3 Tricks to Understanding Your Bookkeeping

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For more information, visit www.bsnsAtlas.com/newstudent
www.bsnsAtlas.com/newstudent

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www.bsnsAtlas.com
Copyright ©2020 RJT Consulting, LLC
All rights reserved.
For more information, visit

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...that wake up in the morning and say, “Oh, yay! I
get to go do bookkeeping today!”
There’s probably not many more that say, “Oh,
yay! I get to spend the day working on my comp
any’s financials or going through the numbers.”
I get that it’s not always the most exciting part
of running a business. And why do I understand
that so well? I understand it because I’m a small
business owner myself.
My name is Ron Trucks. I don’t want to bog you
down with the details of my professional life at this
point in the book. I’m pretty sure you want to get
to the good stuff… Things like figuring out how to understand your bookkeeping.
What I will say is that, over the last 25 years, I’ve been in positions to see companies succeed.
I’ve seen companies struggle and I’ve seen companies fail. But in watching and working with
all of them, there are some common things that have helped every business that did succeed.
This book is a quick look at three of the most important ones!
For right now, let’s get into the “fun” stuff. What YOU can do to better understand your
bookkeeping…
Ron J. Trucks, MBA
Founder, bsnsAtlas.com
If you’re interested in more info about why
I’m the person writing these thoughts down
for you, there’s a short section about me at
the end of the book.
LET’S BE HONEST…
OUT OF THE BILLIONS OF PEOPLE ON
THIS PLANET, THERE IS A VERY SMALL
PERCENTAGE OF THEM...

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You can be fantastic at whatever it is you do. You can be a great chef, or a great personal
trainer, or great construction worker. But if you don’t have a general understanding of the
business side of your business, you’re going to have problems.
And here’s another basic fact… To understand your business, you have to have at least a basic
understanding of the numbers. The numbers really do determine if you’re successful or not. And
I’m not just talking about the profit or loss. ALL of the numbers together determine if you make
money, so let’s jump into the first trick of figuring out how to understand YOUR numbers.
Short… Simple… Sweet… The first (and biggest) reason most people struggle with understanding
their bookkeeping is that they have the absurd idea that they’re dealing with math. (And a LOT
of people on this planet either are afraid of math or they just don’t like it.) Here’s trick number
one, and probably the most important one… IT’S NOT MATH!!
80% of what you’re going to be dealing with in your business’s numbers is just adding two
numbers together. That’s it!
Another 10% to 15% is subtracting two numbers. And MAYBE 5% is going to make you multiply
or divide. That’s it! We’re not using calculus or geometry here.
And here’s even better news... Just like your favorite math teachers in school, you’re ALWAYS
going to be allowed to have a calculator with you. So if it’s not a math class, what is it?
Well, it’s a foreign language.
AND HERE WE GO…
TRICK #1
LET’S START WITH ONE OF THE MOST BASIC
FACTS WHEN IT COMES TO OWNING OR
RUNNING A BUSINESS…

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No! WAIT! Don’t Panic! I’m not saying you’re going to have to learn Russian so you can go live
in Moscow. You don’t have to figure out French so you can go work in a bakery in Paris.
What I want you to do when it
comes to your business... I want you
to learn the equivalent of enough
Spanish to go on vacation in
Puerto Vallarta, Mexico. Enough
so you can order Margaritas
instead of beer. Or ask where the
bathroom is. Or, hopefully, get the tacos you want instead of burritos you accidentally ordered.
The trick is that you
don’t need to learn a
conversational level of a
foreign language. (That’s for
the accountants.) You need
to learn the vacation level of
a foreign language. Enough
so you don’t feel completely
lost standing in the middle
of the room. Enough that
you can put pieces together and get a grasp on what’s being talked about.
Want to see a REALLY good example? Here’s a phrase that probably means nothing to you…
(It probably feels like it’s from a COMPLETELY different language.)
“I want you to use a straight-line depreciation method to accurately value the fixed
assets on your EOY balance sheet.”
I would imagine that almost no one reading this book right now understands that sentence. It
sounds like a foreign language to you. But here’s the good news. In just a few minutes, I’m going
to teach you the translations to a couple of key words that will make that sentence completely
understandable. (It’s not really as foreign as it sounds.)
And how does that connect to the first trick I’m teaching you? Once again, quit thinking of
your bookkeeping as MATH! Realize that, with a little “foreign language translation”, you can
understand what you’re looking at and feel MUCH more comfortable! Basically, once you
“I want you to learn the
equivalent of enough
Spanish to go on vacation
in Puerto Vallarta, Mexico.”

