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Module 06 - Basic Double-Entry Financial Accounting
for the First-Time Entrepeneur

Author's Notes

Certified Public Accountants (CPA) hourly fees vary between $175.00-275.00. Therefore, as an aspiring entrepreneur you must master the basic concepts of accounting. The online services provided by QuickBooks Software at $49.00 monthly fee has been a life-saver for Connelly Rentals LLC. Occasionally, my wife, Janet who does the rental business accounting needs to call our CPA firm for additional instructions. I am encouraging any start-up business owner to commit to learning the double-entry method. I’m learning, slowly!

Goals

Accounting Cycle
Assets
Liabilities
Owner's Equity
Revenue
Expenses
Financial Statements
Planning and Control

Case Study - Beth Commits to Learning Accounting

Beth and husband were challenged in preparation of the financial section in the business plan in deciding how to approach the bakery accounting since the previous owners adopted the single entry accounting method when they started the bakery in 1999. ADD: research IRS-- can't switch single to double entry. The new owners were debating which double entry software package to purchase. The single entry system advantage was that it is simple to use and it is accepted by IRS for filing federal income taxes. However, the single entry does not offer the owner all the information needed.

Beth's husband Bob committed to enrolling in night classes at the local community college to learn QuickBooks, an online accounting software package. Throughout the three semester hour course that met two nights a week, students were introduced to accounting software tutorials. The students gained hands-on experience and had an opportunity to compare different software products before purchasing an online product.