NetWorth2b Theory Meets Practice - Small Business Accounting

Description

If you run a business, you need to understand accounting; because you can’t make data driven decisions without data. This book is a companion to the StoryBooks app. It provides an easy-to-follow guide, written for anyone who wants to take a learn by doing approach to accounting. While the target audience is small business owners... accounting students and educators can benefit from reading this book. It’s also a handy reference guide for bookkeepers and business consultants; because it provides insights and short-cuts that I’ve learned over the years. Topics are introduced with a step-by-step approach: (1) Basic Accounting Concepts; (2) Chart of Accounts; (3) Nature of Accounts; (4) Cash Receipts; (5) Cash Disbursements; (6) Journal Entries; (7) Data Aggregation; and (8) Financial Statements. Each chapter ends with a simple quiz designed to reinforce data comprehension. This allows the reader to perform a self-assessment and identify subject matter areas that require a closer look. The final chapter wraps up with a discussion about accounting systems. Specific coverage includes but is not limited to: • Double-Entry vs. Single-Entry Bookkeeping • Cash Basis vs. Accrual Basis vs. Modified Cash Basis Accounting • Cash Receipts, Cash Disbursements and Journal Entries • Employee Paychecks, Payroll Tax Calculations, and Payroll Tax Summaries • Capital Expenditures, Asset Book Value, and Depreciation Methods • Using the General Ledger and Trial Balance to Identify and Resolve Discrepancies • Reconciling Bank Statement Balances with General Ledger Accounts • Understanding the Income Statement, Balance Sheet, and Statement of Cash Flows Throughout the book, common transactions are used to show how everyday business activity is translated into accounting entries. The NetWorth2b StoryBooks accounting app is used for demonstration purposes. The reader will see how to track journal entries through the general ledger, the trial balance, the balance sheet, and the income statement.

First Sentence

Whether you're looking to start a new business or build an existing business… understanding your accounting data puts you in a better position for informed decision-making.

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