Getting Started Overview

Everything you need to know about starting a business in a nutshell from Ventureport.org™—the Online Outfitter for the Entrepreneur’s Journey

Overview: Accounting and Billing

This might sound boring, unless you are an accountant and your business is about accounting, but almost nothing is as important as accounting and billing. Accounting is more than making sure you have the information you need to file your taxes each year, it's about keeping careful track of everything you sell and everything you spend so you can make sure you make money or understand why you're not.

You don't have to be an accountant to run a business, but you will have to learn some basics related to different ways to account for your revenues and expenses, and, if your business gets more complex, debt and equity (stock.)

Some of the most important things you need to understand:

• Cash flow—the principal of always have more cash in the business than is needed to pay your immediate bills.
• Invoicing/billing—the ironclad rule to invoice people as soon as you have completed the work so you can collect the money. You'd be surprised how many people let themselves fall behind on this.
• Collections—the critical issue of collecting the money after you've invoiced it.

For many entrepreneurs, the fun is coming up with a concept, selling it, and getting the work done, and the hassle is going back to the office to create and send out the invoices and calling customers to make sure they pay. You overlook invoicing and collections at your peril!
Fortunately, software such as Quickbooks automates most accounting functions, even creating invoices and printing out checks to pay your bills. (See Technology)

Click on Accounting and Billing for more articles and resources.