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ESL Podcast 232 - Business Bookkeeping | Текст песни

I have a day job, but I recently started a small business on the side. I didn’t know anything about accounting and my friend, Roland, said he would give me some advice.

Roland: So, the reason that you need to do your bookkeeping is so you can manage your cash flow. Even if you have a lot of orders, you may still have problems paying your bills.

Magdalena: I see what you mean. Is this the kind of ledger I should be keeping?

Roland: Yes, definitely. You want to list your debits on this side and your credits on this side. This will help you figure out important things like your break- even point, your assets and liabilities, your administrative expenses, and whether you’re staying within your budget.

Magdalena: I wish I had an accounts payable department to help me with all this. I don’t even know how to create a balance sheet.

Roland: It’s not that hard if you use the right accounting program. The first thing to do is to keep track of your expenses. How do you do that now?

Magdalena: Oh, I have a system. I keep all my receipts in this bag.

Roland: Oh. Well, it’s good that you’re keeping your receipts but you’ll have to keep better track of them. What would you do if you were audited by the IRS?

Magdalena: Don’t even mention the IRS! I’ve got enough problems without worrying about them!

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