Accounting..the word that often sends shivers up the bravest entpreneurs spine. We know we have to do it ...but oh how we dread it and find it really BORING!
The problem we need to know what is going on in our business
1. Is there enough money coming in to pay the bills?
2. Is there enough money to pay me?
3. Is there enough money to grow my company?
Accounting gives us the answers...but often in confusing ways.
So for the next few posts we will talk about our least favorite subject...Accounting.
Did you know that there
are three kinds of accounting. They are:
Tax accounting, Cost
accounting and Your accounting.
What's the difference you ask? Simple: The goals of each.
What's the difference you ask? Simple: The goals of each.
Tax Accounting is what
you do to keep track of what you owe to various government entities. This is what most people use their accountant
for.
Cost Accounting is what
you do to keep track of what it costs to run your business and produce your
goods/services.
Your Accounting...that is the numbers you keep in your head about your
business. They maybe "right on" or totally off. Keeping numbers in your head is one way
of keeping yourself and others confused...and a good way to loose your business that you have worked so hard to build up. 
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