Online Introduction to Accounting

Accountants help keep business records.

Accountants and auditors monitor transaction and tax records of firms to ensure that they are run correctly and efficiently. According to the U.S. Department of Labor, approximately 1.3 million jobs existed in accounting and auditing in 2008.

Debits and Credits

Each transaction incurs a debit and a credit. Debits and credits either increase or decrease the balance, depending on the type of account.

Account Types

Assets (what the company owns) and expenses are increased with debits and decreased with credits. Liabilities, such as loans or other obligations, and income are decreased with credits and increased with debits.

Considerations

All debits must equal all credits. In other words, since each individual transaction causes an equal debit and credit, all total transactions must equal zero. A balance different from zero indicates an incorrectly balanced entry.

Types of Accounting

Public accounting, government accounting, management accounting and internal auditing make up the four main types of accounting and auditing.

Salary

According to the U.S. Department of Labor, the median annual salary for accountants and auditors was $59,430 as of May 2008. The 10th and 90th percentile wages were $36,720 and $102,380, respectively.

Job Qualifications

Requirements for most accounting jobs include a bachelor's degree in accounting or a similar field and certification as a Certified Public Accountant (CPA).

References

• Business Town: Accounting
• U.S. Department of Labor: Accountants and Auditors
• Business Recordkeeping: Accounting Basics