| Upon starting a new business your enthusiasm | | | | pictures together in a logical order. |
| sometimes overwhelms you. That is justifiable | | | | Once you have done this, you can figure out your |
| because you are starting a new venture. If you | | | | tax liabilities, tax advantages and other |
| are new to a business venture, then you should | | | | governmental requirements. If you are not |
| know a few things about accounting. Most people | | | | current with tax laws and regulations, your |
| think bookkeeping and accounting are one in the | | | | bookkeeping will be essential to an accountant. |
| same, when, in fact, they are not. They are | | | | An accountant will help keep you on the right |
| related but not the same. | | | | track. It is generally best to consult with a |
| Bookkeeping | | | | certified public accountant (CPA) to get you on |
| Bookkeeping is a record of your daily, weekly, | | | | the right path. As the old saying goes, "an ounce |
| and monthly activities. It tracks what you spent | | | | of prevention is worth a pound of cure." The one |
| and how much you received for your goods or | | | | thing you don't want is trouble with the Internal |
| services. These records reflect a snap shout of | | | | Revenue Service. |
| your business. They help you keep track of your | | | | Accounting + Book Keeping = Financial Picture |
| profits and losses. | | | | The two parts of handling finance is essential in |
| Keeping up with all your expenses, purchases, and | | | | keeping your business going. Bookkeeping and |
| sales is essential to figuring your cost of goods | | | | accounting go hand and hand and will make or |
| sold and in helping you in figure your taxes later | | | | break your business you worked so hard to get |
| on. The better you keep your records, the more | | | | going. |
| you will know about your business. | | | | - Bookkeeping is the records keeping process, |
| Each day, week, and month will be an individual | | | | - Accounting is the interpretation of the records |
| picture showing you how you are progressing or | | | | you kept. |
| not progressing. | | | | Used wisely they will be essential to taking |
| Accounting | | | | advantage of all the tax breaks you are entitled |
| Accounting is the process of taking the | | | | to receive. |
| information you kept in your bookkeeping process | | | | A parting thought. The more organized you keep |
| and making a moving picture out of it. This movie | | | | your books and the more accurate they are, the |
| will actually show you what you have done, | | | | more money you save when it comes to going |
| where you are heading, and what you should | | | | to an accountant at tax time. |
| expect. Simply put accounting is putting all the | | | | |