Small Biz Doers' Guide to Small Biz Accounting + Bookkeeping

Learn bookkeeping basics, to set up and use accounting software, an accounting system, and how to read financial reports
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  • Lectures 58
  • Contents Video: 5.5 hours
    Other: 1 min
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 8/2013 English

Course Description

Why we wanted to teach the course

Like many of you looking at this course, we’re also small business owners. We’ve gone through the same challenges of running a business that you’ve been through and that includes maintaining our own financial records. We’ve done the the paper-based and electronic methods of bookkeeping and once we discovered the cloud-based way of doing things, we found that it made our lives much easier. It’s our intent to share this knowledge with you so that you needn’t worry as much about the numbers side of your business and so you can simply focus on what you do best.

What you’ll get from this course

If you’d like to do a better job of managing the financial side of your business, then you’ve come to the right place. Not only will you learn how to use - and be comfortable with - accounting software you’ll also learn basic accounting terminology and various fundamentals to set up, manage and better understand the numbers (and results) generated by your business.

This course is made up of two parts

  • Chapter 1 through 4 will cover the basics of starting up a small business.
  • Chapter 5 through 14 will cover the basics of bookkeeping, accounting, and using accounting software.

How to use this course

Not every small business is alike and that people are at different learning stages in their business. We know you’re busy enough as it is so we’ve written the course in modules.

This means that we’ve designed the course so that you can read only sections that are relevant to you. For example, you may already understand small business accounting terminology. That’s great, so feel free to skip that section and go straight to the one that applies to your specific requirement.

Because the course is modular and we can’t assume you’ve read a certain section where we’ve introduced a concept, we’re going to assume you have a certain level of knowledge. This is especially so with bookkeeping or accounting terms and concepts. In case you need some help (or just a refresher) check out Section 6, which is the Small Business Financial Terminology section.

What are the requirements?

  • We wrote this course for people with little accounting or bookkeeping background, so rest assured this will teach you all the basics you need to know from the ground up!

What am I going to get from this course?

  • After taking this course you will learn how to effectively manage your documents and be on top of all your accounting tasks. You'll set up and learn to use accounting software. You will be able to know your numbers in real time (and actually understand what they mean). And in general you'll learn small biz bookkeeping.

What is the target audience?

  • This course was designed to help the solopreneur who wears multiple hats or the small business owner with 0-10 employees.
  • Whether you're overseeing an employee doing the bookkeeping, working with a bookkeeper or accountant, or doing the books yourself, this course will give you the fundamentals of small business financials

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Write A Business Plan
12:12

Incorporate or just be a sole proprietorship?

Work solo or bring in a partner (or partners)?

Work out of an office, home or a coffee shop?

Lease or buy equipment?

02:07

Sell locally and/or globally?

Be a bricks-and-mortar business and/or virtual business?

05:31

Sell a product or a service (or both)?

Add a passive income component with an exit strategy

02:31

Set realistic and measurable business goals

Regularly review goals and assess performance

03:01

Map out your start-up capital requirements - will these bring in revenue?

Do a forecast of projected monthly expenses, including payroll

Section 2: Finance Your Business for Start-up and Growth
20:12

All small businesses need some money to start up, whether it's a few hundred dollars or a few hundred thousand dollars. We'll point you to the different financing and funding options available and let you know where to go based on your unique needs. After completing this chapter, you'll know what the best places are to turn to for getting money to grow your business.

  • Personal savings
  • Personal loans, lines of credit, and credit cards
  • Friends & family
  • Suppliers (via credit)
  • MicroFinance Loans
  • Crowd-based Lending or Investing
  • Government Institutions
  • Traditional Banks
  • Credit Unions
  • Specialty Lenders
  • Third party investors & venture capital funding
  • Self-Employment (or Re-Employment) Programs
Section 3: Create your team of core advisors
10:48

It takes a village to raise a child and a team of advisors to raise a business. Whether you're a solopreneur or a business with many employees, you'll need a team of people helping you along the way. We'll introduce you to the different types of people that can help your business on the financial side of things. After completing this chapter, you'll know who to turn to for your financial needs.

  • Bookkeeper
  • Accountant
  • Banker
  • Lawyer
  • Financial Advisor and Life Insurance/Employee Benefits Rep
  • Ecommerce expert
Section 4: Set up Systems & Procedures to ensure that your business runs smooth
15:08

After completing this section, you'll be able to get started in setting up your small business' financial system.