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understand the basic meaning of some key words and concepts, other pieces will start coming
together really quickly.
But why does it seem so hard to learn those key words and concepts? Well, there are usually
two reasons.
The first one is because people who “live” in this part of the business world on a daily basis have
trouble realizing the rest of us don’t speak the language; your CPAs, your bookkeepers, your tax
advisors. They forget that you may not understand it. After all, it’s just natural to them. As a
result, they forget they need to translate it for you.
The second reason it’s sometimes
difficult to understand all those
people speaking “accountant
speak” is because those people
(which you’re paying) want you to
think they’re smarter than you. That
way you’ll keep paying them. And
let’s be clear... Yes, you probably do
need to keep paying them. But you
also need to be able to understand
what they’re saying. You need to be able to speak the same basic, general language so you can
communicate with them. We all have to understand and agree on the same words!
“All those people speaking
‘accountant speak’ want
you to think they’re
smarter than you so you’ll
keep paying them. And you
probably should, but...”

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And here’s the BEST way I can explain it to you. I want you to take a few minutes and see how I actually
teach this to my students by watching a short video clip. In this clip is how I teach the concept of how
important it is to have common, basic understandings. I use it in with my in-class students and in one of
my online video courses on bookkeeping. It illustrates the concept MUCH better than I can in writing.
Go take a look at it right now at… www.bit.ly/BB-Question
Take FIVE minutes to watch the clip and I’m sure it will help explain how the language part of this works.
Don’t worry, I’ll wait here while you go watch it.
See, we can’t really decide how many windows are in that room until we all decide and understand
what the word window means. Imagine trying to understand what “debit” or “credit” or “assets”
or “liabilities” mean without a common agreement that we’re all on the same page.
Overall, that clip explains it as well as I can. “This isn’t math!” It’s a foreign language. All you
have to do to be more comfortable is to learn the main ‘building block words’ of the language.
But, how do you do that?
THAT’s what’s coming next!

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Here’s some GREAT news... To help you figure out how to understand your bookkeeping better,
you only have to grasp the meaning of one specific word.
That’s right! The entire second point can be summed up in one very simple word.
It’s a word I’m sure you use every single day of your life. Even so, I’m going to go over it again
just to make sure you really understand that word which you use every day with your kids,
spouse, employees, etc. It’s one very simple, basic word.
And that word is… Ultracrepidarianism.
(Hehehehe… See what I did there? I had you believing it was a common word!)
Yeah. I know you probably have never heard the word ultracrepidarianism before so let me give
you a definition and explanation. Here’s what Wikipedia says about ultracrepidarianism.
It’s “the habit of giving opinions advice and instructions on matters outside of one’s knowledge.”
Now, what does that mean? It means we always want to look like we know what we’re talking
about as business owners or managers or students or consultants. We don’t want to look like we
don’t know the answer to a question.
So, because of that, we speak
up quickly and give opinions
and answers on things even
though we may not know what
we’re talking about. Once
again, we do that so we “look”
like we know what we’re talking
about. How does this apply
to understanding your books
better? Let me first give a really short story to explain that:
I was meeting with a client and his CPA one time. Towards the end of the meeting the CPA
looked at my client and said, “I think we should use a straight-line depreciation method to
accurately value the fixed assets on your EOY Balance Sheet.”
TRICK #2
“So that’s it! ‘Use a
straight-line depreciation
method to accurately value
the fixed assets on your
EOY Balance Sheet’ means…

