You might be great at building your business and or products but when it comes to bookkeeping, many fail in this subject unless of course they have prior experience. However, if you can’t measure success than how will you know if your business is succeeding or failing? In order to have a clear financial picture you need to know at least the basics of bookkeeping. Basic bookkeeping tasks such as accounts receivable, paying your bills on time and financial reports all fall under the realm of bookkeeping. The basic lingo that you should know as a business professional when it comes to the basics of bookkeeping include: cash (cash receipts and cash disbursements), accounts receivable (money due from customers), inventory (products to sell), accounts payable (bills to pay), loans payable (bills from items you bought on loan), sales (track incoming revenue), purchases (good you buy), payroll expenses (your employees pay), owners’ equity (how much each owner puts into the business), and retained earnings (company’s profits that are reinvested in the business). Remember, that bookkeeping is your best bud in the business world because it is bookkeeping that manages all of the money.
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