http://www.accountingunplugged.com The System Behind the Software Thu, 04 Dec 2008 22:29:17 +0000 http://backend.userland.com/rss092 en I just finished with one of my favorite guilty pleasures.  I listen to a weekly podcast done by a couple of guys that started a new site/service for programmers called stackoverflow.  Since I am not a programmer, I feel a little bit like a voyeur listening to their podcasts but ... http://www.accountingunplugged.com/2008/12/04/frustrated-commenter/ Businesses live or die on the value of their products and services.   Similarly, individuals and departments within businesses survive on the value of their internal products.  Accounting is no different.  Accounting provides both services and products that add value to an organization. The most important thing in accounting is to understand ... http://www.accountingunplugged.com/2008/12/01/add-value/ << Accounting System Structure - Quick Reference This post talks about how to make use of the information in Financial Statements.  Those statements are really the results of past operations.  It is important to use this information to be proactive and look to the future to predict results and to set ... http://www.accountingunplugged.com/2008/09/24/financial-statements-and-ratios/ << Accounting Journals and Ledgers How to Use Financials and Ratios >> This post is a quick overview of subjects covered in more detail in other posts. I usually like to see a quick version so I am trying to present that option to others as well. The Double Entry Accounting System ... http://www.accountingunplugged.com/2008/09/23/accounting-structure-quick-reference/ << Percentage of Completion and WIP Statement Accounting Structure -Quick Ref >> The process of gathering and storing Financial Transaction data in the Accounting System is accomplished through the use of both: Ledgers: which maintain Account Balances Journals: which maintain the line by line detail of each Transaction. Ledgers: I'm starting with Ledgers because we've ... http://www.accountingunplugged.com/2008/09/19/accounting-journals-and-ledgers/ << General Ledger >> Financials - Trial Balance This Post is a listing of which General Ledger Accounts are used by which Financial Statement. Trial Balance: All Accounts Account Description Debits Credits 1000 Checking Account (Cash) $44,350 1200 Accounts Receivable $0 1500 Office Equipment $1,300 1520 Office Furniture $1,650 1590 Accumulated Depreciation $496 2000 Accounts Payable $1,700 4000 Sales $50,000 7000 Rent $3,000 7020 Office Supplies $150 7040 Subscriptions $300 7060 Utilities $125 7100 Fuel $275 7200 Repairs and Maintenance $500 7240 Depreciation Expense $496 7300 Credit Card Interest and Fees $50 Totals $52,196 $52,196 Trial Balance: Income Statement Accounts Only The Income Statement uses ... http://www.accountingunplugged.com/2008/09/17/financial-report-accounts/ << Financial Statements - Balance Sheet >> Cost of Goods Sold and Inventory The Cash Flow Statement (Statement of Cash Flows) provides an overview of the way Funds move through an Entity, how they impact Overall Value and eventually reconcile with Cash Balances and determine Net Cash Flow in any given ... http://www.accountingunplugged.com/2008/09/13/statement-of-cash-flows/ << Cost of Goods Sold and Inventory Accounting Journals and Ledgers The Revenue Principle of GAAP requires Revenue to be recorded in the period it is Earned regardless of when it is billed or when cash is received. In some cases, it is simple to determine the timing for Revenues Earned, once ownership ... http://www.accountingunplugged.com/2008/09/11/percentage-of-completion-work-in-progress/ << Financial Statements - Income Statement >> Financial Statements - Statement of Cash Flows The Balance Sheet is the financial statement that summarizes the value of an entity's resources and the claims on those resources at any given time. Balance Sheet accounts start accumulating their balances from the beginning of ... http://www.accountingunplugged.com/2008/09/08/financial-statements-balance-sheet/ << Financials - Statement of Cash Flows >>WIP Statement and Percent of Completion The purpose of an Inventory System in Financial Accounting is to account for resources and to match costs to their related sales as closely as possible. Management Accounting is more concerned with the details of inventory management but ... http://www.accountingunplugged.com/2008/09/07/cost-of-goods-sold-work-in-progress-and-inventory/