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Certified Public Accountants
ACCOUNTING AND BOOKKEEPING
Most operators of a new and growing business have a flair for the environment in which the business operates. They may be great salespeople, outstanding mechanics, carpenters, lawyers, or inventors. Unfortunately most people don't like to keep the books.
As an owner of a business you must remember that your company's books and financial statements represent a score sheet which tells how you are progressing, as well as an early warning system which lets you know when and why the business may be going amiss. Financial statements and the underlying records will provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. The necessity for good, well organized financial records cannot be over emphasized. One of the greatest mistakes made by owners of small businesses is not keeping good financial records and making improper or poor business decisions based on inadequate information.Quality financial information does not necessarily translate into complicated bookkeeping or accounting systems. Far too often owners of businesses become overwhelmed by their accounting system to the point where it is of no use to them. An accounting or bookkeeping system is like any tool used in your business; it needs to be sophisticated enough to provide the information you need to run your business and simple enough for you to run it (or supervise the bookkeeper). Questions you should ask in developing an accounting and financial reporting system are:
- Who will be the users of the financial information?
- What questions do I need answered to manage the business?
- What questions should be answered for government or regulatory taxing authorities?
As your business grows, you should work closely with your accountant to ensure that your accounting system is providing you with appropriate information.
Chart of AccountsCash or Accrual Accounting
Accounting Records and Record Keeping
Computers
Internal Control
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