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Miami, FL, July 31st, 2014
* Entrepreneurs are born with this gift of knowing how to
make money. Many of them for any given reason did not have the
opportunity to acquire additional knowledge to manage their
wealth. Simple words for so many out there in need to understand
some concepts of the accounting world.
I would like to extend my knowledge and experience based on
dealing all these years with many entrepreneurs in a long
variety of industries. As simple as possible, I want to let them
understand the basics they need to know without interfering on
their important issues, mainly no to isolate them from keep
making more money.
In a series of articles, we will explain the following concepts:
Equity
Assets
Liabilities
Income Statement
Balance Sheet
Before we start with this project, the basic concept you all
need to learn is what a “debit” and a “credit” transaction
means. Every single accounting transaction we manage has a
double entry; one side will go to the debit side and the
counterpart will go to the credit side, regardless to the type
of transaction. The easiest sample for you to understand the
concept is, if your issue a check of $10.00 to buy office
supplies; in this case you will decrease your bank account, and
will increase the expenses of the company. Therefore the
accounting department will do a “credit” to your bank account
and a “debit” to your expense account called office supplies.
This is what is called a “T Account” where every single account
in your chart has a debit and a credit site.
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* Fernando Angel
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