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I’m not joking. That sentence I used earlier is exactly what this CPA said.
Without missing a beat, my client looked straight at the CPA and said, “Yeah, I think that sounds
good. Don’t you agree, Ron?” I smiled to myself and agreed and we went on with the meeting.
I didn’t say anything until we get out of the meeting because I didn’t want to embarrass my
client (and I really did think it was a good idea), but when we walked out of the office, I looked
at my client and I said, “Did you understand what your CPA was talking about?”
His response was, “Well, yeah most of it. Why?”
I said, “No, I’m talking about that specific sentence towards the end of the meeting. The one
when she asked about using straight-line depreciation.”
He looked kind of sheepishly at me and said, “No. I didn’t understand it. But I figured you did,
and you were agreeing with it.”
After some explaining, I made sure he understood what it meant and that we were in agreement.
Then we went on with our day. However, I learned a really important lesson that day that I have
used a LOT going forward. It’s a lesson I work hard to teach every client and student I work
with. What’s that lesson?
It’s our second main point of the book.
And here it is…
It’s okay not to know EVERYTHING.
That’s what you’re paying these people
for!
You can’t be an expert at everything! Have the self-confidence or courage (or whatever you
want to call it) to admit that to yourself… and to others!
That client I was just talking about ran an international adoption agency that helped parents
adopt children from low-income countries around the world. He was very, very good at what
he did. He didn’t need to understand what “straight-line depreciation method on fixed assets”
means. And that brings me back to my point.
If you don’t know something, it’s okay to ask – especially when we’re talking about learning
a new language like we talked about earlier. You don’t have to look like you know absolutely
“That’s what you’re
paying these people for!
You can’t be an expert
at everything!”

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everything all the time. It’s okay to say something like, “I’m sorry, but can you say that again to
me in words that real, normal human beings use?” (Or maybe a little more delicately…)
Or here’s another way to say it… “Look, I’m pretty sure I understand what you’re saying. But for
a second, let’s pretend I don’t understand, and you can explain it to me. That way I can make
sure it means what I think it does.”
And here’s a good piece of news to go with that trick… Asking people to explain or for help gets
easier after you’ve done it a couple times.
Now, let’s not leave you hanging. I’m SURE you’re dying to find out what straight-line depreciation
is so let’s refresh on the line I’ve thrown out a couple of times…
The sentence suggests using “straight-line depreciation method to accurately value the fixed
assets on your EOY Balance Sheet.”
To break this sentence down, I’m going to work it backwards. First of all, the “Balance Sheet” is
a financial report which shows the value of everything you OWN and everything you OWE on
a specific date. (The EOY just means “end-of-the-year.”) So for the last part of the sentence, the
CPA is referring to a report showing what’s owned and what’s owed on the last day of the year.

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As I mentioned, the Balance Sheet lists the value of everything your company owns which are
called your “assets.” The easy definition I teach my students is that assets are “stuff.” The stuff
you (or your company) own. There are a couple of different types of assets (which we don’t have
time to get into right now) but the CPA was referring to what are called “fixed assets.” Those
are the assets that are worth more; the higher priced ones that you can probably use for longer
periods of time because they won’t wear out as quickly. Think of things like buildings, vehicles,
big equipment, stuff like that. That means she was talking about that report (the EOY Balance
Sheet) and what it was showing for the long-term, “fixed” assets.
So now we’re finally down
to the word “depreciation.”
A really short explanation of
depreciation is what happens
when you buy something
expensive that’s going to
be used for years. Instead
of recording the entire
purchase price all at one
time and having it hit your
books all in one month, we
spread it out over a period
of time. We “depreciate” it
over a period of time.
Let’s say you own a pizza shop and you’re buying a new $100,000 pizza oven. If you charge
that as a one-time expense in one month, it’s going to look like you’re lose money BIG time that
one month and all the following months don’t really share the expense of that oven, even though
you’re using it to make income.
Instead, your CPA (and probably the government) is going to want you take that big expense
and spread it out over several years, so a little bit hits your books every month. This way you
won’t show a big loss in one month and will, instead, be able to spread it out over the entire
time you’re using the oven. Make sense?
Finally, the “straight-line” part of the sentence just means the CPA wants to take off an even
amount every month instead of making some monthly amounts more and some less. We’re just
going to do it an even amount every month.

