[...]... been written for business owners and managers who want to refine the accounting and financial operations of their companies It provides detailed information about how to run these operations, track cash flows, conduct analyses, analyze key financial information, create a corporate risk management strategy, and manage tax liabilities—in short, all of the key accounting and financial information required... GAAP Guide GAAP Implementation Guide Inventory Accounting Inventory Best Practices Just-in-Time Accounting Managing Explosive Corporate Growth Outsourcing Payroll Accounting Payroll Best Practices Sales and Operations for Your Small Business The Controller’s Function The New CFO Financial Leadership Manual The Ultimate Accountants’ Reference Also: Advanced Accounting Systems (Institute of Internal Auditors)... obtain bank loans and key terms found in loan agreements Chapter 6 notes a large number of financial and operating ratios that are of considerable use in creating a system of performance measurement for all areas of a small business We describe how to calculate and interpret each of the most common ratios Chapter 7 covers key areas of financial analysis that are useful in a small business, including... operate a small business Chapter 1 reveals the interlocking system of budgets, as well as how to set up a budgeting procedure and use standard budgeting formats to ensure that revenues are properly projected and matched to related costs This is a very important issue for those cyclical industries in which expenses may be incurred well in advance of sales receipts; it is also a highly necessary method for. .. of the College of Business and a full professor of accounting at Middle Tennessee State University He has founded, owned, managed, and sold a number of businesses in a variety of areas from service to manufacturing He received a Bachelor of Arts degree from MacMurray College in economics /business, a Master of Business Administration degree from Murray State University in management, and a Ph.D in accountancy... utilization, risk analysis, and business cycle forecasting These fundamental tools allow one to fine-tune a company’s operations and anticipate where problems may arise Chapter 8 includes coverage of a number of key areas that few small business owners want to address but that can impact their business in a negative manner These issues include the management of tax liabilities and the creation of a risk... budget is a projected and, it is hoped, realistic number picture of income and cost objectives for a period Usually operating budgets are constructed for a year, by months Some people construct five-year operating budgets with varying reporting periods Such budgets are often constructed monthly for the first two years, quarterly for the next two years, and annually or semiannually for the remaining year... manual, intended for a reading-doing-reading-doing xiv Preface approach Then, when you have trouble or concerns in a particular area, consult the specific chapter addressing that problem to find solutions Best wishes for improving, implementing, and benefiting from your decisions and for making lots of money STEVEN M BRAGG Centennial, Colorado July 2005 xv Section I Preparing to Operate the Business T he... Budgeting System Responsibility Accounting Budget Tracking and Maintenance The System of Interlocking Budgets Need for Budget Updating Summary 3 4 6 9 21 25 35 36 Chapter 2 Investing in Long-Term Assets and Capital Budgeting 39 Definitions Overview and Use of Capital Budgeting Life Cycles Capital Budgeting Sequence Producing Numbers to Get Dollars, the Use of Forms, and the Capital Budgeting Model... feedback on performance against budget These reports should trigger action If the budget and related performance against budget reports do not flag attention to problem areas, you are missing the opportunity for needed improvements • Feedback frequency The feedback loop requires continuous measurement of performance to budget estimates For feedback to work properly, it should be regular, expected, and consistently . ii Accounting and Finance for Your Small Business Second Edition ffirs.qxd 11 /28/05 1: 36 PM Page i ffirs.qxd 11 /28/05 1: 36 PM Page ii Accounting and Finance for Your Small Business Second Edition STEVEN. alt="" Accounting and Finance for Your Small Business Second Edition STEVEN M. BRAGG AND E. JAMES BURTON John Wiley & Sons, Inc. ffirs.qxd 11 /28/05 1: 36 PM Page iii ffirs.qxd 11 /28/05 1: 36. M. . Accounting and Finance for your small business / Steven M. Bragg.—2nd ed. p. cm. Rev. ed. of: Accounting and Finance for your small business / E. James Burton, Steven M. Bragg. 20 01. Includes