What are the major steps to getting your books set up initially for your entity?
In this audio snippet, you'll hear about:
- Depends on the kind of business you're conducting
- At a minimum a corporation should have at least one bank account
- Should be using some type of accounting software to track income and expenses
Audio Transcript
Travis:
Thanks for bringing that up for me. OK, so I wanted to ask you first
what the major steps are to getting your books setup initially for your
entity?
Yosef:
That's going to depend on the kind of business that you're conducting.
Travis:
OK.
Yosef:
At a minimum, a corporation should have at least one bank account, and should be using some type of accounting software...
Travis:
OK.
Yosef:
... to track both the income and expenses. A lot of small business
corporations will use QuickBooks, and I'm not necessarily a big
believer in QuickBooks. QuickBooks can definitely do its job, and it
can do its job well, but there are a lot of other types of accounting
software packages out there as well.
Travis:
OK.
Yosef:
The important thing is to make sure that you use something that you
understand, and you use it effectively. Because the last thing you want
is to not be using your accounting software properly, and that would
just create endless sources of aggravation and frustration.
Travis:
Right, and if you don't understand it, you can't use it, so that's well took.
Yosef:
Well actually, Travis, you would be surprised. People who don't
understand it still try to use it. They end up spending hundreds, if
not thousands, of dollars getting a qualified bookkeeper to first clean
up their mess, and then have to re–enter everything from scratch to
begin with.
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