Mapping Your Accounts
In This Chapter
• Charting your course
• Getting in balance
• Paying your debts
• Calculating your net
Question: How do you drive an accountant completely insane?
Answer: Tie him to a chair, stand in front of him, and fold up a road map the wrong way.
Whenever you take a trip, one of the first things you consult is a map to chart your course. Operating a business isn’t much different from taking a trip: you need a map to reach your goal. If you don’t have a good idea of where your money is going, you have no way of knowing whether your business is profitable.
In business, this road map is known as the general ledger, which is the centerpiece of any accounting system. The general ledger is the place where ...