Have you been handling your small business books on your own? Many entrepreneurs and very small businesses track income and expenses in what is known as single-entry accounting. But as you grow, you should consider the value of switching to double-entry accounting. What do these terms mean? Here's a short guide to how this change will help you.
How Does Double-Entry Accounting Differ from Single-Entry?
In single-entry accounting, each transaction to enter into the books is recorded by itself and independent of any other transactions.
As a small business owner, you want to avoid going into debt at all costs. However, you may lack the skills and knowledge to know if, how, and when to save money. You also may not know how and where to cut costs when running your company.
Instead of relying on your own lack of objectivity and skill to manage your business's money, you should rely on the advice of an outside consultant.
As a business owner, you are responsible for protecting its cash flow and profits. However, when you rely on outdated bookkeeping methods, you could make grave mathematical errors that cause you to lose money. You also may simply lack the time to handle your book work entirely.
Instead of risking your profits and ability to make money, you can use new software programs like Quickbooks for your business's accounting. You can learn how to use it to your business's advantage by taking Quickbooks training.