Small Business Owners – How They Keep Books

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I have just finished a webinar for small business owners and did a quick poll. Here are the results:

1.  Who does your bookkeeping?

a. I do it myself                ( 60%)
b. I have a part-time bookkeeper  (  6%)
c. I have a full time bookkeeper  (  2%)
d. I have an accountant           ( 15%)
e. Family member                  (  6%)
f. Employee                       (  0%)
g. No Answer                     ( 11%)
I am shocked to hear that 60% of small business owners do their own bookkeeping. My advice to entrepreneurs is never do your own bookkeeping, get  a good bookkeeper or accountant.

2.  Who submits your income taxes?

a. I do it myself         ( 32%)
b. My bookkeeper    (  4%)
c. A family member  (  4%)
d. An accountant      ( 40%)
e. A Chartered Accountant (  9%)
f. No Answer             ( 11%)

I can’t believe that 32% of small business owners do their  own taxes. I can almost guarantee they’re overpaying

3.  What software do you use for your accounting?

a. I use spreadsheets  ( 36%)
b. I don’t have a system (  4%)
c. I use Quickbooks ( 26%)
d. I use Simply Accounting ( 15%)
e. I should do something about this soon  (  8%)
f. No Answer  ( 11%)

I am sorry to see that most small business owners are not keeping proper records

  • Get a good system in place
  • Get good advisers
  • Grow your business
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3 responses to “Small Business Owners – How They Keep Books

  1. As a small business owner myself, I understand the need to closely manage our costs. However, the area of financial record keeping is one that is very time consuming and therefore takes time away from what you should be focused on, managing your business. Building a good system does not have to cost a lot of money, take a look at Freshbooks for example. http://www.freshbooks.com/?ref=fcffbea8174237-1 (Full disclosure, this is a referral link) I would also agree with Andrew that good advisors in this area will likely save you money.

  2. Ya it's a shocking news that many of the small as well as medium size owners don't know what is bookkeeping. I think these people can make use of the <a href=” http://www.novelaspect.com/peachtree_accounting… target=”_blank” >accounting software by peachtree online from the peachtree hosting specialists, NovelASPect. These kind of <a href=” http://www.novelaspect.com/peachtree_accounting… target=”_blank” >accounting softwares will help the small business entrepreneurs in managing their accounts.

  3. Wow that was strange. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that
    over again. Anyway, just wanted to say excellent blog!

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