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Accounting principles for beginners

Accounting Principles for Beginners in 2021: Where to Start

It can be hard to keep up with new opportunities and technologies in our rapidly changing and evolving world, especially in a professional field such as accounting. Old tricks are not relevant today, so whether they like it or not, people must adapt. 

Why is accounting important? What is accounting software? Is it worth the cost or does it fall short? Let’s find out what’s really under there. 

Contents:

Basic accounting and its secrets

Four essential steps in accounting

Simplify accounting job with accounting software

Benefits you will acquire with accounting software

Bottom Line

Basic accounting and its secrets

The definition of accounting sounds pretty simple: it is a process of recording every transaction happening in your business. For example, let’s say you have a small business connected with woodwork, and you want to develop and grow in this sphere. You have the skill and talent to create beautiful masterpieces out of the wood and have a small room where all the magic is happening. So what’s your next step? 

Accounting services are the heart of all the modern markets that help people to regulate their money flow properly without any mistakes. So to start the actual work, you need to understand the foundation of the whole process. Basic accounting includes five important and significant transaction types: revenue, expenses, assets, liabilities, and equity. 

Revenue. Also known as sales, it is a reflection of the customers’ value for the product. That’s actually what you are going to gain by selling services or something else. Simply to say, it is the Price + Quality of the sold products. 

Expenses. These are the required cost of operations to generate revenue and run your business. 

Assets. These are the material and nonmaterial resources owned by the company that may be used in the future to generate value.  

Liabilities. This is what your company owes to creditors, usually a sum of money. 

Equity. It is mainly the difference between your assets and liabilities, the difference between what you own and what you owe. 

It is essential to keep in mind all these small details of the whole picture to provide your business with up-to-date information about the accounting process. Records of all your transactions, taxes, projections, etc. help to understand the financial situation better. Without these financial statements, you won’t have an objective answer to urgent matters, which is why these are the Big Four of the accounting basics. 

Four essential steps in accounting

To achieve accounting profits, you need to be assured to do the following four steps to reach your goal: Recording, Repeating, Interpreting, and Analyzing. Let’s define each of them to understand the main principles thoroughly. 

STEP 1. Recording

This is the identification and recording of all your transactions. If you keep track of your business cash flow then you will always be able to determine any problems if they appear. The main advantage of the recording step is that you are always aware of all the operations happening in your business. They may seem like just a bunch of numbers with a long way to go, but you’ve already started! 

STEP 2. Repeating

It is excellent that you have the previous month’s statistics, but that will not be enough, you need to be able to compare all your business’ profits over an extended amount of time.  

To do this, you must record important accounting details. Even analyzing just two diagrams can be of great significance when assessing the financial situation of your business.

STEP 3. Interpreting

You have some tables and charts, so now what? The main point in all these steps is to understand what you are doing and be able to read all the numbers you have on your computer at the end of the month. This does not mean just “two is bad, and twenty is good”, but the realization of what these “two” and “twenty” stand for, and the significance it has for your business

STEP 4. Analyzing

After the previous three steps, you finally have the whole picture and can start to analyze everything you and your company have done during a certain time. This will give you the basic accounting knowledge to think about any possibilities which may be helpful in growing and developing your business. 

Simplify accounting job with accounting software

Accountants are not robots, but people. It is common to make mistakes, especially when you are working with an accounting ledger. You have to be responsible and attentive to details not to make mistakes in your charts, so most small businesses today are trying to adopt new technologies such as accounting software, to stay competitive. According to the statistics, 91% of accountants believe new technology delivers value to their business, which is higher compared to the previous year (83%).

 

Such innovations are a change and a chance to develop. Here to help in the world of online accounting are programs such as QuickBooks software, Xero bookkeeping, and others. The unique feature of these two is their integration with Synder – the software helping to reconcile your accounting. 

Let’s discuss these more thoroughly:

  1. QuickBooks Online is accounting software for small businesses and freelancers that allows you to track all the transactions made from your bank, credit card, PayPal, Square, and more. It is an excellent choice if you want to either save time or improve the outcome. 
  2. Xero is accounting software connected to your bank, bookkeeper, and other business apps. It is a complete business solution to serve the financial part of the organization. This software is a perfect choice if you are looking for automatization, security, or accurate reconciliation.  

Would you like to improve the work on a particular software to optimize your service? You are in the right place! Synder is a unique opportunity to enhance your software work without any additional effort of entering an endless stream of numbers. Synder accounting automation will save you from all the difficulties you may encounter. 

By synchronizing your e-commerce bookkeeping and payment platforms’ sales transactions, you gain a wide range of advanced configurations, like shipping costs and tax prices. You don’t have to spend sleepless nights calculating incoming and outgoing transactions of your company anymore. The features of Synder are limitless, but the most significant of them are the Auto-Sync, importing previous data into the accounting system, and Rollback and Duplicates Detector, designed to avoid any issues with the data import. 

You can enhance your  Stripe, Square, and PayPal accounting with Synder. It is a convenient software that helps you keep track of your transactions in real-time, customize and organize them in a suitable format.  Synder automatically synchronizes Stripe, Square, and PayPal transactions with QuickBooks Online/Desktop and Xero. The process is simple; you don’t even need to do any additional work. As soon as you receive a transaction, the payment lands automatically in your accounting system within several minutes. Configurations are also easy to use. 

Synder’s customers are always satisfied, and the customer support team is ready to help you 24/7. Synder software improves efficiency and productivity. Try a free trial right now to see all the options available or view a Demo


Benefits you will receive with accounting software

Now you have seen the whole picture of the accounting and Synder software, you may be interested in what benefits you will get from this. So what are they? 

  1. Recorder of your growth. You definitely have business-related goals, so it is essential to have daily, monthly, and even yearly records of all processes and improvements that have been done during a certain period of time. 
  2. Assistant during tax season. The software provides assistance and insurance that you’ll pay the right amount of taxes, especially during the accounting busy season. To not pay too much, you need to have an accurate calculation of payments, which may be hard for a person, but not for accounting software with automation. 
  3. Time saver. Accounting software will do everything you need in just a few combinations of clicks, no more sleepless nights and monotonous work.  
  4. Reconciliation in just one click. The ability to reconcile transactions from any data with 100% accuracy and without losing a dollar. There is not even a necessity to do everything in one particular currency, especially when you integrate with the help of Synder, as there is an opportunity to record multi-currency transactions. 
  5. Tracker of the cash flow. You can always track how much money you have on hand and how much you will need to spend in the future due to some possible circumstances. Accounting software will help you to make vital decisions based on your current cash standing. 

And that’s not even half of the opportunities provided by the Synder accounting software. Hopefully, you’ll find out more while trying everything yourself. You won’t be disappointed! 

Bottom line

Wrapping up all the previous statements, it is hard not to admit that accounting plays a crucial role in the running of a business. It grants not only the reliability and sustainability of the workflow but also confidence in future development. Even at the beginning of the month, you may be assured of what you might expect in the next four weeks of endless circulation of money within your company. 

If this was accurate for you or your business, please, feel free to try QuickBooks or Xero together with Synder software to integrate all the important information accurately. Store smart with Synder automation accounting software! 

  1. Have transaction data from all your sources joined in one place
  2. Organizations in Synder: add clients to your accounting software in a more convenient way

Synder team

Synder team

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