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Accounting For Entrepreneurs

Key questions to address:

1. Statistics on types of start-ups by business type
2. Correlation of business lifecycle and type of accounting system
3. Formal training and experience of accountant inside the entity (ignoring external service providers)
4. Mix of time spent on transaction processing vs planning vs analysis

Notes from Streetwise Finance and Accounting for Entrepreneurs by Suzanne Caplan (2006) (my ideas are in the sub-bullets)

1. Finance and Accounting is the heart of any business - bottom line, planning, preventing surprises
   • Need to understand cash flows and profits. Including contribution margin of products, fixed costs of products and SG&A expenses.
   • Planning, or budgeting, should have operational components (for materials, HR, infrastructure), cash flow requirements, and volume considerations.
   • An understanding of risk is necessary to deal with surprises
2. Appendix 2 Troubleshooting by the numbers uses I/S and B/S ratios and calculations to examine how a business is operating.
   • good case study particularly if expectations or inventory norms are provided
3. Google books link
4. Comments:
   • The focus from the front end is more on details of accounting, i.e. the first chapter is the general ledger, and lacks a big picture of the enterprise and the accounting system.

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