Start typing and press Enter to search

The Fundamentals of Accounting for all Small Business Owners
02 Oct 2017

Share our work with your friends

The Fundamentals of Accounting for all Small Business Owners

Running a small business isn’t that hard. Many people who started small have grown to business giants today, therefore, starting a small business might be your best decision, but one area of running a small business which is usually not understood by young entrepreneurs is accounting. You might ask why people don’t understand this field, because this area in itself is vast and covers a wide range of options such as reporting standards, employee payrolls, managing cash flow and reporting standards. That is why you need a person who has expertise in this field otherwise your business could crash even before flying. Hence most small business owners out of need hire accountants and bookkeepers whose only job is to administer and manage this particular area of the business, however, hiring an accountant can be very expensive, this is where Entromizer comes in. Entromizer is an online based accounting and inventory solution, besides this, it also gives you an accountant to supervise your system plus you can also send an inquiry. The best thing about Entromizer is that it will relieve you from all the pain you had from accounting nevertheless, a crash course on accounting isn’t bad either, so below I am going to explain the basics of accounting just to give a heads up for your small business.

Firstly, you should get in close with your bookkeeper or accountant, and by close I mean familiarize yourself with the work they are doing, as it does not matter whether your day is associated with casual day to day accounting. Because you don’t need to know the specifics of accounting like the ins and outs of every regulation there is, all you need to understand are the end results of such regulations; now you may ask how will these help you? Firstly, it will build better relationships with your accounting advisors and secondly, the data and the reports that they provide can be utilized more efficiently as it will help you in taking better decisions so that you can plan the next big step for your business.

Basic Principles

There is a broad range of topics that accountings incorporates, such as providing advice which is based on data, interpreting financial data and generating reports that are based on that data. These reports are crucial for you, as they not only play a vital role in internal decision making but they are usually reported to third parties as well.

The data which you have in your hand is going to be the most accurate than any other report or advice that you may receive from various people. And that is the primary reason why many small and big businesses merge their accounting software with the rest of their company’s software which is responsible for administrating all internal and external affairs. The reason for this merger is to ensure that whoever is looking after accounts and generating the reports must have the most up to date and accurate data. The report when it is once generated will provide with the most vital information which will be crucial for you to understand your business health and more importantly it is most significant for future decisions and actions that will hugely impact your business.

General Ledger

The General ledger is an essential sheet that will be the primary record of all the revenues and expense your business will go through. The log will include every financial transaction no matter whether revenue or expense. There are other important documents like balance sheets and profit and loss statements that are solely based on this central and fundamental document. The daily tasks which are carried out by the bookkeeper or accountant you have hired will be feeding information directly to your ledger, and I will also extract data when it is required.

Using Financial Reports

Financial reports should not be takenso lightly as they play a major role in making the right decisions. These reports can provide with both big and small picture views. Therefore, you may manage your decisions and accounts according to what seems best to you. Some important reports are:

Cash Account Report: This is a critical report which will provide you with what you have in real on hand in the liquid assets. If you are planning to sell a new product, then this report will let you know that either you have the cash available for carrying out the new inventory or you should drop down this idea for now.

Sales Tax Reports: This again is an important report which will greatly help you in keeping an eye out on the amount that you owe for sales taxes. This report will also list the amount of cash that you collected which will aid you in paying the tax in full when required.

Inventory Value/Costs: This kind of reports are primarily relatedto sales and revenue that will help to regulate if your margins are enough and if you are things aren’t looking too bright for example you are using too many resources in high-cost then lower the pace on your product selling.

What Needs to be Tracked?

Here I will tell of the things that need to be monitored and long story short; everything needs to be tracked. Tracking each detail is essential in determining the value and health of your business. It is precise to know all your assets, margins and liabilities. To figure out these values, you need have thorough accounting practices which will be solely based on your transaction history. For instance. The levels of your inventory are tracked not only refers to the number of units per product but even on the grand total of the inventory you have on hand. If your assets are depreciating, then all your accounting operations will address alterations accordingly as required.

