Free Bookkeeping Course - learn the basics of double-entry bookkeeping
This page contains the Bookkeeping Master's most basic bookkeeping course.
This course is for free and is based online. You will learn...
1. the basics of double-entry bookkeeping
2. basic bookkeeping terminology
3. the fundamentals of debits and credits
4. how to compile basic bookkeeping reports
To start the free bookkeeping course, please use the links below...
This course is FREE and no registration is required!
*NEW* - The FREE Online Bookkeeping Course
Lesson 1 - An Introduction to Bookkeeping
Lesson 2 - Basic Bookkeeping & Accounting Terms
Lesson 3 - Double Entry Bookkeeping Basics
Lesson 4 - Using and closing T Accounts
Lesson 5 - Financial Statements
*Recommended Book: Bookkeeping and Accounting for Dummies - *click here*
Part 1 - An Introduction to Bookkeeping
Course overview
An introduction to double entry bookkeeping
What is an accountant?
What is a bookkeeper?
Why do you need a bookkeeper?
Part 2 - Financial Terms
What is capital?
What are assets?
What are liabilities?
Part 3 - Double Entry Bookkeeping
What is double entry bookkeeping?
Debits and credits
Purchases, expenses, assets, revenue, liabilities, sales
Part 4 - T-Accounts
Expense accounts
Sale accounts
Asset accounts
Liability accounts
Debits and credits continued...
Part 5 - Financial Statement Basics
Profit and loss statement
Balance sheet
Ready to take bookkeeping more seriously?
Take bookkeeping and accounting to the next level by enrolling in the Bookkeeping Master's Ultimate Bookkeeping Course
Gain a certificate of completion
Learn bookkeeping and accounting for limited companies
Learn how to create year-end accounts
Learn advanced accounting principles
Bookkeeping Course - Key Points
Part 1 - An Introduction to Bookkeeping
What is a bookkeeper?
A bookkeeper is a person that keeps record of the financial/accounting transactions of a business, company, or other entity. These records can be referred to as the accounts or the "books", hence the term bookkeeper or book-keeper.
Accounts can be referred to as "books", as traditionally accounting transactions were manually recorded in a variety of different books or ledgers - a sales book, a purchases book, a cash book, etc, etc.
What is bookkeeping?
Bookkeeping or book-keeping is the term used to describe the recording of financial/accounting transactions of a business, company, or other entity.
When someone does the bookkeeping, they are keeping record and organising all transactions that relate to sales, revenue, expenses, purchases, bank accounts, liabilities, and assets.
Why do you need a bookkeeper? Why does bookkeeping need to be done?
A bookkeeper - or keeping the books - is needed for a number of reasons...
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It is generally a legal requirement to keep accurate records of the financial transactions of a business, company, or other entity.
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Without accurate and up-to-date accounting records, it's not possible to review the financial health of an entity.
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Accounting records allow business owners to calculate and review critical business information, such as profit (or loss), money owed to suppliers, money owed from customers, sales performance, etc, etc.
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Accurate accounting records also allow business owners to forecast and make financial and business goals and objectives i.e. Financial planning.
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Accounting records make it possible to calculate any taxes that are owed to governmental bodies
What is an accountant?
The terms 'bookkeeper' and 'accountant' are sometimes used interchangeably, but accountants generally focus on the financial statements and tax calculations of an entity, whereas bookkeepers keep record of the day-to-day transactions of an entity.
Part 2 - Bookkeeping Terms
What is capital?
Capital is the money a business owner has personally invested into a business or entity. Capital can also be referred to as equity.
What are assets?
An asset is something that a business or company owns that has a resalable value. Common assets include office furniture, computer equipment, vehicles, property, machinery, debts owed to the business, and cash.
Assets do not have to be tangible - i.e. a physical object - but they often are.
What are liabilities?
A liability is something that a business owes. They are usually in the form of debt - debts owed from the business.
Common liabilities include bank loans, credit cards, finance and lease agreements, taxes, and money owed to suppliers.
Part 3 - Double Entry Bookkeeping
What is double entry bookkeeping?
Double entry bookkeeping is a accounting method which entails at least 2 entries for every financial/accounting transaction. These entries consist of debits and credits - every accounting transactions will have a debit entry and a corresponding credit entry.
Debits and credits?
The term 'debit' and the term 'credit' refer to the different sides of accounting transactions. Every financial transaction of an entity will have a debit entry and a credit entry.
Part 4 - T-Accounts
What are t-accounts?
T-accounts are the accounts that debits and credits are posted to. For each expense category and sale category, there should be a designated t-account. For example, there should be individual t-accounts for rent, power, wages, stationery, fuel, parking, shop sales, internet sales, etc, etc.
There should also be individual t-accounts for all assets, liabilities and equities.
In recent years, t-accounts have been referred to as nominal accounts. All nominal accounts combined is referred to as the nominal ledger.
Part 5 - Financial Statements
What is a profit and loss statement?
A profit and loss statement shows the profitability of a business, company, or other entity, for a selected period. It lists the entities sales, cost of sales, and expenses.
A profit and loss statement often shows both gross profit and net profit, sometimes referred to as gross margin and net margin respectively.
Gross profit = Sales - Cost of Sales
Net Profit = Gross Profit - Expenses(Overheads)
What is a balance sheet?
A balance sheet lists an entities assets, liabilities and equity at a selected date.
Suggested video...
Learn accounting in 7 minutes!
*OLD (but still worth watching)* The FREE Online Bookkeeping & Basic Accounting Course
Video 1 - Introduction. Why you need to keep accounts and course content - Bookkeeping Course
Video 2 - Financial Terms. What is capital? - Free Bookkeeping Course
Video 3 - Financial Terms. What is an asset? - Free Bookkeeping Course
Video 4 - Financial Terms. Current and Fixed Assets - Bookkeeping Training
Video 5 - Financial Terms. What is a liability? - Free Finance Training
Video 6 - Financial Terms. The difference between a business and a company - Bookkeeping Course
Video 7 - Double-Entry Bookkeeping. Debits and Credits - Free Accounts Training
Video 8 - Double-Entry Bookkeeping. Control Accounts - Free Bookkeeping Course
Video 9 - Double-Entry Bookkeeping. Closing Accounts - Free Bookkeeping Course
Video 10 - Reports. Profit and Loss Statement - Free Accounting Training
Video 11 - Reports. Balance Sheet - Accountancy Training