IN THIS CHAPTER
Sorting out accounts receivable and accounts payable
Keeping track of inventory
Figuring out fixed assets
Finding out about asset write-downs
Handling revenue and expense account closings
Even if you understand the principles of accounting (which I describe in Book 1, Chapter 1) and the basics of double-entry bookkeeping (which I describe in Book 1, Chapter 2), you still may not have all the information that you need to keep good records. Tracking the amounts that customers owe you and the amounts that you owe vendors can be a bit tricky, for example. Inventory can also present challenging record-keeping problems — a fact that’s not surprising to you as a retailer. And things like fixed assets — oh, don’t even get me started.
For these reasons, this chapter describes the most common complexities that business ...