Chapter 23
Top Ten Ways to Manage Your Business Cash with Your Books
In This Chapter
Keeping a handle on internal bookkeeping tools
Monitoring profits and expenses
Dealing smartly with vendors, contractors, and customers
Many business owners think of bookkeeping as a necessary evil, but in reality, if you make effective use of the data you collect, bookkeeping can be your best buddy when it comes to managing your cash. The key to taking advantage of what bookkeeping has to offer is understanding the value of basic bookkeeping principles and using information collected. This chapter reviews the top ten ways to use your books to help you manage your business cash.
Charting the Way
You may not think that a list of accounts, called the Chart of Accounts, is worth much attention, but this chart dictates how you collect your financial data and where in the books you put your company’s transactions. In order for you to be able to use the information effectively, it’s crucial that your Chart of Accounts defines each account precisely and determines exactly what types of transactions go where. (I talk more about the Chart of Accounts and how to set one up in Chapter 3.)
Balancing Your Entries ...
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