Basic bookkeeping may sound simple but you’ll be surprised to know that millions of small business owners and startup entrepreneurs who have created great products and are offering high-quality services, actually don’t know very much about it. They may have built awesome teams and won so many customers like nobody’s business but if you’re a business owner who has no knowledge what “accounts” means, you might be under a serious financial difficulty in the long run. Let’s say you have a bookkeeper who does the job for you, organizing your finances, it may still be difficult for you to measure the possibility of your business’s success or failure. Regardless of how knowledgeable are you about digital marketing, if you don’t have a clear financial picture of your business, you’ll surely run into cash flow problems in the future.
Do you know how your accounts receivable look like? Are you always making late bill payments? These may sound like they’re not a big deal at the moment but it will eventually catch up with you sooner or later. To help you better understand, here are the 10 most common types of bookkeeping accounts for small businesses that you need to learn about: