When most people think about accounting, they imagine poring over lists of confusing figures. Many of us were raised with the idea that math is difficult and boring. So we automatically assume this to be the case.
The Only Four Tools You’ll Ever Need
The truth is that learning math at higher levels can be confusing and difficult. But in order to maintain the books at your small business, all you need to know are addition, subtraction, multiplication, and division. These are the most basic mathematical skills which we all mastered while we were at school. We all remember how to do these. So the next step is to merely do them with a certain degree of accuracy and to be detail-oriented while doing them.
The fact is that even if you can’t add, subtract, multiply, or divide with accuracy, you have access to a calculator. You can buy one for your office or simply use the one on your phone or your computer.
Rounding Up Figures in Your Mind
There is never any need to take what somebody says at face value. For example, if you’re buying 10 computers for your office at 1200 dollars each, you can easily multiply 1200 by 10 to come up with a total of 12000.
But you may say that this is an extremely simple piece of calculation which doesn’t reflect the prices you see in real life. Doesn’t it? The price you’re going to see in real life will probably be 1199 rather than 1200. Yes, this is an attempt on the part of the seller to make it look a little bit less than 1200. But since you are a smart entrepreneur, you realize that 1199 is, in fact, equivalent to 1200 and therefore consider it as such. Rounding up figures in your mind is a good rough way to figure out how much you’re going to spend before spending it.
Working with a Trusted Accountant
If you’re still unconvinced that accurate addition, subtraction, multiplication, and division are all that’s needed, get a consultant you trust to maintain your accounts. But make sure you go over the books with them on a monthly basis. They’ll tell you the same thing about maintaining your accounts.
Contact us for more information about accounting/bookkeeping for your small business.