Bookkeeping & Accounting Series

Accounting, Bookkeeping
Author: Sean Duffy  -  Published: 20/04/2021

In this series of posts, we will explore core bookkeeping and accounting concepts. Have you ever wondered who invented the double-entry system of bookkeeping? Do you want to know how to keep track of your finances and expenses? How to set up your bookkeeping system? You'll be glad to know that you can learn how in this series.

Where to start?

The first step is always the same: register for a reputable bookkeeping software. Though they vary in price, features, and style, they all provide more or less the same things: they help keep track of your transactions and make managing them easier.

The next step is to start using the software. This requires studying the documentation, spending some time reading blogs about bookkeeping and even typing the transactions you already have committed to memory a couple of times.

Then, your final step is to create your accounting system. Write down all your purchases/sales and all your expenses in a notebook/document where you can always refer back to them, should you need to. This may seem tedious at first but it actually helps save time later on, as knowledge of past transactions develops speed and efficiency. Understanding your system will take time, most bookkeepers say it takes an average of 2–3 months to fully get the hang of it. You may even have to consult one of the experts who have already done all the tedious and labor-intensive work for you: accountants and bookkeepers.

Most importantly, focus on building your knowledge about accounting and keep doing that daily. You can never know enough and you will always need to refresh your memory.

This blog series is written especially with the beginner in mind. It doesn't mean that experts won't find it useful; on the contrary, expert bookkeepers often find it hard to understand why someone would want to take on bookkeeping without first learning a few things about it.

The 5 most important tips for beginners

#1 - Understand the importance of using a bookkeeping software

Many people make the mistake of starting to manage their finances without setting up a functional and organized system which will help them keep track of everything, as well as organize their financial processes. You wouldn't try to build a giant house without blueprints, would you?

#2 - Take your time with it

The idea that bookkeeping can be learned very quickly is quite common. But truth is it takes time and dedication to learn. A good bookkeeper or accountant can be hired to do all the grunt work for you, unless you have a special interest in the subject like many people do.

#3 - Focus on building your knowledge about accounting and keep doing that daily

You can never know enough about bookkeeping and there are always new things to learn, so build an effective learning routine that works for you.

#4 - Don't forget to read other blogs about bookkeeping

They are an excellent source of information and tutorials, as well as a place where you can ask questions about your financial process, which is very useful if you want to improve your skills.

#5 - Not for you?

This may be the most important tip of all: leave it to the pros. Reach out to us and let us know how we can help. Let us focus on your finances so you can focus on what you do best: running a successful business.

After all, we can't do what you do. But we can definitely take care of what you don't want to do or don't have the time for. Bookkeeping and accounting are essential parts of any financial system and as such should be taken seriously.

Never underestimate the importance of bookkeeping in the success of your business, no matter how big or small it is. Build a plan that works for you, keep your focus and go after it.

Stay tuned to this series for information on some recent technological changes which are underway. Curious about innovation in accounting? Ask one of our Cloud-Bookkeepers how their careers have evolved over the last few years.

If you would like to learn more about how cloud-based bookkeeping and accounting services can help elevate your business in 2021, contact Sean at sduffy@elevatebywelchllp.com

More from the Bookkeeping & Accounting series

Keep an eye out for the paper airplane taking off from the green runway for our next piece in the series.

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