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