How much accounting do you have to know to run a small business? -

You should definitely know at least some basic principles, stuff like:Difference between cash and accrual accountingRelationship between assets, liabilities, and owner s equity (aka the fundamental accounting equation)How accounting differs based on the structure of the business (partnership vs LLC vs S-Corp, etc)Even if you decide to use a program like Quickbooks (a very good idea by the way) and/or hire a CPA to help you, you should still have a basic working knowledge of accounting. The more you know the more effectively you can run your business.There are many free websites online devoted to small businesses and accounting, check them out.

Everybody has to start somewhere, even if there is no previous experience. You need to know how to keep a correct checkbook, and successfully reconcile it each month. You need to know your products or services, and how to bill them out to your customers. Your taxing agencies will tell you what they require you to do. Basically keeping your books balanced and selling for a healthy profit is what you need to know. Otherwise, you need a good CPA to audit you regularly. Your CPA will be able to tutor you through a lot of it.Don t let fears of inexperience keep you from acting on your dreams.I started my business in 1987, and taught myself as I went. It s been challenging at times due to the changes in requirements from the taxing agencies. Once you know how to do it, things change, and you have to keep changing with it.Good Luck.