To learn every aspect of accounting won’t help you instead your primary focus should be on the details you lay your decisions on. These details will actuallyassist you in comprehending your entire business.

Looking for a simple yet effective accounting and inventory software for managing your business then look no further because Entromizer is here to help you. It has jaw-dropping facilities like being multilingual, Multi-Company,multi-branch and multi-currency as well.

Some Features of Entromizer are

•    Specially designed for small business owners, entrepreneurs, freelancers, consultants, etc.

•    Nothing to install – no need to ever download updates

•    Get secure access from anywhere, at any time and on any device

•    Visually manage your business’s cash flow

•    Multi-level security layer to keep your business information safe

•    Customized professional invoice and quotation

•    Flexible pricing and affordable monthly subscription

•    Completely free support the way you want it: Video Tutorial, blog, Support Forum and Ticket, Live Chat, etc.

•    Manage your accounts, suppliers, customers and employees from one place

About the Author

Rajib Roy

Rajib Roy, a seasoned industry professional with 18 years of experience in developing groundbreaking tech projects. With six published books available on Amazon, his expertise is recognized worldwide. Rajib Roy is the visionary CEO and Founder of Royex Technologies, leading the way in innovative solutions.

Comments

longchamp
Thank you a lot for providing individuals with remarkably brilliant possiblity to check tips from this site. It's usually very great plus jam-packed with amusement for me personally and my office acquaintances to visit your website at the least three times in 7 days to learn the newest secrets you have. And indeed, I am also always astounded with all the outstanding information you serve. Certain two ideas in this article are in truth the most effective I have ever had.
5/7/2020 9:51:49 PM
cheap jordans
I wanted to write down a small message in order to say thanks to you for those awesome hints you are showing at this site. My time consuming internet lookup has now been rewarded with reliable ideas to go over with my friends and classmates. I 'd mention that we site visitors actually are rather blessed to exist in a fine place with so many special people with interesting ideas. I feel pretty fortunate to have discovered your entire web site and look forward to many more brilliant minutes reading here. Thank you once more for a lot of things.
3/29/2020 7:48:49 PM
converse shoes
I wanted to create you that little bit of remark in order to say thanks a lot over again considering the breathtaking information you've shown on this website. This has been simply shockingly open-handed of people like you to make openly what most people could possibly have advertised as an e-book to help with making some cash for themselves, mostly given that you could possibly have done it if you ever decided. Those things likewise worked like the good way to fully grasp that many people have a similar desire the same as my own to grasp many more in regard to this condition. I am certain there are thousands of more pleasurable moments in the future for individuals that looked at your blog post.
3/26/2020 5:39:29 AM
hermes belt
I enjoy you because of all of your hard work on this site. My daughter delights in making time for investigations and it is obvious why. I learn all concerning the compelling means you present rewarding information on this web blog and cause participation from website visitors on this situation plus our favorite girl is without question starting to learn a lot of things. Enjoy the remaining portion of the year. You have been carrying out a powerful job.
3/23/2020 7:44:20 PM
vans
My husband and i ended up being so cheerful when Michael managed to complete his homework out of the precious recommendations he received from your own weblog. It is now and again perplexing to simply find yourself giving freely information which usually a number of people may have been trying to sell. And we all remember we have the website owner to give thanks to for that. The explanations you've made, the easy blog menu, the friendships you will give support to instill - it is everything sensational, and it's aiding our son and our family believe that that theme is interesting, and that is exceptionally pressing. Thanks for the whole thing!
3/20/2020 10:40:30 PM
kd 12
My husband and i ended up being so satisfied when Edward managed to round up his preliminary research from your ideas he got through the site. It is now and again perplexing to simply choose to be giving out points which often people today have been trying to sell. And now we recognize we've got the blog owner to thank because of that. Most of the explanations you made, the straightforward website navigation, the relationships you can assist to engender - it is mostly unbelievable, and it's leading our son in addition to our family know that this concept is satisfying, and that's tremendously mandatory. Many thanks for the whole thing!