PART 1 - BANKING

  • Apply for a credit card
  • Apply for a credit line at your selected bank
  • Set up automatic bill payments to pay various vendors/suppliers (e.g. utility co., insurance, phone bill, etc.)
  • Set up collection systems (i.e. cash, check, credit card, interac, e-transfer, Paypal, other)
  • Cash (bills and coins)
  • Check
  • Credit Card
  • Debit Cards
  • E-transfer
  • PayPal
  • Other methods
06:57

PART 2 - GOVERNMENT (FEDERAL AND STATE / PROVINCIAL)

  • Business ID number application
  • City Hall Permit (or business license) application & yearly payment
  • WCB application & monthly remittance
  • Sales tax (i.e. VAT or HST) application & quarterly remittance
  • Corporate tax payment
05:57

PART 3 - PRICING

  • Product (or service) pricing
  • Decide on delivery terms
  • Refund and exchange policy
13:56

PART 4 - PAYMENT

PAYMENT TERMS

  • Deposits
  • Installments
  • At time of sale
  • Credit
  • Prepayment

PAYMENT METHODS

  • Cash
  • Checks
  • Credit and debit cards
  • PayPal
  • Mobile Payments
  • E-Transfer
03:22

PART 5 - ACCEPTING ONLINE PAYMENTS (I.E. USING PAYMENT PROCESSORS)

  • Payment gateway
  • Internet merchant account
  • Combined gateway and merchant account providers
  • PayPal
  • Others
  • Additional resources
08:37

PART 6 - SET UP A SHOPPING CART OR E-COMMERCE PAYMENT SYSTEM ON YOUR WEBSITE?

Being able to do sales transaction and accept payments on your website is something that has gotten a lot easier over time. For some businesses, online payments are the only way they accept money.

The payment systems you can use can go from simple to complex. A simple payment system allows you to sell one product at a time by placing a "buy now" button on your site. A more complex system incorporates a shopping cart, size, color choices, an inventory system and various other components.

Section 5: Intro to Small Biz Bookkeeping, Accounting, and Accounting Software
12:01

Let's face it, for most people bookkeeping is not a top priority. But we also have to realize that it's a necessary part of business and is essential to helping you manage and make money. After completing this chapter, you'll realize why you need to be a bookkeeping master, or at the least why keeping your books up-to-date will enable you to better manage your business.

  • Bookkeeping vs. Accounting
  • Why bookkeeping and accounting needs to be done
  • Why a small business would want to use accounting software
  • The danger with beginners using accounting software
  • What makes good accounting software
  • Deciding whether your accounting software is right for your business size and level of accounting literacy
Section 6: Small Business Financial Terminology
14:08

This is the section many people may want to skip, but it's also the most important chapter of the entire course. We do our best to break down some basic financial terminology that you'll need to really understand how to do bookkeeping and how to read your financial reports. By spending a bit of time to learn the basic terminology, you'll be amazed at how much more sense everything makes. After completing this chapter, you'll be able to move beyond merely doing your bookkeeping to actually understanding what you are doing!

PART 1 - GLOSSARY OF ACCOUNTING TERMS

  • Accrual accounting
  • General ledger
  • Chart of accounts
  • Trial Balance
  • Balance Sheet
  • Asset
  • Liability
  • Equity
  • Accounting Equation (Assets = Liabilities + Equity)
  • Income
  • Expense
  • Accounts Receivable
  • Accounts Payable
  • Undeposited funds
15:59

PART 2 - DEBITS AND CREDITS

It's a lot easier to remember this if you're using accounting software because if you go to do a general journal entry, they'll have the debit column on the left and the credit column on the right.

01:09

PART 3 - BANK RECONCILIATION

A Bank reconciliation is the process of matching your bank statement with your bookkeeping records.

The reason that the reconciliation process is so important to bookkeeping is that it prevents you from making huge errors, as it involves verifying (or double-checking) all your transactions from one account. Doing reconciliation won't guarantee that your records will be 100% accurate all the time (since the reconciliation is only verifying transactions of one account at a time, but it will certainly help to minimize unnecessary mistakes).

