Accounting for Small Business Course

Lesson 1 • Core Accounting Concepts and Terminology

Introduces assets, liabilities, equity, revenue, and expenses as the language of accounting. Establishes the vocabulary needed for every subsequent chapter.

Lesson 2 • The Chart of Accounts Setup

Explains how to design and number a chart of accounts tailored to a small business. A well-structured chart is the backbone of accurate recordkeeping.

Lesson 3 • Source Documents and Transaction Evidence

Covers invoices, receipts, bank statements, and contracts as the raw evidence behind every entry. Proper document management prevents errors and supports audits.

Lesson 1 • Recording Transactions in the General Journal

Teaches how to write journal entries with correct debits, credits, and descriptions. Accurate journal entries are the first step toward reliable financial statements.

Lesson 2 • The Trial Balance and Period-End Close

Shows how to prepare a trial balance to verify that debits equal credits before closing the period. Closing entries reset temporary accounts for the next cycle.

Lesson 3 • Managing Accounts Payable

Explains recording vendor bills, scheduling payments, and maintaining vendor relationships. Controlled payables prevent late fees and protect business credit.

Lesson 4 • Managing Accounts Receivable

Covers recording customer invoices, tracking payments, and managing outstanding balances. Effective receivables management directly impacts cash flow.

Lesson 1 • Recording Cash Receipts and Disbursements

Covers logging all incoming and outgoing cash transactions accurately and promptly. Timely recording prevents discrepancies between books and bank statements.

Lesson 2 • Setting Up Business Bank Accounts

Guides the separation of personal and business finances and the selection of appropriate account types. Proper account structure simplifies recordkeeping and tax preparation.

Lesson 3 • Monthly Bank Reconciliation Process

Walks through matching book balances to bank statement balances and resolving differences. Regular reconciliation is the primary detective control over cash.

Lesson 1 • The Balance Sheet Explained

Constructs a balance sheet showing assets, liabilities, and equity at a point in time. Demonstrates how the accounting equation is reflected in the final report.

Lesson 2 • The Income Statement Explained

Builds an income statement from revenue and expense accounts and calculates net income. This statement answers whether the business earned a profit during the period.

Lesson 3 • The Cash Flow Statement Explained

Prepares a cash flow statement using operating, investing, and financing activity sections. Reveals why net income and cash on hand often differ significantly.

Lesson 1 • Calculating Cost of Goods Sold

Derives COGS using the beginning inventory, purchases, and ending inventory formula. Accurate COGS is essential for a correct gross profit figure on the income statement.

Lesson 2 • Inventory Shrinkage and Write-Downs

Addresses recording losses from theft, damage, and obsolescence through adjusting entries. Unrecorded shrinkage overstates assets and understates expenses.

Lesson 3 • Inventory Fundamentals for Small Businesses

Defines inventory types and explains why accurate tracking is critical for financial reporting. Establishes the link between inventory records and the income statement.

Lesson 1 • Payroll Fundamentals and Employee Classification

Distinguishes employees from independent contractors and explains the recordkeeping requirements for each. Misclassification creates substantial back-tax and penalty exposure.

Lesson 2 • Recording Payroll Journal Entries

Posts payroll expense, employee withholdings, and employer tax liabilities to the general ledger. Correct entries ensure the balance sheet reflects all outstanding payroll obligations.

Lesson 3 • Calculating Gross Pay and Deductions

Computes gross wages for hourly and salaried workers and applies mandatory and voluntary deductions. Accurate gross-to-net calculations are the foundation of every paycheck.

Lesson 4 • Payroll Tax Deposits and Reporting

Covers deposit schedules, filing periodic payroll reports, and issuing annual wage statements. Timely deposits and accurate filings prevent costly penalties.

Lesson 1 • Sales Tax Collection and Remittance

Explains nexus concepts, sales tax collection obligations, and remittance procedures. Failure to collect and remit sales tax creates personal liability for business owners.

Lesson 2 • Estimated Tax Payments and Planning

Calculates quarterly estimated tax obligations and builds a simple tax calendar. Underpayment penalties are avoidable with consistent planning and timely deposits.

Lesson 3 • Depreciation and Asset Expensing

Applies straight-line and accelerated depreciation methods and immediate expensing elections to fixed assets. Depreciation strategy significantly affects taxable income each year.

Lesson 4 • Deductible Business Expenses

Identifies ordinary and necessary expenses that reduce taxable income and explains documentation requirements. Missed deductions directly increase tax liability.

Lesson 1 • Using Financial Data for Strategic Decisions

Applies break-even analysis, pricing models, and profitability reviews to guide growth decisions. Financial data transforms from a compliance output into a competitive advantage.

Lesson 2 • Managing Working Capital

Optimizes the balance between current assets and current liabilities to maintain operational liquidity. Working capital management is the daily discipline of financial health.

Lesson 3 • Cash Flow Forecasting

Projects weekly and monthly cash inflows and outflows to anticipate shortfalls in advance. Cash flow forecasting prevents the surprise insolvency that ends profitable businesses.

Lesson 4 • Building an Operating Budget

Constructs a revenue and expense budget using historical data and forward-looking assumptions. A realistic budget is the primary tool for setting financial targets.