If you run a business, you need to understand accounting; after all, you can't make data driven decisions without data. Here's an easy-to-follow guide, written for anyone who wants to learn accounting. This includes students who are studying accounting; educators who teach accounting; and business owners who want to understand and/or take control of their accounting. It's also a handy reference book for bookkeepers and business consultants; because it provides insights and short-cuts that I've learned over the years. While the focus is small business accounting, it is important to note that the content is relevant to all businesses, regardless of size.
Topics are introduced with a step-by-step approach: (1) Basic Accounting Concepts; (2) Chart of Accounts; (3) Nature of Accounts; (4) Cash Receipts; (5) Cash Disbursements; (6) Journal Entries; (7) Data Aggregation; and (8) Financial Statements. Each chapter ends with a simple quiz designed to reinforce data comprehension. This allows the reader to perform a self-assessment and identify subject matter areas that require a closer look. The final chapter wraps up with a discussion about accounting systems. Specific coverage includes but is not limited to:
Throughout the book, common transactions are used to show how everyday business activity is translated into accounting entries. These transactions can be recorded in the NetWorth2b StoryBooks accounting app to support a learn-by-doing approach. The reader can then track each entry through the general ledger, the trial balance, the balance sheet, and the income statement to gain immediate depth of knowledge, instead of spending time finding arithmetic errors that are inherent in a manual process.
