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Bookkeeping - Accounting

Great Tips
  • Learn about basic bookkeeping.
  • If in doubt, ask your accountant.
  • Go to your local bookstore or online to find a book on basic accounting for small business.
  • To find an accountant in your area, visit a professional accounting association online. In Canada, the standard is CPA - Chartered Professional Accountants.

Accounting Solutions

A True Story

Once upon a time, there was a Baker named Igor. Once a month, his accountant, Antal would come to his store and pick up his sales slips and receipts - in a shoe box. Does this sound like you? We hope not - but if it even remotely does, you need professional help.

At Ask Marian, we can review your record keeping needs and recommend the best course of action.

Basic Bookkeeping 101

There are many types of accountants. There are bookkeepers, bookkeepers who refer to themselves as accountants, accountants, accountants who refer to themselves as auditors, and auditors (the top of the accounting food chain). There are accountants with designations, and those without. You can refer to the person you pay to do your books as your accountant.

In some cases, you may have to provide audited financial statements to your shareholders. Therefore, you must employ the services of an auditor.

If you wish to do your own books, we advise you hire a professional accountant (see resources section) to file your tax return for you. You can do this if you hire someone else to do your daily books as well. If you are very comfortable with accounting and have no problem with a potential government audit, you can do it yourself. If not, it is best to choose an accountant who specializes in the size and type of business you are running.

In any case, try to do any pre-bookkeeping work yourself. It will be rather costly to hire an accountant once a week.

Balance Sheet

This is the statement that lists your assets, your liabilities and your owner's equity. It is called a balance sheet because the assets equal your liabilities + owner's equity.

Income Statement

This is the statement that shows your sales, and the expenses you incurred to run your business and generate those sales. It is called an income statement because it shows your net income - or loss.

There are many other accounting terms. You should know the ones that pertain to your statements. If you ask, most accountants will explain your financial statements to you.

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