10:39

PART 4 - GLOSSARY OF ACCOUNTING SOFTWARE TERMS

  • Cloud / online software
  • Installing
  • Doing regular backups
  • Data input screen
  • Navigation
  • Icons
  • Importing / uploading data
  • Exporting / downloading data
  • Syncing data
  • SAAS (software as a service)
  • Integration
  • Mobile app
Section 7: What to look for in Accounting Software
09:44

If you're still using pen and paper or electronic spreadsheets, then this chapter is for you. We'll cover off what accounting software is capable of nowadays, what are the important basic features to look for, and learn about advanced functionality that can help you automate your business' finances. After completing this chapter, you'll have a better understanding of what accounting software can and can't do, and what kind of features you'll need in your accounting software.

PART 1 - USER INTERFACE / USABILITY

  • Finding data
  • Data in a usable format
  • Tracking changes
  • Undoing transactions
  • The user interface is a crucial part of any software. A user interface represents the basic design or layout of the software. It determines how a user interacts with a piece of software and how the software responds.
16:45

PART 2 - KEY FUNCTIONALITY

  • Accrual accounting
  • Double-entry accounting
  • Chart of accounts
  • Reconciliation
  • Importing bank statements
  • Importing data
  • Exporting data
  • Reporting
  • Taxes
13:06

PART 3 - NICE-TO-HAVE FUNCTIONALITIES

  • Automatic entry of data
  • Integration
  • Invoicing
  • Document attachment
07:59

PART 4 - SPECIALIZED FUNCTIONALITIES

  • Payment processing
  • Payroll
  • Inventory
  • Multiple currencies
  • Mobile app
  • Other features
04:28

PART 5 - IMPORTANT CONSIDERATIONS

  • Support / help documentation
  • Country of manufacture
  • Price
Section 8: What’s an Accounting System
01:46

Accounting and bookkeeping are mostly a set of steps, procedures and rules. We explain what steps need to be taken, and in what order, to complete your bookkeeping and accounting in the most efficient way. After completing this chapter, you'll be aware of all that is involved in keeping your books in order.

PART 1 - RECAP: WHAT YOU'LL NEED FROM YOUR ACCOUNTING SYSTEM

  • To be compliant with the government (i.e. pay sales taxes, payroll, income taxes)
  • To understand your business' financial position
  • To manage your business documents
  • To automate, streamline and make efficient business financial processes
  • To keep accurate accounting records
05:33

PART 2 - WHAT SOLUTIONS DOES THE ACCOUNTING SYSTEM PROVIDE?

  • Document management system
  • Learn to set up and use accounting software
  • Learn how to read and act upon financial statements
  • Using technology, checklists and systems to enable automation and efficiency
03:36

PART 3 - PEN AND PAPER VS. ELECTRONIC SPREADSHEETS VS. ACCOUNTING SOFTWARE

04:27

PART 4 - GO TRADITIONAL OR PAPERLESS?

Although it's still possible to do your bookkeeping using paper and pen, most accountants these days will require an electronic version of their clients' financial records.

Section 9: Setting up an Accounting System
01:40

We reveal our 5 step accounting system designed that'll take you from managing your bookkeeping receipts and documents, to entering them into your accounting software, to reporting on your financials. We'll also set up you up with an accounting checklist which will be your easy-to-follow guide on how keep your books in order. After completing this chapter, you'll know how to take a systemized approach to your bookkeeping that will enable you to get things done easier, faster, and with less errors.

PART 1 - THE 5 STEPS OF THE ACCOUNTING SYSTEM

  • Gather documents
  • Sort documents
  • Enter documents
  • Reconcile and correct
  • Generate reports and do government filings
Step 1 - Gather Documents
06:41
05:48

PART 3 - STEP 2 -- SORT YOUR DOCUMENTS

Sorting all the collected bookkeeping documents into folders before entering them into your accounting software provides huge benefits.

06:14

PART 4 - WHAT TO PUT IN THE FOLDERS

As part of the accounting system you will be using folders (digital or paper, it doesn't matter). We discuss what to put in each folder.

03:33

PART 5 - Bank Accounts and Credit Card Folders

You use the bank account folder for any transactions that are paid for using your bank account or for any refunds that you receive back to your bank account. We go over some special situations regarding when to use and not use the bank account folders.

