What is an Account? (eBook excerpt chapter 2.03)

A free sample from chapter 2 Accounting Fundamentals of our Property Management Accounting in QuickBooks guide. Section 2.03 What is an Account?

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An account is a container to keep track of some monetary value for a business’ records. You can only do two things to an account: increase or decrease its value. Every account has two sides:

  • One side (left or right, it varies) used to increase what’s in an account
  • The other side lets you decrease what’s in an account

Accounts help you keep track of where money comes from and where it goes. When figuring out how to record a complicated transaction, it is often useful to draw accounts as a “T” shape (coined “T-Accounts”) with the name of the account on the top.

t-account quickbooks landlords

If the following illustration of a cash account were a checkbook (an asset account), the left side represents “deposits.” The right side represents checks written, electronic transfers, and any decrease to the account balance.

ch 2.03 T-accounts

Depending on which type of account you are using, the side that corresponds to an increase or a decrease may switch!

Below is a cash account, it increases on the left. However, a liability account increases on the right. An explanation comes later; for now let’s take a dive in with some examples.

The chapter continues on for several pages… only available in the full guide.

Read more about T-Accounts for landlords, better yet order our full training today. It comes with a money back guarantee. And thousands of customers love it (read testimonials ♥).

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5 thoughts on “What is an Account? (eBook excerpt chapter 2.03)

  1. Pingback: Debits and Credits (eBook excerpt chapter 2.05) | Property Management in QuickBooks

  2. Pingback: Managing Investment Property Mortgages in QuickBooks | Property Management in QuickBooks

  3. Pingback: Q&A: Rent to Own in QuickBooks | Property Management in QuickBooks

  4. I recently bought an apartment building with 4 units. I believe I need a good system to manage this investment. A recent version of QuickBooks is Quickbooks pro 2013. Is that version compatible with your course? Also, does that version print checks? I will have a special bank account for the investment and think being able to print checks when paying expenses would be nice.

    • Hi Pablo, thanks – great question. QuickBooks Pro will work great with our course. I’ve since emailed back and forth with you and I want to thank you for making the purchase! To your investing success!

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