What Is Accounting Anyway?
Anyone who's worked in an office at some point or another has had to go to accounting. They're the people who pay and send out the bills that keep the business running. They do a lot more than that, though. Sometimes referred to as "bean counters" they also keep their eye on profits, costs and losses. Unless you're running your own business and acting as your own accountant, you have no way of knowing just how profitable or not your business is without some form of accounting.
No matter what business you're in, even if all you do is balance a check book, that's still accounting. It's part of even a kid's life. Saving an allowance, spending it all at once these are accounting principles.
What are some other businesses where accounting is critical?
Every business and every individual needs to have some kind of system in their lives. Otherwise, the finances can get away from them, they don't know what they've spent, or whether they can expect a profit or a loss from their business.
Staying on top of accounting, whether it's for a multi billion dollar business or for a personal checking account is a necessary activity on a daily basis if you're smart. Not doing so can mean anything from a bounced check or posting a loss to a company's shareholders.Both scenarios can be equally devastating.
Accounting is basically information, and this information is published periodically in business as a profit and loss statement, or an income statement.
- Understanding Accounting
Financial Statement
It's obvious financial statement have a lot of numbers in them and at first glance it can seem unwieldy to read and understand.
- Accounting the
Management of Gains and Losses
It would probably be ideal if business and life were as simple as producing goods, selling them and recording the profits.
- Accounting Income
Statement and Cost of goods sold
The first and most important part of an income statement is the line reporting sales revenue.
- Understanding Accounting Revenue and Receivables
In most businesses, what drives the balance sheet are sales and expenses. In other words, they cause the assets and liabilities in a business.
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