Why Do Entrepreneurs Need to Understand Accounting?

Why Do Entrepreneurs Need to Understand Accounting?
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Why Do Entrepreneurs Need to Understand Accounting?
In an article written by Donna Pacheco ADDIN Mendeley Citation{ee3bc3ff-32c3-4a99-ae4c-57e18dfff548} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "http://eaa.edu.ph/archives/tag/do-entrepreneurs-need-to-learn-bookkeeping", "accessed" : { "date-parts" : [ [ "2011", "9", "18" ] ] }, "author" : [ { "family" : "Pacheco", "given" : "Donna" } ], "container-title" : "Entrepreneurs Accounting Academy", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2011" ] ] }, "title" : "Do Entrepreneurs Need to Learn Bookkeeping?", "type" : "webpage" }, "uris" : [ "/documents/?uuid=ee3bc3ff-32c3-4a99-ae4c-57e18dfff548" ] } ], "mendeley" : { "manualFormatting" : "(2011)", "previouslyFormattedCitation" : "(Pacheco, 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" } (2011), she tried to answer the question: "Do entrepreneurs need to learn bookkeeping?" Her answer was straightforward - yes, because it is an important part of business. For Pacheco, relying on accountants to handle the business finances but the entrepreneur must know the basics. Even the trusted people handling the bookkeeping can make mistakes, and without personal knowledge of balancing accounts, an entrepreneur will not be able to determine where the mistake lies. She also cited several reasons why an entrepreneur would want to go beyond basic bookkeeping: "[1] They want to have a proper dialogue with their accountants without feeling lost; [2] They want to double-check the records of their current bookkeeper so they know that their accounts are being monitored properly; [3] They want to look for a more efficient way to handle their books" ADDIN Mendeley Citation{ee3bc3ff-32c3-4a99-ae4c-57e18dfff548} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "http://eaa.edu.ph/archives/tag/do-entrepreneurs-need-to-learn-bookkeeping", "accessed" : { "date-parts" : [ [ "2011", "9", "18" ] ] }, "author" : [ { "family" : "Pacheco", "given" : "Donna" } ], "container-title" : "Entrepreneurs Accounting Academy", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2011" ] ] }, "title" : "Do Entrepreneurs Need to Learn Bookkeeping?", "type" : "webpage" }, "uris" : [ "/documents/?uuid=ee3bc3ff-32c3-4a99-ae4c-57e18dfff548" ] } ], "mendeley" : { "previouslyFormattedCitation" : "(Pacheco, 2011)" }, "properties" : { "noteIndex" : 0 }, "schema" : "https://github.com/citation-style-language/schema/raw/master/csl-citation.json" } (Pacheco, 2011). By understanding how bookkeeping works, an entrepreneur can avoid errors in their accounts, hence, ensure that the business is operating as expected. Moreover, a knowledge in bookkeeping allows the entrepreneur to monitor his own business and determine whether it is still profitable to keep or whether there is a need to revise systems.
In another article entitled Six Must-Have Skills Every Entrepreneur Needs ADDIN Mendeley Citation{47704d8e-31b7-47dc-911c-5fe046ffceb2} CSL_CITATION { "citationItems" : [ { "id" : "ITEM-1", "itemData" : { "URL" : "/office/entrepreneurs/articles/39016.aspx", "accessed" : { "date-parts" : [ [ "2011" ] ] }, "author" : [ { "family" : "Michelle", "given" : "Carla" } ], "container-title" : "Bright Hub", "id" : "ITEM-1", "issued" : { "date-parts" : [ [ "2010" ] ] }, "title" : "Six Must-Have Skills Every Entrepreneur Needs", "type" : "webpage" }, "uris" : [ "/documents/?uuid=47704d8e-31b7-47dc-911c-5fe046ffceb2" ] } ], "mendeley" : { "previouslyFormattedCitation" : "(Michelle, ...