Understanding what Financial Statements Say about Your Business
If you are looking to build your business accounting system from the bottom up, use this publication prepared at a university-based Small Business Development Center under the auspices of the US Small Business Administration.
As this guide explains, there are four levels in your business accounting system. They are:
- The Foundation. These include source documents and the overall filing system you establish (invoices, bank statements, receipts).
- The Input List. These are lists and dates of transactions (checks, vouchers, sales and deposits).
- The Category List. Can also be called the chart of accounts. It shows types of sales and expenses in a general ledger format.
- The Management Report. These are the Financial Statements (income statement, balance sheet, cash flow report).
The guide discusses each in detail and offers examples for helping you to understand the significance for each in your business.
Disclaimer: This resource is not affiliated with Count Me In. Count Me In cannot confirm the quality or reliability of the information presented.
