Debit, debit, whos got the debit?

Well, I just got back from vacation.  My wife and I went on a cruise to Mexico for a week, so I am sorry that the blog has been vacant for a while. 

Well, it’s a new week which means a new topic!  If you have been following along, last week we talked about the difference between accrual accounting and cash basis accounting.  It was a roaring good time, but now we must move on.  I'll pause for a moment to let you dry your tears.....

And we are back.  This week we are going to discuss what debits and credits are.  You hear your accountants and bankers talking about them all of the time, right?  Did you know that when a banker says debit it doesn't always carry the same meaning our little accounting world?

Here is the problem with debits and credits – we’ve all been brainwashed by our bankers to think that a debit means something bad, i.e. taking cash out of the bank.  We have also been taught by our banking friends that a credit is good, i.e. cash going into your bank account.  Sound familiar?  If so, you have been brainwashed, but have no fear, we will sort it all out.

Check back tomorrow for the first part in our debits vs. credits talk!  If you have ever been confused by this topic, make sure not to miss it.

Comments

[R Money]

I love the blog and the content but the blue background is killing my eyes and it is really hard to read... Just my 2 cents!

I love the blog though. Good luck.

Ryan

[Eddy]

Thanks Ryan for the input. I will work on making the page more readable. For anyone that is reading this, Check out Ryan's blog. He has done a lot in the entrepreneurial community here in Utah and is someone that I've gained a lot of respect for.

Thanks again Ryan!