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Part VI: Appendixes > Appendix B: If Numbers Are Your Friends - Pg. 363

Appendix B If Numbers Are Your Friends ou don't need to know much about accounting or about double-entry bookkeeping to use QuickBooks, which, as you know, is most of its appeal. If you're serious about this accounting business or serious about your business, consider finding out a bit more; setting up QuickBooks and understanding all the QuickBooks reports will be easier, and you'll be more sophisticated in your accounting, too. Just because the accounting in this appendix is a little more complicated doesn't mean that you can't understand it. To make this whole discussion more concrete, we use one running example. We hope it helps you out! If noth- ing else, it'll inspire you to get into the rowing­boat-hire business. Y Keying In on Profit Start with the big picture. The key purpose of an accounting system is to enable you to answer the burning question "Am I making any money?" Accounting is that simple. Really. At least conceptually. So, throughout the rest of this appendix, we just talk about how to calculate a business's profits in a reasonably accurate but still practical manner. Let me introduce you to the new you You just moved to Scotland for the laid-back living and fresh air. You live in a cottage on Raith Lake. To support yourself, you plan to purchase several rowing boats and hire them to visiting fishermen. Of course, you'll probably need to do quite a bit of fishing, too, but just consider it the price you pay for being your own boss.