Financing Your Organization

This chapter explains the importance of using an accounting system, which will be especially important if you are interested in becoming an auditor.

Financial and managerial accounting; financing your organization

Learning Objectives

  • to appreciate the importance of an accounting system
  • to differentiate between financial accounting and managerial accounting
  • to understand the basic types of accounts and their characteristics
  • learn to set up a chart of accounts for your organization
  • understand the advantages of double-entry bookkeeping; types of ledgers and basic reports
  • to learn how to select and use accounting software
  • to understand common options for funding a start-up


In this chapter, we will discuss the principles of accounting as well as some of the options you have for designing and installing an accounting system for your business. There are many computer-based accounting systems available now, for relatively low cost, that make it easier for an entrepreneur to use software on a PC or the Internet to run an accounting system. We discuss some of the software options you may want to consider in Chapter 10, "Leveraging with information technology". Although it is possible to keep essential accounting records manually, or perhaps on a series of spreadsheets, you will find that it is much easier and more reliable to simply use accounting software from the beginning.

You may need the advice of an accounting professional to work with you in setting up your accounting records and helping you select and implement a suitable accounting package. On the other hand, you may be able to handle the task yourself. In any event, starting your business with a well-designed accounting system tailored to the needs of your business will be worth the effort.

Source: Boundless,
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