All posts by Elaine Orgain

Double-Entry Accounting

by Elaine Orgain

Double-Entry Accounting is a method of recording financial transactions that has been used for thousands of years. Rather than tracing its history, however, it is enough to know what it is today.  At its heart, double entry accounting is a system that epitomizes the concept that there is no such thing as a ‘free lunch’.  It stipulates that for every action there must be a consequence of equal value within the accounts.

It’s Accrual Business

by Elaine Orgain

Every business must track transactions to measure its financial results. The method its owners choose to record this activity will determine how much they pay in taxes. It also reflects the value of their ownership in the business. For these reasons, it is wise to understand the difference between the following two methods of accounting before making that choice.