So, it may be best to look for referrals when selecting a bookkeeper. They are listed in the Getting Financial Controls in Place session in the Business Expansion course.Īt present, there are no national certification standards for bookkeepers like there are for CPAs or EAs.

There are several levels of audit to select from. You will need to decide how your accountant will prepare your annual financial statement. EAs must pass a taxation test administered by the Internal Revenue Service. Another type of accountant is an 'Enrolled Agent' (EA). This could be a Certified Public Accountant (CPA) who is a sole practitioner or a large accounting firm that can offer expertise in many areas (and whose fees tend to be higher).

You should consult an accountant before you start. Accounting courses at your local community college will give you most of what you need to know. You will need to understand accounting to draw intelligent conclusions. While information about companies may be obtained from stock brokers or interviews with key executives, the best source to learn about your most successful and publicly owned competitors is to read their annual reports. You will also need to gain knowledge of accounting in order to evaluate your competitors or businesses you might wish to acquire (or be acquired by). They will help you make better decisions. Understanding these three measurements will whet your appetite to learn more, which in turn will lead to your strategic use of credit and ability to make choices tying operational activities to the best use of funds. The cash flow statement predicts your cash balances into the future.Īs a business owner, you need to feel comfortable with the values portrayed by each measurement.The profit and loss statement tells if your business is profitable or not.The balance sheet tells how much the business is worth.These three measurements will define the financial health of your company. Your business will be judged by the classic financial measures: the balance sheet, the profit and loss statement, and the cash flow statement. Without this understanding and without a dedicated commitment to using financial tools, you reduce your chances of success. Financial tools, coupled with an understanding of how to use them, will assist you in the proper management of your business. The financial matters you will confront in your own business are little different than those of large corporations. With this knowledge, you can talk intelligently about your accounting needs with employees, bankers, and your own accountant. To gain this knowledge will require that you go to school to learn both accounting and computer software that is used to support your particular business. If you're going to be in business, you must know how to keep score.

Simple accounting for small business