Introduction The assessment requires me as an accountant to write a report for Mr and Mrs Swanson explaining all the issues that they will face starting a new business. Showing them the right path that will save them money but at same time help their business grow. To do so there will be a coherent and clear discussion of the different forms of business, a clear comparison between financial and management accounting and explain the different sources of finance to help Mr and Mrs Swanson. Sole proprietorship A Sole proprietorship is a form of business where the person of the business in control of all the assets of the business, in difference to a business or a corporation. The owner is responsible for all the company’s incomes and losses as they are the one who get taxed for their business, Entrepreneur (2014). A sole proprietorship can work under the name of the owner or sometimes it can do business under a fictitious name. Sole proprietorship is different to the other type of business, sole proprietor has much better flexibility …show more content…
The main impartial of financial accounting is the groundwork of financial statements that it covers, which including the balance sheet, income statement and cash flow statement.( e-conomic, 2014) The people who are mostly interested in financial accounting are stockholders, suppliers, banks, employees, government agencies and business owners. For every business it is important for every business owner know what type of account they need for their business. With the financial accounting the statement are generally prepared quarterly and annually, and in accordance with Generally Accepted Accounting Principles (GAAP). With the GAAP and financials management a business including their investors, creditors, regulators and tax authorities as part of helping the business financial status. (Wikipedia,