Accountancy can be a solid and rewarding career choice for people interested in business and finance. If your home based business is built on web designing, technical writing, software development, or graphic design these sights are excellent sources to find new customers. If you’re planning on a career in the accounting industry, use this average starting salary guide to determine which path can help you make ends meet. Cash Accounting – Under a Cash based system of accounting, the timing of transactions is based on when cash comes in or cash goes out.
I’m not a tax accountant, but I have been an accountant at a non-profit firm since 1999, and earned my Bachelor’s Degree in Business Administration with an emphasis in Accounting, so I’ve got the background to help you get started. One major important thing to remember when running a business under a Cash Accounting system is you do NOT carry an Inventory. Accrual Accounting – Under an Accrual based system of accounting, the timing of transactions is based on when the underlying transaction occurred. This is the type of accounting I use for my business, and if you carry an inventory of items, I would recommend you use it as well.
The Mathematical equation to Balance the Balance Sheet is that Total Assets equals Total Liabilities plus Total Equity. That’s why software packages are such a great tool – the software understands the way to create Transactions and calculate Account balances, even if you don’t. I’ve included links to some software packages you might explore if you think doing things by hand would be too involved or complicated for you.
I’ve provided links below to the two ‘starter package’ level versions of each software so you can compare them. The User Guide that comes with the software provides step-by-step instructions for each of the basic tasks you’ll need to do, recording sales, recording payments received and sent. For a small online seller, I’d recommend the Peachtree First Accounting 2008, it is the starter package.
In future years, as your business grows, your accounting software can grow with it with more complex systems. Very useful lens to teach people the basics of accounting so that they can get on top of the transaction processing. The accounting process involves all the steps that take place between a single transaction and the completion of financial statements at the end of an accounting cycle Included in this article are lots of useful links to pictures and websites that will help you to better understand the accounting process.