Accounting Process - Introduction

This section provides a basic overview and applied skills exercises as well as free templates and calculators to help you understand the Accounting Process.

The Importance of Good Record Keeping

Keeping accurate financial records is essential for every firm. Without accurate records you cannot measure the degree to which your firm is progressing. The accounting records provide you with the information you must have to evaluate the changes in the financial condition of the firm, options that may be available you as the manager, and control over the outcome of past decisions.

Best Practices

This accounting section is designed to help you understand the basics of generally accepted accounting practices. It is NOT designed to replace the professional services of your bookkeeper or CPA firm. It is our belief that you, as the entrepreneur/manager have some knowledge about accounting so that you can better understand the output of the financial information as well as to be able to spot obvious errors before those errors lead to an embarrassing moment with a lending official. If you want to learn more about the accounting process, call Hagerstown Community College. They have a variety of classes available in accounting.

Below you will find links to pages that will help you better understand the accounting process. We recommend that unless you have detailed understanding of the accounting process you should either hire a trained bookkeeper or subcontract your bookkeeping to a professional service. We strongly recommend that you retain the services of a CPA firm that can provide oversight of the bookkeeping function and to provide you with technical strategies to maximize your financial well being.

Browse the accounting topics in this section:

...or test your skills with this short Accounting Skills Test (PDF)

1. Basics
   1. Introduction
   2. Accounting Cycle
   3. Accounting Equation
   4. Transactions
2. Balance Sheet
   1. Explanation
   2. Elements of Balance Sheet
   3. Templates
3. Income Statement
   1. Explanation
   2. Templates
4. Cash Flow
5. Liability
6. Payroll
7. Inventory
   1. Types of Inventory
   2. Inventory Example
   3. COGS Analysis Form