Keeping the Books: Basic Recordkeeping and Accounting for the Successful Small Business Book

	Acknowledgments	x
Chapter 1	Recodkeeping Basics	1
	Functions of Recordkeeping	1
	When Does Recordkeeping Begin?	3
Chapter 2	Income and Expenses	5
	Income (or Revenue)	5
	Expenses	5
	What Are "Deductible" Expenses?	6
	Common Deductible Expenses	7
Chapter 3	Cash Accounting versus Accrual Accounting	9
	"Cash" and "Accrual" Accounting Defined	9
	Which Method Will You Be Required to Use?	10
	Pros and Cons of the Two Methods	11
	Can You Change Methods from Year to Year?	12
Chapter 4	Essential General Records for Small Business	13
	Single and Double Entry Systems	14
	Numbering of Accounts	16
	General Journal	18
	General Ledger	20
	Single Entry Accounting	25
	Revenue & Expense Journal	26
	Petty Cash Record	30
	Inventory Record	32
	Fixed Assets Log	38
	Accounts Receivable	40
	Accounts Payable	42
	Payroll Records	44
	Independent Contractors	47
	Transportation, Entertainment, and Travel Expenses	50
	Customer Information Records	56
	Business Checkbook	58
	Receipt Files	60
Chapter 5	Financial Statements	61
	What Are Financial Statements?	61
	Balance Sheet	63
	Profit & Loss Statement or Income Statement	66
	Business Financial History	70
	Personal Financial Statement	74
	Pro Forma Cash Flow Statement or Budget	76
	Preparing Your Cash Flow Statement	77
	Completing Your Pro Forma Cash Flow Statement	84
	Quarterly Budget Analysis	86
	Three-Year Income Projection	88
	Breakeven Analysis	90
Chapter 6	Financial Statement Analysis	93
	Financial Statements	93
	Liquidity Analysis	96
	Profitability Analysis	98
	Debt Measures	100
	Investment Measures	101
	Vertical Financial Statement Analysis	102
	Horizontal Financial Statement Analysis	104
	Summary	105
Chapter 7	Taxes and Recordkeeping	107
	Basic Understanding of the U.S. Tax System	107
	Federal Taxes for Which You May Be Liable	109
	Calendars of Federal Taxes	109
	Income Tax (for Sole Proprietors)	114
	Home Office Deduction	117
	Income Tax (Partnerships)	119
	Income Tax (S Corporations)	122
	Income Tax (Corporations)	124
	Estimated Tax (for Sole Proprietor, Individual Who Is a Partner, or an S Corporation Shareholder)	127
	Estimated Tax (Corporations)	130
	Self-Employment Tax (for Sole Proprietor, Individual Who Is a Partner, or an S Corporation Shareholder)	132
	Social Security (FICA) Tax and Withholding of Income Tax	135
	Federal Unemployment (FUTA) Tax	142
	Payment to Nonemployees for Services Rendered	145
	Taxpayer Identification Number (EIN)	148
	Free Tax Publications Available from the IRS	149
	Summary	152
Chapter 8	Recordkeeping and Tax Reporting Schedules	153
	Organizing Your Recordkeeping	153
	Building Your System	154
	Recordkeeping Schedule	156
	Tax Reporting Schedule	158
Chapter 9	Preparing for Uncle Sam	161
	What to Give Your Accountant	162
	The Last Chore	163
Appendix I	Independent Contractors: Facts versus Myths	165
Appendix II	Worksheets	173
	Small Business Resources	197
	Glossary	199
	Index	207