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I will never forget one of my clients who had $2,000,000.00 sales in the previous year but had declared bankruptcy. When I came upon the scene, his bookkeeping was a mess. The essence of this book is to enable the owner to manage the business for profit by enabling him/her to underrstand financial statements. With todays accounting software, profitable management is easy to do. Bookkeeping Journey is laid out simply and concisely so you can understand the information without any previous accounting knowledge. The book is easy to read and the knowledge is gleaned from my experiences working with many clients over 42 years. They had no accounting training, but became successful entrepreneurs by understanding the Income Statement and Balance Sheet and using those numbers to make management decisions. You will learn about Income, Cost of Sales or Operation, Expenses, Assets, Liabilities, and Capital and much more with easy explanations The problems faced by various businessmen/women are shared in true story form so that you can benefit from their trials. The reason most businesses fail is that they can't manage effectively with inaccurate numbers. The book even explains what to do at the end of each month to verify the numbers on your Income Statement and Balance Sheet.
BOOK GOALS: Learn to comprehend financial statements. Learn to manage from financial statements. Become aware of potential problems. Suggest ways, many proven and true, to deal with problems.
SECTION ONE (62 pages of literary sketches) DEFENSE: AVOID LOSING YOUR BUSINESS. There are accounts of entrepreneurs who made a wrong decision, due to a lack of unrderstanding, that resulted in their respective business closing or which caused a significant setbacks. Other stories show management successes beyond the owner's wildest dreams. The author includes personal challenges and what he learned from them.
SECTION TWO (100 pages, various topics) OFFENSE: MANAGE YOUR BUSINESS FOR SUCCESS. You will be confident with your ability to never again be intimidated by an Income Statement & Balance Sheet. You will understand the detailed breakdown of those statements and be able to use that information for managing your business. Many other related topics are discussed to help in decision making such as: for management purposes, it is best to use the accrual method of accounting.
Sample - the first paragraph from page 1:
The following could benefit by using this guide:
A present business owner might be able to fill in the gaps on how to read an income statement & a balance sheet and also make use of the 100 pages of management information to maybe prevent a business threatening event or to obtain information to increase profits.
A future business owner might get a head start by learning about pitfalls and by gaining financial understanding rather than having to learn from bad experiences. Knowing how to read financial statements from day 1 can help him use that information from the start to manage the business properly.
A company employee might be able to use the knowledge he gains about financial statements and/or management information to be a more beneficial team member and help his ascent in the company.
A member of an organization might find it helpful to gain information in learning how to read financial statements so that he/she can question a financial statement that doesnt seem to reflect reality.
An investor who is actively involved in the investment business may benefit by learning how to read an income statement and balance sheet to determine the strengths and weakness of a company.
A former business owner might enjoy reading this beginners business book and thinking about his experiences using income statements and balance sheets to manage his business.
A Brief Overview Of Section Two OF BOOKKEEPING JOURNEY
Some topics discussed:
Do you know many of the causes for business failure? Do you know that probably most business fail because of what they dont know. If I had only known that! This part of the book tries to cover some of that.
Ed Wuensche received a Bachelor of Business Administration (BBA) degree from The University of Texas-Austin, Tx. He founded his business services company in 1971 providing many thousands of financial statements and other related services, houstonareabookkeeping.com, for many clients for over 40 years.