The Basic Accounts – All about Equity Equity represents how much of your company is really yours and not owed to someone else. Think of it in terms of your house: You own your house, but the bank probably has a claim on part of it, too, in the form of your mort- gage. Here … Read more
The Basic Accounts – A Look at Liabilities Every dime your business owes, no matter to whom or for what reason, is a liability. Owing someone a product (such as a magazine subscription) or a service (such as insurance coverage) counts as a liability as well. Although there aren’t as many kinds of liabilities as … Read more
The Basic Accounts – Understanding Assets Assets are those things that your business owns, from the cash in your desk drawer to the file cabinet in the backroom to the delivery van in the drive- way. It does not matter whether they are big or small; all that matters is that your company owns them … Read more
The Basic Accounts – Accounting Starts with Accounts As you might expect, an accounting system is made up of accounts. Here accounts really serve as a way to group information, much like a filing system. For example, everything that happens with cash gets run through a cash account, and those ten receipts for stamps will … Read more
Accounting Is More Than Numbers – Pick the Right Accounting Professional Once you decide you want some help, your next step is to figure out what level of help you’re looking for. Doing that will point you toward the right kind of professional. You may use a mix of professionals—for example, a bookkeeper may handle … Read more
Accounting Is More Than Numbers – How Accountants Can Help You When you are just starting out in business, having a professional accountant on your team can make your life as an entrepreneur a lot simpler. Without a background in business accounting or finance, it’s easy to get the numbers wrong, or sometimes even overlook … Read more
Accounting Is More Than Numbers – Who’s Who in Accounting The world of accounting is populated with lots of players. There are the people who put the numbers together, the people who analyze and report on those numbers, and the people for whom those reports are compiled. Having a handle on who does what can … Read more
Accounting Is More Than Numbers – Different Versions for Different Reasons In addition to you, there may be a lot of people who want to see how your business is doing. This includes your own employees, who may need to track particular numbers to get their jobs done; your accountant, who needs the numbers in … Read more
Accounting Is More Than Numbers – Who Uses Accounting Information? Accounting information is used by virtually everyone, in every job, at home and at work. Every time you get a bank statement or a credit card bill, it’s accounting information. Every time you look at your homeowners’ association annual budget, it’s accounting. Every time you … Read more
Accounting Is More Than Numbers – Accounting Versus Bookkeeping Accounting and bookkeeping are related in the same way as recipes and ingredients. Ingredients are the raw materials you need to create a meal; bookkeeping provides the raw materials you need to develop useful financial reports. A recipe takes that pile of ingredients and tells you … Read more
