One of the final basic notions of the accounting and bookkeeping – financial statements. Learn more about financial statements in this video:
More tips about accounting basics in:
Welcome back to free online accounting classes – we keep sharing good tips about accounting and bookkeeping basics and give you a chance to learn the accounting skills online.
We have previously discussed these accounting notions:
This video is to share with you the expanded version of the accounting equation – 5 minutes of real value in visual info.
One more part in the puzzle of accounting basics is the notion of stockholders equity – this is the topic of today’s post.
Those readers who would like to get a flash back to the previous notions of accounting please check these posts:
And this the promised video about stockholders equity in accounting/bookkeeping.
We keep publishing free tips and explanations of the accounting/bookkeeping notions on www.AccountingElite.com blog
Today’s video will cover the topic of liabilities in accounting – explained in simple words.
More educational info about accounting and bookkeeping is published here:
Welcome back to the free online accounting lessons published by www.AccountingElite.com blog!
We have already discussed important accounting notions and those who want to quickly catch up with the materials can do this here:
This video will guide you through another important accounting notion – assets. Watch, learn and enjoy.
Accounting basics is something that you should learn by heart and understand them thouroughly, because this is from where your success in bookkeeping starts.
We have shared some accounting basics here Free Accounting Classes – Learn Accounting Online Free, here How to Do Basic Bookkeeping – Free Tips on Bookkeeping and Book Keeping Advice and here Learn What Basic Accounting Principles Are.
This video will help you to visualize some of the issues, in particular – the accounting equation which is one of the most important elements.
Today we have a chance to optimize the accounting and bookkeeping work with the help of professional solutions. We have touched the issue of web-based accounting systems in this post Free Accounting Classes – Learn Accounting Online Free but surely this does not cover the issue in all details.
That is why we are publishing this video accounting lesson that dwells about the choice of accounting/bookkeeping system.
For more tips, please read this info:
Having published a line of posts about the basics of accounting, we are now digging deeper into the issue.
Those who have not covered the basics, please get back to:
Today we have published a big educational video (over 30 minutes) that is a good example of really great info. The video dwells about accounting information systems.
What is the difference between the accountabnt and the bookkeeper?
A bookkeeper is a person to keep your books in order. You give this person all invoices and payments and they enter necessary info into a book. Basically your bookkeeper keeps your books and other issues (like IR assessments, financial legal associations, etc.) is beyond this job.
The crucial difference between the bookkeeper and the accountant is that the accountant also has the duty to track if your finances are within the framework of all necessary laws.
Now that you know the major difference, let’s get down to the basics skills that both a bookkeeper and an accountant must have.
Accounting is based on a simple fundamental concept: if one receives something, then another has to give. Due to this every transaction has debit and credit.
The study of accounting is built on the Accounting Equation and Double Entry Book Keeping.
The typical accounting equation is Assets = Liabilities + Equity
The double entry aspect of bookkeeping is about the fundamental issue that the perfect balancing of the accounting equation is guaranteed by this system.
Assets are your possessions, assets are also the possessions that others owe you. Liabilities are what YOU owe others.
The difference between assets and liabilities is called equity. It is also important to note that capital introduced is not refundable, due to this it is not a liability and can be called equity.
You can grasp the concept of double entry bookkeeping by thinking about the whole issue the following way – just think logically about who or what gives, and who or what receives in each transaction – and here it is, the double entry.
Now let’s talk a little about the modern assistants of the accountant and bookkeeper – web-based accounting systems, because usually they are less expensive and more efficient than traditional systems.
Basically for a small fee you can do accounting through the internet, view and analyze the reports and necessary people can access them when they need.
Using a web-based accounting system requires to have established network systems (Ethernet networking or virtual private network). Usually Ethernet networking is less expensive, but virtual private networks can be better for the companies with branches in different locations.
Before choosing the web-based accounting system, make sure to find out its guaranteed minimum downtime and check their client support. It should also have predefined charts and reports with nice level of customization. Pay special attentio to the system documentation, so that you can teach new staff how to use the system properly.
More tips about accounting and bookkeeping in other posts on the blog.
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