Accounting All-in-One For Dummies

Book I

Setting Up Your Accounting System

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In this book…

• Wrap your brain around bookkeeping and accounting fundamentals. These basic concepts allow you to correctly post accounting transactions.
• Create a chart of accounts, so you can track debits and credits by using double-entry accounting. Every type of accounting transaction uses some combination of accounts.
• Maintain financial journals and the general ledger and use accounting software to simplify these tasks. These tools help you generate meaningful financial statements.
• Distinguish among cash, accrual, and other accounting methods and choose the right method for a business. Most businesses use accrual accounting, which allows the company to match revenue with the expenses incurred to generate the revenue.