1. Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree
Greg Crabtree brings over 30 years of accounting experience to the table, but he doesn't drown you in jargon. Instead, he uses practical examples and step-by-step instructions to help you use your numbers to guide your business to profitability. This book is our top pick for small business owners. Crabtree also adds a dose of tough love to help you take decisive action with your finances—a skill every small business owner should learn.
You'll need a basic understanding of how your financial statements (profit and loss statement, balance sheet, and statement of cash flows) work together to fully grasp some of the later chapters. If you need a primer on this, check out the next two picks on our list for a more thorough breakdown of these accounting principles.
2. Accounting Made Simple: Accounting Explained in 100 Pages or Less by Mike Piper
Mike Piper's "Accounting Made Simple" is a gem for small business owners who want to grasp accounting basics without wading through thick textbooks. This book is part of the Financial Topics in 100 Pages or Less series, making it a quick yet comprehensive read.
In this book, Piper breaks down essential accounting principles, from generally accepted accounting principles (GAAP) to reading financial statements. If you run a sole proprietorship or another type of small business, this book might be all you need to understand bookkeeping and financial reporting.
Why You Should Read It
If you're looking for a straightforward, jargon-free guide to accounting, "Accounting Made Simple" is your go-to resource. Its streamlined approach makes it an invaluable tool for small business owners and anyone interested in learning accounting's essentials.
What You'll Learn
- Basics of accounting
- Key terms and calculations
- How accounting mechanisms work, from debits and credits to financial statements and accounting for income taxes
Accounting is the language of business, and understanding accounting is the key to understanding business.
About The Author
Mike Piper is a CPA and the author of several personal finance books. Stay connected with Mike through his Twitter account or personal blog.
3. Accounting All-in-One for Dummies by Lita Epstein and John A. Tracy
If you're looking for a comprehensive guide to bookkeeping, Accounting All-in-One for Dummies is a fantastic choice. This book covers everything from the basics of accounting to more advanced topics, making it suitable for both beginners and those looking to brush up on their skills.
What sets this book apart is its user-friendly approach. The explanations are straightforward, and the practical examples make complex concepts easy to understand. You'll learn about financial statements, inventory accounting, and financial planning and control, all essential for managing your business's finances effectively.
Whether you're a seasoned bookkeeper or just starting, this book offers valuable insights that simplify the often daunting world of financial recordkeeping.
4. Accounting for the Numberphobic: A Survival Guide for Small Business Owners by Dawn Fotopulos
If numbers make you break out in a cold sweat, Dawn Fotopulos has got your back. Her book, Accounting for the Numberphobic, is a lifesaver for small business owners who dread dealing with finances. This guide turns the scary world of accounting into something you can actually handle, and maybe even enjoy.
Fotopulos walks you through the basics of small business accounting in simple terms. You'll learn about profit-and-loss statements, balance sheets, and cash flow forecasts. By the end, you'll feel empowered to take control of your business's financial health.
Why should you read it? If you're someone who finds numbers intimidating, this book is your go-to guide. It's written specifically for small business owners without a financial background, helping you overcome your fear and confusion around accounting.
This book is a must-read for anyone who wants to understand the basics of accounting without getting overwhelmed.
Dawn Fotopulos is an experienced entrepreneur and business coach who is dedicated to helping small business owners thrive. Connect with her on LinkedIn, Twitter, or visit her company website for more insights and resources.
5. Accounting for Non-Accountants: Financial Accounting Made Simple for Beginners by Wayne Label
Wayne Label's "Accounting for Non-Accountants" is a lifesaver for small business owners who need to handle their own books. This guide breaks down complex accounting concepts into easy-to-understand lessons. It's perfect for those who don't have a background in accounting but need to manage their financial records.
You'll learn how to:
- Track expenses
- Record revenue
- Pay taxes
- Handle basic financial requirements
This book is all about making accounting accessible. It’s not just for future CPAs; it's for anyone who wants to get a grip on their business finances without feeling overwhelmed. If you're looking for a straightforward way to understand your financials, this book is a great place to start.
Balancing cost and value is crucial when selecting bookkeeping solutions. This book helps you find that balance by teaching you the essentials without needing an accountant on staff.
6. Finance for Nonfinancial Managers by Gene Siciliano
Are you a small business owner who feels lost when it comes to financial terms like EBIT or gross profit? If so, Finance for Nonfinancial Managers by Gene Siciliano is the book for you. This book is perfect for managers who need to make strategic decisions but lack financial literacy. Siciliano, a CPA and certified management consultant, breaks down complex financial concepts into simple, easy-to-understand terms.
