Simple accounting terms for small businesses.

Do you have a small business? Want to equip yourself with some much needed Accounting knowhow??
Then, this blog post is for YOU!

Accounting is an essential element and your expertise in this field could truly determine your prospects of running a successful business.

  • Assets:

Assets are everything that a business owns. In most cases, the firm’s assets from an accounting perspective are tangible. Tangible assets include things like: Equipment, Property, Land, Cash, Tools.

  • Liabilities:

Liabilities are debts that a business is responsible for paying in the short or long term. Things like mortgages and credit card balances are liabilities.

  • Revenue:

Revenue is the total amount of money collected for goods or services sold before subtracting any expenses. It also includes any credits or discounts for returned merchandise.

  • Accounts Receivable:

Accounts receivable includes money owed by customers as payment for goods or services. Firms allow their clients to pay for goods and services over a reasonably extended period of time, provided that the terms have been agreed upon. For certain transactions, a customer may receive a small discount for paying the amount due to the company early.

  • General Ledger:

This is the complete recording of a firm’s financial transactions over its lifetime. The ledger tracks the owner’s capital, assets, revenues, and expenses. Business owners must be diligent when recording transactions in the general ledger. These days Business owners are seeming to incline towards digital ledgers given their amazing array of advantages.

This brings us to the end of this episode of #Buildyourbusinesswithpesabook. Thank you for reading this piece! We hope it helps you succeed in your business!

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