Starting a Business All-In-One For Dummies

Book III

Managing Your Finances

Check out a free survival guide for business financial management at www.dummies.com/extras/startingabusinessaio.

Contents at a Glance

Chapter 1: Setting Up the Books

Bookkeepers: The Record Keepers of the Business World

Wading through Basic Bookkeeping Lingo

Pedaling through the Accounting Cycle

Tackling the Big Decision: Cash-Basis or Accrual Accounting

Seeing Double with Double-Entry Bookkeeping

Differentiating Debits and Credits

Outlining Your Financial Roadmap with a Chart of Accounts

Starting with the Balance Sheet Accounts

Tracking the Income Statement Accounts

Setting Up Your Chart of Accounts

Chapter 2: Understanding Your P&L

Getting Intimate with Your Profit and Loss Report

Measuring and Reporting Profit and Loss

Presenting the P&L Report for Your Business

Breaking Through the Breakeven Barrier

Improving Profit

Chapter 3: Working with Cash Flow and Staying Solvent

Sorting Out Your Sources of Cash

Avoiding Confusion Between Profit and Its Cash Flow

Deciding How to Have Cash Flow Information Reported to You

Introducing the Statement of Cash Flows

Summing Up the Critical Importance of Cash Flow from Profit

Liquidity and Business Solvency

Business Solvency Measurements Tools

Liquidity Measurements Tools

Liquidity Traps

Untapped Sources of Liquidity ...