Small Business Bookkeeping Deadly Sin #9: Trying to use Programs that Require you to Understand BookkeepingWayne Burgan
Most owners of small businesses have never had any formal training on double entry accounting.
But for some reason, an overwhelming majority of accounting programs on the market don’t just assume that they have been trained in accounting, they expect business owners to be highly proficient in it.
Small businesses thrive when their owners and operators can focus on the productive activities that drive the business, instead of spending all their time trying to manage the accounting side of the business. Do you understand debits and credits? Journal entries? The difference between assets, liabilities, revenue, expenses and equity? No? You shouldn’t need to, and you’re not alone.
Bookkeeping mistakes occur when business owners have access to the software to keep double entry accounting records, but not the depth of knowledge and experience required to operate these specialist accounting programs.
Just like wearing a white coat and stethoscope wouldn’t give you the ability to diagnose and treat a disease, having specialist accounting software doesn’t make you an accountant.
Most small business owners simply don’t have enough time or resources to learn accounting or how to use complicated software, while running their own business.
The catch is that they still need accurate, reliable records.
Thankfully, you can choose a system simple enough to help you understand and manage your business.
Choosing a simple accounting program has many benefits, here are our top four:
- It saves you time
Knowing exactly what you need to do to when you open your program, to record and manage your accounts saves time.
- It saves you money
You shouldn’t need to invest hours of your time in expensive training courses to keep accurate records. You also won’t have to hire a bookkeeper to do something you can easily do yourself in little time.
- It means less stress at tax time
Your records will be in order and ready to go at tax time if you’re keeping on top of them with a simple system you understand.
This saves you from struggling to find documents like receipts your accountant needs to compile your taxes. All you have to do is export the information straight to your accountant.
- Your accountant will love you
A simple accounting program eliminates mistakes from your bookkeeping, and the high quality of your records makes assisting with your taxes much easier for your accountant.
Using a program that helps you to easily and quickly get your books in order will free you up to focus on the things that are most important to your business, in addition to reducing mistakes and saving you money.
This is the final instalment in our 9 Deadly Sins of Small Business Bookkeeping. You can atone for all sins here.