Accounting Essentials; Tips for Small Business Owners
As a business owner, nothing is more important than understanding the financial aspect of your business. According to the FATE Foundation/Agusto & Co 2015 Research Report, most small and growing businesses struggle to succeed in business because of poor bookkeeping processes and a poor understanding of accounting fundamentals.
Also, an MSME study carried out by KPMG in 2014 revealed that a lack of proper records was a major reason for loan rejection as most banks found small businesses credit unworthy because of a lack of proper accounting records. A good accounting system however, gives you better control of your business and puts you in a better position to attract funds to scale your business from banks or investors.
While the topic of accounting may be inexhaustible, the following simple steps can get you on your way to proper accounting:
- Leverage accounting software: Technology has greatly impacted the process of accounting. With tons of online bookkeeping templates, budgeting templates and cloud based accounting systems and software, handling the accounting aspect of your business just got easier. From paid accounting software like Sage and Quickbooks to free accounting software like Wave