Accounting is recording, classifying, and summarizing financial transactions to provide helpful information in business decisions. Italian mathematician Luca Pacioli laid the foundation for modern accounting in 1494 when he published a book describing double-entry bookkeeping….
Browsing CategoryAccounting Basics Series
What Is the FASB?
The FASB is one organization that provides standardized guidelines for financial reporting. The Financial Accounting Standards Board’s (FASB) mission is to establish and improve financial accounting and reporting standards for the guidance and education of…
What Are The Parts Of An Income Statement?
The line reporting sales revenue is the first and most important part of an income statement. Businesses need to be consistent from year to year regarding when they record sales. For some businesses, the timing…
What Every Entrepreneur Needs to Know About Accounting – Investing and Financing Activities
As a business owner, you need to know the different accounting activities under investing and financing. These activities include secured transactions, loans, and equity investments. Keep reading to learn more about these essential concepts and…
Depreciation – Critical Elements You Need To Know
The idea of depreciation is a strange one to grasp. It’s an expense you don’t see but plays into your business. Like the plot twists in Lost, this unknown factor can be frustrating and make…
Prepaid Expenses – Critical Things You Need To Know
The price you’ll pay for business growth lags behind the effect of cash flow. Managers and investors need to understand that increasing sales without expanding their accounts receivable isn’t a realistic scenario for revenue growth….
Accounts Receivable Management – Critical Things You Need To Know
Accounts Receivable Management One of the more complicated accounting items is accounts receivable; in most businesses, these make up a large portion of assets. In other words, they cause cash flow delays in a business…
What’s A Balance Sheet?
Although cash flows and income statements are different, they have unique qualities. The income statement reports profits in quantifiable terms while categorizing them under three headings: revenues, expenses, and earnings per share (EPS). On the…
Gains and Losses
What are accounting gains and losses, and why do they matter to businesses and individuals? Accounting gains and losses are crucial to any business or individual financial dealings. These are the profits or losses resulting…
Sales Accounting – What You Absolutely Need To Know
Basic Sales Accounting All business starts with sales – and recording those sales transactions is known as sales accounting. We will explore a few elements of sales accounting that entrepreneurs need to know. Sales accounting…