Accounting Basics

Learn the accounting basics. We'll teach you how to balance your books, how to read financial statements, highlight how your business can save money, and review popular accounting programs.

 

  • Accounting Basics and How to Interpret Financial Statements

    Setting up your records in an accounting software package is an essential step to keeping tabs on how your business is performing financially and to fulfill your requirement of keeping accurate records for tax purposes. Equally important is the knowledge of how to understand the Financial Statement so that you can make the right choices for your business.

    Accounting software such as Quickbooks and Simply Accounting have a built-in Statement of Financial Position (SFP) and the Statement of Profit and Loss (P&L). These accounting packages also have budget modules in order to create a budget that reflects your business plan that can then be compared against your actual results. Either program is good for small business but I favor Quickbooks because of its flexibility.

    While I'm not going to go into the specifics of setting up either Quickbooks or Simply Accounting, both have set-up wizards that will guide you through the process. Instead, I'm going to focus on some basic concepts that will enable you to understand the accounting principles used by both programs.

    Learn Accounting Basics and How to Interpret Financial Statements

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