December 29, 2009 
This entry was posted on Tuesday, December 29th, 2009 at 9:30 pm and is filed under Accounting, Small Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
If you are trying to do the accounting work yourself there are a few basic concepts you need to understand. Understanding these three will help you get started in understanding small business accounting.
Debits and credits – every accounting entry in the general ledger has both a debit and credit. All debits must equal all credits.
Assets and liabilities – these are found on the balance sheet. The assets are anything of value that the business owns. The liabilities are anything that the business owes.
Owners equity – this is also found on the balance sheet. The owners equity is the difference between the assets and liabilities.