According to a recent Sage Research report , a majority of bookkeepers and accountants feel there has been a cultural shift in accounting and that traditional methods are no longer enough to remain competitive. As a small business owner, this shift can make it hard to know which accounting practices you should implement.
However, you must remember the fundamental principles for your business’s finances. One crucial fundamental principle is double-entry bookkeeping.
Double-entry bookkeeping is a hugely important concept that drives every accounting transaction in a company’s financial reporting. Business owners must understand this concept to manage their accounting process and to analyze financial results. Use this guide to review the double-entry bookkeeping system and post accounting transactions correctly.