Connect2Accountants Blog

A BLOG ABOUT MONEY, ACCOUNTING & FRUGAL LIVING.

Written in Plain English. Better manage your money and eliminate stress.

Taxable Income, Tax deduction & Tax exemption Explained (Easy)

When you do your taxes, the words “tax deduction”, “tax exemption” and “taxable income” will often come up. What are the meanings of these words? When you look in the dictionary, they’re definitions are even more confusion. The thing is that these words should be understood together, not in isolation. In this blog post, these words will be explained in a way that’s easy to understand and I’ll show you how they’re all linked together.

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Difference between Accrual & Cash Accounting and Impact on Your Business (CPA explains)

Accounting is about recording things and how we record it. What’s accrual accounting then? It’s “how” you record – essentially it’s a way of recording or recognising sales or payments when things happen, not necessarily when things are paid in cash. Find out more...

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What is an Account? What's a Balance? (Easy Definition)

Have you heard the phrase “just put it on my account?” Also, what’s a “balance”? People use these terms when they might not have the money to pay someone on the spot. But what exactly is an account and what’s an account balance? And how does it work? Find out…

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What is Accounting? (Easy Definition Explained by a CPA)

According to the Merriam Webster dictionary, accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. Here's how to really understand it through examples.

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Double Entry Bookkeeping Explained (in Simple English)

Double entry bookkeeping is something that confuses a lot of people. Essentially, what it means is that when you make a sale, record a bill or record any other type of transaction in your business, your accounting system will record entries in both the right side and left side of an account (an account is like a storage compartment with two sides). Read on to learn more...

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Debits and Credits Explained (the Easy Way)

Debits and credits are often a confusing concept because the words seem to be really technical but in reality, their definition or meaning is really quite simple. They’re just weird names to say that this is the left side of an account and this is the right side of an account. Read on to learn more...

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What is accounting profit? (Explained in 3 steps)

The dictionary definition of accounting profit is that it’s the amount remaining after you take away your expenses from your income/revenue (the money you generally bring it). But there’s more to this… that is, what qualifies as revenue item and what qualifies as expense.

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What is accounting? (A simple explanation)

In easy to understand language and in a simple explanation, we answer the question, “what is accounting?” Read on to find out...

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The Accounting Equation (with Real Life Examples)

Although the accounting equation is simple - Assets – Liability = Equity, many people don’t know how it applies in real life examples and what equity event means. Check out this blog post to finally understand what the accounting equation is, how to rearrange it and see how it applies in real life examples.

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What is a Chart of Accounts? (And Setting One Up Successfully)

A chart of accounts is just accounting jargon and it’s pretty much the accounting world’s version of a book’s table of contents. Its definition or meaning is quite simple – in essence, it’s a list of accounts. Easy right? This post will help you understand how it is structured, why the length and names of your accounts is important and how the list changes with your business.

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