Title: Describe the importance of keeping sound financial records.
Course: Entrepreneurship, Advanced (12053-II) > Section: Projecting Financial Requirements

Description should include

- accounting procedure requirements for developing and analyzing income statements
- balance statements
- statement of owners’ equity.

Description should also include software tools for keeping accounting records.

Process/Skill Questions:

- How can up-to-date and accurate financial records help a business owner plan for the future?
- What software tools are available for accounting in small businesses? What are the advantages and disadvantages of using software tools to track business records?
- What are the four principles of generally accepted accounting principles (GAAP)?
- How does an entrepreneur use a monthly income statement?
- What are the consequences of failure to keep accounting records up to date?
- What are the consequences of false information being reported in financial statements?
- Why is an accountant important to a small business?
- What could a business owner use to make financial decisions if no financial statements were available to analyze?
- How should a business use financial statements?
- How often are financial statements prepared and/or  updated?
- Why is it important for entrepreneurs to keep a record of all purchase receipts?
- How can sound financial records give a business owner credibility?

Teacher Resources:

- DECA Competitive Event: Business Finance Series