Beginner · 5 lessons · 42 min

Bookkeeping Fundamentals

The foundations every founder and new bookkeeper needs: what bookkeeping is, the accounting equation, debits and credits, the chart of accounts, and cash versus accrual.

What you'll learn

• Explain what bookkeeping produces and who relies on it
• Use the accounting equation to check that a set of books balances
• Record any ordinary transaction as a balanced debit and credit
• Design a chart of accounts that will survive a tax return and a fundraise
• Choose between cash and accrual accounting, and know when you must switch

Lessons

1. 1What bookkeeping is (and why it decides more than your taxes)Bookkeeping is the daily record of every dollar in and out; accounting is what you do with that record.7 minFree
2. 2The accounting equationAssets = Liabilities + Equity: the one rule every transaction must keep true.8 minAccount
3. 3Debits and credits without the confusionDebit means left, credit means right — and five account types tell you which side increases each balance.10 minAccount
4. 4Designing a chart of accountsThe list of buckets your books sort into — and how to build one that serves taxes, investors and you.8 minAccount
5. 5Cash vs. accrual accountingWhen revenue and expenses are recorded — at payment or when earned and incurred — and why investors expect accrual.9 minAccount

Lesson 1 is open to everyone. The rest are free with a ClearBooks account.