Finances are extremely important to consider when starting a business and should be included as part of your business plan. Many businesses exist to make a profit – even those that don’t will not want to be making a loss. Poor management of finances is one of the most common reasons businesses fail, by understanding accounting you will increase the chances of your business succeeding.

Some small business owners hire an accountant so they don’t have to worry as much about that side of their business, and this may be a good option for you, although it will be an extra cost to consider. If your business is small (or you’re starting a business by yourself) it might be worth considering the option of doing your own accounting so you can invest the money you save into other parts of your business.

Even if you’re planning on hiring an accountant (or an accounting team), having at least some accounting knowledge will give your business the best chance of success. This is because, accountants will need your guidance and input, the communication between you and your team will improve, you will be able to make better business decisions from a financial point of view and you will have a better understanding of the advice your accountant is giving you.

As finances are such an important part of running a business, not fully understanding them can quickly cause you stress and anxiety as you are trying to manage your finances and make business decisions. Even having basic accounting skills can help you to feel more confident.

Through studying accounting, you will also be developing a number of important transferrable skills, which can helpful when running a business, such as, problem solving skills, analytical skills, communication skills, decision making skills and digital skills.