The introduction to the chapter emphasizes that there are several reasons to keep accurate financial records, including the legal requirement of filing taxes, the needs of the administrators, and the ways in which it helps keep the business on track. Too methods of accounting are discusses: accrual vs. cash basis. An accrual system counts income and expense when the money is committed. A cash system records income and expense when the money come in or is spent. Both systems will add up to the same totals in the end, but the methods are difference. Small businesses are advised to use a cash basis system because it is simply easier to keep track of. Accrual systems are the standard for larger businesses. The chapter goes on to list what documents are necessary to keep and which can be discarded and how to use these documents in keeping financial records. The basic documents are a check register and bank statements. Using just these two items, the chapter gives a seven-step instruction guide to reconciling a bank statement. Reconciling your bank statement is the cornerstone of keeping accurate financial records. An income register, billing records, payroll records, and a balance sheet are other important financial documents discussed. The importance of each and examples of what the spreadsheets look like are included in the chapter. Chapter 6 also discusses how to keep financial records and discusses manual systems, computer spreadsheets and financial accounting software. The chart of accounts is also discussed, as this information defines how the financial information gathered will be organized.
Chapter 7 -- the Decision-Making Process
This chapter discusses...
The founder will purchase the facility, rather than rent it and will pay up to 85,000 for down payment. The costs total up to $587,980 and the expected income is of $705,600, revealing a net profit of $117,620 after the first year of operations. Part of the investment will come from the economies of the founder, the rest remaining to be gathered from bank loans. Contracting bank loans is
Parent may then wonder if they are lenient on other policies as well. They may begin to doubt the ability of the childcare facility to provide a safe environment for their children. The only policy, short of legislation protecting women's jobs for taking care of a sick child, is to adopt a policy that requires each parent to have a back up in case they cannot leave work to pick
Middlehurst House Case Bill Compton Proposed Middlehurst House Budget Adjustments Our catchment area continues to show high interest in the childcare services that Middlehurst House offers. We consistently have a waiting list of children and receive enthusiastic inquiries from parents each month. Casual discussions with realtors in our area and exploration of the county's residential property values database indicate that the surrounding neighborhoods are experiencing more gentrification. Indeed, there are indications -- including
Child Care on Single Parents Over the past several years, more single parents with children, mostly women, have joined the workforce (Ford, 1995). As a result, childcare has become an extremely important social policy issue. Many single parents, particularly those with low incomes, find it difficult to finance the cost of decent childcare. In addition, poor quality of childcare has become an increasingly significant problem in the United States. Low wages
Parents' well being should be whole in order to give wholly to their children. When parents encounter marital problems for example, they tend to project frustrations and failures to their children. Adjustments in the parents' side are also felt by their children. A journal on Marital Adjustment, Marital Discord Over Childrearing, and Child Behavior Problems: Moderating Effects of Child Age by Mahoney, et. al., studied whether marital discord over
Operating costs and future sales may be difficult to predict because there is no history to rely on since the business is not established. The single biggest disadvantage of starting a new business is the unknown. There are many rules, regulations, statutes and taxes that the owner may not be aware of at the time the business is opened. A new business owner may have a product that is
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