What should I know about accounting and bookkeeping?

The importance of keeping adequate records cannot be stressed too much. Without financial records, you cannot determine how well your business is doing or where it is going. At a minimum, records are needed to substantiate:

But most important, you need them to run your business successfully and to increase your profits.

Your tax returns under federal and state laws, including income tax and Social Security laws;
Your request for credit from vendors or a loan from a bank; and
Your claims about the business, should you wish to sell it.