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So that’s it… Use a straight-line depreciation method to accurately value the fixed assets on your
EOY Balance Sheet means…
For your reports at the end of the year, we’re going to take expensive items which you’re going
to use for a long time and spread those purchase costs out evenly so the same amount hits your
books each month.
See? It’s not nearly as confusing when you understand some of the basics of the foreign language.
BUT, you’ve got to be confident enough to say, “Wait! Help me understand that.”
Okay, so that’s two of the three things I want you to understand.
This isn’t math! It’s a new language.
It’s okay to admit you don’t know everything. Sometimes you need to learn something
new to help you run your business better. That’s fine.
But what’s #3? Keep reading to find out.
1
2
3

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So, what’s the last of our 3 Tricks? Let’s find out...
When I work with business owners, employees, or students, I ask them, “WHY do you think we
have to keep track of the bookkeeping at all?
They usually answer with one or two answers. First one is… “I need to see if I’m making money.”
The second one is… “I need to know how much I owe in taxes.”
Both are very good points, and both are very true. But there’s another reason that is very, very
important. And that is…
The information your financial activity tracks will actually help you run a better business and make more
money! (Let’s not forget that making money is the whole purpose of your business or even your non-profit.)
To explain this third point, let me give you
another example from a different client
of mine. This client owned a general
construction company. His company did
home remodels, decks, that kind of stuff.
They were pretty new and still getting up
and running.
At the end of the first year, they made about $500,000 in gross sales. Now keep in mind that
that’s $500,000 they billed to their customers, not how much they made in profit. For that first
year, they also had about $440,000 of expenses which means the company made about $60,000
total profit for the year. That’s how much my client got to take home and spend for himself.
When we sat down and looked at the numbers we had tracked all year, I realized that of those
$440,000 in expenses, about $200,000 of it was for buying lumber.
As we sat there getting ready for tax time, I asked my client why he always bought his lumber
at the “big box store” in town. (You probably know the ones I’m talking about. It’s orange and
takes up a LOT of space.)
TRICK #3
“YOU know your
business better than
everyone else. Use the
numbers you already
have in front of you to…”

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His response was, “It’s convenient.”
Now, I know where that big box store is. I also know there is a locally owned lumber store right
down the street, probably about three blocks away. For years, I’ve driven by a big sign at the
local lumber yard that says they’ll “beat (that big box store)’s prices by 3% on all lumber.”
Of course, my question to the client was, “Why don’t you drive three blocks further and take
advantage of that 3% savings?”
He responded that he didn’t want to hassle with their loading dock. Evidently, he thought it
was a little bit tight to get in and out of and it was a pain in the neck. After his response, our
conversation went kind of like this:
ME: “Hmmm… Okay. Let’s look at THE NUMBERS! You’re spending $200,000 a year
in lumber. If you save 3% of that you’re going to be saving about $6,000 a year.”
HIM: “See, it’s only $6,000 a year. It’s not worth the hassle.”
ME: “Um, you’re comparing the $6,000 to the $500,000 that you billed your customers this
year?”
HIM: “Yeah…”
ME: “Okay, stop. Don’t do that.” (Smacking my head!)
ME: (again): “Look at it this way… That $6,000 a year you would be saving would come
straight off the expense line. That means that $6,000 a year would increase your profit
by that much. Plus, you don’t have to spend ANY money to save that $6,000. It will all
go to the bottom-line profit.”
ME: (still): “That means it would be almost $6,000 a year more in your pocket. That’s
like giving yourself a 10% raise. That averages to about $500 a month more profit just
for driving the extra three blocks. (Hell, make your guys go pick up the lumber so you
don’t even have to deal with the dock.)”
He sat and thought about it for a little bit then he looked at me and said, “$500 a month would
pay for a new car for my wife.”
I said, “Yep. It sure would. Bet that would make someone kind of happy, huh?”
Now, not everybody needs money for a new car. I get that. But that’s $500 extra a month he
could have put back into the business. What could you do if you had an extra $500 a month?