One of the best things about this book is its practical approach. Siciliano uses real-world examples to explain key financial statements like balance sheets, income statements, and cash flow statements. He also dives into cost accounting, a crucial concept for maximizing your business's profitability. The book's format makes it an excellent reference tool, with key terms, warning signs, and examples flagged for easy navigation.
If you're managing a team and need to boost your financial knowledge, this book is a must-read. It will empower you to make informed decisions and help your business succeed.
7. Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble by Bernard B. Kamoroff
If you're a solo entrepreneur, running a home business, or managing a small ecommerce venture, "Small Time Operator" by Bernard B. Kamoroff is a must-read. This book is like a friendly guide that walks you through the essentials of starting and running your own business. It's easy to understand and breaks down complex ideas into simple steps.
Kamoroff, a CPA, covers everything from bookkeeping and tax reporting to financing your business. The book includes practical tables and worksheets to help you practice your accounting skills. First published in 1976, it's now in its 15th edition, proving that Kamoroff's advice has stood the test of time.
Here are some key takeaways:
- Best practices for bookkeeping
- Tips for tax reporting
- Guidance on financing your business
This book emphasizes the importance of effective record-keeping for businesses. It discusses finding the right bookkeeper, avoiding common mistakes like inconsistent record-keeping and ignoring small transactions, and the necessity of backing up data. It also highlights compliance with tax laws and the benefits of establishing a routine. Ultimately, it encourages businesses to choose a record-keeping method that suits their needs for growth and compliance.
8. The Accounting Game: Basic Accounting Fresh from the Lemonade Stand by Darrell Mullis and Judith Orloff
Psychology tells us humans learn best through play, and The Accounting Game makes learning accounting concepts and applying them to your business seem like, well, a game.
Darrell Mullis and Judith Orloff’s accounting book for small business owners is deceiving in its simplicity—even the cover leads the casual browser to assume the book belongs in the children’s section and not alongside the serious accounting books. As you read The Accounting Game, you may even forget accounting is supposed to be boring. Then, before you know it, you suddenly have a better understanding of accounting and how it applies to your business.
The Accounting Game, as is the case with most of the other accounting books on our list, is highly interactive and includes step-by-step processes you can implement in your own business. Mullis and Orloff’s story format makes it an easy-to-read option, and you’ll likely find yourself cheering on your lemonade stand as it grows into a profitable enterprise.
Embracing technology and maintaining organized finances are key takeaways for LLC owners.
9. Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
If your small business feels like it's eating up all your cash, it's time to rethink your strategy. Mike Michalowicz's book, Profit First, flips the traditional formula of Sales - Expenses = Profit on its head. Instead, he suggests you prioritize profit first, making the formula Sales - Profit = Expenses. This approach helps you ensure your business is profitable from day one.
What You'll Learn
In Profit First, you'll discover how to turn your business from a "cash-eating monster" into a money-making machine. Michalowicz provides practical steps and real-life examples to guide you through this transformation. You'll learn to manage your cash flow better and make your business financially healthy.
Why You Should Read It
This book offers a fresh take on financial strategies, making it a must-read for entrepreneurs at any stage. It will change how you view your business's finances, leading to better profitability and financial security. Implementing these tips can lead to significant growth in the financial services sector.
Profit is not an event. Profit is a habit.
About The Author
Mike Michalowicz is a renowned author, entrepreneur, and lecturer. You can engage with him further on LinkedIn, Twitter, or his personal website.
10. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports by Thomas Ittelson
If you're a small business owner who finds financial statements confusing, this book is for you. Thomas Ittelson breaks down the world of financial reports into simple, easy-to-understand steps. No accounting background is required to grasp the concepts presented in this guide.
You'll learn about the three main financial statements: the balance sheet, income statement, and cash flow statement. Ittelson explains how these statements connect and reflect your business's financial health. This book is simply the clearest and most comprehensive introduction to financial reporting available.
For anyone struggling with financial statements, this book turns seemingly intimidating accounting concepts into comprehensible knowledge. It’s a practical tool for small business owners aiming to get a handle on their company’s financial reports without getting bogged down in accounting technicalities.
This book is a must-read for small business owners who want to improve their financial literacy and make informed business decisions.
Thomas Ittelson is a seasoned author and expert in presenting intricate financial concepts simply. Connect with him on LinkedIn or learn more about him through Mercury Group Press' website.
Wrapping It Up
So there you have it, folks! These top 10 bookkeeping books are like your trusty sidekicks in the world of small business. Whether you're just starting out or looking to sharpen your financial skills, these reads have got you covered. Remember, understanding your finances is key to making smart business decisions. So grab a book, get comfy, and start learning. Your future self will thank you!
