Lita Epstein, MBA, designs and teaches online courses in investing, finance, and taxes. em>

This chapter covers the core concepts in accounting that you need to know before moving on to the more intricate topics. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice. Accounting: The methods and procedures for identifying, analyzing, recording, accumulating, and storing information and data about the activities of an entity that has financial results and for preparing summary reports of these activities internally for managers and externally for those entitled to receive financial reports about the entity. He has presented to more than 250,000 people and is frequently interviewed by the media as an authority on real estate and small business entrepreneurship.

People in your network may have run into similar challenges you’re facing, and you can offer each other perspective and support, in addition to celebrating one another’s successes. In business, the term means sales revenue (and other sources of income) minus expenses (and losses) for a period of time, such as one year. noIndex":0,"noFollow":0},"content":"All businesses, whether they use the cash-basis accounting method or the accrual accounting method, use double-entry bookkeeping to keep their books. The asset values reported in a balance sheet reflect past transactions and may differ from their current replacement or market values. It’s important to note that if you learn best when engaging with others, you should select a program that connects you with a community of like-minded peers.