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And more importantly, back to our main
point here… Remember that we found that
extra $500 a month because we sat down
and looked at the books; the books his
company was already tracking to see if they
were making a profit and to calculate their
taxes. We just used them for other purposes.
We took the time to use information he was
already putting into his system so we could
help him make the company run better.
THAT’s the third trick I want to teach you.
Use your knowledge of your own business to
look at the numbers so you can run a better
business; not just to figure profit and taxes.
YOU know your business better than
everyone else. Use the numbers you already
have in front of you to connect the dots with
what you know about your business. Feeling
comfortable looking at your numbers lets
you actually see how different parts of your
organization are running and how they can
be improved; not just how much taxes you
have to pay.
And that wraps up Number 3... Look at your
numbers through the lens of your business.
YOU know YOUR business better than
anyone else. See what “feels” right; what
seems “out of whack” based on your instincts
of your business. Then work backwards
if you need to. Use those gut feelings to
ask about specific numbers to see if they
match what you think they should be. Have
confidence in what you DO know to learn
what you don’t.

3 TRICKS TO
UNDERSTANDING
YOUR BOOKKEEPING
Think of it as learning a new language. It’s not math. Stop being afraid of it.
There’s some addition, a little bit of subtraction and a TINY amount of multiplication and
division... And you ALWAYS can use your calculator!
Realize that the numbers give you LOTS of information you
already understand.
They’ll help you figure out where you can make some savings.
They may help you figure out if you’re not charging enough
or if you can raise prices. They’ll help you understand how
your entire operation fits together.
Be comfortable enough with yourself to admit there are parts of all this you don’t understand
or that you might need to understand better.
Be honest with yourself to admit you’re not Superman or Wonder Woman and you might need
help. Don’t be an ultracrepidarianist, especially when it comes to your bookkeeping.
TRICK #1
TRICK #3
TRICK #2
So there you are! Those are the three tricks to better
understanding your bookkeeping (and to making more money!)
www.bsnsAtlas.com
Copyright ©2020 RJT Consulting, LLC
All rights reserved.

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As you probably saw on the front cover, my name is Ron Trucks and way back in the beginning, I
became someone who knew how to run hotels. I earned a BS from the University of Central Missouri
in Hotel Administration and was lucky enough to work for some of the largest and smallest hotel
companies in the world. It was a pretty hectic life, but I was really fortunate to learn pretty much the
entire operational side of running hotels (and got pretty good at it if I’m being a little egotistical here.)
Then, through a strange chain of events about 25 years ago, I decided that it was time to leave
the hotel industry. (Actually, I got burned out with the hotel business and walked away but it
sounds better to say, “through a strange chain of events…”)
When I left the hotel world, I moved
to Florida to open a bar! Beach, sun,
water, a cocktail or two. You know… The
“leisurely” life of running my own small
business.
While I was down there enjoying all the
fun, I started getting phone calls from
friends and acquaintances from around
the country who were opening businesses
(or trying to save their struggling ones.)
Since most of my time in the hotel business had been opening new properties or working with
struggling ones, these people were asking me to help them learn or improve the “business” side
of their businesses.
All of a sudden one day, I woke up and realized I had a consulting business that I had I never
planned on. That was over 25 years ago and RJT Consulting, LLC is still going strong. We work
with a small list of clients, usually referred by word of mouth. They range from local non-profits
and service companies to very large financial firms with national and international clients.
Then about 15 years ago, I realized I REALLY like to teach, so I walked into a local community
college and asked how I could get started. My cross-range of experience and talents lead pretty
quickly to a faculty position and I’ve been there since. I work with students of all backgrounds
SO YOU WANT TO KNOW
MORE ABOUT ME, HUH...?
“I TRULY believe
there are not enough
resources andhelp in
the world for the really
small businesses…
that’s why I launched
bsnsAtlas.com”

