This means that you should always seek professional advice for your specific circumstances.We will present the basics of accounting through a story of a person starting a new business.will need to record: With thousands of such transactions in a given year, Joe is smart to start using accounting software right from the beginning.Accounting software will generate sales invoices and accounting entries simultaneously, prepare statements for customers with no additional work, write checks, automatically update accounting records, etc.Joe is a hard worker and a smart man, but admits he is not comfortable with matters of accounting.He assumes he will use some accounting software, but wants to meet with a professional accountant before making his selection.
At his first meeting with Marilyn, Joe asks her for an overview of accounting, financial statements, and the need for accounting software.
This explanation of accounting basics will introduce you to some basic accounting principles, accounting concepts, and accounting terminology.
Once you become familiar with some of these terms and concepts, you will feel comfortable navigating through the explanations, quizzes, puzzles, and other features of Accounting
Joe decides that the name for his corporation will be Direct Delivery, Inc.
The attorney also advises Joe on the various permits and government identification numbers that will be needed for the new corporation.You will also see why two basic accounting principles, the revenue recognition principle and the matching principle, assure that a company's income statement reports a company's profitability.