Accounting basics, without the jargon

You don't need to become an accountant — you need just enough to make good calls and talk to one. Two ideas cover most of it: whether you count money when it's earned or when it actually lands (accrual vs cash), and keeping a simple, consistent set of books. Get those right and everything downstream — taxes, loans, decisions — gets easier.

Do this

1. Pick a method: most small owners use 'cash basis' — count money when it actually moves. Simplest, and usually fine.
2. Keep a simple set of books: money in, money out, sorted into a few sensible categories.
3. Use bookkeeping software or a tidy spreadsheet, and reconcile it against your bank every month.
4. Build a relationship with a bookkeeper or accountant before you're desperate — a yearly check-in pays for itself.

Cash vs accrual, in plain English

The one accounting choice most owners actually face:

CASH BASIS Count it when the money moves. You did a job in May, got paid in June → it's June income. Simple. Most solo service businesses use this.

ACCRUAL BASIS Count it when it's earned or owed, regardless of payment. You did the job in May → it's May income, even if unpaid. More accurate for bigger/inventory businesses; more work.

Free help: the SBA + FDIC "Money Smart for Small Business" course has whole modules on record keeping and accounting, written for beginners.

(General info, not tax advice — a bookkeeper can set this up right for you.)