Smart Books = Smart Business: How to Take Charge of Your Accounting and Really Run Your Business Profitably

by Marie Gibson (2010)

I wish Marie had written this book before I struggled with setting up my business accounting system! I would've saved so much time, frustration and money if I had been walked through the process by this easy-to-read book that answers the questions we business owners might be too embarrassed to ask our accountant...or, our accountants' might be to busy to answer. Not only does she guide you through the set-up process, she educates you on preparing and using financial reports and statements to actually run the business profitably, just as the title promises.

Gibson takes her reader through the process of setting up a manual accounting system so the tasks and functions are clear before automating with a financial accounting software system. Most problems with software like QuickBooks are really problems with the user's understanding of accounting procedures. Using a manual system of file folders, summary sheets and file drawers, Gibson illustrates the flow of money into and out of the business and the correct accounting for transactions. In the chapter on working with your accountant, she defines the terms you'll need to know and ties them back to the system, manual or automated.

Business owners depend on good business records to make sound business decisions. With an accurate accounting system, the owner can determine which customers are most profitable, which products are most in demand, how much it costs to produce the goods or services, how much equity there is in the business, how cash flows in and out and whether money or inventory is missing. In her book, Gibson also gives guidance for owners hiring an accountant, determining if they're new hire is an employee or an independent contractor, how to prepare year-end reports for tax purposes and how long to keep business documents.

This small resource book belongs in the library of every small business owner. And the best part of it? "There are NO Debits and Credits in this system."

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