do you understand accounting

SmalI Business Deadly Sin #9: Trying to Use Programs that Require You to Understand Accounting

Do you understand debits and credits? Journal entries? The difference between assets, liabilities, revenue, expenses and equity? No? You’re not alone! Most small business owners have not been trained in double entry accounting, yet the vast majority of accounting programs on the market require this high level of understanding.

 

The introduction of computers and software has brought small business owners the ability to keep double entry bookkeeping records, but not the skills to go along with it. This is how many of the biggest bookkeeping mistakes come along. Just like having a stethoscope doesn’t make you a doctor, having double entry accounting software doesn’t make you an accountant.

Most small business owners don’t have the time or money to spend trying to learn accounting or how to use complicated software, but they still need accurate, reliable records.

Choosing a system that is simple enough to help you understand and manage your business is vital. Here are a few reasons why you should use a simple accounting program to take care of your books.

1. You will save time.

Choosing easy accounting software to take care of your business bookkeeping saves you time, as you won’t be struggling to work out what to do every time you open up the program on your screen.

2. You will save money.

To keep good records you shouldn’t be expected to spend hours in costly training courses, learning how to use it. You also won’t have to waste money hiring a bookkeeper to do task that you can easily do yourself.

3. You will save stress at tax time.

If you keep on top of your books with a system you know how to use, your records will be ready to go at tax time. You won’t be struggling to find receipts and documents required for your accountant to compile your taxes.  All you have to do is export the information you have recorded straight to your accountant.

4. You will make you accountant’s job easier.

By using a program you understand, you will make fewer mistakes in your bookkeeping, and the high quality of your records will make it much easier for your accountant to assist you with your taxes.

You won’t regret using a program that allows you to get your books in order quickly and easily. Not only will you make fewer mistakes, and save money, but it will free you up to do the other things you love.

This wraps up our series on the 9 Deadly Sins of Small Business Bookkeeping. We hope you have enjoyed following them, and have been able to implement an idea or two in your own small business.

 

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