In the last video of the bookkeeping series, I briefly review the steps of bookkeeping. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. This is Episode 219 of Conversations with Kip, the best financial system vlog there is.Literally learn more–about … Continue reading Accounting and Bookkeeping Series Review

The last step of the Accounting Cycle is step 5, creating financial reports, including the Balance Sheet and Income Statement. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. Reporting The process of creating financial reports once the trial balance is … Continue reading Accounting Cycle Step 5: Create Reports

This week’s post discusses step 3 of the Accounting Cycle, posting to the general ledger, the nature of roll forward balances and accounting periods. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. 3 Books of Bookkeeping Historically, there were three … Continue reading Accounting Cycle Step 3: Post to Ledger

Discusses step 2 of the Accounting Cycle, creating journal entries, the “flow” of data through accounting, and the purpose of debits and credits. If you’re interested in a more in depth look, have a look at the accompanying textbook Balancing Act: A Practical Approach to Business Event Based Insights, available for download. Specifically, look at Chapter 5, Accounting. Flow of Data Bookkeeping is a very sophisticated (even … Continue reading Accounting Cycle Step 2: Create Journal Entries

This week’s post introduces the accounting cycle. Creating a single balance sheet as of today, or an income statement that reflects one’s activity over the week is not too difficult to do. But financial reporting is most powerful when it allows us to analyze things over time, efficiently, spotting trends and comparing periods. Doing this requires a process, and that’s what the accounting cycle is. … Continue reading Introduction to the Accounting Cycle

This week’s episode of Conversations with Kip discusses what an Income Statement is, why it is important, how it is made and its relationship to the Balance Sheet. Although almost all financial analytics begins with a balance–a position as of a point in time–the balance sheet does not explain why the balance is the balance or the position. Activity over time is what gives a … Continue reading Introduction to the Income Statement

Today’s episode discusses what a balance sheet is, why it is important, and how it is made. All financial analysis begins with a balance. Your bank accounts provide an excellent example. When you log into them or check a statement, what is the first numbers shown on them? It is the balance. Balances give us a point in time perspective. All financial reporting begins with … Continue reading Introduction to the Balance Sheet

This week I’m releasing publicly a series of videos on basic bookkeeping and accounting, which will cover the balance sheet, income statement, and accounting cycle. The accompanying textbook is available here for download: Balancing Act: A Practical Approach to Business Event Based Insights. Specifically, it will cover Chapter 5, Accounting. This is Episode 210 of Conversations with Kip, the best financial system vlog there is. … Continue reading Intro to the Bookkeeping Series