Bookeeping Basics

Hey there! Welcome back to the Business Discussion board. I've shared a couple "Back to Basics" posts and I have another one for you today. This article was posted on the QuickBooks Blog and covers bookkeeping basics every small business owner needs to know and use. Let's go over a few...

Accounting equation
The accounting equation is the relationship between a business's assets, liabilities, and equity. The equation is Equity = Total assets - total liabilities. The writer goes on to say, if your assets are greater than your liabilities, your business is financially stable. Good info to know!

Accounting ledger
An accounting ledger is a book or system you use for recording and classifying financial transactions. Your accounting ledger serves as the hub for all your financial information. With accounting software, like QuickBooks, it will manage your ledger for you.

Double-entry bookkeeping
Double-entry bookkeeping is a system where each transaction is recorded in two accounts—a debit account and a credit account.

Inventory
Inventory is the stock of goods a business has on hand or in transit, waiting to be sold. The value of inventory can significantly impact a company's financial statements, so accurate tracking and management is vital.

The full article offers a lot of other great info that is key to owning and operating a business. You can check it out by visiting the link above. I hope you all have a wonderful week ahead and feel free to chat in the comments about anything else that may come across as basic info but could be really helpful for others!