Source: yourstory.com | Re-Post QBScott 9/11/2019 –
As a small business owner, it is very important to know how the accounts of your business work. Good accounting can prove to be extremely beneficial for running a successful business. Thus, it is important to know a few tips for accounting of a small business.
The topics discussed in this article are:
- Importance of Good Accounting
- Accounting Tips for Small Business Owners
1. Importance of Good Accounting
A good accounting system is required for surviving every business. Accounting is inclusive of payroll records, cashbook, credit book, sales invoice, debit book, credit purchase book, vouchers of cash payment, asset records, bank transaction book, and stock book.
- Good accounting is important because it:
- Helps in evaluating business performance by giving thorough review of financial performance.
- Helps in managing cash-flows and meeting deadlines by showing areas in business which require cash and showing when bills are due to be paid.
- Helps in setting new weekly, monthly, and yearly business goals by evaluating the business’ performance in comparison to previous years.
- Although the accounting tasks of a business can be outsourced to professional accountants or chartered accountants, it is important for a business owner to understand the basic working of business accounts.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com
Certified Public Accountant (CPA)
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