The most simple accounting principle: Assets = Liabilities Assets are what you/your business own: Real estate, cash, investments, machinery, inventory, intellectual property. These are all items that a person or a business owns and that hold value, and generate economical benefit. Liabilities are what you/your business owes: bank loans, mortgages, trade payables, taxes, credit card debt. Liabilities are what you used to purchase the assets.

What is your biggest problem in finance?

3 types of documents you should always archive for your business purposes: 1) Sales and purchase invoices - without them you won't be able to submit tax returns and won't be able to prove that you have borne any costs 2) Your contracts with clients and suppliers - they keep you safe in case of disputes and controls 3) Bank statements - they present real money flow and validate all transactions. 💡 Pro tip: keep both a paper and an electronic version (scan/photo), preferably in the cloud. This way, you'll never lose anything and it's easier to collaborate with your accountant. And how do you store your company documents? Paper, Excel, or maybe an app?

Dear Community! I am so happy to be here and start our journey together :) This space has been created for people, who want to learn accounting and finance from scratch. Let me know in the comments, why do you want to learn accounting?👇