Definitive Business Plan, Second Edition, The

The way that bean counters think

If you are handling a business plan then wherever you are, whatever you do, you need to be familiar with the preconceptions of the accounting profession. Some of their amusing beliefs are listed opposite. Three other little issues that are worthy of special mention are as follows.

Debits and credits

This might seem to be another obvious thing to say, but make sure that you know the difference between debits and credits (see Who owes whom?). If you are new to company bean counting, you might find that they move in opposite directions to the way that you expect.

Double entry accounting

Double entry accounting is logic that simplifies the preparation of forecasts – it helps make this process as painless as possible. ...