Many small business owners (including myself) tend to focus on the more glamourous aspects of their business like sales and marketing and product/service development. As a result, accounting (poor misunderstood accounting) does not get the attention it deserve. In addition to the perception that an accounting system does not necessarily add value, they can also be a little intimidating. However, setting up an accounting system does not have to be complicated and should be considered essential for any small business or self employed owner (the reasons for which will be covered in my next post). A good software tends to handle most of the complexity of accounting as long as the data is entered accurately.
The primary steps in setting up an accounting system are represented below: