Page 113 - The Magic of Tiny Business
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Part III Practice Your “How”
Accounting: Use It Every Day and Use It Well
If you’re anything like me, you’re not naturally inclined to
work in the abstract world of numbers—especially when
there are so many exciting things to do like products to
create, customers to meet, and logos and websites to
design. But, as Mac warns, procrastinating on your num-
bers is as dangerous as driving without your headlights at
night.
And that’s where a well-designed chart of accounts
and reports comes in . . .
Accounting is a tool to track and record your everyday
financial reality, including:
® How much money was actually received for the
sales that were made.
® How much the items that you sell really cost to
make or purchase from others.
® How much you paid for rent, utilities, marketing,
travel, insurance, and payroll (including all those
benefits and taxes).
It can tell you how you are doing, what’s working, and
what isn’t. It can also help you to watch trends and pat-
terns so you don’t get surprised when you arrive at work
one day and find out:
® Your bank account is overdrawn.
® You’re going to miss payroll.
® Your most important customer hasn’t paid you in
two months.
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