Accounting How To: Help for Accounting Students, Bookkeepers, and Business Owners

Owner's Draw or Owner's Withdrawal is an account used to track when funds are taken out of the business by the business owner for personal use. Business owners may use an owner's draw rather than...

Double-entry Accounting is an accounting system that tracks two or more parts of every business transaction. It is based on the Accounting Equation [Assets = Liabilities + Equity]. The equation must...

When all the regular day-to-day transactions of an accounting period are completed, the next step is to check on the balances of certain accounts to see if those balances need to be updated or...

A T-account is a simplified or informal version of an account used to show increases and decreases in recording business transactions. It is called a T-Account because it is shaped like the letter T....

The key to understanding how accounting works is to understand the concept of Normal Balances. What are Normal Balances? In accounting, a Normal Balance is the expected balance for a specific...

In accounting, Debit means the left side of an account and Credit means the right side of an account. We increase and decrease accounts by debiting them or crediting them. Knowing whether to debit or...