Module 4g: Bookkeeping and accounting

The answers to all of your business questions are always in the numbers. Of course this is true only if you have the numbers. All too often smaller enterprises, and particularly part-time self-employment enterprises, do not think that recordkeeping for the business is importent because the business is small. This assumption is completely wrong. Without adequate bookkeeping, you simply do not know if you are making a profit or are operating your business at a loss. The goal of the business operation is to contribute additional income. If it is not producing this result, you should know that as quickly as possible and either change what is wrong or stop the business. If you have any outside investment, loan funds, or business development funds, then you have a responsibility to others to let them know how the business is doing. Additionally, and perhaps most importantly, you will have a responsibility to report income to federal and possibly state tax agencies. Failure to file the proper reports will cause you grave difficulty. The answer here is to secure the services of an accountant to help you set up a bookkeeping system appropriate to your business needs and understand your responsibilities to file taxes and other reports in a timely manner. It may be possible to get this help from a volunteer. You can contact the national or state society of certified public accountants, or society of accountants. You may also be able to receive free counseling and advice from a local business college or university. Check with your counselor or mentor to see if they can direct you to this type of assistance.