Accounting terms are often confusing and overwhelming to small business operators. Today's term is 'purchase order'. The website AccountingCoach.com defines this term as below:

Purchase Order

Also known as a "p.o." This is a multi-copy form prepared by the company that is ordering goods. The form will specify the items being ordered, the quantity, price, and terms. One copy is sent to the vendor (supplier) of the goods, one copy is sent to the accounts payable department to be later compared to the receiving ticket and invoice from the vendor.

I've added several categories to my blog including Marketing, Accounting, Small Business, and Resources. Beginning next week on Monday, July 21, 2008, my blog will follow this format:

Monday: Each Monday I will post a blog entry about marketing.

Tuesday: The blog entry on Tuesdays will be for the Small Business category.

Wednesday: Watch for a variety of resources to be posted each Wednesday. These may be links to websites full of resources, books I've found interesting, book reviews, interviews with small business people, and once in a while a Q & A section. I'd be interested in knowing what resources you'd like to see in this section.

Thursday: On Thursday the post will be something to do with accounting.

Friday: My free-for-all day! Who knows what you may find on Fridays.

Now what am I going to write about Monday that has to do with marketing? Hmm....

The Northern California Association of Entrepreneurs (NCAE) is looking for topics for articles for the website and newsletter. As attendance at our meetings is growing, we want to make sure we have topics of interest for everyone.

This month we will be discussing at our meeting the One Page Business Plan (r). Next month we hope to have a presentation on tax deductions. We have a volunteer to write an article on credit card processing and how to properly compute your credit card rate.

What other topics do you think small business owners and solopreneurs would like to see addressed? Visit our website and use our contact form to let us know.

So you don't think you're any good with numbers and all those accounting terms scare and confuse you. You save all your receipts all year long in a shoe box and give them to your tax accountant in March so he or she can prepare your taxes.

Your accountant is deluged with many other small business owners or solopreneurs and their shoe boxes filled with receipts just weeks before taxes are due to be filed. Your accountant asks if you could just prepare a spreadsheet showing your income and expenses, it would be so helpful. It would also save you money because your accountant will have to charge to do this for you. But you just don't know where to start.

Though accounting can seem overwhelming, knowing some basics is essential for the small business owner. I recommend AccountingCoach.com as a place to start to learn some basic accounting terms and practices.

Then I recommend you hire someone to do some simple bookkeeping for you. Bookkeeping services can usually do your bookkeeping much cheaper and more quickly than you. Hourly bookkeeping rates generally range starting around $25 per hour. Your total monthly bookkeeping charge depends on the type of services you request and the financial records you provide. A copy of a neat and orderly check register will require less work (versus the shoe box of receipts) and lower your costs significantly. You should be able to get accurate and timely financial information from a bookkeeping service for less than $200 a month. Visit my website and find out how I can help you with your bookkeeping.