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11 Essential Bookkeeping Accounts for Any Small-business Owner
By: Lita Epstein
Posted: October 31, 2012, from the November 2012 issue of Skin Inc. magazine.
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10. Owners’ equity. Accounts related to owners’ equity—which is the amount each owner puts into the business—vary depending on the type of business. Money put into the business by each of the owners is tracked in capital accounts, and any money taken out of the business by the owners appears in drawing accounts. In order to be fair to all owners, your bookkeeper must carefully track all owners’ equity accounts.
11. Retained earnings. The retained earnings account tracks any of your skin care facility’s profits that are reinvested for growing the company and not paid out to the company owners.
Lita Epstein designs online courses about reading financial reports, investing and taxes. She’s the author of Reading Financial Reports For Dummies (Wiley, 2012) and also writes periodically for AOL’s Daily Finance.