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helping them learn MANY
different aspects of business; from
bookkeeping to management
skills, from entrepreneurship to
personnel. Like my consulting firm
clients, I focus on helping those
students learn what they need
to know to run the BUSINESS
operation, regardless of what
TYPE of business they are in or
are going into…
But as I’ve moved through my
business and educational careers,
there has been an element I always felt the need to keep pushing on. I TRULY believe there are
not enough resources and help in the world for the really small businesses. Not what magazines
and most websites refer to as “small business” which “only” make $25 million dollars a year.
(Sheesh! Gimme a break!) I’m talking about the landscapers and restaurants and tutors and
private consultants that work independently, and all the other very small operations that work
hard and want to make their business the best it can possibly be.
Some people call those type businesses “mom and pop operations.” Some call them “micro-
businesses.” Some call them single-owner companies. I don’t think any of those really do justice
to what I consider to be the true backbone of the world’s economies.
Those are the companies that can’t afford a $1,000 training week at a private spa somewhere
just to learn QuickBooks™. Or can’t afford to pay a private coach to come tell them how all
the textbooks say their business should be ran. They can’t afford, sometimes, to even bring on a
part-time employee to keep track of their bookkeeping.
So, to try to help those hard-working, driven individuals who just need some help without
breaking the bank, the ones who need to be able to catch up and dig in at 1:00am after the
kids have gone to bed, the ones who want to feel comfortable with answering questions their
tax advisors or accountants ask, I decided five years ago to launch bsnsAtlas.com.
And in many ways, bsnsAtlas.com sums up my entire career… We help people figure out the
“business” of their business. Our goal is to be “Your map to finding your own skills.” If you want
to know more about bsnsAtlas, check out the next page.

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bsnsAtlas is where independent, small business owners find answers, resources, and education to
help answer those big and little questions that pop up when running a business.
As I mentioned in my rambling about me, my career has always involved working with small
businesses and helping them run better, by helping business owners (and people who HELP
the business owners.) I know how frustrating it is to not have simple, quick, easy-to-understand
answers without having to pay big bucks or dig all over the internet.
In thinking about what I have done for years on a daily basis, I realized it was possible to use
my experience teaching students and clients all the basics of business and make that available
to all of YOU. To do that, I began by translating the materials I use in my in-class teaching and
supporting my clients to a more user-friendly platform that’s available whenever you need it.
To achieve that, the cornerstone of bsnsAtlas is our on-demand, online video courses which help
students learn the basics of business. These courses serve as lifetime resources when you have
questions and issues come up. In these courses you get me, teaching you, on your schedule, when
you want, in small bites, with easy-to-understand language, and LOTS of support and freebies.
What is bsnsAtlas.com?

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And yes... I did say lifetime, unlimited access.
You may not need help with a specific topic
right now, but it will be in your course library
for when it happens later on down the line.
And before I scare you off talking about a
lifetime commitment to each other, here’s
something to think about. The first course is
only $9.77 USD (and each of the following
courses typically range around $20 for
bsnsAtlas students already enrolled in at
least one course.)
Plus... not only do you get the videos, every
lesson in every on-demand course comes with
downloadable note sheets so you can follow
along and keep notes, comments, questions,
etc. We also include LOTS of samples,
information links, and other resources as
part of the packages.
Along with the on-demand courses and their
resources, bsnsAtlas students have unlimited
contact with me and our team for help and
advice (at no extra charge) through our
PRIVATE Facebook Group where I answer
questions and posts almost every day. With
1,000’s of students from around the world
in our Facebook Community, not only do I
help, but your fellow students are there to
assist, network and more!
On top of all that, enrollment in the on-
demand courses includes unlimited access
to the “Ask Ron…” blog series where I take
questions from our students and post
answers several times a month on hot topics,
big questions and anything you can think of.

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When I first started developing bsnsAtlas and these courses, I didn’t know if anybody would be
interested in the materials I wanted to teach. I’m a realist. I know that learning how to run a
business is not one of the most exciting topics out there. It’s not like watching YouTube® videos
of makeup lessons or “101 Ways to Cook an Avocado.” I get that.
But I’m extremely happy to say that, as of right now, we average between 20 and 30 new
students a day from around the world. Along with that, we carry an average of about 4.8
out of 5 stars across all of our course ratings. There are students RIGHT NOW learning,
understanding, networking, and succeeding because of the information and resources bsnsAtlas
brings to them.
Well, the good news is I guess I haven’t bored the crap out of you if you’re still hanging around
at this point in the book.
There’s really only one thing left to do at this point… Come join us! Learn what you want to
learn. Skip what you want to skip. And remember that we are always here if you want to add
more to your resources!
Take advantage of that first course for only $9.77 by visiting www.bsnsAtlas.com/newstudent

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