Running your own business is time consuming. As the owner, you are responsible for everything. To determine how much money you have can be as simple as looking to see what the balance of your bank account is, but the real question is: “is the business profitable?”
Your Profit and Loss Statement will tell you if your business is profitable. But the only way it will do so is if the data entered is accurate.
Accuracy starts with setting up your books correctly. And the first step is your Chart of Accounts.
Your Chart of Accounts also know as your General Ledger helps you identify your revenue and expense sources. Where your money comes from and where it goes.