03.14.08
Basic Bean Counting - What You Need to Know
One of the greatest mistakes any small business owner can make is going into his business without knowing enough about the art and science of bean counting. Unless you have the funds to hire professional bean counter from the very beginning, you will need to at least know the basics before you get started. Time and again, new businesses have failed not because their products, services, or operations were poorly managed, but because the owner did not know the first thing about proper bookkeeping and bean counting. Without these essential skills, you won’t know whether your company is doing well or poorly, what changes need to be made from a financial standpoint, or what to do come tax time. Having a basic groundwork of bean counting knowledge is not only helpful, it’s absolutely necessary.
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Does this mean you need a degree in bean counting before starting your own small business? Perish the thought. Though a degree wouldn’t hurt, it is not necessary in the least. However, without much training in the bean counting field, you may find yourself overwhelmed at first by the terminology and language used in the bean counting world. With some patience and a willingness to learn, however, it shouldn’t take long for you to adapt yourself to this new field. Take time out each day to read articles from the internet, read books on basic bean counting, and familiarize yourself with a good piece of bean counting software. All of this will help to inundate you with the common terms used in bean counting and put you on the right track to becoming a competent accountant.
Keep in mind that the importance of bean counting extends beyond keeping track of the payroll. A good bean counting software keeps track of almost every area of your financial records. You’ll need to keep a close eye on what money you owe, what money is owed to you, the trends in sales, the trends in purchasing, the overhead, and a hundred other things you may not have thought of.
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While it’s certainly easy to just hire someone else to take care of this, you may not have the money to do that in the beginning. Even if you do hire someone, you’ll want to know most–if not everything–they know. Not everyone is as scrupulous or competent as we would like them to be. If you don’t know anything about your bean counting programs, you’ll be leaving yourself wide open to be ripped off intentionally, or failed unintentionally. In the end, you’ll have only yourself to blame for failing to learn the basics of bean counting.
If you want to take the first steps toward becoming a competent amateur accountant, you’ll want to check your local community college for whatever courses they offer in the field. Don’t stop there, however. Borrow books from the library on the subject and study them when you have the chance. Check online to see if their exist any correspondence courses if you don’t feel you can spare the time to attend classes. Finally, talk to any in the bean counting field and see what they think are the most important skills to acquire.
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