Accountants aid families during tax season.
Keeping a log book of your business is important for accounting and financial projections. Accounting is the backward-looking aspect of business evaluation and finance is the forward-looking or futurist process of business evaluation. Finance produces projections about the future. These two concepts should be the basis for your log book. Keeping a log book with accoounting and finance information is the bare minimum for running a business.
Instructions
1. Open the log book and record your business name, fiscal year and other business registration details. Enumerate the book into 12 equal sections for twelve consecutive months. Leave an extra page every three months for quarterly assessments. Retrieve all your business records and divide them into accounts payable and accounts receivable.
2. Create two columns in the book, one for receivables and one for payables. Receivables are monies owed your organization and payables are monies you owe to any other entity. Tracking these two functions of business are a quick summary of the accounting equation: assets = liabilities + equity and it gives an immediate summary of the condition of a business.
3. Record supply-chain management issues and/or service management issues. These need to be tracked every month and every item mentioned must be resolved. Supply-chain problems are not to be ignored. They can easily cost you your business.
4. Record and track your business using a cash-flow statement, balance sheet and profit-and-loss statement. Each of these tools can be completed using a tool like Quicken. Each month you will simply enter your separate transactions and it will compute these statements for you. Quicken and similar accounting tools are not sufficient by themselves to manage your business. Your log book is a planning and organizing tool. Accounting software only tracks money. Your log book is your primary tool for managing your business and resolving issues that might severely damage it.
5. Record all previously mentioned data into the log book and perform quarterly reviews of the data. Each of these reviews plus a yearly review constitute routine assessments that can continuously improve your organization.
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