Small Business Bookkeeping Tips

Video Transcript

"Your job as the business owner in doing bookkeeping is not necessarily to do the data entry. You can hire somebody to do that, but your real job is to practice and exercise quality control over those entries, and in order to do that the books really need to reflect, they need to be set up reflecting the way that you actually do business. This is the biggest complaint that I've got for most people and how they keep their books. They rely on somebody else to set up the chart of accounts. As a business owner you really need to do that. The chart of accounts needs to reflect what you kind of intuitively know. For instance, if you were going to go out and buy business cards, would you put that expense in advertising or would you put that expense in office supplies? See to the government, it doesn't matter, but to you it does so that that next time you look at a total for office supplies, you know what that total represents, what kind of expenditures are in there. So you need to make sure as an owner that your chart of accounts and your books reflect how you see the business working."