Accounting & Financial Management

Accounting and Financial Management

One of the keys to running a successful small business is sound accounting and financial management, whether you accept cash only or deal with large volumes of credit transactions. This section contains how-to guides and tips to help with cash management, maintaining a balance sheet, protecting against employee fraud, the valuation of intangible assets and more. Resources for start-ups and sample financial documents also are provided.

Essentials:

• The Importance of Cash Management - How poor cash management often sinks new small businesses.
• Bookkeeping and Accounting Basics - Overview of small business bookkeeping and accounting.
• Cash vs. Accrual Accounting - The differences and similarities between cash and accrual accounting.
• Financial Statements: The Balance Sheet - Primer on what constitutes a business balance sheet.
• Reading a Balance Sheet - Small business owner's guide to reading a balance sheet.
• Accounting Terms Every Businessperson Should Know - Definitions of "bookkeeping," "ledger" and other important accounting terms.
• Accepting Cash and Checks - Best business practices for accepting cash and checks.
• Protecting Against Employee Fraud: Dos and Don'ts - How to protect your business from employee fraud.
• Embezzlement Warning Signs - How to spot embezzlement within your organization.
• Valuation of "Intangible" Assets - How to value trademarks, contracts and other so-called intangible assets.
• Loans and Equity Investments Compared - How to decide whether loans or equity investments are better for your business.

For Start-Ups:

• Start-Up Costs: Overview - Basics of what to expect when estimating business start-up costs.
• Estimating Start-Up Costs: Form - Sample estimate of business start-up costs.
• More in the Start-Up Financing Section - Various resources pertaining to start-up financing.

Tools and Resources:

• Taxation and Accounting Terms: Glossary - Definitions of common business taxation and accounting terms.
• "Bad Debt" Accounting Terms: Glossary - Explanations of common "debt debt" business accounting terms.
• Sample Balance Sheet - Sample form with common types of information included on a balance sheet.
• Sample Operating Budget - Worksheet to help you estimate your operating budget.
• Sample Personal Financial Statement - Worksheet to help you estimate your personal assets and liabilities.
• Sample Profit and Loss Statement - Worksheet to help you determine the profit and loss for your business.

See also:

• Figuring Out What Your Business is Worth - Business valuation methods for when you're ready to sell.