Let’s assume that David, a web designer, after working for many years with IT companies, has recently started a new web design company to provide website design and other related services to local businesses in his location. The company is named “Web Design Inc.”
Running a web design company can pose many challenges. You need to get involved in all the aspects of the business, including renting the place, setting up the infrastructure, buying the required software, recruiting trained staff, marketing and promoting your business, and most importantly managing their finances.
In the following lectures, we will use various transactions at Web Design Inc. to explain the various concepts of accounting.
This article provides a summarized version of these transactions and their impact on the financial statements. It is recommended that you print a copy of this document and keep it handy while reviewing the lectures.