Can I be a successful entrepreneur if I don’t know about accounting?
An entrepreneur creates wealth, and in doing so, they take a calculated risk. Imagine investing in a business that you are not sure whether it will succeed. A detailed business plan is not a guarantee that your business will succeed. It is a risky game, and as an entrepreneur ‘you’ must brace up for the game.
You are going to invest funds for the business, and you DO NOT KNOW ANYTHING ABOUT ACCOUNTING, EVEN THE ELEMENTARY THING. The chances of success are 1%. All entrepreneurs have a little idea of bookkeeping. They read it up and understand the bookkeeping aspect.
The most important things are that you, as an entrepreneur, record all your transactions in a way you can appreciate it. It may not follow the guidelines of accounting presentation, but all expenses incurred by you are recorded into a ledger. All income earned is also recorded.
My experience shows that most entrepreneurs who are non-accountant understand the principle of debit and credit.
A two-column ledger book is created where they record all expenses on the debit side and record all income on the credit side.
My advice, Record keeping is vital. It can identify the source of your receipts. You need this information to separate your business from your personal receipts.
Records are important for your content and as evidence of communication, decisions, actions, and history.
Records also support openness and transparency by documenting and providing evidence of financial transactions and by making them available to the Accountant so he can prepare a financial statement for you.
Entrepreneurs should understand the elementary part of bookkeeping for record purposes.