Teach Myself Account in 1 Easy Step

TychoCelchuuu

So I want to teach myself some basic accounting stuff. Is there some awesome book I should get out of the library or some awesome website? Or do I just check out any old accounting textbook?

jclast

What kind of accounting do you want to learn? Small business? Intro Accounting for a degree program? Personal accounting principles to set up a budget/savings plan?

TychoCelchuuu

The first kind.

jclast

Last accounting class I took used this book, and I found it informative. It was pretty focused on business accounting. Also, I found the examples to be good.

http://www.amazon.com/gp/product/0073011215/ref=ox_ya_oh_product

Janson

Good question; I'd like to know, too!

I knew nothing about accounting six months ago. Then I managed to wind up in a job as a financial assistant and now I'm finding myself preparing budget reports and doing AP and making journal entries and doing bank reconciliations. I've learnt a lot by example and I'm super-pumped to start actual accounting classes.

Obviously getting an actual job like that is going to be out of the question, but if you prefer to learn by example, have you thought about maybe getting a copy of a small business accounting software (they're not all too expensive for personal editions, and certainly not much pricier than a good textbook) and playing around with that? Quickbooks, for example, comes set up with several types of dummy companies you can experiment with, and their tutorials and knowledge base is huge.

Tron

Here's the bad news. There is no one easy step. There is a lot of shit in accounting. the more you do it the easier it gets, find you a half priced books store and then buy out there supply of accounting books.

The good news: There is no good news.

Accounting is basically codified, retarded math. All you have to remember is Debit on the left, Credit on the right. They effect different account types in additive or subtractive ways.

If you just were doing small business, you would not need many accounts, and could probably track it via excel.

Say for example, you just bought your first lot of inventory, one brick, for 100 dollars!

Well, that would effect Cash and Inventory.

Remember what I said about Debits and Credits? Good. Well, in general, Debits increase Asset accounts, and Credits decrease asset accounts.


So that is journalised as

Debit Inventory: 100

(Edit: GET OVER TO THE RIGHT YOU BITCH) Credit Cash: 100

Reason: To record purchase of Inventory on 6/25/09.


This is a balance sheet only transaction. Your Cash would be decreased by 100 and your inventory increased by 100. This would first hit the general ledger, than be reported into the financial statements. (Aforementioned Balance Sheet) Stunning I know.

Accounting is this infinite times. Depending on your level of sophistication Quick books may help you more than learning the accounting trade.

But if I were to suggest a lesson plan: Imagine some general business transactions for your situation, then see how they would be journalised and booked, then make the financial statements