We’re going to take a break now from accounting stuff and look at some practical business advice! This one’s for all of you who have just started or are thinking of starting your own business! Starting your own business is a difficult choice to make – but if you’ve made it, hey, good on you.
So we know that assets are good right? Assets are always good! Also, the best thing about assets is that you can use assets to buy more assets! Yay! If this is your first time visiting this blog, I suggest that you go and read about why Assets are Good first before reading this article.
It’s such accrual world we live in OK, accounting pun there in the title – sorry about that! But in this post we are going to review what is known as the accrual concept (which for students of accounting can be a very cruel thing to understand – ba-dum Tsss! The accrual concept essentially states
Ok, so far we have covered off Assets, Liabilities and Equity. So you know the basics of what makes a business tick. But let’s say you are a business owner and you’ve started your own thing – what you will be dealing with daily are Income and Expenses. First off, lets start with Income: Income