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Many businesses fail because they don't understand finances, specifically small business accounting. The subject is intimidating if you don't like accounting. It's like trying to understand a foreign language, but harder. However, there are many ways to learn small business accounting, and many people and organizations are more than willing to help. Here's how to learn the basics:
Small Business Administration
The Small Business Administration (SBA) is one branch of the government that provides services and other support to business owners, including help with small business accounting. There's at least one SBA in or near where you live, and it's worth stopping by to see what classes they're offering to teach small business accounting. The SBA offers free and paid classes, and the teachers are volunteers that run a small business or have relevant experience. You can also sign up for counseling, and get one-on-one help from an SBA counselor. Office hours are on the weekday though, so if your schedule doesn't allow for it, you can take a free online course on their website called "Introduction to Accounting."
Small Business Development Corporation
This is similar to the SBA, except that it's often a partnership between the state government and a local university. Small Business Development Corporations (SBDCs) are in many communities across the United States, for the purpose of helping business owners learn the skills they need to start and operate a small business. They offer classes specifically on accounting, and because they're sponsored by a university, the fee is often free or low cost. They also offer one-on-one counseling with professionals in the area, and you could request counseling for help with your small business accounting.
Accountant
Your accountant is an excellent resource for learning small business accounting. When they prepare your taxes for the year or perform other services, ask them to go over it to explain it. When you get documents, review them first to see what terms or concepts you're unfamiliar with. Key in on those when you ask for explanations, so that you maximize the limited time you have with your accountant. It's not the best idea to approach your accountant for an in-depth review during tax season, though. The summer months are the best time for asking for help, because tax filings are generally over and business owners are working on their businesses or on vacation.
Mentor
Every small business could use a mentor. Find one that's knowledgeable about small business accounting and learn from them. When working with a mentor, it's best to have a list of questions prepared. Emailing or giving it to them prior to a meeting is best, so that they can be prepared to give you the right answers and do additional research if necessary. Arrange with your mentor to learn one topic during each mentoring session. For example, if you meet with your mentor monthly, decide ahead of time to learn about "cash versus accrual method of accounting," and at another meeting to learn more about "accounts payable."
Take advantage of these resources and learn what you can about small business accounting. Don't be one of those business owners that failed because they didn't take the time to learn important concepts in this area.
