Term debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet In fundamental accounting, debits are balance credits, which operate in the exact opposite direction( www.investopedia.com). It is very necessary for a firm to hire an accountant for it is the work of the accountant to do debit and credit. The accountant does the accounting entry to either create a decrease in liabilities or an increase in assets. If you are an accountant, you will have a lucrative income doing accounting balances for a company, firm, or any big business.
This explains debit in business
- Thread starter Starmix
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- #3
That is good of you aspire to review your accounting skills. I really appreciate people who graduate in accounting for they know how to balance the accounts of a particular company. An accountants can also decrease the assets of the company making the tax less to pay. It seems like applying tax fraud for not declaring the real value of the assets.
In large companies financial data entry Debit/credit is not done by an accountant, but by each accounting department such as sales, purchasing, accounts payable, cash holders, etc. So the job of an accountant is to collect financial data from various departments, make bank reconciliations, and compile financial statements, make financial analysis. An accountant must also be able to ensure that the financial data presented is correct and reliable.
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- #9
That is true, big offices and companies hire their own accountant, and they have in-house accountants but businesses like gasoline stations need accountants.
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- #11
That is true and it's the accountant to do liabilities decrease or assets increase.
it isn't even good to leave everything to the workers since the owner is the one with the vision.
I used to know how to do balance sheet and the others. Through the years of being busy, I forgot doing it. But I have the idea.
Probably, that is why we have business managers and moderators. It is their duty is to correct people and monitor them. That way you can be able to know how they are doing their jobs.
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- #17
You're great, are you also a graduate of BS Commerce?
It is really not good for business to be in debt because it will keep compounding in profit are not rolling-in in large amount.
I have found myself in this situation before and all you said is the truth. It is often better not to put yourself in a business debt and try to run the business with the little capital you have.
