Accounting Basics

Plain explanations of the concepts every accounting system rests on: the chart of accounts, journals, debits and credits, and the financial statements.

• Accounting Basics

  What is an accounting system?

  An accounting system is how a company records every financial transaction and turns it into information decisions are made on: how much we earned, what we owe, and what we are owed. This article explains its components in the language of a business owner, not an accountant.

  6 September 2026 · 3 min read

• Accounting Basics

  What is a chart of accounts?

  The chart of accounts is the organised list of every account a company records its financial transactions in. It is the structure journals and reports are built on; done well, financial statements come easily; done badly, you suffer for years.

  6 September 2026 · 2 min read

• Accounting Basics

  What are journal entries?

  A journal entry records one financial transaction in the company’s books with two equal sides: a debit and a credit. Everything that happens in the company, from an invoice to a salary to a rent payment, ends up as an entry. This article explains the idea with practical examples using Saudi VAT.

  6 September 2026 · 2 min read

• Accounting Basics

  The difference between debit and credit

  Debit and credit are the two words that confuse everyone starting in accounting, because their meaning in the books differs from their everyday meaning. This article gives you the one rule you need, then examples that make it stick.

  6 September 2026 · 2 min read