• Business plans are the physical representation of an entrepreneur's idea. Entrepreneurs spend copious amounts of time writing this plan and creating an outline for running their organization. Accounting plays a vital role in the business planning process. Entrepreneurs often follow a few concepts and practices to ensure their plan covers all the financial bases for the new venture. This information can help secure external financing for starting the business and paying for the first few months' expenses.
  
  

Start-up Costs

• Start-up costs represent all the items an entrepreneur needs to open the doors of his new business. These costs include facilities, equipment, vehicles, inventory and labor. Different types of businesses can have higher start-up costs. Restaurants often cost more because of the equipment, furniture and other items needed for running the business. Entrepreneurs should also estimate the amount of capital for business licenses and other government paperwork. These fees must be paid prior to opening the business.
  
  

Monthly Expenses

• Monthly expenses represent the normal operating costs of a business. These can include utilities, maintenance, advertising and office supplies. The business plan should have a separate section for this information as it is usually different than the start-up costs. Additionally, entrepreneurs should consider overestimating expenses when writing the business plan. This ensures the entrepreneur has enough capital to pay for the items necessary to run the business on a monthly basis.
  
  

Estimate Revenues

• The accounting section of the business plan includes a section for revenue estimates. Entrepreneurs use this information to determine how much money their business will earn during the early stages of operation. Revenue estimates also help lenders and investors make decisions about loaning the company money. Entrepreneurs can also determine the gross profit when comparing sales estimates to planned expenses.
  
  

Financing Type

• Entrepreneurs should outline which type of financing they desire in their business plan. Debt and equity are the most common types of financing. Debt financing represents loans from banks and lenders. Equity financing includes private investments or money from venture capitalists. Debt requires entrepreneurs to make repayments at fixed amounts and intervals. While equity financing does not usually have these requirements, owners may concede a percentage of ownership or future financial returns.