O'Reilly logo

QuickBooks 2014 For Dummies by Stephen L. Nelson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Appendix B

If Numbers Are Your Friends

You don’t need to know much about accounting or about double-entry bookkeeping to use QuickBooks, which, as you know, is most of its appeal. If you’re serious about this accounting business or serious about your business, consider finding out a bit more; setting up QuickBooks and understanding all the QuickBooks reports will be easier, and you’ll be more sophisticated in your accounting, too.

casestudy_qb.eps Just because the accounting in this appendix is a little more complicated doesn’t mean that you can’t understand it. To make this whole discussion more concrete, I use one running example. I hope it helps you! If nothing else, it’ll inspire you to get into the rowboat rental business.

Keying In on Profit

Start with the big picture. The key purpose of an accounting system is to enable you to answer the burning question, “Am I making any money?”

Accounting is that simple. Really. At least conceptually. So, throughout the rest of this appendix, I just talk about how to calculate a business’s profits in a reasonably accurate but still practical manner.

Let me introduce you to the new you

You just moved to Montana for the laid-back living and fresh air. You live in a cute log cabin on Flathead Lake. To support yourself, you plan to purchase several rowboats and rent them to visiting fishermen. Of course, you’ll probably need to do quite a bit of fishing, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required