By Justin Quen CPA, Tax Editor
When entrepreneurs dream of starting a business—whether it’s a full-time leap or a weekend side hustle—their minds often race to the thrilling moments: landing that first client, launching a sleek website, or turning a lifelong passion into a paycheck. Yet, amid the excitement, one critical piece of the puzzle often slips through the cracks: bookkeeping. It may not be glamorous, but it’s the quiet force that can make or break your venture’s long-term success.
Today, side hustles are booming. From freelancing on weekends to selling handmade goods online, driving for rideshare apps, or launching creative projects, more people are dipping their toes into entrepreneurship. The moment money starts changing hands, no matter how small the scale, you’ve got a business on your hands—and that means bookkeeping isn’t optional. It’s essential.
In Arizona, this entrepreneurial spirit is thriving. As of 2025, the state is home to over 620,000 small businesses, accounting for an impressive 99.4% of all businesses statewide, according to the Arizona Commerce Authority’s latest estimates. These small enterprises employ more than 1.1 million people—roughly 43% of Arizona’s workforce—fueling growth. Phoenix continues to shine as a top startup hub, ranking among the best U.S. cities for new businesses thanks to its business-friendly policies. The Arizona Commerce Authority’s Small Business Services division sweetens the deal, offering tax incentives, funding programs, and resources to help entrepreneurs launch and scale their dreams.
But here’s the catch: success doesn’t just hinge on a great idea or a hot market. It requires knowing your numbers. Proper bookkeeping answers the questions that keep your business on track: Are you turning a profit? Can you afford to reinvest in growth? Which expenses are worth keeping, and where can you trim the fat? Without organized records, it’s like driving blind. When life gets hectic—and it will—untangling a mess of forgotten receipts and transactions is the last thing you’ll want to tackle.
One of the smartest moves new business owners can make is to draw a clear line between personal and business finances from day one. Start by snagging an Employer Identification Number (EIN) from the IRS—a quick, free process you can knock out online in minutes. With an EIN in hand, you can open dedicated business bank accounts and credit cards, creating a clean slate for tracking financial activity. This separation isn’t just about tidiness; it sharpens your bookkeeping accuracy, simplifies performance tracking, and makes life easier when it’s time to generate reports, apply for a loan, or face an audit. Trust me, you’ll thank yourself later.
For those ready to streamline the process, tools like QuickBooks can be a game-changer. This user-friendly software lets you track income and expenses, send invoices, reconcile accounts, and whip up financial reports without needing a degree in accounting. Even if numbers aren’t your forte, QuickBooks offers a clear snapshot of your business’s health, helping you stay on top of daily finances without drowning in spreadsheets. Setting up the right tools early keeps chaos at bay and frees you to focus on what you love—growing your business.
Building solid bookkeeping habits isn’t just a practical step; it’s a strategic one. It brings order to your finances, empowers you to make data-driven decisions, and lays a foundation for lasting success. As a CPA, I’ve seen the difference it makes time and again. Businesses with organized records don’t just survive—they thrive. Whether you’re a side-hustler testing the waters or an entrepreneur aiming to scale, treating bookkeeping as a priority from the start isn’t just smart—it’s the backbone of a business built to last.
About the Author
Justin Quen, a Scottsdale native and licensed CPA, holds a Master’s degree in Accounting from the University of Arizona. He specializes in personalized accounting and tax services for individuals and small business owners, helping clients make informed decisions and reduce stress during tax season.
For assistance with your taxes or financial planning, contact Justin at justin@jqcpa.net or call 602-571-1692.
