Small Business Accounting Information

There are several things you have to understand so that you can make setting up your company’s accounting system easier. Knowing these basic small business accounting terms will help clear up confusions you may have had in the past when talking with your CPA or other technical accounting people.

For instance, understand how debits and credits work to comprehend the whole system. Observe that every accounting entry in the general ledger contains both a debit and a credit and that all debits must equal all credits. Otherwise, the entry is not reconciled and it can throw the entire balance sheet out of balance.