1st Full week of January 2010 is starting with a very cold night - with wind chill warnings out with our new forecast. To give you an idea of our glorious week: Tonight -1, Mon (H 12 L-4), Tue (H16 L9), Wed (H15 L-3), Thur (H 0 L-15). When you looking at a high of 16 on (Tue) for the week and a low of -15 for Thur you are not going to set any heat wave records.
Tuesday morning we will have our 10:00am, 1st Tuesday of the month, Lincoln SCORE Chapter meeting. This is our Executive Board Meeting where we set up the meeting for our General Meeting, resolving issues, reviewing reports, and planning the Regular Monthly Meeting along with any speakers we may have. Even with the down turn in business we have been relatively busy helping both individuals just starting businesses as well as individuals with problems in the current businesses. I enjoy working with the young entrepreneurs - they are usually so eager and feel that their new idea is so fresh and unique no one else has heard about it. They are so excited that sometimes they don't want to tell you the whole program - fearing you might take their idea.
It seems that we have had a lot of requests in the latter part of 2009 from individuals wanting help to improve their accounting systems. I spend time in explaining the need for developing with an understanding - the company's Chart of Accounts and accounting system. I usually start by showing that simplicity in a name and numbering system that will allow them to develop a better management statement. By showing them the reasons behind the details and logic needed in developing a Chart of Accounts they are gaining a better understanding what I mean - when I say management statements. I utilize my book, "Cover Your Nut", as I have developed a logical sequence for this development.
I will give you an example frame work I use for developing a
Practical Accounting Chart of Accounts:-
The Balance Sheet Keys Behind the Numbers
*100-109 Cash Accounts *201-209 Accounts Payable
*110-119 Accounts Receivable *210-219 Taxes Payable
*120 -139 Inventory *220-239 Accruals & Payables
*140-149 Prepaid Items
150-159 Fixes Assets 240-249 Long Term Liabilities
160's Incorporation Exp or Technical Papers 301-309 Equity Accounts
Total Assets Total Liabilities & Capital
*Current Assets=100-149 (cash in one year) *Current Liabilities=201-239 (paid in one year)
The Income Statement Keys Behind The Numbers
The 400's represent the Income Accounts
The 500;s represent the Cost Of Goods Accounts
The 600's represent the Operating Accounts
The 700's represent the Selling Accounts
The 800's represent the Administration Accounts
All of the about information, along with all of the supporting information is found in my book, "Cover Your Nut" - Practical Accounting in Plain English for the Real World
Chapter 1.2 Basic Accounting Principles
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