Small business accountants in Sydney explain accounting equations
Accounting equations are the foundation of double entry accounting, which we spoke about a few weeks back. But knowing the basics about accounting equations are important and our small business accountants in Sydney will explain them for you.
The accounting equation displays that all assets are either financed by borrowing money or paying with the money of company’s shareholders. So after this we get the accounting equation which is: Assets = Liabilities + Shareholders Equity. This equation is the root of all complex equations for the balance sheet as each way you turn it around gives you another way or avenue to get new information.
As small business accountants we like to ensure that our clients and fellow small business owners are well equipped with the proper knowledge to run a business.
Feel free to contact our small business accountants Sydney with any questions you might have about your business’ accounts.