Having spent time at the helm of a small business, I know how touchy this question really is. I took my successes and failures very personally. And yes, I thought I had a real handle on what was going on financially within my business.

Allen Bostrom, President of Universal Accounting Center, was a friend of mine and we would talk about what I was doing in my business and where I thought the greatest profits or losses were coming from. As a small business financial expert, he was always available to offer insight and suggestions into things I might do to build my business. In fact, I had the opportunity to read his book, In The Black:Nine Principles to Make Your Business Profitable before it was printed.

My Background Wasn't In Accounting... And It Hurt My Business

Like most small business owners, my background didn't include any accounting. I could read a profit and loss statement and a balance sheet. I could interpret the information and make financial decisions based upon what information was there, but I didn't completely understand the accounting process and where those numbers were coming from and how they related to each other.

I Didn't Know if the Information on My Balance Sheet Really Reflected What Was Going On in My Business - And What's Worse... I Didn't Know that I Didn't Know

I fell into the trap that most small business owners do... I believed the software company that told me I didn't need an understanding of small business accounting to use their software and do my books. That was a mistake. Without an understanding of what the back-end of the accounting process was, I couldn't know whether or not the information I was getting was the right information.

A Software Program Is No Substitute for A Qualified Bookkeeper

Allen probably offered a dozen times to look at my books and offer his help. Of course, I felt like I had it handled and declined his offers.
A qualified small business accountant has an understanding of the bookkeeping process allowing him to offer insights into the information that your accounting software is telling you.

OK, Where Can I Find One of These Small Business Accounting Experts

Many of these real experts have been working in small businesses for years. The knowledge of small business accounting issues has been accumulated over years of mistakes, trial and error. Many of them are working for small businesses who celebrate every day the contribution that they make to their businesses.

These business owners understand that their accountant is worth what he or she is paid because of the benefit he or she brings to the business. These “profit experts” are an important link in the chain of business profitability.

Whether You Hire a Bookkeeper, Contract With a Freelance Bookkeeper or Do It Yourself... Do It

For many small business owners, doing your own books sounds like a good way to get started. Tempting as it is, unless you have a background in accounting... I wouldn't recommend it. A skilled bookkeeper is worth his or her weight in gold. They will not only make your life easier, but they'll help you keep your business on track financially.

Finding a good bookkeeper isn't tough, and if you drop me an e-mail, I can put you in touch with a number of them.

Don't let this most important part of your business go unattended. Keep your business in the black.