FINANCIAL ACCOUNTING GET IT STRAIGHT (ePub)

This book is different. The book focusses on the practical aspects, but instead of jargon and vague language we use "step-by-step" illustrations heading straight to the topic on hand. Of course, there are chapters that are almost all traditional paragraphs, but it plays a supporting role.

Recall the fable of the three little pigs. The wolf could not destroy the pig's house made of bricks. What does that have to do with this? Skip over, or fail to master the basics of Accounting: "The Language of Business" will not only regret that decision, but may have to come back and master them anyway. Accounting is debit and credit at the core, as computers are 0:1. I maintain, failure to master the basics principles is the root cause to have difficulties at the advance levels.

In fact, for some small businesses, these are the only steps needed to grasp the essentials that comprise the financial reports and, hopefully take steps to further one's accounting education. Even the basic accounting software will generate the financial statements with a few clicks, but the old saying, GIGO, garbage in, garage will make a mockery of those reports if you don't understand what makes up those figures. Too often, the input person has no idea what data they are inputting into the accounting program. That might be boom time for their outside accountants that bill extra per hour to correct their input error's. We don't have to revert to manual accounting, but do you have to understand, from the manual accounting standpoint, the accounting flow.

The first chapter - A Short History of Accounting. Given this book is extremely "cut and dry' could be considered a "waste of time' but it enlightens the reader, that accounting, in some format, is as old a civilization itself.

The process begins with a salaried employee launching a home-based consulting business and investing in a laundromat while maintaining employment. A Partner is later taken for the laundromat. Both businesses started out as sole proprietorships, and then were converted into Limited Partnerships, and Limited Companies.

Then, debits and credits.

We formed a limited company, Healthy Living which sold health products over the counter and which doesn't happen in real life, they offered health members and other services. This was done, in order to create, accounting for inventory, accounting for memberships and services. The company is funded, property acquired, Fixed Assets, office equipment, etc., Once operating, sales, purchases, payroll, receivables, payables, transferring funds, the trial and the adjusted trial balance and transferring those figures to the financial statements. There are more detailed chapters covering manufacturing, cost of sales, contracts and depreciation.