Accounting - A Practical Definition

What is accounting?

A simple definition is the recording of financial or money transactions. Not all transactions need to be recorded. Mostly, only business transactions are recorded, personal transactions are rarely recorded by individuals.

For example, you purchase a book for $10. You give the book seller $10; you receive the book & a receipt for $10. More often than not you throw the receipt away; you only want to read the book. The book seller however is operating a business so the transaction will be recorded.

The book seller will record the $10 as a cash sale and at the end of the day will total all of the book cash sales. That is easy, count the money in the till less the float amount at the start of the day and you have the total sales for the day. The book seller now has a problem, how many books were sold, what books were sold and was there a profit for the day?

Does it matter? It does if the book seller wishes to continue the business. This is where the accounting system or process begins to be a little more complicated.

The book seller now has to figure out a few things. How many books were sold is relatively easy, 45 transactions for the day so 45 books sold today. All at $10, unlikely, so the book seller needs an accounting system to record or show this information. This accounting system should show what books were sold, at what price and how many were sold.

The book seller needs this information because tomorrow there will be more sales. If there were 10 books titled "Book 1" today and four were sold then tomorrow there will only be six on the shelf. If four more are sold tomorrow, there will be two left for the day after tomorrow. If customers come into the book shop to buy "Book 1" and it is not available they will go somewhere else to get it.

It may take a week to receive more books after an order is made.

So the accounting system must show the book seller when more books need to be ordered not just how many were sold and at what price. In the example "Book 1" the book seller will need more books arriving tomorrow or early the day after so no book sale is lost. The new book order would have needed to be made a week ago for there to be no loss of book sales.

How much did the book seller pay for the books? That information also needs to be available to show whether a profit is being made. The simple transaction of one $10 sale is not so simple for the book seller.

Accounting is far more than the simple recording of a financial transaction. Accounting needs to be able to provide more information than the financial amount of the transaction alone.

A better definition would be accounting is the process of recording all aspects of the money transaction from a financial, physical and non-financial informational point.

Mind you not all transactions are completely money so even the better definition is not complete when it comes to a definition of accounting. Accounting involves so many different areas of business that any definition given is always going to be open to debate, especially amongst accountants.

Michael Russell Your Independent guide to Accounting Article Source: http://EzineArticles.com/?expert=Michael_Russell

Find More : accounting system , financial transaction , Book Accounting , Keeping Book , Services Accounting

Best Baby Products, 9th Edition - Review

One of the first things I thought when I found out I was going to be a new dad was, "Oh man, we're going to have to buy a bunch of stuff!" If you don't know already you're going to find out really quick that there is almost no end to the amount of baby products out there. Sorting through all the different products and brands can seem like an insurmountable task. Enter Best Baby Products; a true life raft in the endless sea of baby gear.

While registering for our baby shower, I just happened to have picked this book up at the front of the store. I literally carried this book with me and used it as a reference guide while we added stuff to our registry. If it wasn't for "Best Baby Products" I would have gone with my usual "This looks good" shopping method.

Best Baby Products is a complete and thorough guide to all things baby and should be a must read by any new dad or parent looking for the best quality and value in their baby products. Consumer Reports is known for their unbiased and impartial testing of products in all industries. They don't even accept advertising in their magazines to remain completely objective. So you know you're getting the best possible reviews with this book.

It's 37 sections are alphabetically listed for easy reference. They cover every possible baby related product category you could think of (and even some you wouldn't). Some of the most helpful are:

Baby Bottles and Nipples

Baby Food

Bouncer Seats

Cribs

Diapers

Formula

Gates

Strollers

Swings

Besides the main feature of reviews, the book comes chalked full of extras. Stuff like "The Baby Basics" checklist, "Keeping Baby Safe" and "Guide to Pediatric Drugs" really are just icing on this cake.

Consumer Reports does a great job of scientifically and objectively breaking down products. Their reviews keep you from buying something that "looks good enough" or has "cute colors". For most products they provide a chart that breaks down essential factors (saftey, durability, comfort etc) and gives "poor" to "very good" ratings. They also give a numerical rating so you can compare between different brands and models.

For some products they only provide a "recommendations" section instead of break down by model. Car Seats and Breast Pumps are both like this. Then for other products they only have limited review charts. For example the Cribs section only tells the price and if the crib meets basic safety standards. So it's harder to compare between brands and models.

While the formatting for the reviews is not completely uniform, this book is a must have! If you don't own this book, do yourself a favor and get it today.

To get my complete write up on this book and read more reviews, tips, and all about my new dad adventures and mishaps visit http://www.new-dad-blog.com

Article Source: http://EzineArticles.com/?expert=Adam_Hansen

Find More : baby products , baby shower , Baby Bottles , Diaper Cloth , Baby Wholesale

Prefold Cloth Diapers - Decomposable Diapers

Prefold cloth diapers have recently become famous. Although cloth diapers have been used long before anything else they have made a comeback. Many people concerned for the environment and concerned for their baby's health have made the switch. There are pros and cons to both disposables and cloth. Cloth diapers are made from natural fibers which are much more comfortable for your baby and better for the Earth. Sure they aren't as convenient as a disposable where you just throw it away after every use but at least when you do toss it out you know it will eventually decompose. You will be doing your planet a huge favor. Not many people know that disposable diapers last around 500 years and are a major landfill crisis.

A prefold cloth doesn't absorb as much urine as the alternative because it doesn't contain any chemicals. Common sense tells us that cotton cloth is better than synthetics for a baby's extremely soft sensitive skin. Diaper rashes are less likely to happen with cotton unless you wait too long.

Cloth diapers aren't as complicated as they used to be years ago they have been made to be just as convenient as a nappy. After a couple of tries it becomes very easy and you will be very happy. It's a rewarding feeling to know you are making a difference in the world. This is one way of green living and your baby will also be much more comfortable.

Cloth diapers are reusable and much more affordable. They come in different brands and styles. Some are 2 pieces, the cloth and a cover. Some called Chinese cloth diapers will need safety pins or a snappi to secure onto child. There are other more convenient ones that are all in one that are snap on or Velcro and replicate a disposable diaper. You can continue reusing cloth diapers until it begins to whither. Washing them is very simple, make sure you have removed all the poop from them and add them to their own separate pile. When this pile becomes enough to load into a washing machine just wash them as you would anything else. It's important to make sure they are sanitized before your baby wears them again. An unclean diaper can give your baby complications. You can dry them in a dryer but some people like to hang them in the sun.

Charlotte writes about the benefits of using prefold cloth diapers and organic cloth diapers

Article Source: http://EzineArticles.com/?expert=Charlotte_Jeffries

Find More : cloth diapers , Diaper rashes , Products Baby , Diaper Cloth , Baby Wholesale