Understanding Business Finances and Accountability

Your business is legally a ghost that haunts your bank account. This is called the

Entity Concept, meaning you and your company are totally separate, so stop buying personal

groceries with the company card. The whole financial world runs on one simple formula:

Assets equal Liabilities plus Equity. Basically, everything you own was either borrowed

or paid for by you. This is the Double Entry System. Every single dollar that moves has to

be recorded twice to keep the universe in balance. If your books don't balance,

you aren't just bad at math, you're officially losing money.