| If you're like me, you love accounting. It's so | | | | accurate your tax return. It prevents you from |
| fascinating and such an ingenious system. Don't | | | | missing deductions.- It's the only way you'll know |
| you just think that Double Entry Accounting is the | | | | whether your business is making money or if |
| most beautiful creation of all humankind?Okay, | | | | you're just kidding yourself.So, if you don't have a |
| let's get real. You probably think accounting is | | | | separate checking account for your business, go |
| boring and best left to pencil pushing geeks (like | | | | get one. It's easy and inexpensive and it will give |
| me!). I mean...BOOORRRRING! Total | | | | you clarity on how your business is really |
| Snooze-fest!Well, my friend, I'm about to | | | | doing.The next step is your accounting system. |
| introduce you to Real World Accounting for | | | | Now, when I say "accounting system" I'm talking |
| Regular People. But, be careful, it just may change | | | | about an organized way of keeping track of your |
| the way you look at accounting FOREVER! In | | | | records. It can be computerized or it can be the |
| fact, one of my clients looked up from a | | | | old fashioned pencil and paper route. The |
| spreadsheet one day and said, "Wow, I never | | | | important thing is that a) you have one and b) |
| knew accounting could be FUN!" You just might | | | | you use it.Finding a System That Works For |
| have the same experience.For starters, a lot of | | | | YouYour record keeping system needs to be |
| people think accounting is about math, which is an | | | | designed so that it works for you. It should be:- |
| immediate turnoff. Although accounting does | | | | Simple to understand |
| include math, it's more like a foreign language. All | | | | - Flexible and adaptable to changing needs |
| you need to do is learn the parts of that language | | | | - Inexpensive to develop and maintain |
| that actually apply to you. Think about visiting a | | | | - Require little time to maintain |
| foreign country. You don't need to be fluent in the | | | | - Be handy and convenient to useIf you use a |
| entire language. You just need to know the | | | | computerized accounting software package like |
| important things like what to order (or not order) | | | | QuickBooks, all those qualifications are met. I |
| in a restaurant, how to get directions, and how | | | | generally recommend QuickBooks to my clients |
| ask where the bathroom is. It's the same thing | | | | because it's easy to use and you can also find |
| with accounting. You need to know what you | | | | local support for set up and troubleshooting. I |
| need to know and the rest is unimportant. I | | | | don't whole heartedly recommend QuickBooks |
| mean, do you really need to know about | | | | because I think parent company Intuit is losing |
| corporate accounting practices or off shore | | | | touch with its core customer (we, the small |
| financial transactions. Probably not.So, how do you | | | | business owners of the United States of |
| figure out what you need to know when you | | | | America). There's too much nickel and dime-ing |
| don't even know where to begin? Follow me and | | | | and poor support. But, at this point, it's still the |
| I'll show you!The first thing you need to know is | | | | most widely used system and certainly meets |
| this. You must, must, must keep your personal | | | | the needs of most small businesses as far as |
| finances and your business finances separate. | | | | what it can do.I do recommend that you get |
| Using your personal checkbook for all your | | | | professional help in setting up your accounting |
| transactions is a bad way to go. Here's why:- The | | | | system if you don't have an accounting |
| Internal Revenue Service wants to know that | | | | background. It's a case of Garbage In Garbage |
| you have a very clear distinction between your | | | | Out. A well set up system will give you the best |
| personal affairs and your business affairs. They | | | | information with the least trouble. It's less |
| want details. If you try to pass off personal | | | | expensive to have it set up right to begin with |
| expenses as business expenses, you're violating | | | | than it is to have it cleaned up later.Whatever |
| tax laws. They don't like that.- If you ever plan to | | | | record keeping solution you choose for your |
| borrow money for your business or get credit | | | | business, the key to success is actually using it on |
| from your vendors, your lender or vendor will | | | | a very regular basis. Otherwise, your business |
| want to see detailed records of your business | | | | struggles and you're in constant danger of sliding |
| performance. Handing them your checkbook | | | | into the Cash Flow Swamp.Caroline Jordan is a |
| register is not going to make them want to give | | | | small business mentor and consultant helping small |
| you money or sell to you on credit.- You need to | | | | business owners understand, diagnose, and |
| know how your company is performing at all | | | | improve cash flow in their businesses. For more |
| times so you can plan ahead, make adjustments | | | | information and resources to improve cash flow |
| in your operations, and make informed decisions.- | | | | visit . |
| The more accurate your records, the more | | | | |