Accounting Basics for Small Business Owners [By a CPA]

Learn the accounting basics for small business from a CPA. Today, you will learn the role of accounting in small business.
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As Warren Buffet says, accounting is the language of business.
He and other savvy business owners use accounting to make investment decisions and decisions to grow the businesses they invest in.
But interestingly enough, many small businesses often neglect their accounting until tax time, or don’t do it all.
9 out of 10 small businesses that fail, fail due to financial mismanagement of their company.
Their financial mismanagement may result in their failure to make decisions to grow their business, meet financial obligations like paying employees or their rent, miss tax deductions that can save them money, or fail to pay their taxes all together.
Look, I get it. As a CPA that studies and practices accounting, I know that accounting isn’t the most exciting thing in the world. And, it’s probably not why you decided to go into business for yourself.
You probably have a very good product or service that you’re very passionate about. And your offering will delight customers and beat the competition.
However, eventually, you will be faced with the reality of accounting. And it’s best that you’re prepared for it now so you don’t suffer consequences later.
That's why in this episode, I’m going to simplify the accounting basics for small business owners.
Outline:
Intro: (0:00)
What is Accounting?: (2:02)
Why is Business Accounting Important?: (2:30)
The Accounting Process for Small Business?: (5:17)
Recap of Small Business Accounting: (14:01)
Interested in talking with someone from our team? Sign up to get notified when we are accepting new clients here: lyfeaccounting.com/coming-soon/
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

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This content is incredible for small business owners who have no knowledge of accounting. I will be sending this to all of my customers for their review!!!

[@LYFEAccounting]

Wow thank you so much Courtney 😊😊😊

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It’s only distracting in my opinion because they’re too loud compared to the voice and they’re also not lined up properly, I also feel like not all the sound effects matched up with the graphics as well

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@@SnowyBlizzard I beg to differ for me the qualitative information was most helpful.

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Accounting software/system recommendation??

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I teach Small Business and Entrepreneurship to high school students. Your video is straight-forward and approachable. My students and I are very grateful!🙂

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I love the content, only feedback is to maybe reduce the frequency of the sound effects. They get a little distracting at parts. Great vid!

[@LYFEAccounting]

Thanks for the feedback, we've dialed in down in our latest videos, let us know how those sound?

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Keeps me from falling asleep

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@@lyingcat9022 Thank Nick! Hope you consider subscribing

[@auntpurl5325]

Starting a small business, and I am trying so hard to learn to like the accounting side of things rather than dreading it. I appreciate the persuasive overview. I am beginning to see that it's crucial to start good habits in case my business scales up one day. This was super for an absolute beginner. I first just needed to learn the terminology in a straightforward way. It's a lot more interesting when you own the business.

[@LYFEAccounting]

Thanks for sharing Denelle, yes starting a business is hard in general. I would say that don't get to worried about the accounting side until your starting to spend some serious money or make at least 5 figures in revenue

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Update?

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Appreciate it!

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As ALWAYS, "The Best of the Best" information provided with basic and complete instruction. 👌 Thank you for the Wisdom, Guidance and Knowledge! 👍🙏

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I am not new to budgeting, or finance and yet, still learned something new and was glued in, while looking for information in starting my new business. This was a well made video and thank you for sharing.

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I am really extremely so happy with this video. and knowing the difference between Accounting and Bookkeeping. It is very useful. Thank you so much.

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Great tips to those who are planning to start their small business!

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Love it! Short, sweet, and to the point and very informative.

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Nice video. Not only do you explain what accounting is, you also talk about the importance and how it can help with business decisions. And you provide some good financial analysis. Good job.

[@LYFEAccounting]

Thanks for watching.

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Good breakdown. A lot of these pointers I teach in my class of entrepreneurship students, such as accounting is the language of business, its value / purpose, and how to record and categorize transactions. You simplified it and made it easy to understand!

[@LYFEAccounting]

Thanks for sharing!

[@jimmyabouelezz4583]

Accounting software/system recommendation??

[@alfredorosalesjr797]

Great job breaking it down! I will watch more of your videos!! Thank you!!

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Excellent work! One of the best, if not the best videos I have seen about accounting!

[@ikselxzy8533]

This was very simple to follow and broken down perfectly Thank you so much ❤

[@kurleykath.]

AMAZING! This video was extremely helpful! Just a few days a go, I had no idea what the difference between bookkeeping and accounting was. This has helped me understand a lot better!

[@LYFEAccounting]

You're so so welcome! Thanks for the feedback :)

[@terrisaelee7776]

Very well organized and educational video. Easy to take notes for future reference. Thank you.

[@albertumoh]

You are simply amazing. My high school teacher could barely get me here in 6 years but you did in 14 minutes. 😂❤

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Hi. Clear, simple as info to digest. Keep up the good work! Thank you, sir.

[@LYFEAccounting]

So nice of you

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The Best Video for small business accounting.

[@Arvolve]

Amazingly valuable information very clearly explained, thank you!

[@asfybylorna5920]

Great video - thanks for sharing and I will certainly share with others who are unsure or are completely new to this subject.

[@ryanfrizzell736]

Great video. I enjoy learning more about accounting basics for small businesses. Importantly, I understand payroll is a basic and essential function of business and the accounting within business.

