The How of Business - How to start, run, grow and exit a small business.

588 – Bookkeeping Essentials with Jodi Arrant

15 snips
Nov 17, 2025
Jodi Arrant, founder of J. Arrant Consulting and a seasoned bookkeeping expert, shares invaluable insights for small business owners. She discusses the importance of monthly bank reconciliations and common pitfalls, like uncategorized transactions. Jodi breaks down loan payment impacts on financial statements and offers best practices for documenting business meals. With over 17 years in the field, her practical advice equips entrepreneurs to streamline their financial processes and avoid costly mistakes, ensuring clarity and confidence in their bookkeeping.
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ANECDOTE

From Pharmacy Clerk To Bookkeeper

  • Jodi learned bookkeeping at a small independent pharmacy where owners trained her on payroll, paying bills, and QuickBooks.
  • That hands-on mentorship led her into a 17-year career in bookkeeping and consulting.
INSIGHT

Books Are Accurate Only If Coded Right

  • Bookkeeping is coding and categorizing every transaction into a general ledger and chart of accounts.
  • Correct categorization is crucial because misclassified items distort Profit & Loss and Balance Sheet views.
ADVICE

Split Loan Payments Correctly

  • When you make a loan payment, record interest on the P&L and reduce principal on the balance sheet.
  • Bookkeepers ensure payments split correctly so your P&L shows only interest expense.
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