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Bookkeeping All-in-One For Dummies, 2nd Edition
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Bookkeeping All-in-One For Dummies, 2nd Edition

by Lita Epstein, John A. Tracy
August 2019
Intermediate to advanced content levelIntermediate to advanced
608 pages
15h 28m
English
For Dummies
Content preview from Bookkeeping All-in-One For Dummies, 2nd Edition

Chapter 2

Charting the Accounts

IN THIS CHAPTER

Bullet Introducing the Chart of Accounts

Bullet Reviewing the types of accounts that make up the chart

Bullet Creating your own Chart of Accounts

Can you imagine the mess your checkbook would be if you didn’t record each check you wrote? You’ve probably forgotten to record a check or two on occasion, but you certainly learned your lesson when you realized that an important payment bounced as a result. Yikes!

Keeping the books of a business can be a lot more difficult than maintaining a personal checkbook. Each business transaction must be carefully recorded to make sure it goes into the right account. This careful bookkeeping gives you an effective tool for figuring out how well the business is doing financially.

As a bookkeeper, you need a road map to help you determine where to record all those transactions. This road map is called the Chart of Accounts. This chapter tells you how to set up the Chart of Accounts, which includes many accounts. It also reviews the types of transactions you enter into each type of account to track the key parts of any business: assets, liabilities, equity, revenue, and expenses.

Getting to Know the Chart of Accounts ...

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Publisher Resources

ISBN: 9781119592907Purchase book