Books on Small Business Accounting

Brad Nakase, Attorney

Email  |  Call (888) 600-8654

Is this short story similar to yours?

As a lifelong cat lover, Tina is thrilled to be opening her own pet store, where she will provide fellow feline aficionados with food, treats, and toys for their furry friends. While Tina is great at managing sales and marketing, she is less skilled when it comes to accounting. Because Tina is currently building up her business, she cannot yet afford to hire a professional accountant. For this reason, she decides to learn all she can about bookkeeping so that she can steer the ship for the near future. Never a fan of numbers, Tina heads for the library, where she hopes to find a book targeted at small business owners with little knowledge of accounting.

Best accounting books for entrepreneurs

Most entrepreneurs and small business owners would admit that they do not particularly enjoy the boring daily tasks of bookkeeping and accounting. After all, they do not carry the excitement that comes with sealing deals and making sales. That said, it is important that business owners understand these elements, which are responsible for keeping a company healthy and solvent.

If accounting is not a business owner’s cup of tea, or their strength, they would not be alone. Luckily, there are plenty of books about accounting that have been written with small business owners in mind.

The following is a list of six great books about bookkeeping that every small business owner should read.

  1. Accounting Made Simple: Accounting Explained in 100 Pages or Less, by Mike Piper

Piper, the author of a number of books on personal finance and the Oblivious Investor Blog, here explains the concepts behind Generally Accepted Accounting Principles (GAAP). He also describes how to create and understand important financial statements. The book has a helpful straightforward approach that explains the basics of small business accounting for even the most inexperienced of entrepreneurs.

  1. Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics, by Wayne Label

This guide is a great tool for any new entrepreneur that has never taken an accounting course or is in general frightened of the entire concept. Organized into 12 chapters, the book includes real life anecdotes, tips, and a glossary.

  1. Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble, by Bernard B. Kamaroff

One of the most popular guides to starting a business, this book discusses many important topics, including creating a bookkeeping system and dealing with the Internal Revenue Service (IRS). Aimed at small business owners and on-demand workers, the book offers excellent advice on being self-employed.

  1. Accounting for the Numberphobic: A Survival Guide for Small Business Owners, by Dawn Fotopulos

For anyone who despised math class, this is the book for you. Fotopulos’ book describes how to read financial statements and ratios in order to assess a company’s financial health, as well as to make smart business decisions.

  1. Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine, by Mike Michalowicz

The book offers a unique approach to understanding and handling a company’s accounting. Rather than offering conventional accounting advice, Michalowicz suggests a behavioral approach. He suggests focusing on a business’ profit, as well as four principles that make the accounting process easier.

  1. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports, by Thomas R. Ittelson

This book is an excellent introduction to accounting for small business owners who want to understand this aspect of business management. Ittelson explains how the balance sheet, income statement, and cash flow statement together provide a look at a company’s financial wellbeing at any point in time.

Other Accounting Tips for Small Business Owners

  1. Hire an Accounting Firm

If an entrepreneur’s business is growing faster than expected, and he or she does not have the time or energy to learn accounting, then it may be best to hire an experienced accountant or firm. This professional will be an expert who can help lower the risk of mistakes in bookkeeping, which may otherwise occur if the owner manages it themselves.

  1. Invest in Accounting Software

Tools like QuickBooks, FreshBooks, and Xero can help a business owner improve the accuracy of their account books. As a plus, they can reduce the amount of time and energy put into bookkeeping.

  1. Take an Accounting Course

After reading the above recommended books, it may be wise for a small business owner or entrepreneur to take a course on management accounting. This could be a class at the local community college or even online, from the comfort of one’s home.

Conclusion

To become a successful small business owner, it is important that an individual educate themselves on all aspects of their business, including accounting. The six books described above, as well as the subsequent tips, can get an entrepreneur started on their road to success.

Blog: Business | Corporate | Employment Law

Please tell us your story:

5 + 3 = ?

See all blogs: Business | Corporate | Employment

Material Breach of Contract

A material breach of contract occurs when a party fail to perform a contract's terms making the primary purpose of the contract not met, the breach is considered material.

What Type of Business Is a Partnership?

A partnership is the simplest business structure where two or more people are owners of a business. The types of business partnerships include general partnership, limited partnership, and limited liability partnership.

What Is Company Culture?

A company culture is how things get done in the workplace. Company culture can more be described as core values or operating principles used to set the tone for the company's overall operations and success.

What is a sole proprietorship?

A sole proprietor is someone who owns an unincorporated business by himself or herself. A sole proprietorship is a business that can be owned and controlled by an individual.

Sole Proprietorship vs. LLC

Sole proprietorships are popular for self-employed professionals, freelancers, and contract workers, while LLC offers personal liability protection than sole proprietorship.

Is it legal to sell homemade food in California?

Yes, you can sell food from home so long as you have California-required health and food handling permits and business licenses. You must get a permit to sell food from home from the county health department in California. 

