Accounting tips for entrepreneurs
September 01, 2015

For many entrepreneurs, accounting isn't something to get excited about. Although accounting is probably low on the list of things many entrepreneurs like about their job, it is a necessary part of any business. While entrepreneurs may be able to hire someone to do their bookkeeping down the road, early on they may have to figure out a way to handle it themselves to help save on costs. Figuring out how to manage this directly early on will be helpful to them in the future. Either they will decide to continue doing it long after they have the funds to hire an accountant or they will be able to have more informed conversations with the accountants or bookkeepers they've hired.

Learn the jargon
According to Entrepreneur, there is a lot of cumbersome terminology in the accounting world. Because of this, many entrepreneurs feel like they're in over their head. While the new terms can be daunting, in general the principles of accounting are not too complicated. While the actual process of bookkeeping can become complex depending on the business, the principles themselves are not. Once an entrepreneur knows the technical jargon associated with accounting, he or she will likely find that they can handle bookkeeping themselves. 

Find an accounting software solution you can use
There are many different types of accounting software out there for startup businesses. Excel spreadsheets can only do so much, and most businesses require an accounting tool with more robust features. While accounting software tools are all designed to help a business keep track of and manage the books, they're not all the same. Finding the right software can help an entrepreneur who is struggling with bookkeeping get everything in order and keep it that way. 

Utilize advice
There are a number of resources for entrepreneurs to seek advice. These resources can include coworking spaces and startup incubators; they could be business organizations and executive coaches. All of these places and people can provide you with valuable advice. Learn from their mistakes, experiences and expertise. 

Make it a habit
Just as you check your email or double check with clients and customers, you need to make accounting a daily habit. If you make it a regular practice to update and consistently make sure the books are in order, the chances of you having accounting issues are low.  

Make sure business and personal expenses are separate
Keeping business separate from your personal life can be difficult but it's important, especially when it comes to expenses. According to ProfitGuide, many new entrepreneurs merge their expenses and finances when they first start off. While this might work out in the beginning, it can lead to significant confusion when the business is dealing with more money. For that reason, it's better to keep things separate from the start. 

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