3 Reasons Why You Need to Know the Basics of Bookkeeping

>than your CPA. Plus, you are able to detect errors
One area that almost all of my clients and prospectsmuch sooner since you are able to look at your
need to increase their knowledge on is bookkeeping.accounting more frequently than your CPA.
The issue? They don't understand the rules of#2 - It Can Save You Time -
bookkeeping. After all, they aren't accountants.Many people hire a bookkeeper, which can make a lot
One area that almost all of my clients and prospectsof sense - particularly for larger businesses. But what
need to increase their knowledge on is bookkeeping.about smaller businesses - the ones where you spend
The issue? They don't understand the rules ofjust as much time (if not more) gathering information
bookkeeping. After all, they aren't accountants.for your bookkeeper as you would if you entered it
Most clients and prospects start out by asking whatyourself?
they should do with their bookkeeping. It's oftenIt can make a lot of sense for these smaller
followed by some nightmare story - they tried doingbusinesses to do the bookkeeping themselves as it
the bookkeeping themselves and it was a mess, orcould take less time, particularly if banking and credit
maybe their bookkeeper didn't get things quite right.card transactions can be downloaded directly into the
Either way, it's an area that most are anxious toaccounting program. BUT they need to know the
improve.basics before starting so they don't end up with a
When I suggest to them that they study the basics ofmess!
bookkeeping, they often give me a confused look. I#3 - Your Reporting Depends On It -
know exactly what that look means: "Yuck! WhatAccurate bookkeeping is the foundation of being able
could be more boring?" But what they usually ask outto pull reliable reports from your accounting software.
loud is "Why?"These reports impact the decisions you make, the
Here is Why Every Business Owner (and Seriousaccuracy of your tax returns and your ability to
Investors) Needs to Know the Basics of Bookkeeping:manage your business.
#1 - You Need to Check Your Bookkeeper's Work -- You Don't Have to Be An Expert -
If you do use a bookkeeper, how do you know it isWhile business owners don't need to be experts at
correct? You may think, well, that is my CPA's job!bookkeeping, I find that those who understand just the
And yes, your CPA can make sure your bookkeepingbasics of bookkeeping are better able to streamline
is technically correct, but nobody knows the ins andtheir bookkeeping and reporting, helping them make
outs of your business like you do, so you are muchbetter business decisions.
more likely to detect errors specific to your businessAre you ready to learn the basics of bookkeeping?