Accounting Made Easy – A Simple Guide for Founders

The term “Accounting” can initially seem intimidating for many entrepreneurs. But don’t let that hold you back! Accounting doesn’t have to be a complex and frightening topic. In this guide, you will discover that accounting is essentially a simple game with documents. Once you understand the basics, you will see that it’s not as complicated as it seems.

Key Insights

• Accounting is based on documents that record your income and expenses.
• It’s important to regularly review your bank statements.
• For every single payment, there must be a corresponding document, whether for expenses or income.
• The monthly accounting is significantly simplified by forwarding your documents and bank statements to an accountant.
• With the basics of accounting, you are on a good path to successfully running your business.

Step-by-Step Guide

To help you get started with accounting, I have put together a simple step-by-step guide. Follow these steps to effectively organize your accounting.

Step 1: Understand the Basics of Accounting

First of all, what exactly is accounting? At its core, accounting consists of documents that prove what you’ve spent and what you’ve earned. To understand the complex topic, you need to become familiar with it. The basic idea is that you have a system to document every transaction.

Step 2: Analyze Bank Statements

Take a close look at your bank statements. It’s important to understand where your money is flowing and where it’s coming from. Review all payments and income to get a clear picture of your financial situation. A well-maintained bank statement is a valuable foundation for your accounting.

Step 3: Collect and Store Documents

For every single payment you make, you need a document. This applies to expenses of any kind, whether for services or products you have purchased. To keep track of your accounting, it is essential that you store all documents. You should start by carefully collecting all receipts and invoices.

Step 4: Document Income

When you receive money, you also need to issue a document. This document proves that you have been paid for a specific service or product. Just like with expenses, it is important to document all income thoroughly to manage your business according to tax requirements.

Step 5: Regular Accounting

To keep track and avoid missing deadlines, it is advisable to conduct accounting once a month. Summarize all expenses and income and prepare the documents as well as your bank statements for the accountant. This regular recording will help you avoid financial problems.

Step 6: Communication with the Accountant

After you have collected all incoming and outgoing documents as well as your bank statements, send them to your accountant. This not only simplifies your accounting but also ensures that your accountant has all the necessary information to meet your tax obligations. You’ll be on the safe side.

Step 7: Continuous Improvement

Remember that accounting is not a static topic. There is always room for improvements and optimizations. Make sure to regularly review the basics of accounting and acquire new knowledge to enhance your skills.

Summary – Accounting Made Easy – A Simple Guide for Entrepreneurs

Accounting doesn’t have to be complicated. If you understand the basics, you can effectively document your income and expenses. By regularly collecting your documents and reviewing your bank statements, you will be well-prepared for monthly accounting. While it requires some discipline, it’s an important skill that you should develop as an entrepreneur.