Small Business Accounting Information

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.