Business and Accounting Basics Archives

How do debits and credits work? A beginner’s guide to accounting

Joyanne James-Soyer 6 days ago Business and Accounting Basics Comments Off on How do debits and credits work? A beginner’s guide to accounting

Learn how do debits and credits work in accounting with this guide.

Understanding how debits and credits work is the foundational step for anyone starting out in accounting or managing business finances. Accounting can often feel like learning a completely new language, especially when words like “debit” and “credit” mean something very different in everyday banking than they do in bookkeeping. In …

Making sense of debit and credit: Why assets and expenses increase on the left

Joyanne James-Soyer January 31, 2026 Business and Accounting Basics Comments Off on Making sense of debit and credit: Why assets and expenses increase on the left

A beginner-friendly guide to debits and credits. Understand why the left and right sides of a T account matter for your business assets, expenses, and capital.

Understanding the fundamental rules of the double entry system is essential for mastering how assets and expenses increase on the debit side of a T account. This comprehensive guide explains the logic behind the left and right sides of accounting records to eliminate confusion for students and business owners. By …

Purchases and sales simplified: How to record goods, assets, stationery and rent received

Joyanne James-Soyer January 30, 2026 Business and Accounting Basics Comments Off on Purchases and sales simplified: How to record goods, assets, stationery and rent received

Learn the core uses of Purchases and Sales accounts and know how to record the items that don't belong in them.

Recording business transactions correctly requires distinguishing between inventory for resale and long-term assets to ensure accurate financial reporting. This article provides a comprehensive guide for students and professionals on the specific use cases for Purchases and Sales accounts versus Expense and Asset accounts. It addresses the common confusion between buying …

Why converting verbal loan to written agreement prevents audits

Joyanne James-Soyer January 18, 2026 Business and Accounting Basics Comments Off on Why converting verbal loan to written agreement prevents audits

Unexplained cash looks suspicious. Protect your company by converting verbal loan to written agreement so you have clear evidence for any financial check-up.

Converting a verbal loan to a written agreement provides the documented evidence required to satisfy tax authorities that a transfer of funds is a non-taxable debt rather than taxable income. Without a formal contract specifying repayment terms, interest rates and collateral, the Internal Revenue Service may reclassify the transaction as …

Fully depreciated but still running? Managing fixed assets that are still functional but obsolete

Joyanne James-Soyer January 18, 2026 Business and Accounting Basics Comments Off on Fully depreciated but still running? Managing fixed assets that are still functional but obsolete

Slow machines waste time and money. Master the art of managing fixed assets that are still functional but obsolete to ensure your team has the best tools.

Managing fixed assets that are still functional but obsolete requires a strategic approach to maintain accurate accounting records and operational efficiency. This guide provides a comprehensive framework for students, teachers, business owners, and financial professionals to navigate the complexities of fully depreciated items that remain in use. Readers will learn …