Entrepreneur that has no Accounting/Bookkeeping interests

[onejosh]

I'm starting to develop a business plan for a side project/after hours idea. The only problem is I have zero accounting and bookkeeping knowledge or interest but I understand it has to be done and done well. Help?

[livvi]

Firstly, congratulations on your new business venture! Secondly, I HATE bookkeeping - accounts - taxes - urrggh! My advice is educate yourself as much as possible - bookkeeping for beginner type books are a good source of information. Look into taking courses that will help you grasp the basics. Don't be afraid of approaching your local tax office if you have questions - they are there to help. Finally, if it does get too much, hire someone to do it for you - it is an added expense but a necessary one if you are struggling to keep up.

[Victor Leigh]

If you start with cash and do not use any loans or credit facilities to start your business, then your accounting requirements should be very simple. I use Paypal to receive and send all my money. So just by looking at my Paypal statement of transactions, I can see where all money is coming from and going to. On top of that, I have my online bank statements to help me keep track of local transactions.

[tetutato]

I've managed to run my ecommerce site without specific knowledge in those fields so you should be fine. But of course, it depends on the business idea.

[dexterlablab1]

Yeah, I can definitely understand your plight. I myself fairly loathe bookkeeping as well.

Unfortunately though, you DO have to bring yourself up to speed at least somewhat if you're to survive.

[chixfashionz]

Assuming you already have an accountant to do your personal tax, you could perhaps have a word over the phone about basic requirements in your first year or two. They may be very simple and a matter of implementing a well-organised file for paperwork etc that your accountant can easily disseminate at year end. You could perhaps do a short course on bookkeeping and its requirements, if you have enough inclination. Check the tax department website for tips and guides on record-keeping requirements for small business. This is a must, as it will help you understand the basic records that must be retained and for what duration.

[Zeon]

My suggestion is to study the topics as much as possible. You can't start your project with no background on these topics. Maybe check your local library or look in the Internet for some information?

[sillylucy]

You might want to hire a university student for an internship. They can help you out with your bookkeeping and in exchange they get a reference and experience to put on their resume.

[Victor Leigh]

You might want to hire a university student for an internship. They can help you out with your bookkeeping and in exchange they get a reference and experience to put on their resume.

Is that really a good idea? I mean, we are talking about accounting which is not something that should be played around with. Plus if the owner has no idea about accounting, then he wouldn't have any idea if the intern is doing anything right or wrong.

[livvi]

Accounting and keeping your books balanced is definitely not something that should be skimped on - it does pay to get a professional in if you are completely clueless. Unfortunately, that costs money! I do actually think SillyLucy's suggestion is a good one and ordinarily I would agree with her but the fact the OP doesn't have ANY accounting knowledge does mean he may not necessarily spot any errors that may be a natural part of the student's learning process.

I would suggest getting a professional in for the time being but to make the effort to learn, at the very least, the basics. If this doesn't eventually put you in the situation where you can do your own books, you could try SillyLucy's idea.