| iv> | | | | to the meatier topics. Study general terms (profit, |
| You have a business and now you need to keep | | | | overhead, depreciation, revenue, etc.) The more |
| track of the profits and losses. What are you | | | | you learn, the easier handling problems will be |
| going to do. Learn how to get started. | | | | down the road. |
| The doors are finally open. The flashy sign | | | | Learn about which type of accounting method |
| proclaiming, Come On In,... is brightly lit on the | | | | you will be using. There are two kindscash |
| front door, and your new business is booming. | | | | accounting and accrual accounting. As the owner |
| Life is beautiful, and you can’t help but | | | | of a small business, it is usually recommended to |
| think to yourself. My, this would be a good day to | | | | use cash accounting, which records transactions |
| manage my liabilities and redeemable assets! | | | | as you receive payment for them, instead of |
| Well, maybe not. Face it. Most accounting is boring, | | | | when the transaction takes place. You will have to |
| slow, confusing and, sadly, very necessary. There | | | | choose which one you will use when you are filling |
| are terms to learn and facts to know, and for | | | | out your taxes. |
| most small business owners, you simply | | | | Get familiar with accounting toolsaccount |
| couldn’t afford to hire your own | | | | ledgers, balance sheets, journals and other items. |
| accountant. Fortunately there are lots of great | | | | Explore the options on the computer program |
| accounting software programs available, but to in | | | | you choose to use, and read the manual. The |
| order to use them they way they should be | | | | computer program will be a great tool, but you |
| used; you need to have a basic understanding of | | | | need to be in control of it. |
| accounting. Take a deep breath, close your eyes | | | | Learn the basics of accounting principlesliabilities |
| and dive in. | | | | have to be subtracted from the asset value to |
| But
where? | | | | find the equity, etc. Set up a procedure for |
| The best first step is to learn as much as you | | | | following your accounts. For example, save every |
| can about accounting. Find simple books on | | | | receipt throughout the week, and go through and |
| accounting at your library, and work your way up | | | | settle your accounts every Saturday. |