02:43

PART 6 - DON'T KNOW / OTHER

The don't know / other folder is a catch-all folder for any documents that: 1. You're not sure where to put, and 2. Don't really fit into any of the other folders. We consider this a very important folder, since it makes sure you always have a place to put documents.

10:36

PART 7 - STEP 3 -- ENTER INTO YOUR ACCOUNTING SOFTWARE AND FILE AWAY

Once you have all your bookkeeping documents gathered and sorted, it's time to enter them into your accounting software. Luckily, if you've done a good job sorting your documents, entering the transactions should be pretty straightforward.

00:57

PART 8 - STEP 4 -- RECONCILE AND CORRECT

Bank reconciliations are a crucial part of bookkeeping. Reconciling is the act of comparing your bookkeeping records with your account statements (e.g. your bank statement or your credit card statement) and verifying whether both match.

Data entry is a process that's always prone to error, so reconciling is essential for ensuring that your records are accurate. Reconciling helps you catch errors that you've made, whether this be double-entering a receipt, forgetting to enter a receipt or entering the wrong dollar amount.

Without the reconciliation, you won't be able to print out accurate reports, whether it be profit and loss, accounts receivable, accounts payable or how much taxes you owe.

With your reconciliation and correction done, you can now properly file and pay for government taxes and print out accurate financial reports.

01:17

PART 9 - STEP 5 -- REPORTS AND FILINGS

With your reconciliation and correction done, you can now properly file and pay for government taxes and print out accurate financial reports.

02:39

PART 10 - MODIFYING THE ACCOUNTING SYSTEM

How to modify the accounting system.

01:28

PART 11 - TIPS AND TRICKS FOR USING THE ACCOUNTING SYSTEM

Have a system for processing emails

Always do the same thing

Section 10: Setting up your accounting software
01:18

Everyone wants to jump in and start using their software. What many don't realize, is that you need to spend some time to set up your software first. We'll guide you through what's needed to set up your accounting software and how to do it. After completing this chapter, you'll be able to set up your own set of books and be ready to use your accounting software.

PART 1 - GETTING STARTED

Setting up accounting software has never been easier. You can be up and running in under 10 minutes if you're using online accounting software. That's because all you really need to do is create a username, password and enter some basic contact information and you're on your way.

BUT WAIT!

03:34

PART 2 - CHART OF ACCOUNTS

Your chart of accounts determines how you will categorize all your transactions. These are your assets, liabilities, equity, income and expenses.

All accounting software will come with a default set of accounts that you can use right out of the gate. If after this course you have absolutely no clue what you want your chart of accounts are going to be, using the default set will help keep you out of trouble.

03:40

PART 3 - TRIAL OR OPENING BALANCES

Whether you're a new business or an existing one, you'll have some opening numbers to enter into your accounting software. This is usually one of the hardest tasks people face when setting up their books.

01:03

PART 4 - CONTACTS (CUSTOMERS AND VENDORS)

There's a lot of steps in setting up your accounting software, entering contacts is one of the easiest ones to do. If you don't have many customers and vendors, you can manually enter these using your accounting software's contact windows.

Course materials, quizzes, interactive exercises, lesson tracking, and Q+A (Question and Answers) at http://www.smallbusinessdoer.com

Section 11: Using your accounting software
04:28

An overview of how to use accounting software to do basic functions like entering income, expenses, and performing a bank reconciliation. We'll show you the behind-the-scenes accounting that's being done behind the fancy interface so that you truly know what's happening with your money. After completing this chapter, you should be comfortable with doing basic bookkeeping functions with your accounting software and be ready to start practicing with the software yourself.

PART 1 - ENTERING INCOME

Entering income into your accounting software has got to be one of the better bookkeeping tasks. It's just got that feeling that you're making some money!

Before we show you how to enter income into your accounting software, we'll explain the simple accounting equation behind making money. When you make money, you are going to have to use two accounts in most cases: (1) an asset account and (2) an income account.

04:12

PART 2 - COLLECTING PAYMENTS

There are only two possible scenarios when dealing with a sale:

  • Collect the entire balance at the time of the sale
  • Collect a partial (or zero) payment at the time of sale
01:21

PART 3 - ENTERING EXPENSES

Luckily for you, entering expenses is virtually the same as entering income. The only major difference is that you're using expense accounts instead of income accounts.

