Accounting Basic Knowledge is the understanding, knowledge and application of fundamental accounting principles and processes. This includes understanding how to effectively track business expenses, recognize income, record assets and liabilities, understand taxes, utilize financial software, create financial statements and understand other accounting concepts. It is essential to have a basic knowledge of accounting for any business to run smoothly and efficiently. Knowing accounting basics can not only help business owners make sound financial decisions but see opportunities for growth as well. Proper planning and tracking of finances helps ensure a successful journey into entrepreneurship.