business but have realized that you need start-up capital from a lender or investor .
To obtain funding , you need to convince a lender / investor that your business is more than a hobby . You need to demonstrate that you have a firm grasp of your business , the accounting practices that impact your business , the controls needed to safeguard assets , and which accounting system will produce accurate and relevant financial information .
Write a six to eight ( 6-8 ) page business plan in which you :
1 . Describe the type of business you have created including : a . The product or service , and general staffing plan . Provide a rationale for your plan . b . The form of your business and the benefits it offers your particular business , c . A chart of accounts specific to your business , including a rationale as to the selection of each account . ( Note : The chart of accounts is a blueprint of your business for the lender / investor . It should report the expected resources that you will consume in your business ( assets ), the sources of those resources ( liabilities and equity ), the sources of revenue , and expenditures that you expect to incur to earn those revenues . You may build a detailed chart that includes business units , divisions , product lines , etc .)
2 . Based on the form of your business , analyze whether or not you will be required to use Generally Accepted Accounting Principles ( GAAP ) or International Financial Reporting Standards ( IFRS ) accounting methods and how the IFRS / GAAP convergence will impact your business .