The 15 Best Accounting Books for Small Business Owners

best bookkeeping books for small business

They maintain accurate records of daily financial activities and manage accounts payable and accounts receivable. Want to check out software ranked by accounting features, not just bookkeeping basics? Read through our reviews of the best bookkeeping companies accounting software options for small businesses like yours. Even though we generally prefer Xero to QuickBooks, QuickBooks Online remains the most popular accounting software for US-based accountants, bookkeepers, and auditing clerks.

  • Tracking your AR, usually with an aging report, can help you avoid issues with collecting payments.
  • Making sure your records are well-organized can save you a big headache if you’re ever subjected to an audit.
  • The Chartered Professional Accountant firm directories on the CPA Canada website is another great place to find a bookkeeper.
  • If you don’t use accounting software, you’ll probably catalogue your financial transactions by hand using a spreadsheet.
  • But having a fundamental knowledge of financial management is essential to your business’s success.
  • Most accounting software allows you to automatically run common financial statements such as an income and expense statement, balance sheet and cash flow statement.

How you keep your books can make or break your business, because those accounting records are the only true representation of your profits and losses. Single-entry accounting records all of your transactions once, either as an expense or as income. This method is straightforward and suitable for smaller businesses that don’t have significant inventory or equipment involved in their finances. It doesn’t track the value of your business’s assets and liabilities as well as double-entry accounting does, though.

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Accurate, up-to-date bookkeeping is the backbone of any successful small business. No matter what type of business you operate, an understanding of bookkeeping best practices is essential for keeping your business running smoothly, now and in the future. With this guide, you stock up on books that can prepare you for strong small business financial accounting.

This method keeps accounts in balance by pairing every debit entry in one account with a corresponding credit entry in an offsetting account. Readers can also learn how to handle assets, liabilities, and owner’s equity. In addition, the author explains the need to keep source documents to support account entries, a vital practice even for businesses using electronic bookkeeping systems. The book also details crucial month-end and year-end processes for clean and accurate closing of the books.

Zoho Books

The typical view, however, is to group records by category (sometimes called “codes”). The good news is that when you learn how to keep books for small business, it makes important decisions easier and minimizes preventable financial mistakes. “It’s nice to find a book that talks about the constructs of having a sustainable business,” says Alford. “This book gives you a basis to understand that you are a business and you do need a profit, but you can find a balance where growth can benefit you, the planet, and other people.”