Small Business Bookkeeping Some Basics

By Gina Panzieri

Bookkeeping: An essential for business success!

It doesn’t sound very exciting to have to keep financial records when you need to focus on your product, does it? But it is critical. Let me share a few reasons why and suggest a few ways to begin.

  1. Have you priced your product right? It is essential to track the cost to produce your products or services and monitor your markup for the financial health of your business.
  2. Are you able to stay competitive with your competition? The only way to know is to keep accurate records of your costs and income.
  3. The good ‘ole IRS demands that you file taxes which means you need to track both your income and your expenses in order to do so accurately.
  4. Your bank or other financial institution will want to assess your business’s credit worthiness should you decide to apply for a credit card or business loan. They’ll need financial statements in order to do so!

How the heck do I begin what feels like this daunting task of bookkeeping?

  1. A great place to begin is to consult with an accountant or bookkeeper to help outline what your needs are. These professionals can guide you on how to set up a good system. Or they can train you in accounting basics. Or even set up a system for you!
  2. Is the cost of a bookkeeper less than what you can charge per hour in your business? Or do you feel lacking in basic accounting principles? Then it’s likely a good idea to hire a reputable bookkeeper.
  3. I suggest using a bookkeeper rather than an accountant for this chore as the hourly rate for bookkeepers is usually dramatically less than for accountants. Accountants are the go-to people for tax preparation and bookkeepers the pros at business financial record keeping!
  4. If you feel comfortable with accounting basics and want to tackle bookkeeping yourself, a terrific accounting package is QuickBooks. There are a few different versions of the software and the differences are clearly outlined in the sales literature.
  5. Should you not be familiar with QuickBooks there are some terrific QuickBooks Pro Advisors available to help train you so as to quickly bring you up to speed.

It is commendable that you are so good at your craft and that you were courageous enough to hang out your shingle! Let’s keep the success going by keeping accurate financial records so you can gauge the financial health of your growing business.

Gina Panzieri, CEO Finance, specialist in Small Business

Visit Small Business Solutions and for more detailed information on Small Business Bookkeeping and Accounting services.

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