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P04

Accounting Basics

Accounting is the language of business. Learn to speak it: transactions, the three statements and how they connect.

Start the course →10 lessons · first 2 free
  1. Why Accounting ExistsAccounting is just keeping score, carefully enough that a bank, an investor or the tax office can trust it. See who reads the score and why profit and cash tell different stories. · 10 minFree
  2. The Accounting EquationEverything a business owns was paid for by someone: a lender or the owners. That one idea, Assets = Liabilities + Equity, holds after every single transaction. · 11 minFree
  3. Debits and Credits, SimplyDebit means left, credit means right. Nothing more mysterious. Learn the one rule that tells you which side every account goes on, and every set of books in the world will make sense. · 12 min🔒 VIP
  4. The Income StatementFrom the money customers paid down to what the owner keeps: the income statement tells the story of a year in a few lines. Build Leo's, line by line. · 12 min🔒 VIP
  5. The Balance SheetA photo of the business on one day: what it owns, what it owes, and what's left for the owners. Learn to read it, and the three ratios a banker checks first. · 12 min🔒 VIP
  6. The Cash Flow StatementProfit is an opinion, cash is a fact. The cash flow statement explains exactly why the bank balance moved, in three parts: running the business, investing, and financing. · 13 min🔒 VIP
  7. Accruals: When Money and Profit DisagreeRevenue counts when you earn it, costs count when you use them, whenever the cash moves. Learn the four timing gaps (prepaid, deferred, accrued and owed) and why they make profit honest. · 12 min🔒 VIP
  8. Inventory and Cost of Goods SoldBikes on the shop floor are money in disguise. Learn how stock turns into cost of goods sold, why the method matters when prices rise, and how many days your cash sits on the shelf. · 12 min🔒 VIP
  9. DepreciationA van that lasts four years shouldn't count as a cost all in year one. Depreciation spreads it out. See how, why the method matters, and why it never touches cash. · 11 min🔒 VIP
  10. Boss: Close the Books for a Bike ShopMonth-end at Two Wheels. Post January's transactions, make the adjustments, produce the statements, and decide what to do about a surprise invoice. Everything in this course, for real. · 16 min🔒 VIP