What do I need to know about accounting and bookkeeping for my new business venture?

February 16 2005 - Syracuse Post Standard

Tracy:
A few years ago I discovered a couple small accounting firms who did book keeping for businesses and offered their clients training in Quick Books (a popular accounting program) as well. There are several computer accounting programs available for a small business to use to keep track of their books. You might want to research a couple of these programs and then sign up for a class at a local educational institution like Onondaga Community College's Excell Center to learn how to utilize the program you choose. You can also research local accounting firms who offer the service of instructing you and your staff on how to maintain your books using computer accounting programs. These are just some of the resources you should consider if accounting is something you want to manage internally.

Ann Marie:
The best money that I spend all week is money I spend on the woman that comes in and takes care of all my invoicing, check writing, bill paying etc. Sometimes when you are running a small business, things like bookkeeping are best taken care of by the people who do it best and who have more TIME to do it. Most accountants have this service and it is very reasonable. The difference between me doing it myself and paying someone to come in and do it is like the difference between "Dog Years" and "People Years". One hour of my bookkeeper's time is equal to about seven hours of mine. She just does the accounting. She isn't distracted by running the business like I am. The four hours of pay that I spend on Sue, my wonderful bookkeeper, is one of the most practical uses of my money. (Thank you Sue!)

Julie:
Accounting is most people's least favorite part of running their business, and I'm no exception. Like Ann Marie, I've realized that paying someone else to do it makes a lot more sense. My advice to anyone hiring help would be to make sure that person understands your business and how your expenses need to be categorized. At one point I hired a Quickbooks consultant. Due to my own ignorance, and a lack of communication, he was lumping the cost of the ribbon, cellophane, flowers, etc. that we use to embellish our gifts into a "miscellaneous supply" category rather than "COGS", which is where it should have been. Obviously, this threw our figures off considerably. Now that I have a better understanding of Quickbooks, I'm gradually shifting more of our bookkeeping to other people. Ask yourself if spending a lot of time on routine paperwork is truly the best use of your time as a business owner.