Basics of Business Accounting: Start Smart, Grow Confident
Chosen theme: Basics of Business Accounting. Begin with approachable guidance, relatable stories, and clear steps that help you read numbers like a founder rather than fear them. Subscribe, ask questions, and tell us what concepts you want untangled next—your voice shapes our roadmap.
Meet Your Financial Statements
Think of the balance sheet as a snapshot of what your business owns and owes, plus the owner’s stake, at a single moment. When I opened a tiny coffee cart, listing my espresso machine as an asset and my startup loan as a liability made everything feel real. Comment with your first asset.
Meet Your Financial Statements
The income statement tells a period’s narrative: revenue arrives, expenses take their share, and profit—if any—remains. During our third month, sales doubled, but a rush of supplies erased the gain. Reading that story taught me to separate growth hype from disciplined margins. What did your last month’s story say?
Chart of Accounts and Everyday Transactions
Group accounts into assets, liabilities, equity, income, and expenses. Use logical numbering and short, descriptive names so anyone on your team can post entries correctly. Start lean, expand carefully, and archive what you no longer use. Tell us your industry, and we will suggest categories to consider in future posts.
Cash vs Accrual: Choosing the Right Lens
Under accrual, you recognize revenue when you earn it and expenses when you incur them, even if cash changes hands later. A subscription box earned June revenue in June, not July when customers pay. Accrual shows real performance and trend lines. Which method do you use today, and why did you choose it?
Tools and Routines that Keep Books Tidy
Look for reliable bank feeds, invoicing, receipt capture, user permissions, and easy reporting. If you sell globally, check multi-currency support. Try a trial, enter three realistic transactions, then generate reports. If it feels confusing, it probably will remain so. Comment with your favorite tool and why it works for you.
Controls, Reconciliations, and Peace of Mind
Match each bank transaction to your books and explain every difference, like deposits in transit or uncleared checks. Post missing entries, remove duplicates, and confirm closing balances. This thirty-minute ritual catches errors early. Try it this week and report back how many oddities you found—our readers love real numbers.
Controls, Reconciliations, and Peace of Mind
Even with a tiny team, separate who approves, who handles cash, and who records entries. Use software permissions, dual approvals, and simple logs. A friend’s boutique stopped a double-payment mistake with one rule: no one both enters and approves. What single control would protect you most? Share, and inspire another founder.
Taxes, Compliance, and Year-End Basics
Collecting and Recording Sales Taxes
Track where you have obligations, record collected tax in a liability account, and reconcile it before filing. Keep exemption certificates and rate documentation. Automation helps, but understanding the flow matters more. If you serve multiple regions, tell us which is trickiest, and we will craft a focused explainer soon.
Payroll Basics for Founders
Payroll is a rhythm: gather hours, calculate gross, withhold taxes, remit payments, and file reports on time. Missed steps lead to penalties and unhappy teammates. Many small firms use a provider, yet still review totals before approval. Share your best payroll tip so newcomers avoid the mistakes we all made once.
Year-End Close and Adjustments
Count inventory, reconcile every balance, record depreciation, write off truly uncollectible receivables, and review prepaid expenses. In my first close, we found a forgotten deposit that funded January’s marketing. That win came from checklists. Want our year-end template and timeline? Subscribe and comment with your industry for tailored notes.
