For a more in-depth understanding, take a look at our accounting terms and accounting principles articles. Below, you’ll find important accounting terms and principles that can help you get started. Without a clear financial picture, it can be nearly impossible to move your business forward. While you may be an expert at sales or marketing, you should never undermine the importance of basic accounting. There are a few business accounting basics you should understand to ensure your business operations run smoothly.

If you’re in the same boat, it’s essential you have a firm grasp on business accounting basics. Many small business owners take on accounting themselves in the early stages to save money.

Through business accounting, you can better manage your finances to make informed financial decisions for your company.

Primary duties of small business accounting include bookkeeping, preparing and filing tax returns, and drafting financial reports.

Keeping tabs on all of your assets, liabilities, inventory, and other records can help you secure investors, protect your assets from theft, and find ways to grow your company and take it to the next level. Whether you’re the proud owner of a new startup or entering your 10th year working your way up the ladder, you may be wondering, “what is business accounting?” A simple business accounting definition goes as follows:īusiness accounting is the process of gathering and analyzing financial information on business activity, recording transactions, and producing financial statements.īusiness accounting is important for a variety of reasons.

Advanced bookkeeping definition