"Learn Bookkeeping in 7 Days: Don't Fear the Tax Man" by Rod Caldwell

Many first time small business operators, (not to mention a few existing business owners) have, what I like to call, "Financial Phobia". This is a fear of anything relating to the management of their business finances. Just mention the words "bookkeeping" or "accounting" or simply ask them to "do their books" and the sufferers of this unnatural fear instantly freeze and are totally incapable of moving forward - an unfortunate situation for their business.The financials are important for a number of reasons. The first is that they provide an important insight as to how your business is performing from a financial perspective. The second is that they provide a platform for informed decision making. So becoming adept at managing your books is vital. One of the best guides I have seen on this subject is Learn Bookkeeping in 7 Days: Don't Fear the Tax Man written by Rod Caldwell.Caldwell is, in his own words, a "Tax Accountant by profession and an educator by choice". He has been
lecturing in taxation and business at University and TAFE colleges for the last 10 years. He also is the proprietor of his own micro business where, for the last 20 years, he has developed and sold accounting systems to independent primary schools. As a micro business proprietor he knows first-hand the problems that we all face. As a tax accountant he is fortunate in that he also knows the solutions.In this book he attempts to pass on that knowledge in the hope that it helps other small business owners. While most accounting tomes are written in such a way that they often put us to sleep long before anything useful is imparted, this one is an exception. It breaks down each of the core learning elements into seven days of learning, each concentrating on a different aspect of bookkeeping.It is written in a clear, concise and easy to understand manner and is jammed packed full of useful taxation tips and tricks for small business owners. I talked to Rod Caldwell and discussed b
ookkeeping and small business owners' financial fears.KP: Many people start their business and immediately offload their bookkeeping and accounting functions to their accountant. Is there any reason why they can't be doing these themselves? And are there other compelling reasons as to why they should be doing it themselves?Rod Caldwell: One of the major costs of running any small business is the fees charged by your accountant to do your end of year financial reporting and your Income tax plus your bookkeeper's fees to keep the books and complete the quarterly Business Activity Statement (BAS). With the new requirement for Bookkeepers to be qualified and registered that cost is just going to escalate. Doing your books yourself, in a timely and efficient manner, as well as doing your own BAS will go a long way to minimising these costs.KP: How does your book, Learn Bookkeeping in 7 Days, help a first time business owner looking to manage their own books?Rod Caldwell: Learn Bo
okkeeping is only a start but it does give you a good understanding of the basics and the knowledge to know what's needed. It is meant to be a 'fire side chat' approach to bookkeeping rather than an academic text on the subject. I've tried to put across complex issues in an easy to read text.KP: What are the keys to successfully managing their business finances?Rod Caldwell: You must do the books regularly. Everyone hates this task and tries to put it off but putting it off makes it even harder and the possibility of errors increases. Remember, errors take three times as long to fix compared to doing it right the first time round and if you have to employ an accountant to fix up your mess then your costs are going to go through the roof.KP: Many people "fear" the financials aspect of business management. Can you explain why many feel this way, and can you allay these fears in any way?Rod Caldwell: It's just fear of the unknown and all those rumours of how hard it is. Once yo
u get into a rhythm doing your own books is comparatively easy. You may not know how to do anyone else's but at least you'll know how to do your own.KP: If a small business owner does his own bookkeeping and outsources the rest to an accountant, what is it they need to be asking for from their accountant? And how should they manage this function?Rod Caldwell: This is the system that I always recommend to small business owners.1. Keep your own books and do them regularly.2. Do your own Business Activity Statement (BAS).3. Give a good clean set of books to your accountant at year end to do the final reports and Income tax.4. Keep contact with your accountant to a minimum (they bill by the minute)5. Demand that you are the ATO contact for queries - the "address for service". I've heard of accountants charging $5 just to redirect ATO information sheets.6. Make sure that you get copies of all work done. That way if you wish to change accountants there is no hassles about getting
the past years information. This will also allow you to monitor your Accountants performance.

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