Resources

Who should learn accounting?

Understanding the basics of accounting is an essential skill that everyone should have, as everyone faces some form of accounting on a daily basis.

The course is designed for anyone that wants to learn accounting, but more specifically; business owners, company directors, entrepreneurs, accounting students, business students, bookkeepers, and anyone with a general interest in accounting. 

What is covered in the course?

• Basic financial terms
• Basic accounting principles
• Financial statement basics
• Various accounting and finance insights 

What are sales?

A sale is the agreed cash exchange for providing a good or service.

Some sales result in an immediate exchange of cash, such as customers buying at the checkout of a shop. These are called cash sales. Other sales result in cash being exchanged at a later date, even though the goods or service have been provided. 

These sales are called credit sales and include an invoice, which details the sale and payment terms. 

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Sales can also be referred to as revenue, income or turnover. 

What are expenses? 

An expense is a cost incurred by a business, company or other entity.

Common expenses include rent, fuel, vehicle costs, stationery, printing, postage, insurance, software, computer costs, property maintenance, wages, salaries, subscriptions, training and travel costs. 

Just like sales, expenses can be incurred in cash or credit. These are referred to as cash purchases and credit purchases. 

Expenses are sometimes referred to as overheads, outgoings, or purchases. 

What are assets?

An asset is something that a business, company, or other entity, owns, and that has a resale value. 

Common assets include machinery, vehicles, computer equipment, property and office furniture. 

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Assets can be tangible, like an office desk. Assets can also be intangible, like a copyright and patent. 

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The main difference between assets and expenses is the resale value. Expenses often have little or no value and cannot be sold, such as rent, insurance and salaries. Assets have a value and could be sold, if needed. 

What are liabilities? 

Liabilities are the opposite to assets - something that the business owes. 

Common liabilities include bank loans, credit cards, finance and lease agreements, taxes, and money owed to suppliers. 

Financial Statement Basics

2 of the most common financial statements are the profit and loss statement and the balance sheet. 

These statements use the total of sales, expenses, assets, liabilities and equity to show the financial health and financial performance of a business or company. 

The Profit and Loss Statement

This financial statement shows total sales vs total expenses for a selected period. It details the total profit or loss an entity has made. 

The Balance Sheet

This financial statement shows everything an entity owns and owes at a selected date.