When you start your own business, besides the comparative freedom of life outside the cubicle also comes the added responsibility of being a business owner. Part and parcel of this is a responsibility to understand the numbers. Few business owners actively enjoy accounting, but all successful ones recognise its importance. Accounting is a key part of running a functioning business, and bookkeeping creates the records which make accounting possible. Here's a quick guide to your balance sheet: assets, liabilities and equity: