Trying to do business and then there’s accounting

First and foremost, keep it simple and structured. It only gets messy and stressful if you have to do it ad hoc. It may sound like a cliché, but don’t panic! You can do it all if you just keep a cool head and have it all structured. 

Don’t think of accounting as something that’s trying to stop you from running your business or make your life more complicated. It’s not and it’s actually quite the opposite really. Accounting is about numbers and truth be told, there’s very little creativity needed. I know, for creative people and for those not so good with numbers it seems like I made things worse now. Well, it may very well be so, but let me tell you that you can still do it. A list of simple things to keep in mind that should help everyone in their own accounting (even those with no sense when it comes to numbers):

  • Know your basic transactions and how to account for them – ask help if needed and have them in front of you with as much helpful instructions as needed. Account only according to them.
  • When facing a new type of transaction try to seek help before messing about yourself. If you’re unsure whether there’s anything different or new with a specific transaction, consult someone, either someone you know or a professional. You do want to meet all requirements and regulations (especially when taxes are involved).
  • Have a specific time set when you’re doing your accounting – take time for it rather then doing it bit by bit on different times. If it helps, divide types of transactions, i.e. you account for sales on Friday morning and purchases on Monday evening and so on however you see fit.
  • Keep a list of things you need to do, list of entries you need to account – either a pile of invoices somewhere stored or receipts and whatnot. Make sure they’re all sorted and kept away safe, but still visible so you wont forget to account them.

And that’s it! The more problems you usually have with accounting, the more structured and simpler you want to keep things.