Accounting Basics for Small Business Owners [By a CPA]

Learn the accounting basics for small business from a CPA. Today, you will learn the role of accounting in small business.

As Warren Buffet says, accounting is the language of business.

He and other savvy business owners use accounting to make investment decisions and decisions to grow the businesses they invest in.

But interestingly enough, many small businesses often neglect their accounting until tax time, or don’t do it all.

9 out of 10 small businesses that fail, fail due to financial mismanagement of their company.

Their financial mismanagement may result in their failure to make decisions to grow their business, meet financial obligations like paying employees or their rent, miss tax deductions that can save them money, or fail to pay their taxes all together.

Look, I get it. As a CPA that studies and practices accounting, I know that accounting isn’t the most exciting thing in the world. And, it’s probably not why you decided to go into business for yourself.

You probably have a very good product or service that you’re very passionate about. And your offering will delight customers and beat the competition.

However, eventually, you will be faced with the reality of accounting. And it’s best that you’re prepared for it now so you don’t suffer consequences later.

That's why in this episode, I’m going to simplify the accounting basics for small business owners.

Outline:

Intro: (0:00)
What is Accounting?: (2:02)
Why is Business Accounting Important?: (2:30)
The Accounting Process for Small Business?: (5:17)
Recap of Small Business Accounting: (14:01)

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[colorsofcortney]

This content is incredible for small business owners who have no knowledge of accounting. I will be sending this to all of my customers for their review!!!

[loriehand]

I teach Small Business and Entrepreneurship to high school students. Your video is straight-forward and approachable. My students and I are very grateful!🙂

[Matake]

I love the content, only feedback is to maybe reduce the frequency of the sound effects. They get a little distracting at parts. Great vid!

[rtanaka]

If y'all are hesitant about continuing on YouTube, don't be!! The content is great and is bound to grow. Keep it up.

[auntpurl]

Starting a small business, and I am trying so hard to learn to like the accounting side of things rather than dreading it. I appreciate the persuasive overview. I am beginning to see that it's crucial to start good habits in case my business scales up one day. This was super for an absolute beginner. I first just needed to learn the terminology in a straightforward way. It's a lot more interesting when you own the business.

[albertumoh]

You are simply amazing. My high school teacher could barely get me here in 6 years but you did in 14 minutes. 😂❤

[andreacarter]

As ALWAYS, "The Best of the Best" information provided with basic and complete instruction. 👌 Thank you for the Wisdom, Guidance and Knowledge! 👍🙏

[thedoubleboiler]

I am not new to budgeting, or finance and yet, still learned something new and was glued in, while looking for information in starting my new business. This was a well made video and thank you for sharing.

[theaccountant]

Nice video. Not only do you explain what accounting is, you also talk about the importance and how it can help with business decisions. And you provide some good financial analysis. Good job.

[sulusghebreamlak]

I am really extremely so happy with this video. and knowing the difference between Accounting and Bookkeeping. It is very useful. Thank you so much.

[tazrockymuff]

Love it! Short, sweet, and to the point and very informative.

[kurleykath.]

AMAZING! This video was extremely helpful! Just a few days a go, I had no idea what the difference between bookkeeping and accounting was. This has helped me understand a lot better!

[nebiyum]

Excellent work! One of the best, if not the best videos I have seen about accounting!

[klaranolan]

Love IT! I know nothing about accounting and own a small language business… omg every month I am so scared to look at my account if I can or can’t get everything paid, now I know why ❤

[DreamFirms]

Great tips to those who are planning to start their small business!

[BusinessBasics]

Good breakdown. A lot of these pointers I teach in my class of entrepreneurship students, such as accounting is the language of business, its value / purpose, and how to record and categorize transactions. You simplified it and made it easy to understand!

[janaebeckford]

This video popped up in my list of recommened videos to watch and I must say I'm half way into it and already made the decision to subacribe. Thank you so much for the great info, because as a new business owner I do dread the accounting aspect of things. But if I want my business to succeed then I must embrace all areas of the business...including the financial part. So thank you for helping us to understand the importance of financial and for making it enjoyable to learn.💕🙏

[deehno]

I was actually looking on information regarding becoming a CPA and if it worth the extra schooling to do it but ran into this channel. I didn't find my answers but I feel like I just struck gold with y'all.

[alfredorosalesjr]

Great job breaking it down! I will watch more of your videos!! Thank you!!

[ikselxzy]

This was very simple to follow and broken down perfectly
Thank you so much ❤