Chapter 1
Introducing the Bookkeeping Game
In This Chapter
Understanding the bookkeeping life cycle — from chrysalis to butterfly
Matching bookkeeping systems to the game in hand
Keeping on the right side of the law
Developing a certain mindset
Deciding whether you need to get more training
In some ways, bookkeeping is like cooking up a fine meal. The process of washing and chopping and steaming and frying isn’t much to write home about. What makes everything worthwhile is the outcome: The hot taste in your mouth, the warm feeling in your belly. A good bottle of red simply adds to the fun.
In the same way, adding up receipts and paying bills isn’t the most exciting activity in the world. What brings the buzz to bookkeeping are the results: An organised office, cash in the bank and a set of financial reports that help a business succeed. After all, without a Profit & Loss report, how does a business know how it’s doing? And without a Balance Sheet, how can a business owner gauge their personal worth?
In this chapter, I explore the qualities of a good bookkeeper: Not just someone who can record transactions accurately, but someone who cares about the financial statements that they generate. I also talk about training as a bookkeeper and what skills you need, about setting up systems, staying on the right side of the law, and about understanding the bookkeeping life cycle from go to whoa.
Understanding the Bookkeeping Life Cycle
Bookkeeping has a certain anachronistic quality to ...
