Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 2

Charting Your Accounts

IN THIS CHAPTER

Warming up with balance sheet and chart of accounts

Creating your own chart of accounts

Grasping the basics of debits and credits

Getting schooled in double-entry accounting

Accessing your chart of accounts in easier than ever with the advent of online banking. Most banks provide you with quick and convenient access to your full transaction history made by card, check, or direct transfers. Some even have tools to let you categorize, analyze, and graphically represent trends and patters in your transactions. If you don't have online banking, then you'll be managing your own chart of accounts and transaction history as you keep a written record of these for yourself.

Keeping the books of a business can be a lot more difficult than maintaining a personal checkbook. You have to record each business transaction carefully to make sure that it goes into the right account. This careful bookkeeping gives you an effective tool for figuring out how well the business is doing financially. You need a road map — a chart of accounts — to determine ...