Now that we know how to set up our income statement and what the major parts of our financial statements look like, let's create a little monthly accounting system to manage the financial records of your own business.

This is where most people freak out and shout “Good God! It’s Accccounnttttinnnnng!”

Yes, friends, it is indeed the sneaky devil that we call "business accounting". But guess what? Accounting for startups, or just keeping track of basic financial health isn't that hard because initially it'sj ust basic bookkeeping. Our bank accounts aren't exactly processing "millions" (yet!) so we can stick to some startup business accounting that's easy.

A Simple Accounting Method

We like to keep startup accounting easy, so that as the business ...