookkeeping business?

Stephanie – Honestly, the hardest thing about actually going into business for myself was getting health insurance. No joke. It was relatively easy to set up a website and an LLC and do all of the other tasks to officially start a business. But getting health insurance was a huge hassle. Looking back, I probably should have sought guidance instead of just trying to figure it out on my own. There are whole careers where people help other people figure out their insurance options. I should have looked for someone to help and didn’t. That was before I did a lot of networking. Now that I have been networking regularly, I know a person to answer questions in just about every industry. But when I first started the business, I didn’t really have any connections to turn to for help and guidance about these practical questions.  

Differentiating in the Bookkeeping Market

SBS – How do you differentiate your services from other bookkeeping providers?

Stephanie – I offer a lot of training and customer service that is not as common among bookkeepers. I try to be available for clients when they have questions, and I return emails and phone calls quickly. A lot of bookkeepers do not offer training and don’t respond quickly to client emails and calls. I return emails and calls promptly, and I like to make sure all of my clients are well-trained and comfortable with the software, even if they aren’t doing the regular bookkeeping. An educated client is a good client. So I work very hard to provide that extra level of service. It is always satisfying to hear from clients that they learned a lot and appreciate the training. That’s what I am going for, and I know it sets me apart in my industry.  

Business Growth and Learning Experiences

SBS – Can you describe a significant learning experience you had while growing your business?

Stephanie – Running a business has been a huge learning experience in general. But specifically, I would say setting boundaries has been a very big learning experience for sure. I learned fairly early on not to bend or change policies or the way I do business just because a prospective client wanted to do something differently. You certainly have to be flexible and reasonable, but I mean something like someone asking to meet in person to submit payment rather than using the online payment link. Situations like that have really enforced why boundaries, policies, and procedures are important. Some clients will be a good fit, and some will not be a good fit. Having solid policies and procedures in place is a really helpful way to maintain boundaries and help determine which clients are a good fit for the way the business operates.

Evolving with Small Business Financial Needs

SBS – How do you keep up with the evolving needs of small business owners in terms of financial management?

Stephanie – I tell every client and prospective client that the service I offer is customized based on the needs of the business. When their business needs change, I can update the services I offer to them so that the business needs are still being taken care of. Some clients grow and need additional help, like creating invoices. Other clients learn the monthly workflow and want to reduce services to a more basic review service so that they are more on top of their finances. I let clients know that they are not locked into anything and that services can be updated or changed as needed. Clients appreciate this flexibility because a cookie-cutter solution is not always a good option.  

Personal Influence on Business Approach

SBS – How have your background and personal interests influenced the way you run your business?

Stephanie – My background has influenced the way I run my business in the way I interact with my team. I have been in situations in the past where team members were not treated well, and that has made a huge impact on how I want to be seen as a boss. I work hard to create a supportive environment for my team and to make sure they know how much I appreciate them. 

My background has also allowed me to come up with efficient ways of doing things. I have been in jobs where it seems like the way things are done is so inefficient, and I would think, “When I have my business, I will do it this way instead.” I was always thinking like that because I always wanted to work for myself. Now that I have a business, I am able to put those ideas to work and systematize and streamline to make things more efficient.  

My personal interests haven’t influenced how I run the business so much as why I got into business in the first place. I had always enjoyed working with money, and it was really natural to have that interest and then fall into bookkeeping. So many people dread the financial part of the business, and for me, that’s the fun part. There is something so satisfying about digging into books that are just a mess and getting everything untangled, cleaned up, and straightened out. It’s a great feeling. It definitely works in my favor that I’m a bit OCD and detail-oriented. Those are great traits to have in this industry.  

Common Bookkeeping Mistakes to Avoid

SBS – What are the common bookkeeping mistakes you see small business owners make?

Stephanie – The main mistake is to not do the bookkeeping at all. That’s a big one, and it’s common. Another one is when payments aren’t applied to invoices correctly. So many of the cleanup projects I have done involve issues where payments aren’t applied correctly. It’s very common, though. Accounting software is not very intuitive, so people who have no experience in it have no way of knowing the proper steps to put transactions in the correct accounts.

Understanding Financial Statements for Owners

SBS – How important is it for a business owner to understand their financial statements?