00:24

PART 4 - PAYING BILLS

When it comes to paying bills, you're in luck. Just as creating expenses mirrors the process of creating invoices, paying bills also mirrors the way receiving customer payments is done.

The only major difference is that there is no "undeposited funds" account to use.

01:03

PART 5 - TRANSFERRING FUNDS

Transferring funds is a relatively straightforward process, which only involves two accounts. You'll debit one and credit the other.

01:31

PART 6 - MANUAL TRANSACTIONS (GENERAL JOURNAL ENTRY)

If you're using the general journal entry window without any trouble, it means that you have a pretty solid grasp of basic accounting principles. It also means you can enter any kind of bookkeeping transaction from this one simple window.

03:19

PART 7 - ONLINE BANKING

The ability to connect to your bank online and in real time has transformed the way bookkeeping is done. Instead of having to wait for a paper statement to show up in the mail, you can login from anywhere at anytime to get access to your banking information.

05:21

PART 8 - BANK RECONCILIATION

With the ability to upload transactions into your accounting software, the way people do their bank reconciliations has been flipped on its head. It used to be that you entered all your transactions into your accounting software and the final step was reconciling accounting software data with your bank statement data.

With the ability to import banking data directly into your accounting software, this means you can do the reverse, which is to import your bank statement data first and then use that data to enter your transactions.

03:35

PART 9 - WHICH WINDOW DO I USE TO ...

We find that a big challenge for people is figuring out what window to use for a certain type of transaction.

Question #1: How do you enter a payment made to a credit card?

Question #2: How do you handle a transaction paid for in cash by an owner or employee?

Question #3: How do you process a refund?

Section 12: Measure Success (or Failure)
02:39

PART 1 - ANALYZE YOUR BUSINESS' PERFORMANCE & IMPACT

By periodically reviewing certain data related to your company's operations, you'll be able to step back and see how well (or how bad) your business is doing and be able to take the corrective actions required to keep it profitable and successful.

01:51

PART 2 - CREATE A BUDGET

Having a budget for your business helps you stay on track and also plan for your future needs. Being able to historically view past budgets also helps you see what external factors are affecting your business' profitability which could either be an increase in rent, a rise in cost of materials/delivery or a change in manufacturing (or delivery) expenses, among other things.

16:27

PART 3 - STANDARD REPORTS

Back in Chapter 7- What to look for in accounting software, we covered all the things you can do with your reports. In this section we're going to cover how to access and read your reports.

01:23

PART 4 - REPORTS IN OTHER PLACES

The reports discussed above are just the most basic accounting reports. There are plenty of other reports that your accounting software can generate. Sometimes you won't find them in the "reports" section.

Section 13: Technology to help manage your small business financials
06:22

We'll introduce you to some technology that will help you make your business life more efficient, from smartphones and scanners, to password keepers and dual screen monitors. After completing this chapter, you'll be aware of the current tech out there and be ready to investigate them further.

  • Back up your data
  • Scanner
  • Password Keeper
  • Dual screen monitors
  • Smartphone / tablet apps
Section 14: Course Materials
Article

Download the course materials

Section 15: Wrap-Up
Wrapping Things Up!
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Instructor Biography

Greg Lam, Small Business Guy

Greg Lam is a passionate small business guy who loves technology and automation. He holds a BBA from Simon Fraser University, Canada. He's been a QuickBooks user since 1998 and is a certified QuickBooks Pro Advisor. His focus is on online accounting and how it can be used to streamline and automate a company’s accounting processes. He's teaches people how to use QuickBooks Online, Xero, and Kashoo accounting software.

Instructor Biography

George Verdolaga, Prolific author, speaker and relationship-marketing guru.

George Verdolaga is a prolific author, speaker and relationship-marketing guru. His two biggest passions are teaching and helping people get out of their own way so that they can reach their personal, career or business objectives as quickly and painlessly as possible.

George wrote THE CONTRACTOR LIFESTYLE to discuss the importance of creating a career safety net and staying valuable in the marketplace so that one never has to worry about layoffs or economic downturns. He also wrote THE JOB FARMER to share his personal and business philosophies on how to find work – or get clients for one’s business – based on 7 Key Principles. In his SITTING PRETTY Home Study Course, George shares his secrets of successfully finding work by going through the “back door”.

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