Basic Bookkeeping and Accounting Lessons

Accounting knowledge and basic bookkeeping skills is essential for small business owners. See bookkeeping tips and accounting lessons below...

Basic Bookkeeping Tips

basic bookkeeppin

Decide if a single entry or double entry bookkeeping system would be best for your business. 

In making that desicion, keep in mind, a small sole proprietorship or home-based business may not require a double entry system for recording business transactions. 

However, if you have quite a few accounts receivable (money owed to your business by your customers) or accounts payable (money owed by your business), you may want to consider utilizing a double entry bookkeeping system.

Many small business owners will not start right out with a double entry bookkeeping system.

It is easier for them to use a single entry method which is kind of like your check register. You just add the money coming in and subtract the money going out and keep a running balance.

Most medium and large businesses use a double entry system which tracks their income and expense AND their assets and liabilities.

Double entry bookkeeping is required for all businesses that are required to produce a statement of its assets and liabilities (a balance sheet).

Take for example the purchase of a laptop. In a single entry system, you would simply subtract the purchase price from your running total.

In a double entry system, you would debit your asset account and credit either cash or accounts payable...depending on how you paid for it. See why a double entry system is best for tracking assets and liabilities?

See this page for more on the difference between double entry and single entry basic bookkeeping.

See this page for 5 basic bookkeeping tips that will make your small business bookkeeping more efficient and simpler.

See the accounting lessons below for more accounting and basic bookkeeping tips...

Accounting Lessons:

Lesson 1: Understanding basic accounting concepts is a must for every small business owner. Learn accounting basics such as debits and credits and accounting terminology...

Basic Accounting Concepts

Lesson 2: Is double entry accounting right for your small business or will another accounting system work better...

Double Entry Bookkeeping

Lesson 3: Learning how to record journal entries is the foundation of any accounting course...

How to Record Accounting Journal Entries

Lesson 4: A general ledger is a collection of your chart of accounts. It is where all of your accounting journal entries end up...

General Accounting Ledger

Lesson 5: Financial statements is one of the keys to your business success...

Understanding Financial Statements

Lesson 6: Financial ratios and performing a financial analysis using your financial statements can be a valuable tool in constructing a successful small business...

Financial Ratio Analysis

Lesson 7:  Your small business’s break-even point is the point where your total revenue received equals your total costs associated with the sale of your product or service...

Figuring your Break-Even Point

Lesson 8: Cost accounting is determining the cost of producing your product and using that information to make a profit...

Learn Cost Accounting Basics

Lesson 9: Account Receivables (AR) are sales made by your small business, but not paid for yet by customers...

How to Track and Record your Account Receivables

Lesson 10: The accounts payable process for a small business is simply the process of accounting for and paying invoices that your business legitimately owes...

How to Track and Record Account Payables

Lesson 11: Accounting for sales tax is not too complex if you understand the basics of accounting...

Sales Tax Accounting Journal Entries

Lesson 12: Payroll accounting involves both expense and liabilities accounts...

How to do Payroll Accounting

Lesson 13: Accounting for sale discounts returns is not too difficult if you understand the basic accounting concepts behind the journal entries involved on paper or behind the scenes in accounting software.

Accounting for Sale Discounts Returns

Lesson 14: Doing a cash flow analysis for a small business can make a huge difference when it comes to determining whether or not your business is on the right track...

Cash Flow Analysis

Lesson 15: Depreciation accounting can seem a bit overwhelming, but once you learn a little bit about how it works ...

Depreciation Accounting

Lesson 16: When it comes to accounting and inventory, there are many things to be aware of...

Accounting and Inventory





Recommended Accounting Software...







Free Mileage Log...

Click on image above for more details.

Business mileage can be a very good deduction for your small business.

It can also be a nightmare, if all the IRS required information is not included in your mileage log.

See what must be included and get a free mileage log!





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Capitalize or Expense?...

Capitalize assets or recording a purchase as an expense, is an area of accounting that confuses many small business owners.

See how to capitalize assets and know when to use capitalization or simply record the purchase as an expense by keeping two things in mind...