Stephanie – It is extremely important for them to understand financial statements. So many times, I have talked to people who think they know how well the business is doing from the checking account balance. But that is only one small piece of the overall picture. Financial statements give business owners a much more comprehensive look at what is happening financially over time. Is the business actually making or losing money? If the business is making a lot of sales, but then expenses and payroll exceed the sales, it’s a net loss at the end of the month. Business owners have to be able to read their reports to have a good idea of how the business is doing financially.

Bookkeeping Improvement Tips for Businesses

SBS – Can you provide some tips on how small businesses can improve their bookkeeping practices?

Stephanie – The basic tips are:

1. Separate business and personal spending
2. Use accounting software to categorize income and expenses. Do this weekly
3. Reconcile bank and credit card accounts monthly
4. Review Financial Statements monthly

Role of Technology in Modern Bookkeeping

SBS – What role does technology play in modern bookkeeping, and how should entrepreneurs adapt to it?

Stephanie – Technology plays a huge role in modern bookkeeping. Most software is cloud-based now, and a lot of bookkeepers, myself included, work virtually. Without technology, we would not be able to run businesses in the way that we do. Bookkeeping used to be working for one company and being on-site to enter transactions into the desktop accounting software. Today, a lot of small businesses outsource bookkeeping to independent bookkeepers who work for many clients. Video call software like Zoom and Google Meet makes it easy for business owners to keep in touch with bookkeepers, have meetings, and review reports. Fortunately for me, I was in tech support before bookkeeping, so that background has come in very handy. I am used to looking for online resources to find the answers to questions and figuring out how to make things work. I would encourage entrepreneurs to learn as much as they can about the technology involved in their business because it will set them apart from others in the same industry who do not have a strong grasp on the technology.  

Technology also plays a role in that so many industries have their own industry-specific software that integrates with accounting software. It’s important to know how to get the software connected properly so that it imports invoices and payment data. Entrepreneurs today must embrace technology so that they can use it to the fullest extent. Cloud software is the future, and entrepreneurs and business owners who learn it and adopt it are in a strong position for success as standard desktop programs slowly become obsolete.

Optimal Financial Review Frequency for Businesses

SBS – How often should a small business review its financial records, and why?

Stephanie – Most small businesses need to review financial records on a monthly basis. For some very small businesses with low transaction volume, they can get away with quarterly reviews. But that is much more rare. Most small businesses really need to look at reports on a monthly basis so that they can see historical trends. Are supplies going up in cost and net income going down? Are sales dropping? Are expenses increasing faster than income? Once they start reviewing reports monthly, business owners will be able to see historical trends that will give them good data to make decisions. Maybe they need to increase pricing, hire additional help, or advertise in a specific area. Detailed financial reports are what provide the info for them to make those decisions.

Starting Entrepreneur Bookkeeping Basics

SBS – What advice would you give to someone who is just starting out and is managing their own bookkeeping?

Stephanie – Make sure to have separate business bank accounts and accounting software. Connect the bank accounts to the accounting software to have a record of all business transactions. If you are unsure about getting it set up or how to do it, reach out to a bookkeeper for help. It is so much easier to set it up properly from the start rather than to clean it up once the records are a mess.

When to Opt for Professional Bookkeeping

SBS – In your opinion, when should a business consider hiring a professional bookkeeper?

Stephanie – I think they should hire a bookkeeper right at the start. For people who do not have any kind of bookkeeping experience, it’s especially important. It’s so much easier (and cheaper) to do a bookkeeping setup than a bookkeeping cleanup. Even if the business wants to do their own bookkeeping, they should have someone set up the software and train them on using it. I do a lot of setup and training for business owners who want to do their own books, but they realize the importance of getting them set up properly. Once the system is in place and the business owner knows how to use it, it’s a simple matter to maintain it.

The other reason a business owner would consider hiring a bookkeeper is when they don’t have time to do the books regularly. If it’s a huge stressor, hire someone. So many people try to save money, but bookkeeping is not the place for cost-cutting. The financial records are the backbone of the business; they have to be correct. For so many people, tax time is such an unnecessary source of stress. If the books have been maintained properly and regularly throughout the year, it’s just a matter of getting annual reports to the CPA so that they have numbers for taxes. Hiring a bookkeeper means peace of mind. It gives business owners time back in their day and relieves so much stress and worry.