[@janaebeckford]

This video popped up in my list of recommened videos to watch and I must say I'm half way into it and already made the decision to subacribe. Thank you so much for the great info, because as a new business owner I do dread the accounting aspect of things. But if I want my business to succeed then I must embrace all areas of the business...including the financial part. So thank you for helping us to understand the importance of financial and for making it enjoyable to learn.💕🙏

[@StevenYen]

This is SO good - I went to UT Austin supposedly the best accounting program in the US, but they weren't able to make learning about accounting this engaging. Big thanks for making this and will be watching the rest of your videos!

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Wow thank you SO much!! Everyone needs to know about this stuff

[@LYFEAccounting]

Thanks Jessie!! Just curious, which part did you find most helpful?

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I LOVE LOVE LOVE THIS CHANNEL....THE graphics are cool and well laid out! Catching up on all your content. 😇

[@LYFEAccounting]

Thanks so much!! Hope you consider subscribing?

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Another invaluable channel, will definitely explore more videos from you, sir, thank you!

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thank you for explaning the accounting system in such a clear way

[@LYFEAccounting]

It is my pleasure, thank you for watching!

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I enjoyed this video simple to understand the importance of good accounting business practices

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Wow this video has opened my eyes! Thank you for this valuable information.

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Please keep doing what you’re doing. Highly educative! Subscribed!

[@LYFEAccounting]

Thank you! Will do!

[@iamsamori]

This is soooo good! I've been in business for more than 25 years. Accounting has always been the weakest area of my business skillset. This was extremely helpful! I love how you presented the information in a clear, concise, and simple way. I didn't even like accounting when I was in college. That's probably why it is one of the most neglected parts of my business. But, not for long...

[@user-uy3eq5hg1s]

Me too... to be honest, all of this accounting stuff kinda drives me nuts. My business is low profit margin and tough to keep afloat as it is so hiring an accountant isn't realistic... but learning all of this myself is making my brain hurt and stressing me out. Maybe I should just come up with the cash to hire an accountant?

[@jimmyabouelezz4583]

Accounting software/system recommendation??

[@justwhistlinpixie]

Great video. My accounting classes from 15 years ago needed brushing up.

[@LYFEAccounting]

That's great!

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Fantastic video. Thank you!

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good job! thanks! for sharing!

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I am seriously about to study this entire channel. I am in the makings of running and owning a auto detailing business and these videos have just opened my eyes to a whole new world that’s out there for small businesses. Thank you in my highest regards and keep making amazing content!!!

[@LYFEAccounting]

You can do it! I hope we don't let you down :)

[@jimmyabouelezz4583]

Accounting software/system recommendation??

[@jannetteortiz5508]

This is great. I'm going to listen to it until it sinks in. Thank you 🙂

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Thank you for this video, it's very helpful! Well detailed, as a small business owner I've been feeling very overwhelmed with the accounting side of the business. This video have a great amount of information. Thank you!!

[@LYFEAccounting]

Thank you, Mar. Good luck to you!

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Such a wonderful video thank you so much!!

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Thank you for the amazing video & info.

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Very well presented THANKS

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Nice. Super Clear and Valuable!

[@LYFEAccounting]

Glad it was helpful!

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Love this video! Thanks for speaking slowly, and for explaining each new term you came across, because this is like a new language to me :) also loved the fruit ninja reference 😁

[@LYFEAccounting]

Thanks so much for the feedback! Very good to know

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Excellent presentation and very informative!

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Very useful. Very clear and organized. Thank you very much indeed!

[@LYFEAccounting]

Glad you enjoyed it!

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thanks this was so helpful I taught me a bunch

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This is a great video Ty

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[@LYFEAccounting]

Yay! Thanks!

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Great video, so easy to understand. Thank You!

[@LYFEAccounting]

You are welcome!

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Awesome video, thank you

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Thank you!

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Great video. I think the key ingredient with this channel is the structure of your videos. This one was outstanding.

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Wow, thank you!

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well explained, thanks

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Excellent material!

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So helpful!!

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Great video 4 new business owners. Now I can start fresh with keeping up with accounting

[@LYFEAccounting]

Glad it helped! Feel free to check out our playlist on how to help business owners manage their money: kzbin.info/www/bejne/mHu3i5WcppyUo7M

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Welcome aboard! Glad it helped. Looking forward to seeing your comments on future uploads =)

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I really learned from this thank you

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Happy to help, Charlie.

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Great content . Thank you. You are great Teacher.

[@LYFEAccounting]

I appreciate that!

[@tharanyamoodley7020]

Thanks so much for such an amazing and informative video! I am 21 years old and am trying to handle my companies finances correctly, so this video was very helpful. Do you perhaps have any suggestions on which platforms are best for financial bookkeeping? Platforms which are secure and helpful to record business transactions from business accounts?

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What a great content! Thanks for sharing.

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Thank you, Srey!

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Great video!! Thanks for sharing. What are a few accounting programs that you'd recommend for small business owners?

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My pleasure

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Thank you for this video!

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Glad it helped!

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Explained with clarity👍

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Glad to hear that!

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Thanks again for watching!

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Glad it was helpful!

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Awesome, glad it helped and thank you for your comment. =)

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Glad you like them!

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Thanks so much and thanks for watching!

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I love the information you give in all your videos. My question is, if you register for an llc in March but don’t use it - do you have to file a schedule C for 2022? There are no major issues/expenses that will require me to file a 1040 long form.

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You got this! 💪🏾 Let us know if there is a topic you'd like more clarification on.

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Glad you enjoyed it!

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Ha, you likely saw my brother Sean. We appreciate the support.

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