6 Best Bookkeeping Books for Small Businesses

This book covers the necessary details of both financial and management accounting and represents it in an easy and understandable way. Take the time to understand your business and its financial operations thoroughly. This will help you determine which categories and sub-accounts are relevant and necessary for your specific business. For example, a plumbing company must include transportation-related expenses in its chart of accounts, while a bookstore will not. Your business’s debts or obligations to others are liabilities, including loans, credit card balances, or outstanding bills. By keeping track of your liabilities, you can stay on top of your financial obligations and make informed decisions about your business’s financial health.

John A. Tracy and Tage C. Tracy bring a wealth of knowledge on accounting and finance. The latest sixth edition includes 90 new best practices and two extra chapters on credit and collections. Save yourself hours of accounting admin so you can focus on growing your business. Try The Accounting Game by Darrell Mullis and Judith Orloff, which explains the concepts in straightforward terms using an interesting story format. Plus, there is a blue and yellow book, each listing careers and businesses best suited to that format. This book breaks up bookkeeping into 20 digestible chapters, from definitions to analysis and interpretation.

Are bookkeeping and accounting different?

It not only demystifies Buffett’s accounting principles but also empowers readers with the knowledge to position their company effectively to attract investors. “Cost Accounting For Dummies” covers various crucial topics, including how to set up a cost accounting system, controlling and budgeting, dealing with variances, and making informed pricing decisions. With Boyd’s guide, you’ll navigate through the world of cost accounting with ease and confidence. The book introduces readers to the fundamentals of financial accounting in a straightforward manner. You’ll explore essential concepts, practices, and terminology, acquiring the skills to interpret and utilize financial information effectively for business planning and decision-making.

Setting goals and objectives helps the accountant and the client stay focused and make informed financial decisions. Bookkeepers use a chart of accounts to see all of the accounts in a company’s general ledger. In many instances, an accountant prepares the initial chart, and the bookkeeper references it while recording transactions. It includes importing and categorizing transactions properly, reconciling these transactions and making sure they’re recorded according to your entry system and accounting method. Accrual basis accounting records those invoices and bills even if the funds haven’t been exchanged. Generally, accrual basis is the recommended accounting method and more aligned with generally accepted accounting principles.

• Many bookkeepers hone and develop their expertise over time while others opt to complete seminars, read books or take online classes.
• Closing the books refers to the process of finalizing the accounting records for a specific period, usually at the end of a fiscal year or month.
• But if that book, at 752 pages, is too intimidating, readers might want to start with a briefer introduction, such as Accounting for Non-Accountants or Accounting QuickStart Guide.
• The book introduces readers to the fundamentals of financial accounting in a straightforward manner.

It might feel daunting at first, but the sooner you get a handle on this important step, the sooner you’ll feel secure in your business’s finances. Remember that the basic goals of bookkeeping are to track your expenses and profits, and to ensure you collect all necessary information for tax filing. Despite the importance of accurate bookkeeping practices, most people don’t feel entirely confident with maintaining detailed business finances.

Your financial transactions

Additionally, ProfitBooks’ expense reporting feature helps assess the actual cost of goods sold (COGS). It tracks expenses related to inventory spoilage or obsolescence, which is particularly relevant for businesses dealing with perishable goods or products with a limited shelf life. Finance and accounting teams in businesses that regularly deal in international transactions could consider Plooto. Its global money transfer service enables users to send money abroad and automate functions such as vendor payments and currency conversions. It also offers competitive exchange rates and lower transfer fees than traditional banks, saving businesses money on international transactions.

Authored by Joanne M. Flood, it may be dry, but it’s an indispensable resource for accounting professionals dealing with detailed financial reporting rules. “Understanding the ‘language of business’ is essential for all future entrepreneurs, and this book makes learning enjoyable and easy.” Sylvia Inks’ guide is a treasure trove of practical advice on small business what is a chart of accounts and is it important finance. It’s designed for entrepreneurs juggling various responsibilities while aiming to establish a financially solid and profitable business. If you’re planning to start your own business and considering the LLC structure, this guide is an indispensable resource. It provides all the foundational knowledge you’d need, in a clear, straightforward manner.

Choose an entry system

As a small business owner, she is passionate about supporting other entrepreneurs, and sharing information that will help them thrive. There are dozens and dozens of bookkeeping options available and the choices may seem overwhelming. We’ve analyzed and rated the best online bookkeeping services to help you make the best decision when choosing the right one.

Stay up to date on the latest accounting tips and training

It is essential to track and record all sources of income for your small business. Keep a record of all customer transactions, including sales receipts or invoices. Additionally, if you receive electronic payments, save the transaction details for your records. While these five sections form the foundation of a Chart of Accounts, it’s important to note that you can also add sub-accounts to organize your financial transactions further.

This book is easy for understanding the harder numeric finance tactics that usually scare many readers. As you read up on these best bookkeeping books for small business, you can prepare yourself for strong financial management. Do it Yourself Bookkeeping for Small Businesses by Michael Collins is another of the best bookkeeping books for small businesses. Collins offers you the skills to set your financial accounting up for success.

This all-encompassing resource offers clear-cut truths, valuable advice, and effective solutions that save your nerves, time, and money. In addition, “Financial Statements” is written in a straightforward, visual style that demystifies complex accounting topics with minimal usage of specialized terms. Its pages reveal an effective method to tweak your systems and reach your profit goals while cutting costs, regardless of your industry or business size. Store them securely in the cloud or on an external hard drive to protect against data loss. Below are some of the most common statements a bookkeeper uses to monitor activities. If you go this route, make sure to brush up on interview questions that’ll help you determine who’s the best fit.

How to do bookkeeping for a small business

And in such cases, may take on the accountant role themselves—an important responsibility in any company. That’s because small business accounting and bookkeeping are essential areas to invest in for the sake of growth. They help you realize and manage the cash flows going in and out of your company, which is useful when applying for business loans or filing taxes. Most small businesses today don’t track business finances in literal bound books. They typically use accounting software that links to a business bank account, monitors its transactions, and generates financial reports. AccountsPortal is online accounting software with a centralized dashboard that offers an overview of your current account balance, outstanding invoices, profit and loss reports, and cash flows.