Understanding the accounting equation is very hard to comprehend for some, but in this episode you will learn about the most important accounting principle that is applied for all businesses. The Balance Sheet is all about being equal, it should be balanced and it is not possible that your Assets and Liabilities + Equity will outweigh each other. 

When you understand the accounting for your business, it will help you know your status as a business, whether you are having profit or loss, or whether you are tight with your cash flow or whether your business is solvent.

Here are a few insights you’ll hear in today’s show…

  • What is the accounting equation?
  • Explanation of accounting terms and how the accounting equations are always equal to each other?
  • What are Assets, Liabilities and Equity?
  • What is Retained Earnings in relation to future use in the businesses?
  • What is a Balance Sheet and why is it one of the important reports concerning a business?
  • More examples of the accounting equation
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About the Author

Owner of Annette & Co. - Chartered Accountants & Certified Profit First Professionals. Helping online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.

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