Creative Accounting.  Sounds suspicious doesn’t it.  In many contexts it is a phrase to be weary of, but it can also refer to the creative side of accounting.  Most people think of accounting as cut and dry, boring, and unimaginative.  Well, it can be if you want it to be, but how you setup your finances, processes, and reporting tells a lot about your business.  It is essential that your financial story matches what you are selling.

 

There are standards and good practices to follow in bookkeeping and accounting, but there are also a lot of choices and interpretations to be made.  Setting up your Chart of Accounts and how you use those accounts should follow basic and accepted practices, such as how they are numbered, but what accounts you use and how you label them should match how you understand your business and how you want others to understand your business. 

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