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One of the first steps in establishing a startup is figuring out what business structure you\u2019re going to use. This decision will determine how much taxes you\u2019ll pay, your financial liabilities, and more. Just like a doctor treats a patient\u2019s illness based on certain rules, an accountant follows standards when creating financial statements as well. In the table below, you\u2019ll find the majority of accounts used by businesses (with their respective types), that might come in handy when doing accounting for your startup. Highlighted in blue, are the 8 most necessary accounts every business needs. The chart of accounts is a listing of all the different types of accounts.<\/p>\n<\/p>\n
The owner\u2019s equity statement (also known as the statement of retained earnings) is a sum of the owner\u2019s investments and withdrawals, as well as the business\u2019s income and expenses. This, along with the other collection of rules in GAAP are all mandatory to follow because they ensure accurate and ethical financial reporting. They are words that describe whether cash is going in, or out of an account. Even if you decide to hire an accountant to do the job, it\u2019s still valuable to know the principles upon which accounting works. To ensure your startup accounting for startups<\/a> is profitable, all you need is a solid understanding of the accounting basics.<\/p>\n<\/p>\nList All Charts of Accounts<\/h2>\n<\/p>\n