subject: Online Accounting Course - Take an online course and become a professional in accounting [print this page] Online Accounting Course - Take an online course and become a professional in accounting
If you are a small business owner or the boss of a multinational corporation, at the end of the year, you've dealt with accounting records and financial statements. This article is for beginners, that try to understand what is accounting and how we have to use it to take better business choices.
To understand the idea, you don't have to have an accounting training, but one have to be ready to learn. Web sites like www.globalfinanceschool.com offer a very good source of helpful information. It contains many educational articles and ebooks written by experts.
The main purpose of an accounting profession is to provide a fair and accurate description of online business activity, which will be utilized by the management to take the best decisions. Like all of the other professions, it has its own guidelines and regulations that have to be respected to make correct economical statements.
Accounting shouldn't be confused with bookkeeping. Bookkeepers record daily business actions in an accounting software. On the other hand, accountants summarize the data in the form of the financial statements and also examine the company performance.
As you may know, accounting is applied in all business areas. Most of the managers have enrolled to an online accounting course in order to be able to read and understand the financial statements.
Financial statements are actually one of the most important tools used by the management, regulators and investors today. They are created according to the rules.There are 4 fundamental financial statements. Balance sheet; shows assets owned by the organization and its liabilities. Earnings statement-list of revenues less costs, to arrive at net income. Cash circulation statement-a detailed money activity report and finally, the statement of retained income; it shows changes in retained earnings.
Now that you know exactly what accounting is, let's discuss the ways businesses present their economical information. There are three organization types: proprietorships-single owner, partnerships-two or more owners and corporations-one or more stockholders. Proprietorships generally are shops and other small institutions owned by a single individual. Partnerships are normally small to mid companies, but in the situation of law, it may be big multinational firms. On the other hand, corporations are owned and managed by stockholders. In partnerships and corporations, proprietors usually do not have managerial responsibilities.
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