How to Incorporate a Small Business in California?

To incorporate a small business in California, file an Articles of Incorporation with the California Secretary of State's office. After you file the Article of Incorporation, create corporate bylaws, and elect your initial director(s).

6 Steps for Planning a Business Grand Opening

1. Create Goals for the Event, 2. Begin Planning Early, 3. Stick to the Budget, 4. Have the Right Insurance, 5. Advertise Before the Event, 6. Offer Food and Entertainment

10 Facts About Business Before Starting A Business

1) More than 50% of new businesses survive their first year in business. 2) Less than 50% of family-owned businesses are passed to their children. 3) 40% of business experience challenges in the supply chain…

S Corp vs C Corp – Differences and Benefits

The main difference between an S Corp and a C Corp is that for a C Corp, the corporate profit is taxed to the company, and the dividends to the shareholders are also taxed. In contrast, for an S Corp, the profit is taxed to the shareholder but not to the corporation. Generally, small businesses are S Corps, and major companies are C Corps, e.g., Apple, Microsoft, Caterpillar, John Deer, etc.

How to Form a Corporation in California?

To form a corporation in California follow these steps: 1) Write a one page Article of Incorporation, 2) File the Article of Incorporation with the California Secretary of State, 3) Elect corporate board of directors, 4) File Statement of Information with Secretary of State.

What are the benefits of a corporate lawyer?

The are many benefits of hiring a corporate lawyer for your business which includes: avoiding litigation, enforceable contracts, develop employee policies, proper licensing, etc.

What is Commercial Litigation?

Commercial litigation refers to litigation (lawsuit) that involves commercial or business disputes in court between two or more parties.

How to Get Rid of a 50 50 Business Partner.

How to Get Rid of a 50/50 Business Partner. One method to get rid of a 50/50 partner is to file a business partnership dissolution in the state your company was formed to end the partnership.

Personal Assistant Scam

A personal assistant scam typically involves a perpetrator putting out an ad to hire a personal assistant. Then, when the perpetrator purportedly hires the personal assistant, the assistant is asked to buy something with their own money with the promise to be repaid. The perpetuator then disappears after receiving the goods.

Fiduciary Responsibility Definition

A fiduciary responsibility refers to an organization that must put another person’s best interest first. A fiduciary duty is the highest standard of care in law. For example, a lawyer owes a fiduciary responsibility to the clients, a doctor owes a fiduciary duty to a patient, and a trustee owes a fiduciary duty to a beneficiary.

What is profit formula and how to calculate profit formula?

A business profit is revenue minus expenses. The profit formula in accounting calculates the net gains or losses incurred by the business for a period by subtracting the total expenses from the total income: Total Income – Total Expenses - Profit

What is invoice reconciliation?

Invoice reconciliation is the process of matching bank statements to incoming and outgoing invoices. The purpose of invoice reconciliation is to confirm that the data entry is correctly matched with every invoice.

What Makes a Verbal Contract Valid

A verbal contract is valid when contractual elements are satisfied, such as evidence of an offer, acceptance of the offer, and consideration which is an exchange of value between the parties.

Marketing Transport Company

The easiest way of growing your list of clients is to schedule a meeting with businesses that do a lot of shipping and introduce your transportation company. Then, engage an internet presence to market your transportation business.

What Can You Do with a Toxic Business Partner?

A bad partnership could lead to profit loss and toxic company culture. The first way of dealing with a toxic business partner is to schedule a meeting to discuss your concerns calmly.

Disruptive Business Model

Disruptive business models are disruptive innovations that bring new business ideas or technology to existing markets. A disruptive business does not fit the profile of a standard business model. Amazon is considered as one of the world's most disruptive companies.

How to Get a Business Loan with Bad Credit

For small business owners with bad credit, the easiest place to get a business loan is with the SBA. Although not easy, entrepreneurs with bad credit can get a small business loan.

How to Get a Small Business Grant

You can get a small business grant from the Small Business Administration. Also, check your local government for small business stimulus grants.

Pros and Cons of Etsy

Etsy Pro: Your products are given a large audience, and you easily sell your merchandise. Etsy Cons: You can only sell handmade or vintage merchandise, and there are many competitors.

What is a Breach of Contract in California?

A breach of contract in California arose when a party to a contract failed to achieve a legal duty the contract created. When a party to a contract fails to fulfill the terms of a binding contract, they are liable for damages for breaching the contract.

Business Equipment Leasing Pros and Cons

One advantage of equipment leasing is that you don’t need to come up with all the cash to buy the equipment. One disadvantage of equipment leasing is higher overall costs than outright purchasing the equipment.

LLC vs DBA

The main difference between an LLC and a DBA is that an LLC is a business entity, and a DBA is a registered fictitious business name. Sole proprietors, general partnerships, and LLC can register for a DBA.

See all blog: Business | Corporate | Employment

© Copyright | Nakase Law Firm (2019)