3/18/2020 3:16:41 AM
hermes birkin
I want to point out my love for your kindness in support of individuals who really need help with this one area. Your real dedication to getting the solution across became extremely functional and have surely made individuals much like me to attain their goals. Your entire insightful instruction can mean a whole lot to me and still more to my fellow workers. Thanks a lot; from all of us.
3/15/2020 6:48:45 PM
michael kors handbags
I precisely needed to say thanks once more. I am not sure what I might have undertaken in the absence of the actual basics provided by you about such situation. It was before a real traumatic issue for me personally, however , noticing your specialized manner you solved that forced me to weep with happiness. I will be happy for your guidance and thus have high hopes you realize what an amazing job you're accomplishing training the rest by way of your webblog. I'm certain you have never encountered any of us.
3/12/2020 7:13:34 PM
adidas nmd r1
I'm commenting to make you know what a helpful discovery my cousin's girl enjoyed visiting your site. She realized so many issues, not to mention what it's like to have a marvelous coaching mindset to get other individuals just know precisely a number of complicated things. You actually surpassed readers' desires. Many thanks for coming up with these essential, trusted, revealing not to mention unique tips on the topic to Sandra.
3/9/2020 1:34:57 AM
supreme t shirt
I in addition to my guys have already been looking through the nice ideas located on your web blog and so immediately came up with a horrible feeling I never thanked you for them. These ladies are already totally joyful to see all of them and have in effect quite simply been taking advantage of these things. Many thanks for actually being simply thoughtful as well as for having these kinds of important useful guides most people are really needing to be aware of. My sincere regret for not expressing appreciation to sooner.
3/6/2020 7:06:35 PM
air jordans
I wanted to post you a little word to help say thanks a lot as before for your personal pleasing pointers you have contributed in this article. This is surprisingly open-handed of you giving freely all that most people could possibly have distributed as an e-book to make some dough for their own end, particularly considering the fact that you could possibly have tried it if you decided. Those solutions likewise worked to become a great way to fully grasp the rest have similar desire much like my very own to grasp very much more with reference to this condition. I'm sure there are thousands of more fun sessions up front for individuals that scan your blog post.
3/4/2020 1:37:25 AM
jordan shoes
I definitely wanted to post a quick message in order to appreciate you for these precious tips and hints you are writing at this site. My considerable internet lookup has now been paid with pleasant facts to write about with my family members. I 'd point out that most of us website visitors actually are unquestionably blessed to live in a superb network with very many perfect professionals with very helpful plans. I feel truly privileged to have come across your entire webpages and look forward to some more cool moments reading here. Thanks a lot once again for a lot of things.
3/1/2020 12:36:09 PM
nike huarache
I simply wished to appreciate you once more. I am not sure what I could possibly have gone through in the absence of the type of solutions shared by you relating to my question. It was a very frightful scenario in my view, but taking note of this specialised way you dealt with that made me to jump for contentment. Now i'm happy for the advice as well as wish you comprehend what a great job you were accomplishing training others through the use of your webblog. I am certain you have never come across any of us.
2/27/2020 9:35:49 PM
air max
I'm just writing to make you be aware of of the great experience our daughter encountered studying your blog. She picked up a good number of details, most notably what it's like to have an awesome giving mood to make many more really easily grasp specific complicated topics. You undoubtedly surpassed her desires. Thanks for rendering those informative, healthy, edifying and in addition unique guidance on that topic to Jane.
2/25/2020 2:48:33 AM
kobe shoes
I am commenting to let you know what a amazing discovery our girl experienced visiting your webblog. She came to find so many pieces, including what it's like to have an incredible helping heart to have a number of people completely understand several grueling subject areas. You undoubtedly exceeded visitors' expected results. Many thanks for giving such productive, dependable, educational and even unique guidance on the topic to Mary.
2/22/2020 4:27:18 PM

Leave A Comment

  • Blogs & news
  • E-books
prev next