wELCOME TO OUR FREE Accounting COURSE! NO REGISTRATION IS REQUIRED!
YOU WILL LEARN...
- Basic Accounting Terminology
- The Basics of Financial statements
- And more...
Accounting basics - Lesson 1
An introduction to Accounting...
Accounting... Where should I start...
I could be very cliché by saying "accounting is like marmite, you either love it or hate it", but that would be a boring way to start this free accounting course. What I will say is, that for some, accounting is like binge watching The Lord of the Rings whilst eating an Indian Takeaway. Poppadum's included. Also some of that onion salad and a pot of that mint yoghurt... Lovely. For others, accounting is like studying dentistry whilst listening to crazy frog on repeat.
In all serious, though, understanding basic accounting is a must-have skill for most. It is the language of business, the foundation of personal finance, and the key to successful investing and financial planning. In business, cash is king. Accounting is queen.
This free accountancy course will teach you the basics of accounting, including basic accounting terms and how to read basic financial statements, such as a profit and loss statement. It is a very quick course which can be completed relatively quickly. If you need something more extensive, I suggest my free bookkeeping course.
If I still have your attention, and you are ready for an anti-climatical adventure, let's get started...
I could be very cliché by saying "accounting is like marmite, you either love it or hate it", but that would be a boring way to start this free accounting course. What I will say is, that for some, accounting is like binge watching The Lord of the Rings whilst eating an Indian Takeaway. Poppadum's included. Also some of that onion salad and a pot of that mint yoghurt... Lovely. For others, accounting is like studying dentistry whilst listening to crazy frog on repeat.
In all serious, though, understanding basic accounting is a must-have skill for most. It is the language of business, the foundation of personal finance, and the key to successful investing and financial planning. In business, cash is king. Accounting is queen.
This free accountancy course will teach you the basics of accounting, including basic accounting terms and how to read basic financial statements, such as a profit and loss statement. It is a very quick course which can be completed relatively quickly. If you need something more extensive, I suggest my free bookkeeping course.
If I still have your attention, and you are ready for an anti-climatical adventure, let's get started...
Basic Accounting Terminology
The first thing to cover when learning basic accounting is the accounting, bookkeeping, and financial terminology and lingo..
Sales
A sale is the exchange of a product or service for money. Sales are generated by a businesses customers or clients. They give their money to the business in exchange for a product, such as a cup of herbal tea, or a service, such as providing a taxi service. Sales can also be referred to as revenue or turnover.
Debtors
When a sale is invoiced on credit terms, rather than an immediate exchange of goods for cash, this sale is called a credit sale. It becomes money owed to the business by one of it's customers.
The money owed to the business by it's customers is called debtors. Sometimes this is called trade debtors.
Expenses
An expense is the cost incurred by a business for purchasing a service or product. Expenses vary greatly. Examples of common business expenses are rent, insurance, wages, stationary, travel and fuel, and software.
Creditors
When an expense is invoiced on credit terms, rather than an immediate exchange of cash for goods, this expense is a credit purchase. It becomes money owed from the business to one of it's suppliers.
The money owed from the business to it's suppliers is called creditors. Sometimes this is called trade creditors.
A sale is the exchange of a product or service for money. Sales are generated by a businesses customers or clients. They give their money to the business in exchange for a product, such as a cup of herbal tea, or a service, such as providing a taxi service. Sales can also be referred to as revenue or turnover.
Debtors
When a sale is invoiced on credit terms, rather than an immediate exchange of goods for cash, this sale is called a credit sale. It becomes money owed to the business by one of it's customers.
The money owed to the business by it's customers is called debtors. Sometimes this is called trade debtors.
Expenses
An expense is the cost incurred by a business for purchasing a service or product. Expenses vary greatly. Examples of common business expenses are rent, insurance, wages, stationary, travel and fuel, and software.
Creditors
When an expense is invoiced on credit terms, rather than an immediate exchange of cash for goods, this expense is a credit purchase. It becomes money owed from the business to one of it's suppliers.
The money owed from the business to it's suppliers is called creditors. Sometimes this is called trade creditors.
Assets
An asset is something of value that is owned by a business. It is often tangible, but it doesn't have to be. Assets are often items that can be resold. Common business assets are things like motor vehicles, computer equipment, property and cash.
Liabilities
A liability is the opposite of an asset - it is something that a business owes. Common liabilities are trade creditors, bank loans, and finance agreements.
Profit
Profit is the surplus cash remaining from a businesses sales after it's expenses.
Equity
Equity is the amount of funds invested in a business, company, or other company. It is usually an accumulation of capital (money invested by the company's owners), investor funds, and re-invested profits.
Financial Statements
Financial statements are financial reports generated by a business or other entity. They usually show a company's sales, expenses, profit (or loss), what the company owes, and what the company owns.
Year-end or annual accounts generally include 2 key financial statements; the profit and loss statement and the balance sheet.
An asset is something of value that is owned by a business. It is often tangible, but it doesn't have to be. Assets are often items that can be resold. Common business assets are things like motor vehicles, computer equipment, property and cash.
Liabilities
A liability is the opposite of an asset - it is something that a business owes. Common liabilities are trade creditors, bank loans, and finance agreements.
Profit
Profit is the surplus cash remaining from a businesses sales after it's expenses.
Equity
Equity is the amount of funds invested in a business, company, or other company. It is usually an accumulation of capital (money invested by the company's owners), investor funds, and re-invested profits.
Financial Statements
Financial statements are financial reports generated by a business or other entity. They usually show a company's sales, expenses, profit (or loss), what the company owes, and what the company owns.
Year-end or annual accounts generally include 2 key financial statements; the profit and loss statement and the balance sheet.
That will do for now. Please watch the video below and then move onto lesson 2.
|
|