Ask YC: Do I need to have breadth on accounting and laws?

Re:Ask YC: Do I need to have breadth on accounting and laws? by bigthboy on Monday October 27, 2008 @01:13PM (#345279)

Under standard circumstances, it's always important to understand where the money is going and how it gets there :). Whether or not its your job to constantly track it at every stop and all the related tasks is a different situation. Generally, I feel its important that you know your basic accounting and bookkeeping and be able to understand it to a sense that you can do it during the early stages. Once you're founded, in the US, you do have financial and tax responsibilities that you have to be aware of and you likely don't have the money to pay an accountant to do it. Once you grow a little bit and have the money to spend on a professional accountant, if you're not really good at it (and even if you are) its generally best you get someone to do that for you, just follow along with everything that's going on.

However, being you're in China I'm not even going to step in advising you on how to go about your country's laws and financial regulations because I just don't know. China is its own animal and can't easily be dropped into the cookie-cutter systems of the US and UK. In my opinion and very limited experience that is, anyways.

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Re:Ask YC: Do I need to have breadth on accounting and laws? by log0 on Monday October 27, 2008 @01:19PM (#345290)

I see. If I am to start, what would be common ways for self-learners? And yes you are right, I don't think I am financed to pay an accountant at early stage yet. Well... it's all just thinking right now. =)

I understand the systems in China will be quite different, hence I am only asking for general advice.

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Re:Ask YC: Do I need to have breadth on accounting and laws? by bigthboy on Monday October 27, 2008 @01:42PM (#345310)

For me, I learned by obsvering my mother who owns a small retail shop and how she did accounting. I also took a course at my high school.

I've not really done much of online accounting research so I don't know where would be the best place to point you. However, some of the major accounting programs are rather simplistic to use and can, usually, step you through it.

The most important thing early on is to just keep a good record of who you owe, how much, and why. If you don't have any employees that are paid yet you really don't have much to worry about. Simple budgeting should get you through.

When you start selling things and start having employees is when it starts to get complicated. Other than that just keep a record of what you bought from who and how much it cost.

I AM NOT A CERTIFIED ACCOUNTANT AND MY ADVICE SHOULD NOT BE TAKEN AS THAT OF A PROFESSIONAL. I AM RELAYING INFORMATION BASED ON MY OWN EXPERIENCES.

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Re:Ask YC: Do I need to have breadth on accounting and laws? by log0 on Monday October 27, 2008 @01:44PM (#345318)

Yes. Thanks a lot. I will think about it.

And don't worry, I will digest the information and decide myself, and not just directly dupe it into my brain. Thanks a lot. =)

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