Accounting Basics for Success in Business and in Life!

The Chart of Accounts is a listing of all accounts that form part of a company's accounting system. It is the first thing that Accountants Set up whenever they set up a New Accounting system for a company and therefore, it forms the foundation of a company’s financial record keeping system. We go through it Step by Step in this Lecture.  

Each Transaction in a Business goes through a Journey.  Accountants call this Journey an Accounting Cycle.  Here, we take an overview of this Journey to hopefully have a Happy Ending. 

Journal Entries are the Building Blocks of accounts.  Go no further without understanding them and their importance in the world of accounting - All in this Lecture! 

Debits and Credits are a source of confusion to so many people who try to understand accounts - Yet their understanding is fundamental to learn how the accounting cycle functions.  In this Lecture, I break down Debits and Credits into an easily understandable example.  I promise you that after this lecture - You'll wonder what all the confusion was about to begin with? 

If it weren't for the hard work of bookkeepers, companies wouldn't have a clue about what happens with their financial transactions?  But, who are Bookkeepers and how are they different from Accountants?  Find out all this and more in this lecture.  

Before Modern Accounting software - Accounting used to be done on Books.   Remember those!  This Lecture introduces you to T accounts -  Old School Methodology but still important in understanding the Functioning of the Accounting Cycle.   

In this lecture, we move into the last phase of the accounting cycle.  We see the use of a Trial balance and Adjusting Entries and we Finally close out the books.   

• If you've made it till here, you've gotten a pretty good hang of Accounting Vocabulary as well as the THEORY Behind the Accounting Cycle by now.  It's time to put ALL that you have learned to the TEST by going through the Accounting Cycle yourself.  Yup!  No Training wheels on this one.  Meet the Big Boss of this Video Game....Sorry......this Section - QUESTION 10!

With constant evolving technology, we are getting constantly introduced to new apps and softwares. 

But which accounting platforms have stood the test of time? 

Find out the most common Accounting Softwares available in todays market in this video. 

In this lecture, we do a step by step walk through and set up a New Wave Account.

Financial Statements reflect 'real world events' that have taken place in the life of the Business.  This Lecture  introduces to the different types of Financial Statements and how understanding them gives you a 'big picture' view of the Business.  

An overview of the Different Types of Financial Statements. 

You may have heard a lot about the Bottom Line - which is nothing but the Profits left over in the Business after deducting all the Expenses.  In this Lecture, we take a look at all aspects of the Income Statement - From Top to Bottom.  

In this lecture, we talk about private vs. public companies.  Why as individuals can't we see the Financial Statements of our local grocery stores but the Financial Statements of Wal Mart are freely available on the Internet?  This Fundamental understanding will help build a solid foundation for any accounting or finance concepts you will encounter in the future.  

The real world example in this Lecture illustrates why going Public with a company is not the right choice for everyone.  

There are times in our lives when we read a great book, attend a great seminar or take the perfect class.   But despite our efforts, taking the theory we have learnt in class and applying it to real life can be difficult. In this lecture - we address that problem by taking the knowledge we have gained about income statements so far in the course and seeing how it applies to real life.  

In this Lecture, we take the training wheels off and you get to explore all you have learned and your understanding of the Income Statement Independently.

In this article lecture, we Bookmark an article about the incomes statement to review it 7 days from now for improved retention of our newly formed skills. 

Everything must Balance.  Here, we take a look at the accounting Equation - The Fundamental Building Block of the Balance Sheet and see how the Balance Sheet is nothing but a representation of this Equation.  

Find out what a company owes by Understanding Liabilities.  If a company owes too much - It can be a sign of testing times coming up for a company the road ahead.  Learn more about Liabilities and how they impact a Business in this Lecture.  

Practice makes perfect, right?  Going over one balance sheet isn't enough and it's important that we go through a second one so you get comfortable with the concept.  This Lecture looks over the Balance sheet of Walmart to give you a better understanding of Balance Sheets. 

In this Lecture, we cover Cash Vs. Accrual Accounting and why not understanding this could be devastating for a Business owner.  Further, we take a deep dive into the Impact that credit has on a business and discover why it is so important to set up the RIGHT Terms of Credit when you run a Business.  

This Article Lecture focuses on fundamental difference between Cash and Accrual Accounting and we understand the 3 Fundamental Rules of Accrual Accounting.  

Did you know that a Business may be Profit Rich but Cash Poor?  This Lecture goes over why Profits may be misleading and 'Cash truly is King' (& Queen) of a Business.  

In this Lecture, we look at the TWO METHODS used to calculate the Cash Flow from Operations - and then take a deep dive into the INDIRECT Method for calculating the Cash Flow from Operations.  In my experience, people often struggle with understanding these two methods and it is my goal that you NEVER have to go through that especially after watching the simple and easy to follow explanations in this Lecture.  

In this Lecture, we continue where we left off with the 2nd Way to calculate the Cash Flow from Operations - The DIRECT METHOD.  We also talk about how important a positive Cash Flow from Operations is for the overall health of the Business.  

The Cash Flow from Operations is an integral part of a company and a 'key number' to watch when analyzing Financial Statements.  Learn all about it and more with the real life example of Walmart in this lecture. 

Need a crystal ball to predict the companies future?  While it may be hard to get hold of a Crystal Ball - Through this Lecture, we could start with learning about the Cash Flow from Investing and get an insight into the Future Direction Management wants to take the Company in.

Company's need to keep purchasing resources and long term assets to ensure that they keep growing well into the future.  In this lecture, we analyze the Real Life Cash Flow from Investing Section of Walmart which gives us insights into Walmart's Long Term strategy.    

There are primarily two ways in which a Business raises money.  Form the Owners (Equity) or from Outsiders (Debt).  The Cash Flow from Financing is a category that monitors the cash flow from these two components and we go over it in detail on this lecture

There are two ways in which companies raise Finance.  They are 1. Debt & 2. Equity.  The Cash Flow from Financing highlights the effect on Company Cash balances based on how the company has decided to raise money.  It is also the part of Accounts where the world of Finance clearly intermingles.  In this lecture, we analyze the Real Life Cash Flow from Finance Section of Walmart to learn more.  

Ironically, many times taking more room than the Financial Statements themselves - Find out what Notes are all about in this Lecture.  

If you observe an Orchestra - the performers are divided into several categories, there's Percussion, Brass, Woodwind, and Strings.

In a similar fashion, you can divvy up Financial Ratios into 5 Categories.

The 5 categories are

1. Liquidity

2. Debt, also called Solvency Ratios

3. Activity Ratios

4. Profitability Ratios

5.  Valuation Ratios

Each Category of Financial Ratios tells you something different about the business.

We have an introductory look at each of these categories in this lecture. 

Personally, I hate Goodbyes!  But I know all good things must come to an end.  But - Instead of a Goodbye - I'd just like to say.  Thank you for taking this Journey with me.  I'll see you later.  

Accountants need to be thoroughly familiar with the different "Forms of Business Organizations" to do their job as well as give the right advice when necessary.  In this lecture, we start learning the different Forms of Business with an exploration of into Sole Proprietorships. 

Life is not an Island and neither is Business.  Businesses often pool the talents and resources of many people towards a common Goal - Profits, using Partnerships.  In this lecture, we talk about Partnerships and their place in the business eco system, the different types of Partnerships and what are the Pros and Cons of each type of Partnership!