Hi, everyone. I'm Astrid Daniella Galvez,
and I'm a self-proclaimed accounting nerd,
Quickbooks has invited me to give you a crash course on accounting fundamentals.
Today, we're starting with the basics to really help you get that foundation down.
We're going over a small business
accounting and tips that will help you run your business more efficiently.
If you want to read about all the tips,
you can find a link to the article below.
Before we get down to business.
Don't forget to hit that like button.
And be sure to subscribe to the Quickbooks Channel for more videos like this.
I know what you're thinking, and owners job is to run their business.
So why not leave the business accounting to someone like me
or a Quickbooks live bookkeeper, accountants and bookkeepers
provide essential information to help you run your business.
But they cannot run it for you.
Knowing the numbers is vital for any small business owner looking to succeed.
So let me tell you why.
Small business accounting pulls together all the financial activity of a business,
basically how much money is spent and how much money is earned.
But it does a whole lot more.
For example, it helps business owners keep tabs on assets,
liabilities and inventory.
Particularly when entrepreneurs are starting out.
They need to get a handle on the workings of their business and our financials.
Staying close to this part of the business can help you keep things
running efficiently and plan for the future.
Quickbooks has a wide range of tools to help you easily manage your finances.
If you want to learn more, check out the link below.
Whether your business
is big or small, knowing the numbers becomes child's play.
If you get into the accounting rhythm, the rhythm has four beats or tasks
weekly, monthly, quarterly or annually.
Every week it's essential
to record all your transactions, document
and file receipts, Pay vendors and send out invoices.
by checking the cash position and reviewing your unpaid bills.
You can forecast cash flow.
This is particularly crucial for new businesses starting out,
being proactive, makes monthly tasks so much easier.
On a monthly basis.
You want to balance your checkbook
and review any money still owed on your past receivables.
It's also a good chance to review inventory and payroll,
ensuring all necessary tax payments have been made.
And it's a good time to check profit and loss and compare it
with your previous months projections so that you're not caught off guard.
Many tax authorities require quarterly reporting.
But if you kept up with monthly tasks, it should be a piece of cake.
Reviewing the profit and loss for the quarter will show
if the business is making money.
It would also help you identify
the trouble areas where sales and margins can be improved.
At the end of the year, if there aren't any long standing
passed due to receivables, a decision must be made.
Should they be sent to a collection agency or written off as a deductible?
However, if you kept to the accounting rhythm, you can finish on an upbeat
and hand over the annual reports to your accountant
so they can file your tax return with confidence.
Quickbooks online can help you generate reports.
Manage taxes and take care of other important accounting tasks.
There are also many other videos in this series which will help you
with bookkeeping tasks.
So subscribe to the Quickbooks channel to learn more.
And if you're still feeling uncertain, don't be afraid to speak
with a professional like a Quickbooks live bookkeeper.
If you found this advice helpful, give this video a big thumbs up
and I'll catch you on the next one.