Learn the accounting basics for small business from a CPA. Today, you will learn the role of accounting in small business.
As Warren Buffet says, accounting is the language of business.
He and other savvy business owners use accounting to make investment decisions and decisions to grow the businesses they invest in.
But interestingly enough, many small businesses often neglect their accounting until tax time, or don’t do it all.
9 out of 10 small businesses that fail, fail due to financial mismanagement of their company.
Their financial mismanagement may result in their failure to make decisions to grow their business, meet financial obligations like paying employees or their rent, miss tax deductions that can save them money, or fail to pay their taxes all together.
Look, I get it. As a CPA that studies and practices accounting, I know that accounting isn’t the most exciting thing in the world. And, it’s probably not why you decided to go into business for yourself.
You probably have a very good product or service that you’re very passionate about. And your offering will delight customers and beat the competition.
However, eventually, you will be faced with the reality of accounting. And it’s best that you’re prepared for it now so you don’t suffer consequences later.
That's why in this episode, I’m going to simplify the accounting basics for small business owners.
Outline:
Intro: (0:00)
What is Accounting?: (2:02)
Why is Business Accounting Important?: (2:30)
The Accounting Process for Small Business?: (5:17)
Recap of Small Business Accounting: (14:01)
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).