Small Business Accounting - Financial Statement and Tax Information¹

Small Business Accounting - Financial Statement and Tax Information

While it may not be the most exciting part of your business, keeping proper small business accounting records and financial statements is clearly one of the most important things a business owner can do. At some point, you may need to raise capital from a financial institution or lender, and if your books are not current or accurate it can jeopardize or risk losing your financing. In addition to keeping your records up to date, paying and recording the proper taxes are imperative, so as not to risk penalties and fines from the state and federal government.

Getting Started (Basic Accounting)

Understanding Standard Financial Reports

  • How to Create and Read a Balance Sheet - The Balance Sheet describes the overall health of a business: What it owns and what it owes. This article is a guide to preparing and evaluating a balance sheet.
  • How to Create and Read an Income Statement - An Income Statement or Profit and Loss (P & L) statement measures a company's sales and expenses over a specified period of time. Use this guide to create one for your business.

Analyzing Financial Performance

Making Smart Financial Decisions


  • Depreciation - You should hire an accountant to help you with your taxes. This section gives you basic information on depreciation to help you when talking with your accountant.
  • How the IRS Determines Independent Contractor Status - This information will help you determine whether a worker is an employee or an independent contractor.
  • How to Deduct Your Vehicle Expense - Yes, you can deduct vehicle expenses for your company. What you need to understand is which of the two accepted methods you should use.