Bookkeeping: The Entrepreneurial Buzzkill
Most entrepreneurs are visionaries. We have the ability to see the ‘big picture’ and make things work when we need to. We’re resourceful, creative, and motivated. But when it comes to the details, many of us come crashing down to earth with a resounding thud.
One of the greatest Achilles heels of small businesses is bookkeeping. In order for you to do it right, bookkeeping must be done on a daily basis. But very few people actually enjoy bean counting.
The fact remains; it is a necessity for any business - large or small - to keep basic accounting of daily transactions. Even if you have someone who helps you with your bookkeeping, tax preparation, or other filings, as a business owner you are required to have a basic working knowledge of the principles of bookkeeping so that you can maintain a process for keeping track of your income and expenses and audit the reports you are given by your accountant.
Thankfully, there are now more resources than ever that a business owner can access right from their computer. You can learn the basic techniques of bookkeeping, or brush up on your existing knowledge using these helpful (and free) internet articles and tutorials:
Top 10 Bookkeeping Mistakes Made By Small Businesses
http://www.allbusiness.com/accounting/methods-standards/4016-1.html
An informative article that can help you spot red flags in your small business bookkeeping methods.
How to Hire a Bookkeeper
http://www.bookkeeperlist.com/bookkeepers.shtml
This article will help you identify a bookkeeper that is professional, proficient, honest, and trustworthy.
SCORE Basic Bookkeeping Tips
http://www.score.org/fc_10.html
Simple but useful article from non-profit organization dedicated to helping small businesses start up.
Betts Best Bookkeeping Blog
http://www.bettsbestbookkeeping.com/
Bookkeeping Basics Blog
http://www.bookkeeping-basics.net/bookkeeping-blog.html
Beancounter Bookkeeping Web Tutorial
http://www.dwmbeancounter.com/tutorial/Tutorial.html
Free Bookkeeping Course
http://www.bookkeeping-course.com/
Remember, as a business owner, you are ultimately responsible for any mismanagement of your finances or tax filings. You have to know what is going on at all times. Successful businessmen have found themselves in court—or in jail—because they trusted the wrong person, or simply didn’t pay close enough attention to what was happening with their finances.
For all the work you put into your small business, it would be a shame to lose it because you aren’t willing (or able) to manage your basic bookkeeping.
Oh yeah, nail on the head with bookkeeping banality, at least for me.
But good techniques for keeping books come up everywhere, even in my basic plans for website flipping, so I think it’s good to just bite the bullet and get it done. Thanks for your post.
Bookkeeping is truly a lot of work. That’s why I appreciate the power of internet martketing. All your sales are in your processor’s database, ready for download.
That’s easier any day than to pore through reams of old receipts and half-remembered ledgers.
All the Best!
Regards,
Erwin Chua
Winning To Win With Erwin Chua - Internet Marketing Advice
http://winning2win.com
http://www.twitter.com/waywalker0101
@Ash.leigh: Thanks for the comment!
@Erwin: Yes, I agree that online businesses and internet marketing have some
great programs that truly help automate the system and therefore keeping
you very organized which equals less of a headache in the future!
Actually, I’ve been using Billings for the past while and find that most of the headache of book keeping has gone out the window but I do appreciate most people hate it
All too true but I’d just use Outright http://outright.com
Running the books of a small business is challenging. But with proper set-up, implementation, training and guidance - it, too, can be a breeze.
It’s true bookkeeping can be a bit of a drag, but the info you can get out afterwards can really boost your business profits. Also, if you get your paperwork in order like here http://www.smallbusinessfinancetips.com/bookkeeping-basics.html you can really cut down how much time it takes
We’d recommend some personal training and coaching…a modest one-off investment will be repaid many times over.
Being well organised and using technology can help make things easier. It also improves accuracy
As you say bookkeeping is an essential for a startup to get hold of early. I see too many companies that are out of their depth when it comes to VAT time. If a startup would just contract a private bookkeeper for 4 hours per week from the beginning they could save themselves so much stress.
Thanks
Bev
I checked all the links and resources you’ve mentioned and I personally benefited and learned a lot from the Top 10 Mistakes of Entrepreneurs. Thanks for sharing!