Accounting

What is Accounting- Things every Entrepreneur should know.

February 08, 2017

The basics of accounting & what it is

It’s:

– Not rocket science: It’s complicated at times and there’s definitely judgement and expertise involved, but it’s methodical and (mostly) logical. The basics of double-entry accounting and the three financial statements are relatively easy concepts to grasp and would give you a great start to comprehending the finer details. You don’t need to pick up the CPA manual and digest all the minutiae to be conversant and capable in accounting…

– Not necessarily boring: Seeing a bank reconciliation net to zero can be positively exhilarating, getting a balance sheet to balance something of great satisfaction, and a properly categorized profit and loss an item of great beauty…

– Something as a business founder you need to care about: Accounting is truly the language of business. As a founder, you need to appreciate the story your accounting is telling you and how your finances are either developing or limiting your capacity and potential. It’s also the universal language for communication with your stakeholders and shareholders. Fluency isn’t required but solid conversational skills really are…

– Something on which you should consult an expert/professional at the right time: Truthfully there’s always a right time and it’s often now. Expert guidance sets you on the right track and helps make sure small problems don’t grow into large ones—which so often is the cause of significant remedial cost further downstream. The plethora of accounting and finance platforms available in the cloud offer the business owner/manager great potential to manage the accounting and finance themselves. This is definitely a good trend in small business management, but don’t omit to get some initial guidance and input from experts who spend every day in these environments—draw on that depth of knowledge and skill as it takes time to build internally. Reach out to us if you have any questions or just want to chat!

– Something we at tempCFO love! (And live and breathe)

Category: Accounting