Equity – that’s an accounting speak for your handmade business term used by CPA’s, tax professionals, and business advisors for the ownership in a company or business – expressed in a dollar amount. That’s why Equity are the third section of your Chart of Accounts and your Balance Sheet report. What the heck is Equity? Equity is a tricky little …
Liabilities – that’s an accounting speak for your handmade business term used by CPA’s, tax professionals, and business advisors for money that you owe or will owe to others. That’s why Liabilities are the second section of your Chart of Accounts. Liabilities are divided into two categories: When it comes to bookkeeping, accounting, taxes, and the IRS – …
Bookkeeping feels a whole lot harder when the words themselves don’t make sense. If you’ve ever looked at a report, opened your bookkeeping software, or talked to a tax pro and thought, “What the hell does that even mean?” this post is for you. It breaks down common accounting terms for handmade business owners in plain English so you can understand your numbers with more clarity and a lot less confusion.
