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The key purpose of small business accounting is to answer the question, "Am I making any money?" In order to get your answer, you need to track your business accounting information. What is your business accounting information? It's the credits and debits for your business; what are you bringing in (credits) and what are you paying out (debits). These two amounts must always balance with each other. You also need to know what your assets and liabilities are. Assets are the things of value in your company and liabilities are the obligations your company has to another entity or person.

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