Financial Crash Course- Suggestions?

[arfink]

I am in need of some kind of crash course in business accounting and bookkeeping. Got any suggestions for books or websites that would be helpful? I'm not a complete luddite, but I have not got any formal training and want to make sure I'm doing this right.

[Slappo]

Do you have a particular program you'll be using to keep track of expenses and revenue? Quickbooks is the standard accounting program of use for small businesses.

I guess the question is... are you looking for information on what to use for your accounting needs or are you looking for information on how to keep records, budget, and have financial success with your business? The former is easy - use quickbooks , the latter you could read a hundred books about it and each book would tell you something different.

If you're near a college that offers a personal finance class or a small business accounting class, you should really consider taking it. Personal finance classes can typically be applied to small businesses.

[Nihil Obstat]

I can send you the names of the textbooks I used for introductory financial and introductory managerial accounting if you want. They are big thick books, probably $60-$100 each depending on where you buy them.

Edited August 24, 2012 by Nihil Obstat

[Amppax]

[quote name='arfink' timestamp='1345824424' post='2473502']
I am in need of some kind of crash course in business accounting and bookkeeping. Got any suggestions for books or websites that would be helpful? I'm not a complete luddite, but I have not got any formal training and want to make sure I'm doing this right.
[/quote]

You're one of the most technically adept people I know, luddite is not a word I'd use to describe you.

[PhuturePriest]

KhanAcademy.org

[arfink]

[quote name='Slappo' timestamp='1345824887' post='2473504']
Do you have a particular program you'll be using to keep track of expenses and revenue? Quickbooks is the standard accounting program of use for small businesses.

I guess the question is... are you looking for information on what to use for your accounting needs or are you looking for information on how to keep records, budget, and have financial success with your business? The former is easy - use quickbooks , the latter you could read a hundred books about it and each book would tell you something different.

If you're near a college that offers a personal finance class or a small business accounting class, you should really consider taking it. Personal finance classes can typically be applied to small businesses.
[/quote]

Well, I guess I'm looking for a little of both, and I'm hoping to keep this one very inexpensive, as I'm incredibly tight on cash right now. I'm willing to put out to get it done right, but right now I'm actually looking for an "absolute basics, this is what you need to survive right now," sort of introduction.

Things I'm hoping to learn about:

-How to keep track of business expenses and income for tax and profit-measuring purposes.
-How to keep that stuff organized. What paperwork do I need to be keeping, records etc.

I'd like to avoid using Quickbooks if I can, because of licensing issues, my love of open source, and because I really REALLY want to avoid running anything as important as my business on something as unreliable and insecure as a computer running Windows.

[arfink]

I can sling around an ordinary spreadsheet just fiiine. Show me how it's done, oh gurus of finance.

Edited August 24, 2012 by arfink

[Nihil Obstat]

If you want to teach yourself, let me know and I will send you book info.

[arfink]

[quote name='Nihil Obstat' timestamp='1345827623' post='2473543']
If you want to teach yourself, let me know and I will send you book info.
[/quote]

PM me, it's something I'm willing to do. Maybe the library has copies...

[Anomaly]

[quote name='arfink' timestamp='1345826458' post='2473533']
Well, I guess I'm looking for a little of both, and I'm hoping to keep this one very inexpensive, as I'm incredibly tight on cash right now. I'm willing to put out to get it done right, but right now I'm actually looking for an "absolute basics, this is what you need to survive right now," sort of introduction.

Things I'm hoping to learn about:

-How to keep track of business expenses and income for tax and profit-measuring purposes.
-How to keep that stuff organized. What paperwork do I need to be keeping, records etc.

I'd like to avoid using Quickbooks if I can, because of licensing issues, my love of open source, and because I really REALLY want to avoid running anything as important as my business on something as unreliable and insecure as a computer running Windows.
[/quote]Despite your bias against Windows since many multi-million $ companies run on it.

I have a friend that used GNU-Cash for awhile, free and he ran it on something other than windows, but after a year, he changed to PeachTree and he said he was happier.

