Category: Accounting Basics

What Exactly Is Accounting?

What Exactly is Accounting? Welcome to my daily accounting and finance blog. Today is September 24, 2018. My blogs are designed to teach basic accounting and financial concepts that everyday people can apply to their financial and business lives. Each…

History of Double Entry Bookkeeping

Double Entry Bookkeeping – All Entries Are Recorded Twice Double entry bookkeeping is a system of recording transactions where each entry is recorded twice, as a debit and a credit.  Debits are on the left and usually show where the…

Understanding Financial Statements

Importance of Financial Statements? Most businesses must file financial statements to satisfy lenders and to file annual tax returns. However, an understanding of financial statements also provides business owners with the ability to determine the financial state of their business and…

Balance Sheet vs Income Statement

The two major components of financial statements are the balance sheet and the income statement. Balance Sheet The balance sheet shows a company’s financial position at a set point in time, usually at a year end or month end. It…

Cloud Accounting

What Is Cloud Accounting? One of the latest trends in small business accounting is the use of cloud accounting packages rather than in-house software programs. The main feature of cloud accounting is that your accounting software and data are hosted…