English: Business Line Finance and Accounting

English: Business Line Finance and Accounting (Photo credit: Wikipedia)

Small business accounting programs are available for purchase or for your use online.

Does your small business need one of these programs? The answer is no.

There are other ways of keeping track of your income, and expenses other than accounting software, that has a steep learning curve, and is more elaborate than you need when starting out.

A simple ledger can suffice, or a simple spreadsheet can do well for startups unless you have the money to waste on unneeded expenses of software, or a CPA unless you feel like spending money you don’t need to when starting up.

Most startups are not as well-funded as they should be, and cutting down on expenses is paramount when starting out, and the time it takes to learn accounting software if you know little about accounting to start with.

Rather than taking time away from your business to learn accounting, a ledger will work fine when starting out so you can budget, and learn where your money is going.

You also want to keep your personal and business finances separate. You should create a checking account for your business, as this will also be a record of income and expenses without spending time to explain which are personal, and which are for business, just have a business account and keep it for business only.

Most accounting software is overkill for startups and not necessary for running your business. Accounting takes time to learn, some people learn faster than others do. It could take anywhere from weeks to months to learn all of the ins and outs of even simple accounting software for your business, and each business is different with different needs.

Do you have employees? If you do, you will need to figure out the payroll section of accounting programs. If you don’t have employees, you don’t need the payroll section, but you may need an inventory portion.

It’s easier for startups to use a record book, and a ledger, or if you’re good with spreadsheets, use one for your record keeping.

Be sure you back up your data to a memory stick, the cloud, and a hard copy in case your computer crashes.

You never want to lose any bookkeeping records because you failed to back it up.

 

Author

Robert Medak

Freelance Writer, Blogger, Editor, Proofreader, and Reviewer learning Marketing

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