1. As a Small Business Owner, you must be aware of the Rules of the Accounting  GAAP  FASB  SEC and IRS  AICPA u The rules u The rule makers u The rule enforcers u The CPA regulators

2. As a Small Business Owner, you must be aware of 3 global accounting policies:

3. Business Entity Concept Each business has its own financial records and financial statements that are separate from owner’s personal financial records No intermingling of personal and business assets and liabilities & income and expenses Proprietors should put themselves on payroll Business Books & Records Owners’ Books & Records

4. Avoid being sued…. If your business goes bankrupt or if your business is being sued, only the business’ assets can be seized, not your personal assets So…legally declare your business (register) with the gov’t

5. Historical Cost Record assets at cost paid to acquire them Record sales at time of purchase, regardless of when you receive payment

6. Going Concern Assume business will continue indefinitely into the foreseeable future