Bookkeeping Course for Small Business

Lesson 1 • Core Accounting Concepts and Terms

Introduces assets, liabilities, equity, revenue, and expenses as the five pillars. These terms underpin every transaction recorded throughout the course.

Lesson 2 • Setting Up a Bookkeeping System

Covers the practical first steps: choosing paper, spreadsheet, or software-based systems. Students assess their business needs and select an appropriate starting setup.

Lesson 3 • The Business Transaction Cycle

Traces a single transaction from event to financial statement impact. Understanding this cycle prepares students to record entries accurately in later chapters.

Lesson 4 • What Bookkeeping Actually Does

Defines bookkeeping versus accounting and explains the daily recording function. Establishes why this distinction matters before any technical skills are introduced.

Lesson 1 • Asset Accounts in Depth

Covers current assets, fixed assets, and accumulated depreciation accounts. Students learn how each asset account feeds the balance sheet accurately.

Lesson 2 • Revenue and Expense Accounts

Defines income streams and cost categories relevant to small businesses. Granular expense accounts enable meaningful profit analysis covered in later chapters.

Lesson 3 • Understanding Account Categories

Explains the five main account types and their numbering logic. This structure directly supports accurate double-entry recording introduced in the next chapter.

Lesson 4 • Liability and Equity Accounts

Details accounts payable, loans, and owner's equity sub-accounts. Proper setup here ensures the accounting equation stays balanced at all times.

Lesson 1 • Recording Journal Entries

Introduces the general journal format and the steps for writing a complete entry. Every transaction recorded later in the course follows this same format.

Lesson 2 • Posting to the General Ledger

Explains how journal entries transfer to individual ledger accounts. The ledger becomes the source of truth for all balances used in financial reports.

Lesson 3 • Debits, Credits, and Normal Balances

Explains which side of an account increases or decreases each account type. Mastering normal balances eliminates the most common entry errors.

Lesson 4 • Identifying and Correcting Entry Errors

Covers the most frequent double-entry mistakes and the correcting entry method. Early error-correction skills prevent compounding mistakes in later periods.

Lesson 1 • Maintaining the Receivables Ledger

Explains the subsidiary ledger structure that tracks each customer's balance. This detail supports the control account balance in the general ledger.

Lesson 2 • Recording Customer Payments

Details how to apply payments, partial payments, and overpayments correctly. Proper application keeps customer balances accurate and disputes minimal.

Lesson 3 • Invoicing and Revenue Recognition

Covers creating invoices and recording revenue at the correct point in time. Accurate revenue recognition prevents overstated or understated income figures.

Lesson 4 • Handling Bad Debts

Introduces the allowance method and direct write-off for uncollectible accounts. Students record bad debt expense and understand its effect on net income.

Lesson 1 • Payables Controls and Fraud Prevention

Introduces authorization controls, segregation of duties, and vendor verification. These controls protect small businesses from the most common payables fraud schemes.

Lesson 2 • Recording Vendor Invoices

Explains how to enter a vendor bill and match it to a purchase order or receipt. Accurate entry prevents overpayment and supports audit readiness.

Lesson 3 • Payment Timing and Cash Management

Covers due dates, early-payment discounts, and scheduling payments strategically. Timing decisions directly affect the cash flow position analyzed in Chapter 8.

Lesson 4 • Maintaining the Payables Ledger

Details the subsidiary ledger that tracks each vendor's outstanding balance. Reconciling it to the control account ensures no obligations are missed.

Lesson 1 • Understanding the Bank Statement

Explains every line item on a bank statement and how it relates to the cash ledger. This foundation makes the reconciliation process logical rather than mechanical.

Lesson 2 • Petty Cash Fund Management

Explains establishing, using, and replenishing a petty cash fund with proper documentation. Petty cash is a frequent source of small losses when not controlled.

Lesson 3 • Recording Reconciling Adjustments

Covers the journal entries needed after reconciliation to correct the book balance. These entries ensure the general ledger reflects the true cash position.

Lesson 4 • Cash Controls for Small Businesses

Introduces practical internal controls: daily deposits, dual signatures, and access limits. Strong cash controls reduce theft risk and support accurate bookkeeping records.

Lesson 1 • Why Adjusting Entries Are Necessary

Explains the matching principle and why some balances need correction at period end. Without adjustments, financial statements misrepresent the business's true performance.

Lesson 2 • Accrued Revenues and Expenses

Covers recording income earned but not yet billed and expenses incurred but not yet paid. These entries prevent understatement of revenue and understatement of costs.

Lesson 3 • Trial Balance and Closing Entries

Guides students through preparing an adjusted trial balance and closing temporary accounts. Closing resets revenue and expense accounts for the next accounting period.

Lesson 4 • Prepaid Expenses and Unearned Revenue

Explains how to allocate prepaid costs and recognize deferred revenue over time. Proper deferral treatment keeps assets and liabilities correctly stated.

Lesson 1 • Preparing the Income Statement

Builds the income statement from adjusted revenue and expense account balances. Students calculate gross profit, operating income, and net income step by step.

Lesson 2 • Using Statements for Business Decisions

Applies financial statement data to pricing, spending, and growth decisions. Students connect bookkeeping outputs to real strategic choices a small business owner faces.

Lesson 3 • Preparing the Balance Sheet

Assembles assets, liabilities, and equity into a classified balance sheet format. The balance sheet proves the accounting equation holds after all adjustments.

Lesson 4 • Reading Financial Ratios

Introduces liquidity, profitability, and efficiency ratios calculated from the statements. Ratios translate raw numbers into actionable business insights.