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Accounting Basics

You don’t need to be a trained accountant to use Brass Jacks Bookkeeper, but some basic accounting knowledge can help you make better use of the program.

To put it simply, accounting is a method of keeping track of the money you have, the money you make, and the money you spend. You keep track of your business income and expenses to increase your chances of making a profit. By keeping good records, you can more easily gather the financial information you need to help you accurately file your taxes.

Modern accounting is based on the 700-year-old “double-entry” system, where every transaction has an equal and opposite transaction that keeps your accounts “balanced.”

Brass Jacks Bookkeeper uses this age-proven system to balance your accounts, but you don’t have to worry about making sure the credits and debits are entered in the correct ledger columns. Brass Jacks Bookkeeper does that for you.

By understanding a few accounting basics, you can set-up accounts that will help you keep track of your business finances and file accurate tax documents. For more information, see Online Bookkeeping and Accounting Tutorials.

Note: This information isn’t a substitute for the advice of a qualified accounting professional.