Should I Learn Accounting And Bookkeeping For my Business?

Accounting is one of the things that most people get bored with but is one of the most important topics that you need to learn when you're in business.

I had some knowledge about accounting because I took some classes when I was in high school so I was able to do the bookkeeping for my business but I always knew that I was missing parts because I didn't know if I was registering everything correctly or not, if I was affecting the right accounts so, in conclusion, I've always doubted if my financial statements are accurate.

Every year, before the filing date of the tax return, I went to the accountant that would do the filing for me (one different person every year because we've moved a lot) and told her if I could ask some questions because I wasn't sure if I was doing the bookkeeping right.

Their answer was always the same:

- Just show me the year-end financial reports. 

I gave the reports to them and they'll just say:

- It looks okay to me.

And when I started with the:

- But... I'm not sure... I want to confirm... I don't have clear this... can I ask you? can you help me?

The answer was the same:

- If you want that I explain to you how to do this then I charge $150/$200/$250 per hour but I don't have time now because we are in tax season so, let's file now, and after the tax season has passed, then we can meet, and I'll tell you what you want to know.

Obviously, I just filed with the numbers I got, without knowing if they were okay or not, paid the CPAs from $350 to $500 for the filing (to do nothing basically, just fill out some forms online and hit send), and kept feeling that there was something wrong about the way I was doing my bookkeeping.

This year I decided to finish the uncertainty!

So, I searched online for accounting courses and I found that there was a series of two courses in Accounting Principles in my community college.

Both courses cost just $200 and they have so much information, you wouldn't believe it!

I just finished the first course and it was super helpful!

Of course, I'm missing several things in the way I'm doing the bookkeeping.

I just hope that Quickbooks does some of them automatically because if not, then I'll have to redo ALL the bookkeeping of the last 3 and a half years again to check that everything is done correctly.

And even if Quickbooks actually does some things automatically, I know now that there are some calculations that I've been doing wrong so... there's a fun time ahead for me checking my books and adjusting accounts.

It won't be enjoyable but it is absolutely necessary.

Now I know that if I would've paid to a CPA to solve the questions I had, it would've been an absolute waste of money.

It is just too many moving pieces.

And when you actually understand how they move together, it's amazing the amount of information you can get from your business.

For example, if you have a partner in your business, it's different the amount of profit or loss that you will share, from the equity that each one has in the business. I didn't know this, I didn't know how to manage a partnership, but this is a game-changer, this makes so many things clear now.

In conclusion, I don't say you need to become a bookkeeper or an accountant but, if you really want to know how the finances of your business are affected by your everyday decisions, I suggest you take at least one course in Accounting.

If you think that you need it, get a CPA or a Bookkeeper so they are in charge of the daily work but be knowledgeable enough so you don't get screwed by others or by your own decisions.

I know that there are platforms that promise to make this process super easy for you but understanding your finances is something that you can't get from a dashboard in a cellphone.

Check the courses offered in your community college. There are a lot of online courses now and they are usually free or very low cost.

Don't leave the finances of YOUR business in other's people hands.

GET CONTROL OF YOUR MONEY!