Have you ever written or seen a business plan? If you have then you will agree with me that no business plan is complete without the financials. And have you ever approached a bank or an investor for a fund? Again, you will also agree with me that no bank or investor will take you seriously without your financial statements. Even if you decide to discount these external factors, you will still end up with the grim realization that not keeping proper records of your financial transactions can hurt your business. The question now is: Why do so many people pay so little attention to financial record keeping?
Making money is what we all desire and do by default. What about accounting for how we make and spend the money? Well, you may say “that can always wait; after all, it is my money.” But let it be known that there is no way you can grow your business without proper accounting. The accounting system should be among the first structures you need to put in place even before your business commences formal operation.
Yes, we do know that there are constraints here and there, but we also know that it takes far less effort and time to record a few lines of financial transactions than it takes to post picture and messages on Facebook. The number one problem, therefore, is either lack of financial literacy or absence of affordable tool for you to record and process financial transactions. That is why we have written this book, along with other books under the ABC Financial Education Series. To go with this book is ABC Toolkit, standard accounting and business software solution for Small and Medium Enterprises (SMEs). ABC Toolkit complies with the International Financial Reporting Standards (IFRS) and is affordable and user-friendly. See this book as your first step in your journey towards full financial literacy. ABC Toolkit is automated to assist you implement all the accounting policies contained in this book.
Basic Accounting Primer for Small Businesses is an abridged edition of the book IFRS Accounting Manual for Small Businesses, which you should also consider adding to your library.