What accounting information do you need? How is this information going to be used? How will it add value to what you are doing? In life, a lot of drama can be avoided if you ask these questions first before scanning a balance sheet or profit and loss report. Of course, you may not know how to read either of these two reports if you are not familiar with accounting. The good news is that you can use an accounting for small business owners book, How Much Does It Cost to Make a Donut?, to learn accounting for your own business.
Why pick up an accounting for small business owners book?
The accounting for small business owners book, How Much Does It Cost to Make a Donut?, enables the start-up owner to learn how to operate their business without breaking a sweat. That is because the accounting for entrepreneurs book provides you with real-life examples about how accounting is used in business – examples that are relatable and easy to understand. You can reduce a great deal of your anxiety when you see how entrepreneurs make sense of accounting.
An accounting for small business owners book can help you capture the meaning of the three fundamental reports of accounting by learning their key takeaways. For example, the balance sheet and profit and loss statement provide you with a summary of your business’s assets, liabilities, and shareholder’s equity along with the revenues, costs, and expenses (for a specific period). A balance sheet gives you a snapshot of how your business is managing its resources while a profit and loss statement sums up how your company can make a profit by either increasing its revenue, lowering expenses, or both.
Learn More About the Cash Flow Statement
Your accounting for small business owners book will also acquaint you with the cash flow statement. This statement is not something you can ignore because you need an inflow of cash for your business to thrive. You need to make sure you take in more money than what you spend. In other words, you do not want to have to depend on a loan to keep you afloat. A cash flow statement should be used so you know when you need to make some all-important financial cuts. All these bookkeeping basics for entrepreneurs should be recognized and kept in mind.
If you do not want to pursue a degree in number crunching, the accounting for small business owners book, How Much Does It Cost to Make a Donut?, will relieve most of the pain you may experience from trying to digest the subject. Among small business accounting books, this book will give the needed inspiration to understand bookkeeping basics for entrepreneurs.