You have an accountant, a bookkeeper and didn’t go to school for accounting that is why you don’t do it. But you are a small business owner and understanding the basic principles of accounting is crucial. Understanding a balance sheet, cash vs. accrual accounting, after net income items, etc will be the difference between having a good business and a great business. Plus when you speak to your CPA having a basic understanding of accounting principles will make one of your key advisors more valuable. The best way to improve your knowledge of course is reading and as such we have suggested 3 good reads below.
1. Accounting Made Simple: Accounting Explained in 100 Pages or Less
- The Accounting Equation and why it’s so significant
- How to read and prepare financial statements
- How to calculate and interpret several different financial ratios
- The concepts and assumptions behind Generally Accepted Accounting Principles (GAAP)
2. The Accounting Game: Basic Accounting Fresh from the Lemonade Stand
3. Accounting for Small Business Owners
Accounting for Small Business Owners covers the entire process of establishing solid accounting for your business and common financial scenarios, and will show you how to:
- Set up and run your business
- Manage and sell your product or service
- Perform a month-end balancing of accounts
At IRx Consulting we are Accounting experts and offer a comprehensive Pharmacy Accounting service with a suite of complimentary services including Data Dashboards, Payroll & Human Resources and Pharmacy Management consulting.