If accounting isn’t your strong suit, you’re not alone. Fortunately, many books have been written about accounting practices that are geared towards small business owners.
To help you get started, we’ve compiled a list of six accounting books that all business owners should read.
6 Accounting Books Every Business Owner Should Read:
1. Accounting Made Simple: Accounting Explained in 100 Pages or Less by Mike Piper
Mike Piper is the author of several personal finance books and the Oblivious Investor blog. In this book, he concisely explains the concepts and assumptions behind Generally Accepted Accounting Principles (GAAP) and the basics of creating and interpreting key financial statements. The book’s straightforward approach clearly explains the
fundamentals of small business accounting so that anyone can understand them. This even includes those with no prior accounting knowledge of the topic!
2. Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics by Wayne Label
This
guide to quickly starting a business is perfect for any entrepreneur that has never taken an accounting class and shudders at the mere thought of it. The book is conveniently organized into 12 chapters. Each one includes real life examples, quick tips, and a comprehensive glossary for easy reference.
3. Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble by Bernard B. Kamoroff
Touted as one of the most popular business start-ups guides ever,
Small Time Operator covers a plethora of relevant business topics from establishing a bookkeeping system to dealing with the IRS. The book shows small business owners and on-demand workers alike everything they need to know about being self-employed.
4. Accounting for the Numberphobic: A Survival Guide for Small Business Owners by Dawn Fotopulos
This book was written for business owners who hate looking at their company’s numbers.
Accounting for the Numberphobic explains how to interpret financial statements and ratios to measure the financial health of your business and make better business decisions. After reading this book, you’ll understand basic accounting concepts and won’t fear facing your company’s financials.
5. Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
Profit First provides a counterintuitive approach to managing your company’s financials. Instead of dwelling on conventional accounting concepts, Michalowicz offers a behavioral approach to accounting. This approach puts the focus on your business’s profit, as well as four principles that simplify the accounting process. If you follow the book’s advice, you’ll be able to turn your business into a cash cow in no time.
6. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports by Thomas R. Ittelson
Financial Statements is a great introduction to financial accounting for entrepreneurs and anyone interested in learning more about managing business finances. The book demonstrates how the
income statement,
balance sheet, and
cash flow statement work together to offer a snapshot of your company’s financial health at any point in time. You’re sure to have a better understanding of fundamental accounting and financial principles after finishing this classic text.
Other Accounting Tips to Consider:
Although learning about accounting best practices will benefit you in the long run, there are other ways that you can improve your business's accounting going forward. Here are a few other ways that you can invest in your business's accounting strategies:
1. Hire an Accounting Firm
If your business is growing and you don't have time to handle bookkeeping, then
hiring an experienced firm may be your best bet. Your accountant will be an expert in the field, which means you'll lower the risk of bookkeeping mistakes that may occur if you handle your books.
2. Invest in Accounting Software
To help improve accuracy and the time it takes to handle your books, consider investing in tools such as QuickBooks, FreshBooks, and Xero.
3. Take an Accounting Course
After you hit the books, why not continue your education by taking a management accounting course? Whether it's an online course or a class at your local community college, you won't regret equipping yourself with more knowledge about the subject!
Conclusion: It’s a Numbers Game
Educating yourself on your company’s financials is a great first step in becoming a successful small business owner. These six books all promise to explain a broad topic into concepts that are easy to understand. Some of them may even help alleviate your accounting anxieties altogether. That way, you can focus your efforts on the things you love and do best.
Of course, many more books have been written on the subject. We recommend visiting your local library or bookstore and finding one that strikes your interest.