You about to go on a journey that will take you from understanding what an ‘account’ really is (and it’s not as obvious as you may think!) to being able to read any balance sheet with ease.
You will understand exactly what the professionals (bankers, certified accountants, VC’s, FD’s CFO’s) are talking about. You will be able to talk with confidence about your new bookkeeping and accounting knowledge and will earn respect for it.
You will know your ‘gross profit’ from your ‘net profit’, your ‘cost of goods’ from your ‘operating capital’, your ‘depreciation’ from your ‘amortization’ but BEST OF ALL you will CLEARLY understand the logic behind these things in a way that no other course has EVER explained.
Why is a ‘credit’ a credit. Why do so many people get credits and debits mixed up. The single guaranteed way never to get them wrong again (just knowing that is worth the price of admission – never get stuck in an exam again!).
And you get our special mini-course on starting your own bookkeeping service.
Everything starts with accounts. Understanding what an account really is is vital - and not many really understand this. This first lecture is short, simple and to the point, just like any good course should be. Thank you for joining.
The Accounting Equation is the basis for all accounting. It shows how and why a set of books balance.
Without transactions, there are no books. Transactions are what makes the money flow around a business. They show where the money came from and where it went to, without which, it would get completely lost! - and that's why the entire world chooses double-entry as you are about to discover...
Every set of books has at least one ledger (and that includes every piece of professional accounting software too), so it's vital you understand this mysterious accounting object. We shine the light on exactly what it really is so you will never be left in the dark again.
Here's another thing that every bit of accounting software has but you never ever hear about. This is how your books are balanced. It throws up any errors. Learning how this works puts you way ahead of the average business owner. There's not a single chartered accountant on the planet that doesn't understand the trial balance, make sure you're not left out.
Most people think of the profit and loss as a report (it's also commonly called a 'Statement'), but few understand it's actually just another account in the system. Find out how this miracle of accounting works and impress your business friends at the same time.
Looks like we're about to get a little technical here, but don't worry. EBIT and EBITDA are vital bits of (very simple) jargon the professionals use when talking about how much money a company has made - and now you're going to learn the secret too. As for COGS, well, it has nothing to do with mechanical things, it's just a way to describe your gross profit, which in turn lets you figure out your margin. And a business that knows its margins is a business worth knowing!
Of all the things in business, the balance sheet can be the most confusing, but you already know about the accounting equation from lecture 2, so this is going to be a walk in the park. And I'd also like to say congratulations on making it this far. That's an amazing achievement and if you like champagne, I'd highly recommend a glass (unless you're under age, in which case a glass of lemonade is far better for you anyway - that's what I drink so it must be true).
Most businesses buy stuff, then either manufacture it into other stuff or simply resell it as is. And that means they need to account for it. That's exactly what you're going to learn in this lecture. This is often over-complicated if you follow the standard text books, but we show you a much simpler method. Stack 'em high!
As soon as you buy any asset, such as a company car or computer, it loses value. As a bookkeeper you need not to record that. You also need to track it too - otherwise the boss won't know when they need to buy the new Lear Jet!
It doesn't matter what country you come from, everything gets taxed, not just your income. Some countries like the USA only charge tax on sales. Others (like the rest of the world!) charge it on purchases too. Don't worry USA, it will be coming to your tax system soon, and you will need to know how to account for it. In this penultimate lecture you will learn one of the most taxing subjects there is when it comes to bookkeeping, but don't worry, you ALREADY have the tools and knowledge to tackle it.
Check your final set of answers here...
This is a quick overview and introduction to starting your very own bookkeeping service. It's not hard to do, it just takes some common sense and perseverance.
Now for the setup. Follow along and enjoy...
You need to stand out from the crowd. That will get you noticed and you will get more clients who pay you more money.
This is the holy grail of ANY business, but luckily you have chosen a business that is more in demand than ever due to the massive global rise of small businesses. Let's find out how to attract more clients.
You've covered all the core parts, now you need to deliver results. This will ensure you keep your clients and start getting referrals from them so you're never short of work.
What's it take to be a treasurer? Let's explore...
It's all about transactions. In this case receipts and payments.
Because you will have a kept a great set of books, reporting will be a simple matter.
Quentin Pain is an author, speaker and small business strategist. He has started 6 businesses including multi-million pound British software company Accountz.
He has been awarded 3 Macworld nominations and is a fellow and council member of the International Association of Bookkeepers and the International Association of Accounting Professionals.
He became the IAB Small Business Mentor of the Year in 2013 and was voted Top 10 UK Business Advisor by Enterprise Nation in 2015 (the judges included the Department for Business, Innovation and Skills).
He is co-author of a Dummies title and has self-published 3 other books. He founded and now runs The Number One Club, which helps entrepreneurs become number 1 in their market.
He is also the creator of SEO Roadmaps, an online application that helps authors research new articles and track their rankings online.
Quentin has been featured in The Sunday Times, The Independent, The Daily Express, The Financial Times, MoneyWeek, Metro (where he was the Money Doctor columnist) and BBC Radio.