When a company sells products and services, it may do so by extending credit to its clients. When a company produces products or services for customers and issues invoices for payment of those products or services, it is reasonable to assume that many of those invoices will not be paid. As a result, an accounts receivable …
Bad Debt Expense: What is it and How to Calculate Read More »
Lesson 1 in the Basic Accounting series: Understanding basic accounting concepts is a must for every small business owner. Even if you have an accountant that takes care of that “accounting stuff”, you need to know accounting basics such as debits and credits and some accounting terminology. Accounting is setting up a system of …
Lesson 2 in the Basic Accounting series: With a double entry bookkeeping system every one of your small business transactions will be recorded into at least two of the accounts in your accounting system. Is double entry accounting right for your small business or will another accounting system work better? Single Entry vs Double Entry …
Lesson 3 in the Basic Accounting series: Learning how to record accounting journal entries is the foundation of any business accounting course. Let us show you the steps and some examples! If you are a student, small business owner, or just wanting to brush up on your accounting skills, understanding the basic accounting concepts of debits and …
Lesson 4 in the Basic Accounting series: A general accounting ledger is a collection of your chart of accounts. It is where all of your accounting journal entries end up. Most all accounting these days is done on computers and the accounting software does the posting to the general ledger in the background. For example, …