Ep. 72 | Bookkeeping 101 - The Real Deal
Download MP3In this episode of the Teaching Tax Flow podcast, the hosts, John Tripolsky and Chris Picciurro, welcome Lisa McCarthy to demystify the often-interconnected worlds of bookkeeping, accounting, and tax preparation. Kicking off the conversation, Lisa vividly shares her accidental yet fortuitous dive into bookkeeping, sprouting from her innate love for numbers and a chance meeting with QuickBooks software.
Bookkeeping, Lisa emphasizes, is not merely about maintaining records but about crafting a robust, foundationally-sound financial narrative for any business. The nuances discussed unravel why entrepreneurs should contemplate outsourcing this critical function when it begins to overshadow their primary business objectives. The episode pivots on providing actionable insights, advocating for a deeper comprehension of the various technological stacks that surround modern bookkeeping - a domain where QuickBooks reigns supreme yet interlinks with a diversity of other applications.
Key Takeaways:
- Bookkeeping is a specialized field: It's essential to separate bookkeeping from accounting and tax preparation, as each serves distinct purposes for a business.
- Outsource when appropriate: Business owners should consider hiring professional bookkeepers when the task becomes a burden or affects their growth focus.
- Technology plays a significant role: Today's bookkeeping involves understanding various tech stacks, with QuickBooks online being a dominant tool in this sphere.
- Reconciling is crucial: The balance sheet is the paramount financial statement to ensure accuracy within a business's bookkeeping practices.
- Growth indicates change: Transitioning bookkeeping tasks to experts is not a sign of failure but an indicator of a business's advancement and the need for specialized attention.
Notable Quotes:
- "Bookkeeping doesn't have to be a burden—it should be about sculpting a dependable, foundational financial tale for any business." – Lisa McCarthy
- "As a business owner, the moment bookkeeping starts feeling like a chore, that's your cue to consider outsourcing it." – Lisa McCarthy
- "The balance sheet follows your business from the moment you begin until you decide to close your doors." – Lisa McCarthy
