Have you considered getting QuickBooks Training?
Wondering what it would take to tackle this task effectively?
First, let’s just put it out there. Bookkeeping is not rocket science, or even chemical engineering for that matter (I just had to say it). As a business owner, it is highly likely that you have the capacity to learn to do it yourself.
In this article I will answer the following questions:
- What is required/ involved in doing it yourself (and doing it correctly)?
- Where can you get help and find resources if you want to do it yourself?
What’s involved?
This task of keeping your own books and handling your own financials is not a difficult one, but it is very easy to do incorrectly if you don’t know what you are doing. If you are committed to learning how to do it correctly and setting aside the time (on average 8 hours or more per month) regularly to getting it done, it is doable.
First, you must learn the rules and understand the tools.
There are two areas in which you need to become better educated:
- Financial Accounting and Bookkeeping – The rules
- Software – The tool
Financial Accounting and Bookkeeping
“This is easy, I’ll just put these transactions in categories that seem logical to me… easy.”
Or
“I do my own bookkeeping; I watched all the QuickBooks videos.”
Most business owners are unaware that there are rules that must be followed. Not adhering to the rules can cost you. Learning basic accounting and bookkeeping is necessary to properly categorize transactions, loan principle, credit card interest, buildings, vehicles, and heavy equipment. This matters if you pay taxes or if you ever plan to seek funding to grow your business (so that includes you). I will discuss resources for getting help and learning more at the end of this article.
Software
While the technical side of doing it yourself involves learning the rules, you also have to learn to use software so you get the desired and correct output. There are many software choices. My favorite one is Xero, which is what I use for my own firm. I also work with and have many clients who use QuickBooks. Even seasoned CPAs, EAs, bookkeepers with decades of experience must learn the language of the software. I had to train my husband (who has 20+ years in the accounting and finance industry) how to use the tools because he does the books for my business. While he thoroughly understands the rules, he had to learn to use Xero in order to get the desired output. This includes having accurate reports, being able to track how profitable each of my services are, as well as how much I am paying in Stripe fees each year.
Resources
Now that I have explained what is required to be a successful DIYer, let’s talk resources for learning to do it yourself.
1. Software Options
I am adding this list because there are more software options than QuickBooks. Some of the top ones, according to PC Magazine, are as follows:
- Xero
- QuickBooks
- FreshBooks
- Sage
My personal favorite, and the one I use is Xero. However, each of these will get you what you need when used correctly. With that said however, some software is better for specific industries, so ask a professional for their recommendation for your situation.
2. Leslie Taylor & Associates DIY + Quarterly Service
I acknowledge that some small business owners want it both ways. They want to do it themselves, but would also appreciate support. For these businesses we offer a customized, step-by-step training so clients can learn to do the work themselves. Then, we support the clients and guide them as they do it themselves. At the end of each quarter, we provide analysis and consultation services, so clients are confident in their numbers and equipped with the insight they need to grow their businesses. Their tax professionals are happy too. This is a win/win/win all around!
3. Community Colleges and online courses
Local community colleges, Udemy, and LinkedIn Learning all have resources to teach the basics, an Accounting or Bookkeeping 101. Check around for classes taught by financial professionals. Look for classes that teach about the details such as debits and credits, accounts payable, accounts receivable, financial statements, and the accounting equation.
4. SCORE/ SBDC
SCORE and the Small Business Development Centers are national organizations tasked with supporting small businesses for free or at minimal cost. They offer mentoring and training. Check with their local chapters for resources. Many chapters provide general training and set up support (so you may still need more in depth training) for businesses. Often these services are either free or at a minimal cost.
5. Financial Professionals
Some financial professionals (CPAs, EAs, accountants, and bookkeepers, Profitability Strategists) host group trainings for small business owners. Ask around.
Things to Watch Out For
Complex businesses will have a challenging time doing their own books. Complex businesses include:
- Businesses with several employees on payroll
- Businesses with loans, vehicles, heavy equipment, or buildings
- Businesses that sell products on multiple platforms or receive payments via multiple processors (Shopify, Etsy, PayPal, Square, Stripe)
As I close this week’s blog, I want to be clear regarding the potential issues that could arise if care is not taken to learn the rules and understand the tools. The potential consequences include:
- Incorrect information makes it impossible to properly manage cash flow in your business. Mismanagement of cash flow is one of the main reasons failed business owners cited as the reason for their failure. (Xero, Make or Break Report)
- Premiums your tax pro charges to fix your mistakes
- Overpayment of taxes
- Underpayment of taxes
- Difficulty/inability obtaining funding from banks, lenders, venture capital funders.
Now you should be able to make an informed decision regarding what it takes to DIY your business’s financials. As you can see, the question goes beyond just whether or not to get QuickBooks training.
If you want support in this process, or to learn more about my services, schedule a Discover & Strategize Session so we can help you maximize your business’s potential of profitability.