Are you familiar with the accounting equation? It represents the relationship between assets, liabilities, and shareholder's equity on the balance sheet and can be extended to include the income statement. Every business owner needs to understand the accounting equation in order to understand the relationships between financial statements and run their business.
Even if you use an accountant for your bookkeeping and accounting needs, you still need to understand basic accounting so you know what you need to give the accountant and how it will be used. Check it out!