Equity is one of those bookkeeping words that sounds more complicated than it really is. For handmade business owners, equity is basically the owner’s piece of the business — shaped by the money you put in, the money you take out, and what the business builds over time. This post breaks it down in plain English, with real maker examples and a reminder that spreadsheet users do not need to panic if they don’t see a formal Equity section.
Liabilities are the money your handmade business owes — like credit card balances, sales tax collected but not yet paid, supplier bills, or equipment loans. In this post, we’ll break down what liabilities mean in plain English, how they show up in your Chart of Accounts, and why tracking what your business owes helps you avoid accidentally spending money that’s already spoken for.
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.
