Basic Accounting Principles

Anyone who worked in an office had to work in accounting at some point. They’re the people who pay and send bills to keep the business going. Although they do more. Sometimes referred to as “bean counters,” they also track profits, costs, and losses. Unless you run your own business and act as your own accountant, you have no idea how profitable – or not – your business will be without some form of bookkeeping.

 

Whatever your business, even if you’re just balancing the checkbook, it’s still accounting. It’s even a part of a child’s life. Saving pocket money, spending everything at once – these are accounting principles.

 

In what other companies is accounting very important?

Well, farmers have to follow careful accounting procedures. Many of them manage their farms year after year by taking out loans to grow crops. If it’s been a good, profitable year, they … Read the rest