Accounting Basics Articles

While a complete understanding of accounting basics is covered fully in the Professional Bookkeeper Program, we have compiled some helpful articles to help with some of the foundational concepts of accounting.

Am I a Bookkeeper or an Accountant

There is a lot of confusion in the industry as to who can be called an accountant or bookkeeper. The definition even varies by state, worsening the matter.
Learn the Difference and Similarities Between Bookkeepers and Accountants

The General Ledger - The "Final Book of Entry"

Learn What is contained in a General Ledger and how it fits into the big picture.
Learn More About The General Ledger

Journals - "The Original Books of Entry"

See where Sales Cash Receipts, Credit Purchases, Payroll, and other Journals fit in the accounting process.
Learn More About Journals

Subsidiary Ledgers - "Books of Analysis"

Accounts Receivable, accounts payable, and other ledgers are the subsidiary ledgers.
Learn More About Subsidiary Ledgers

General Ledger Balance Sheet Accounts

General Ledger Balance Sheet Accounts provide an overview of what is called the accounting equasion (Assetts = Liabilities + Accruals + Capital).
Get a Detailed List of Items on the General Ledger Balance Sheet

What is a Credit? What is a Debit?

One of the most basic and yet often one of the more confusing questions in basic accounting is what a credit and a debit are. If you are not sure of this fundamental building block of accounting, you will be fighting an impossible battle.
What is a Credit? What is a Debit?

Are You an Employee or a Contractor?

You may ask what difference it makes if you are considered an employee or a contractor, as long as you get paid. The fact, is that it makes a big difference! If your employer is considering you a contractor improperly, you will pay far more taxes than if you were considered an employee. Learn how to identify which you should be and how to properly classify those that might work for you.
Learn If You Are an Employee or a Contractor

Cash Versus Accrual Accounting

When can you use a simple Cash Accounting method and when do you need to use the Accrual Accounting method?
Find Out if Cash or Accrual Accounting is Right For You

The Daily Cash Report

Especially important when you use the cash accounting method is the Daily Cash Report. Learn what it is and what its benefits are.
Learn About the Daily Cash Report

Year-End Closing (13th Month)

Learn what kinds of processes that you will need to perform to properly close out the year. Do you use a fiscal year or calendar year? Learn when each might be appropriate.
Learn More About the Process of Year-End Closing

Checking Your Work - The Internal Audit

Checking your own work internally before risking an external audit can uncover problems when they are the easiest to fix. The journals should be regularly audited to find problems and inconsistencies.
Checking Your Work - The Internal Audit