The Job of Teaching New Business Owners About Accounting

The Job of Teaching New Business Owners About Accounting

While there is much discussion about how much to charge clients, how to manage them, what to say, act and deal with them – a great deal of this, in my opinion, comes from the fact that business owners just simply do not understand the significance and importance of bookkeeping.

Any professional in this situation has come across clients that listen, respect, pay what you ask and generally comply (not blindly though!) with your requirements in order for you to serve them properly. Those that don’t – resonates back to the fact they do not have the understanding necessary to make them realize the benefits of bookkeeping and moreover, appreciate the importance of bookkeeping to their business.

Any good business owner knows that all businesses need a basic bookkeeping system that will at a minimum: record the amount owing to a company that is accounts receivable, recording the amount owed to third parties, that is accounts payable, and to record the inflows and outflows of cash. This basic information will start to be the building blocks that are needed to properly understand their business. They tend to forget or not realize that decisions will be made based on this data!

How is this overcome? If the client really wants to learn about their business they will be committed to educating themselves to understanding the importance of bookkeeping as the starting point for their business.

Aside from that, it appears difficult to convince business owners. Even discussions about their legal and tax obligations will often not negate the resistance for ignoring their bookkeeping. Unfortunately, the extent of education of the business owner does not always dictate their willingness for compliance.

Many professionals have encountered this situation with their potential clients.