Should Small Business Owners Invest in Bookkeeping Courses?
Greetings, fellow entrepreneurs! As someone who recently embarked on the journey of launching a small independent insurance agency, I can attest to the whirlwind of learning experiences that come with running a business. Since our business’s inception last January, one glaring lesson has been the importance of understanding our financial operations.
I took the first step by setting up a Xero account to monitor our financial transactions, linking it to our bank to automate statement imports. While I’ve managed to grasp some basics, the complex Bookkeeping jargon occasionally leaves me bewildered.
My main responsibility revolves around technology implementation and the daily management of our business, including handling finances. Although we have a professional accountant for our taxes, I’ve taken on the challenge of managing the day-to-day Bookkeeping duties. This begs the question: Would a bookkeeping course be a worthy investment?
There are a couple of options available. Locally, there’s an in-person course offered at the vocational school, spanning eight weeks and totaling 48 hours of instruction. This course not only covers bookkeeping fundamentals but also prepares participants for the Intuit Bookkeeping Certification, with a tuition fee of $395, textbook included. On the flip side, there are online courses available on platforms like Udemy, which are approximately 17 hours long and cost between $20-$40.
I ponder whether the brevity of the online courses would leave gaps in my understanding, whereas the more intensive in-person course might offer a comprehensive grasp of concepts such as setting up a proper chart of accounts.
So, fellow small business owners, I turn to you seeking wisdom and advice. Is investing the time and money into these courses worthwhile, or is there a more efficient path to mastering the art of bookkeeping? Your insights would be greatly appreciated!
One response
Taking a Bookkeeping course can be an excellent decision for a small business owner, especially when you are directly involved in managing your business’s finances. Since your role includes running the business’s finances, having a solid understanding of Bookkeeping is not just beneficial—it’s essential.
Why a Bookkeeping Course is Beneficial:
Grasp Financial Literacy: Understanding bookkeeping will give you an edge in financial literacy which is crucial for making informed strategic decisions, negotiating better terms with vendors, and spotting potential financial pitfalls early.
Efficient Use of Software: Though you have already started using Xero, a deeper understanding of bookkeeping will allow you to make the most out of any financial software, ensuring more efficient and accurate data entry and management.
Communication with Professionals: Understanding bookkeeping terminology can enhance your communication with your accountant, helping you to collaborate more effectively during tax season and throughout the year.
Financial Control and Organization: A good course will guide you in setting up your chart of accounts correctly, ensuring that you are well-organized and know exactly where each transaction should be recorded.
Cost Savings: In the short term, managing your books yourself can save you Accounting fees, and in the long term, spotting issues early can prevent costly corrections.
Considerations for Choosing a Course:
Depth vs. Flexibility: The choice between the in-person and online courses depends on your learning style and needs. If you prefer structured learning with the ability to ask questions in real-time, the in-person course may be beneficial. It’s also longer and potentially covers more material in depth.
Time Commitment: The in-person course requires a larger time commitment, which is a significant consideration if your schedule is tight. Ensure that the time required does not conflict with your business operations.
Cost Effectiveness vs. Content Value: While the online courses are cost-effective, evaluate whether they thoroughly cover the necessary basics to advanced concepts that suit your business’s specific needs.
Practical Advice:
Audit Sample Modules: Consider trying a couple of free or trial lectures from different online courses. This will give you an idea of the teaching style and content, helping you make a more informed decision.
Consult Your Accountant: Before enrolling, have a conversation with your accountant. They might be able to recommend specific areas of focus or resources outside of structured coursework that are tailored to your business’s needs.
Continuing Resources: Look into supplementation resources,