What Accountants do....

Many people incorrectly believe that accountants' work primarily consists of bookkeeping. Most professional accountants do little or no bookkeeping. Accountants are involved in the preparation of financial statements, and the interpretation of financial information, rather than day-to-day recording of routine transactions. This work includes making sure the financial statements comply with GAAP, provide adequate disclosure of essential financial information, and are free from material errors and misstatements.

Forms of Business Organizations Sole Proprietor - One owner Partnership - 2 or more owners LLC - 1 or more owners (as allowed by state law) Corporation - unlimited number of owners (stockholders) The business entity is the legal form the owners have chosen, depending on their particular needs. The legal form will determine how the company will file tax returns and the owner's individual exposure to legal liability for lawsuits brought against the company. Corporations and LLCs both provide a layer of legal protection for the owners. Sole Proprietors and General Partners are exposed to unlimited legal liability. This is why most business are organized as corporations. The LLC form has been available in the US for about a decade, but has become a very popular business form. The number of LLCs is growing rapidly, but the predominant business form is still the corporation. The Balance Sheet presentation and accounts used will vary depending on the way the company is organized. Sole Proprietorships use the Owner's Equity account. Corporations have accounts for stock and retained earnings. Partnerships have accounts for Partner's Capital, contributions and distributions. LLCs may be organized like a corporation or partnership, and will use the appropriate set of accounts depending on how the company is set up. http://www.middlecity.com/