I googled. It's gnucash.com and will run on Linex, you anarchist!

Edited August 24, 2012 by Anomaly

[r2Dtoo]

Have tried Glenn Beck's Beck University? I'm pretty sure he has a course on financial crashes.

[arfink]

[quote name='Anomaly' timestamp='1345830789' post='2473574']
Despite your bias against Windows since many multi-million $ companies run on it.

I have a friend that used GNU-Cash for awhile, free and he ran it on something other than windows, but after a year, he changed to PeachTree and he said he was happier.

I googled. It's gnucash.com and will run on Linex, you anarchist!
[/quote]

I'll take that as a compliment. Thanks.

Some day when I have money I might pay for an enterprise solution. Right now my "business" is a laser cutter in my Dad's basement and an 8-foot table with a computer on it set up in my bedroom. I'm comfortable doing the "shoe string" thing for now. Thanks for all the input, BTW, you guys are really helpful.

[Slappo]

[quote name='arfink' timestamp='1345826458' post='2473533']
Well, I guess I'm looking for a little of both, and I'm hoping to keep this one very inexpensive, as I'm incredibly tight on cash right now. I'm willing to put out to get it done right, but right now I'm actually looking for an "absolute basics, this is what you need to survive right now," sort of introduction.

Things I'm hoping to learn about:

-How to keep track of business expenses and income for tax and profit-measuring purposes.
-How to keep that stuff organized. What paperwork do I need to be keeping, records etc.

I'd like to avoid using Quickbooks if I can, because of licensing issues, my love of open source, and because I really REALLY want to avoid running anything as important as my business on something as unreliable and insecure as a computer running Windows.
[/quote]

As for what paperwork to keep? All of it. Keep every receipt for every business purchase you make, and keep a copy of every invoice you send out or receipt you give out for payment on a service or product you provided. If you get audited and don't have this paperwork, you're up a creek w/o a paddle because you have no way to prove your itemized business expenses claimed on a tax return. All business expenses are itemized to reduce your total net profit that you are taxed on. If you have a net loss in a year it can be carried forward, but there's specific rules on a carryforward of a business loss for tax purposes.

I had an even bigger post but I erased huge chunks of it. Really this is something best done over a google hangout . I don't have experience with the other programs people mentioned, and they will certainly make it much easier than trying to do financial work in a spreadsheet.

[Slappo]

Basically you want to keep track of all your expenses and revenues. If you are looking at net profit on a particular job, then you also have to keep track on the cost of supplies you have, how much supplies are used for a job, and how much you charged for the service/product. The net of cost of supplies + incoming revenue is the profitability of the job.

You'll probably want to include design fees in your invoicing for custom work, say$15 an hour with a 1 hr minimum for the time it takes you to custom design a product someone asks for. Without doing something like this, your product is gonna have to cost a lot, or you'll be working for below minimum wage b/c you threw 3 hrs into a design and charged 20 bucks for the item after it was created... bad idea . Might work for promotional stuff though to get advertising out on your business.

[arfink]

[quote name='Slappo' timestamp='1345833300' post='2473593']
Basically you want to keep track of all your expenses and revenues. If you are looking at net profit on a particular job, then you also have to keep track on the cost of supplies you have, how much supplies are used for a job, and how much you charged for the service/product. The net of cost of supplies + incoming revenue is the profitability of the job.

You'll probably want to include design fees in your invoicing for custom work, say$15 an hour with a 1 hr minimum for the time it takes you to custom design a product someone asks for. Without doing something like this, your product is gonna have to cost a lot, or you'll be working for below minimum wage b/c you threw 3 hrs into a design and charged 20 bucks for the item after it was created... bad idea . Might work for promotional stuff though to get advertising out on your business.
[/quote]

Yup, changing for the design time is something I'm already doing now. Thanks for the info, it really gives me a good idea of where to start and what sorts of things I should be looking for. Like a huge file cabinet. LOL.