Accounting
What T-Accounts do
All Debits and Credits are tracked in an Account’s T-Account. When tracked properly, it’s easy to figure out the balance of an account.
Read MoreHow T-Accounts help
Each Account has it’s own T-Account. This allows proper transaction tracking of Debits and Credits.
Read MoreMay 2018 Update
Just wanted to share some news about what happened in May and plans for the future. Video recording started on my newest course: 7 Ways to Improve your QuickBooks® Online Workflow. This course is all about saving time and being more efficient in QuickBooks® Online. It should be released near the end of June/early part of…
Read MoreAnatomy of a T-Account
A T-Account visually represents the impact transactions have on a particular account. As seen in the image, the white “T” allows space for an Account Name (at the top), Debit Side (Left), and Credit Side (Right). It’s a simple visual that helps when trying to understand the balance of an account.
Read MoreNormal Balance: Expense
The normal balance of an Expense Account is a Debit. So, if you purchased $450 worth of office supplies, it means you have a $450 Debit in the Office Supplies account.
Read MoreNormal Balance: Revenue
The normal balance of a Revenue Account is a Credit. So, if you earned $750 from selling widgets (Sales), it means you have a $750 Credit in the Sales account.
Read MoreNormal Balance: Owners’ Equity
Like Liability Accounts, the normal balance of an Owners’ Equity Account is a Credit. So, if you have $250 in Retained Earnings, it means you have a $250 Credit in the Retained Earnings account.
Read MoreApril 2018 Update
Tax season is over and there’s a sense of relief which is always welcome after busy season. Despite not preparing income tax returns, I’m still very active with helping clients prepare their info for tax prep. It’s nice to turn down the intensity level for a bit and focus on more projects. Here’s what’s coming…
Read MoreNormal Balance: Liabilities
The normal balance of a Liability Account is a Credit. So, if you owed $750 to someone in the form of a Notes Payable, it means you have a $750 Credit in the Notes Payable account.
Read MoreNormal Balance: Asset
The normal balance of an Asset Account is a Debit. So, if you had $1,000 in a bank account, it means you have a $1,000 Debit in the bank account.
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