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Leadership Education | Accounting Explained
 

Basic Accounting
The Language of Business

Accounting is the language of business.

Just like Latin was the universal language of scholarship throughout the middle ages --scholars learned Latin as well as their own language, and thus were able to communicate with one another via writing-- accounting is the language spoken by financial and investing professionals, the capital markets, business analysts and coaches, and bankers. Every business owner will benefit from an understanding of the basic terms and concepts used in accounting, or be at a disadvantage to those who do.

In this section we define and explain many key terms and concepts that will increase your knowledge and comprehension of these ideas.

What Is Accounting?
by Darrel Hawes
Everyone has their own opinion and there are lots of definitions. Back when I was in accounting school, my very first accounting instructor, Pat O'Shaunessey, a fiery Irish guy, made us learn . . . Keep reading
Users of Accounting Information
by Darrel Hawes
In his book, The Seven Habits of Highly Effective People, Stephen Covey teaches us to "begin with the end in mind". Nowhere is this more important than when considering who will be using your acc . . . Keep reading
Cash Flow vs. Profitability
by Darrel Hawes
Inadequate cash flow is a major problem that small businesses often face. It is vital and necessary to earn a profit, but profitability does not automatically mean you will have sufficient cash to m . . . Keep reading
Accounting and Decision Making
Darrel Hawes
We can look at decision making in business in five steps or parts, and at least three of them rely on accounting or have implications for your accounting system or process. Take a look at . . . Keep reading
What is a Balance Sheet?
by Darrel Hawes
The balance sheet shows a snapshot of a company's financial position at any given point in time, usually a year end, quarter end, or month end. This article explains what information you can glean from the balance sheet, and what are the limitations of the balance sheet. . . . Keep reading
What is an Income Statement?
by Darrel Hawes
A brief explanation of the income statement. . . . Keep reading
Three Reasons You Should Understand Accounting
by Darrel Hawes
If you're a business owner, you should understand accounting. When you understand accounting, you can be in a better position to talk with your accounting professionals, bankers, investors, etc. You will also be in a better position to be in more control over your own investments and retirement planning. . . . Keep reading
Starting a Business? Start Here.
Darrel Hawes
If you're thinking of starting a business, you should give yourself every possible chance of succeeding. The tips I give you here will help remove the roadblocks to success. . . . Keep reading
9 Things Freelancers Should Do Before the End of the Year
Deborah Ng
Here are some great ideas for getting ready for the new year. I always pick up ideas from lists like this. The advice is geared toward freelance writers but most applies to all small businesses. . . . Keep reading
Basic Excel Tricks
Darrel Hawes
Sometimes we spreadsheet geeks forget that not everyone knows the basics of how to use Excel. Check out these five tips that I use almost everyday. . . . Keep reading
Introduction to Management Accounting
I found this video on YouTube. It's a pretty good summary that will give you a decent overview of management accounting. . . . Keep reading
Introduction to Financial Statement Analysis
Another YouTube video, this one a good introduction to financial statement analysis. . . . Keep reading
The 5 Reasons You Should Develop and Maintain a Budget for Your Business
Darrel Hawes
Budgeting is one of most overlooked activities a small business owner can perform, yet it is one of the most crucial. Here are five reasons why. . . . Keep reading
The Top 5 Reasons to Avoid Sole Proprietorship
Nina L. Kaufman
Interesting article that I found, dealing with sole proprietorships. I'm reprinting in it's entirety for your benefit. . . . Keep reading
The "Shoebox" Method of Tax Accounting
Darrel Hawes
Get prepared for filing your income taxes with the helpful tips in this article. . . . Keep reading
Calendar or Fiscal Year - Which is Right for My Business?
Darrel Hawes
Do you know whether your business accounting year should end on December 31, or on some other date? Read this article for help in making your choice. . . . Keep reading
Improve Your Business Bookkeeping with These 10 Tips
Darrel Hawes
Check out these ten tips, and incorporate them into your business. . . . Keep reading
Business Entity: How to Make the Right Choice
Darrel Hawes
What form of business entity will you choose? While I will not provide specific guidance, in this article I give you some ideas to consider. . . . Keep reading
Cash Basis and Accrual Basis Accounting
Darrel Hawes
Cash basis or accrual basis: how do you choose? . . . Keep reading
Five Reasons to Use a Sole Proprietorship
Stephen Nelson
This article by Stephen Nelson clearly lists the advantages to starting a sole proprietorship. . . . Keep reading
How to Make Money Online
Bev Clement
Amidst all the hype and misinformation surrounding marketing on the Internet, Bev Clement provides solid, helpful guidance. This article a good example. . . . Keep reading
Invention Creation Checklist
Darrel Hawes
Have an idea for an invention? Use this checklist to determine whether your idea has a good chance for success. . . . Keep reading
32 Tips for Sticking to Your Budget
Darrel Hawes
Sometimes this lists of tips can produce some real gems, things you can put to work immediately. Out of these thirty-two tips, there are certainly one or two that will makes sense for your situation if you are looking for help in staying within your personal or small business budget. . . . Keep reading
Financial Literacy
Darrel Hawes
April has been designated "Financial Literacy Month". Here are some of my thoughts on the topic. . . . Keep reading
To Contact Us
We're always interested in your comments, questions, and suggestions. Feel free to use the following to contact us. . . . Keep reading
To Contact Us
We're always interested in your comments, questions, and suggestions. Feel free to use the following to contact us. . . . Keep reading
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