Doug talks with Jim about some of the tax proposals the American Institute of Certified Public Accountants (AICPA) are proposing to Congress that will remove some of the unfair tax components, such as the so called "marriage penalty", and the Alternative Minimum Tax (AMT). They talk to several callers, one of which asks Doug about filing a return for a company that was formed, but never got going, and another one asks about when the AMT applies to them. Of course, Doug provides excellent answers.

Doug and Jim begin by emphasizing the importance of regular financial statements, including the availability of in-house accounting software, and the importance of having at least a periodic review by a CPA. They finish their discussion by talking about the difference between accrual accounting and cash accounting.

Doug and Jim continue their series on how to read and understand your financial statements, with emphasis on the items typically found at bottom of the operating statement, such as other income and expenses like sale of assets, provision for taxes, and what to do with financial odds and ends on your operating statement. They move on to discuss how the Balance Sheet functions, plus how it connects to the operating statement.

Doug and Jim continue their discussion of how to read and understand financial statements, and this visit is focused on the Operating Statement, with emphasis on the gross profit, the difference between margin and mark-up, and the relationship between gross profit and overhead expense.

Doug and Jim discuss how to understand the difference between cash and accounting, as well as how to understand the financial statement which has a number of different names, such as an operating statement, a P&L, and income statement. Teaching people to understand how to read financial statements on the radio may never have been attempted before. Jim and Doug are professionals, don't try this at home.

Doug and Jim talk about the importance of producing regular and current financial statements in your small business, including a discussion on how to read and understand them. They also discuss conducting in-house accounting with the use of accounting computer software.

In his first visit with Jim, Doug talks with Jim about how CPAs begin working with a new small business client in the beginning of the relationship, plus tips on how to interview a CPA. They include the importance of business planning in their discussion.