Tips on Accounting

01 December 2010 Categories: Gerry's Corner

            Here is a tip on Accounting for small Businesses. First of all, understand that accounting is a term which refers to record keeping. In other words the recording of what your business is doing financially. Things like what money is coming in, your expenses, what is in the Bank, what you owe, etc. etc. are all recorded. You can look at it as a report card on your Business and predict its future. Based on this very simple explanation, I suggest to you to learn the basic principles of accounting. Learn what these numbers mean and how to use them to take the pulse of your Business and do this before you let anyone take over your books. Without this is like driving your car with no steering wheel. You can’t run a Business without this information. Would you give the keys to your house to a stranger off the street? Of course not. Then why would you give your accounting to a family member, a spouse, a bookkeeper, an Accountant without understanding the basics before you hand it over. Your accounting is the heart beat of your organization. Even relying on an accounting software package is not advisable unless you understand the end results.

           Here are a few simple tips for the small business:

1-    Learn the basics and principles of accounting.

2-    Choose the people who will do your accounting carefully.

           Tell them what you want and how you want it.  

3-     Control and manage your numbers, don’t let your numbers control you.

4-    Check your numbers frequently not monthly or worst yearly.

5-    Ask a lot of questions.

Don’t hide from accounting because it will find you and cause you big headaches. Follow these rules and you will avoid surprises and trouble with Government agencies, suppliers, clients, lenders, etc. Be an informed Business person instead of just a worker.