Home Business Accounting & Finance: How Not To Fail

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How to Get Your Books in Ord

Accounting and finance, the two most unpopular topics anyone is not interested for sure. Finances is very crucial to any Business if mismanage it could kill your business. 70% of the reason why businesses fail is because of improperly managing finances or poor accounting decisions.

It is important to understand basic accounting so you could avoid failing. It is also advisable to set-up administrative practices to track all your finances. Implement a solid accounting plan for your business, here’s how.

Get Accounting & Finance Software. We all know how important it is to keep records and you wouldn’t want to record it on your memory alone it is like recording on water or air. It is also okay to record it on traditional spreadsheets but everything would be manual and it will be requiring a lot of your time. And your best option is and probably the best thing you can do for your business is simply implementing simple accounting software. But always remember to get a legitimate software and research on it first, we all know how phishing works, we cannot just compromise our business.

Get Educated. Accounting/finance isn’t as easy as reading the word itself, it’s going to be more than that. You don’t have to become a master but you need to pay some time to learn the 101 session. But if planning to master the numbers you also have to master the lingo, such as:

• Balance Sheet
• Break Even Analysis
• Break Even Point
• Cash Flow Statement
• Income Statement
• Return on Investment (ROI)
• Cash vs. Accrual Accounting

But accounting /finance is not that hard as well, you can actually self –study and you will be able to learn it in no time. Or maybe you can enroll in continuing education courses. Go to your local library or a bookstore, spend some time reading, there are sections of simple guides for small business accounting and finance. Or you can just simply go to an accountant and ask for some advice or practice recommendations. But remember, you know your business more than they do so weigh the information they offer against your own thoughts before deciding on important manners.

Get Help. You can always get help if you cannot do the job yourself, if your business can afford one. You can hire a bookkeeper or an accountant.

The difference between the two is a bookkeeper manages the day-to-day stuff, while an accountant makes strategic decisions on how to get you from point A to step a little by little notch until you reach point B to C and so on in your business.