If you were completely ignorant of an accounting system, and the bookkeeping necessary to put financial information into proper places, what would you assume you needed? Chances are, you would look for the checkbook and feel sure that it contained all the necessary information you would need to produce a financial picture of your monetary worth. But, … Continue reading What Pieces of Information are needed for Bookkeeping?
Category: Accounting
Accounting is a vital component of any business, providing financial information and insights necessary for informed decision-making. Our expert tips, advice, and resources provide you with a solid foundation of accounting knowledge, from basic principles to advanced concepts. Whether you’re an accounting professional or a small business owner, our comprehensive resources cover a wide range of accounting-related topics to help you succeed in your financial endeavors.
Introduction to Transaction Analysis: The Basic Accounting Equation
Accounting is built upon the fundamental accounting equation: Assets = Liabilities + Owner’s Equity This equation must remain in balance and for that reason our modern accounting system is called a dual-entry system. This means that every transaction that is recorded in accounting records must have at least two entries; if it only has one entry … Continue reading Introduction to Transaction Analysis: The Basic Accounting Equation
Fundamental Concepts of Accounting
Generally Accepted Accounting Principles (GAAP).
What is a Profit and Loss Report?
Understanding Accounting Basics The Profit and Loss report generated by your manual record keeping, your computer software, or the accountant you’ve previously hired, is also known as an Income Statement. This is perhaps one of the easier reports to compile, but one of extreme importance. Why? Because the businesses net income or loss is the result shown on … Continue reading What is a Profit and Loss Report?
What Are Debits and Credits?
Understanding accounting debits and credits.
Bookkeeping: Your Accounting Ledgers
The Cornerstone of Bookkeeping If double-entry accounting is the basis of a true accounting system, then the ledgers are the building blocks. In business application of the accounting system, you are only a strong as your weakest link. What this means is your financial health, the monthly snapshot of your worth, is only as accurate as your … Continue reading Bookkeeping: Your Accounting Ledgers
Basic Accounting Terminology 101
Accounting Terms, Principles, and Concepts Prior to actually beginning work as an accountant, there is generally exposure to accounting terminology and concepts; whether in the form of classroom instruction or as an intern with on-the-job training. However, rather than risk the possibility of an individual beginning work as a bookkeeper, or an accounting intern, without the … Continue reading Basic Accounting Terminology 101
Why Do We Need Accounting?
Accounting’s Importance to Business So why do we need accounting? Asking that question of an accountant is like asking a farmer why we need rain. We need accounting because it’s the only way for business to grow and flourish. Accounting is the backbone of the business financial world. After all, accounting was created in response to the development … Continue reading Why Do We Need Accounting?
What is Accounting? Learn Basic Accounting Lesson
Accounting Introduction Quite simply, accounting is a language: a language that provides information about the financial position of an organization. When you study accounting you are essentially learning this specialized language. By learning this language you can communicate and understand the financial operations of any and all types of organizations. This is because the information … Continue reading What is Accounting? Learn Basic Accounting Lesson
