How learning basic bookkeeping could boost your small business

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Andrew Montecillo | 17 May, 2011
Bookkeeping can be learned easily either in a physical university or online. It helps to know the numbers and have the basic knowledge of debits and credits. J. R. Baltiboi has said that Bookkeeping is actually an art in itself. It is the art of recording business transactions in a book of accounts and many books has defined bookkeeping as the science of systematically recording, classifying and summarizing all events or financial transactions or those transactions involving money. Once business owners learn this, they could easily track unimportant transactions made and avoid this in the future. They could also know which purchases has big discounts and could be the main supplier some day and eradicate those suppliers which have high prices. Sales transactions can also be easily checked with the proper bookkeeping. Sales pattern and even sales discounts granted to clients would be analyzed and sorted. And whether this boost the company's sales or promote the business well, these discounts may still be launch in the future.

However, though business owners may learn all this things, it is very tedious to handle all this things since doing so may mean allotting a lot of time and energy which can be focus on more important things. The main idea of my article is that, a business owner should not only know the business itself but also have a solid grasp of the accounting and bookkeeping cycle so he won't be fooled by accountants and bookkeepers once he hired one to perform the duties and responsibilities of handling financial books. He could either hire a full time bookkeeper or get someone for a retainers fee or outsource someone virtually or online. Whatever the process, business owners will not be lost in the cycle because of his sound knowledge in bookkeeping.

From the beginning or start-up of a business, make sure that you know the proper cycle to follow including the handling of your finances and its records. Failing to keep this in your priority may mean problems in the future like overstatement of income and taxes or having confusion with the right investment to go to. Always make sure that the duties you will delegate to others is something you also know how to handle so when things because shady, you what went wrong or how to handle it well. Bookkeeping is that aspect that needs good and solid knowledge because it will surely pave way for the success of your business.

(Source: Articlesbase)

* Andrew Montecillo is a freelance writer.
* The views expressed by the author in this feature are entirely his/her own and do not necessarily reflect the views of SME Times.