The Best Books on Small Business Finance

When it comes to your small business, few things are more important than your finances, whether we’re talking about start-up money, payroll services, or budgeting issues. Most entrepreneurs come up with the basic idea of their business and then get to work on a business plan, among other things. Still, many of them also rely on getting as much information as possible on the business to be as knowledgeable as possible. This usually includes taking classes, doing research online, and reading as much as they can get their hands on. Most of the best books on small business finance are easy to find and are chock full of crucial information for future business owners to know. They do a great job helping you become familiar with everything you need to know before you go any further.

The Bottom Line

If you are interested in learning more about small business finance issues but don’t look forward to putting yet another book on your bookshelf, not to worry because there are ways you can narrow down your options so that you find only books that are relevant and which make learning this subject matter a lot less complicated. If you think that just because you already have a staff accountant, you don’t have to be concerned about financial matters, think again. All owners and managers should know something about the finances associated with their company, but fortunately, there is now a much easier way to do it.

If you are even thinking about starting your own business, these books can be true miracle-workers. They can teach you everything from the basics of accounting to industry-specific details that can help you learn your business from another side altogether. If you have an entrepreneurial spirit, even if you haven’t yet started to write your business plan, you owe it to yourself to become as familiar as possible with everything related to your new business, and there is no time like the present to get started. This also gives you the self-confidence you need to continue forward in the right direction.

Below are just a handful of the many books that can help you put your best foot forward and learn what you need to know to become the professional you already know you are. They are each written for the layperson and teach you topics that include basic finance, investments, and many other areas you’ll need to master before opening your doors. When it comes to financing and accounting-related issues, you can’t have too much information, and the following books are a great place to start when you’re anxious to dive right in and learn what you need to know to become a much better business owner and professional.

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The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About ItThe E-Myth Revisited by Michael Gerber

The e-myth stands for entrepreneurial myth, which is a myth that many people have regarding starting a business. It centres on the myth that most people who start a small business are, in fact, entrepreneurs and that anyone familiar with the technical workings of a business can actually be successful at running that type of business. Unfortunately, neither of these myths is true, and Gerber explains why these assumptions are false and what you can do to increase the odds that your own business will succeed. This is an exceptional book that has been voted the number one business book by Inc.

Best of all, the author doesn’t just point out why these assumptions are wrong, but he then takes you through each step you should take if you wish to start a business of your own. He notes that there’s a difference between working on your business and working in your business, and shows you what successful businesses did to become a success. From beginning to end, he provides you with the tools you need to decide if you are likely to be a successful entrepreneur and what you need to do to take your idea from concept to realization.

Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making MachineProfit First by Michael Michalowicz

The author teaches entrepreneurs that instead of using the formula Sales – Expenses = Profit, they should instead look at it as Sales – Profit = Expenses. If your business is a cash-eating monster, he will teach you how to turn it into a money-making machine in no time. He concentrates on the things you can take to make this happen, and they include:

  • Four ways to simplify your accounting so that it becomes easier for your business to make a profit.
  • Learning to attain early, sustained profitability so that your chances of long-term growth are much better.
  • How even small businesses can be more profitable than larger companies and corporations.

Michalowicz uses various tools to provide you with the practical things you can do to be a success. This includes case studies and practical, step-by-step advice that helps you learn what to do at every turn so that your business can be a success. This book offers true managerial solutions that concentrate on your business’s profit and what you can do to bring your business one step closer to success. It doesn’t just describe ideas and suggestions; instead, it offers a specific plan that you can follow so that success is more than just a concept.

Accounting for the Numberphobic: A Survival Guide for Small Business OwnersAccounting for the Numberphobic by Dawn Fotopulos

Everyone knows that accounting is the basis of any successful business, but what if you hate working with numbers or don’t understand anything about balance sheets or financial statements? Not to worry because this book was written for people like you. When you’re a business owner, you might think that having an accountant means you don’t have to concern yourself with the company’s finances, but that isn’t usually the case. This book simplifies the things you need to know and helps you make sense of everything from cash flow statements to net income statements, and so much more.

If you think you’re incapable of learning about accounting in your business, think again. This book simplifies the process so that it doesn’t feel like your head is swimming, and teaches you what to look for in all of your company’s financial documents to learn about far more than just how much money is in the bank at any given time. It simplifies the accounting process, but it makes the process interesting so that you can actually look forward to keeping up with the finances associated with your business’s operation.

Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really MeanFinancial Intelligence, Revised Edition by Karen Berman, Joe Knight, and John Case

If issues related to finance and accounting confuse you, you’re not alone. This book aims to teach you what you need to know about the company finances while keeping it practical and informative. It isn’t just a textbook of financial terms and jargon; instead, it is the perfect book for non-accountants and laypeople who wish to understand the numbers and why they are so important. You even get anecdotes of real companies and their experiences with their own finances so that you can understand the world of numbers and finance a little easier.

Interesting, informative, and very practical, the book is also easy to read and is written so that it is going to make sense regardless of your particular background. In fact, you’ll be amazed by how quickly finances will start to make sense for you. The book has been recommended by hundreds of experts for managers who want to know more about their company’s finances but don’t want to get too technical or detailed. With this book, you’ll learn just what you need to get familiar with your company’s finances but not so much that the information starts to bore you or get you confused.

Color Accounting: The new graphical system that makes understanding accounting easy and quickColor Accounting by Peter Frampton and Mark Robilliard

What could make accounting easier to understand than having it colour-coded so that you can understand it better? This spiral-bound notebook describes accounting in a way that is colourful, interesting, and super easy to understand. Using this method, you can easily learn to read a financial statement, understand your business a lot better, and talk about money matters like a real pro. Between diagrams, logical explanations, and straightforward steps you can follow with ease, you’ll become familiar with everything related to accounting in no time, helping you understand your own business and how to make it better.

The book is even bright and colourful, giving you some aesthetic appeal to learn about accounting is actually fun. Thanks to this book, thousands of people in corporations and universities worldwide have been able to familiarize themselves with accounting the easy way – using the BaSIS Framework, which makes learning about accounting fast, simple, and even fun. If you’ve had trouble learning about financial matters in the past, don’t give up just yet until you read this book. It is even available as an e-book so that you can study it on the go. What could be simpler?

 These fives books should give you some ideas of the challenges facing entrepreneurs and some ideas on how to turn around a struggling business by better understanding how financial management and accounting can mean the difference between a struggling business and a growing one.