QuickBooks helps people who don’t have a degree in accounting handle most accounting tasks. However, you’ll be more productive and have more accurate books if you understand the following concepts and terms:
Double-entry accounting. The standard method for tracking where your money comes from and where it goes. Following the old saw that money doesn’t grow on trees, money always comes from somewhere when you use double-entry accounting. For example, as shown in Table I-1, when you sell something to a customer, the money on your invoice comes in as income and goes into your Accounts Receivable account. Then, when you deposit the payment, the money comes out of the Accounts Receivable account and goes into your checking account.