Top 10 Basic Accounting Books for Beginners [Updated 2022]
The objective of accounting is to systematically record financial transactions in the accounting books to determine the financial position of any organization. Below is the list of books on basic accounting that you must read in 2022 –
- accounting made simple ( get this book )
- accounting for non-accountants ( get this book )
- financial statements ( get this book )
- accounting manual ( get this book )
- outline schaum’s principles of accounting ( get this book )
- all-in-one accounting for dummies ( get this book )
- Accounting : The Ultimate Beginner’s Guide to Accounting ( get this book )
- accounting quick start guide ( get this book )
- the accounting game ( get this book )
- boot camp for accountants ( get this book )
Let’s talk about each of the accounting books for beginners that cover the basics and their key points and reviews.
You are reading: Accounting books for beginners
#1 – simplified accounting
author of this ledger: mike piper
book review:
this short book provides a basic introduction to accounting principlesaccounting principlesaccounting principles are the established guidelines and rules issued by accounting standards such as gaap and ifrs for companies to follow when recording and presenting financial information in books of accounts. read more and terminologies. the author’s brief explanations and numerous concise examples make it the perfect reference book for people with no accounting background.
key points
some of the main conclusions of this book are listed below:
- accounting equationaccounting equationaccounting equation is the main accounting principle that states that a company’s total assets are equal to the sum of its liabilities & owner’s equity. this is also known as the balance sheet equation & forms the basis of the double-entry bookkeeping system. read more and what they mean
- concepts and assumptions behind generally accepted accounting principlesgenerally accepted accounting principlesgaap (generally accepted accounting principles) are standardized guidelines for accounting and financial reporting.read more (gaap)
- calculate and interpret several different financial ratiosfinancial ratiosfinancial ratios are indicators of a company’s financial performance. There are various forms of financial ratios that indicate company results, financial risks, and operating efficiency, such as liquidity ratio, asset turnover ratio, operating profitability ratios, business risk ratios, financial risk, stability indices, etc.read more
- preparing journal entries with debitsdébitsdébit represents an increase in a company’s expenses or a decrease in its income. read more and credits
- depreciation calculationdepreciation calculationthe depreciation expense formula calculates how much of the asset’s value can be deducted as an expense on the income statement. formula for the straight-line depreciation method = cost of an asset – residual value/useful life of an asset.read more and amortization expense
#2 – accounting for people who are not accountants
author: wayne tag
book review:
This well-written book focuses on people who are new to accounting principles, presenting, for example, different sequential snapshots of the balance sheet to demonstrate how individual adjustments should be treated.
key points
In addition to providing the basic concepts of account books, the author focuses on some important topics such as:
- dealing with audits and auditorsauditoran auditor is a professional appointed by a company for an independent review of its accounting records and financial statements. an auditor issues a report on the accuracy and reliability of the financial statements based on the country’s local operating laws.read more interpret financial statements
- manage budgets
- control cash flows cash cash flows cash flow is the amount of cash or cash equivalent generated & consumed by a company during a given period. It proves to be a prerequisite for analyzing the strength, profitability and profitability of the business. room for improvement. read more
- use of accounting ratiosaccounting ratiosaccounting ratios measure the financial health of the company by comparing the various elements of the financial statements to measure the progress of the organization during the period. There are four types of accounting ratios: liquidity, solvency, profitability and activity ratios.read more
#3 – financial statements
author: thomas ittelson
book review:
each term is defined in plain, understandable language. the concepts are explained with basic and simple examples of transactions. the author aims to provide a solid foundation for his readers to understand the concepts.
key points
some learnings from this book:
- how the balance sheet works balance sheet a balance sheet is one of the financial statements of a company that presents the shareholders’ equity, liabilities and assets of the company at a specific time. it is based on the accounting equation that states that the sum of total liabilities and owner’s equity is equal to the company’s total assets. read more, income statement income statement income statement is one of the company’s financial reports that summarizes all company income and expenses over time to determine the company’s profit or loss and measure its business activity over time based on user requirements.read more and cash flow statementflow statement A cash flow statement is an accounting document that tracks the cash and cash equivalents incoming and outgoing of a business.read more work together to present the financial health of any business
- the visual approach to see exactly how each transaction affects the company’s three key financial statements
#4 – accounting manual
author: jae k. wedge
book review:
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a very informative and relevant book that takes into account an interesting approach. The author aims to focus on accountants, bookkeepers, and business students as he provides perfect examples and reference material.
key points
some of the topics addressed in the book are the following:
- brief definitions of everything
- a detailed explanation of accounting terms
- cost managementcost managementcost management is an integral part of business management that works on the estimation base, where various activities such as data collection, data analysis and mechanisms, process evaluation and event reporting are carried out so that the decision maker can plan and control the budget requirements of the organization, allowing you to make informed decisions.read more , tax forms and their preparation
- financial reportsfinancial reportsfinancial reports are a systematic process of recording and representing a company’s financial data. The reports reflect the financial health and performance of a company over a given period. management, investors, shareholders, financiers, government, and regulatory agencies rely on financial reports for decision making. read more requirements and compliance, and u.s. gaap (generally accepted accounting principles) and ifrs (international financial reporting standards)
#5 – schaum’s accounting principles scheme
author: joel j. lerner
book review:
The book comprises a collection of solved problems in accounting principles so that readers can easily connect the dots.
key points
some of the main topics covered in this book are the following:
- debits, credits, chart of accounts chart of accounts a chart of accounts (coa) lists all the general ledger accounts that an organization uses to organize its financial transactions in a systematic way. Each account in the chart has a number to make it easy to identify it in the ledger while reading the financial statements. read more, the general ledger, inventory measurement, net realizable value, bad debt recovery, and methods for calculating interest
- fixed assets, depreciationdepreciationdepreciation is a systematic allocation method used to account for the costs of any physical property or tangible asset throughout its useful life. its value indicates how much of an asset’s value has been used. Depreciation allows businesses to generate income from their assets while charging only a fraction of the cost of the asset in use each year. read more and scrap value, depreciation methods
- payroll and payroll taxespayroll taxespayroll taxes are legal deductions made by an employer from an employee’s regular salary and wages, and therefore Generally, such withholdings have equal contributions from both the employer and the employee. These taxes are collected by the tax authorities of the respective employers and paid by human welfare plans, infrastructure development.read more
#6 – all-in-one accounting for dummies
author: kenneth w. boy
book review:
As the book promises on its title page, it offers to impart learning in plain, simple terms. the author constantly uses examples and analogies to make the topics interesting and understandable.
key points
some of the aspects of accounting that the book covers are the following:
- establish an accounting system; Recording Accounting Transactions Recording Accounting Transactions Accounting transactions are business activities that have a direct monetary effect on a company’s finances. For example, Apple represents nearly $200 billion in cash & cash equivalents on your balance sheet is an accounting transaction. read more
- adjusting and closing entriesclosing entriesclosing entries in accounting are journal entries made at the end of an accounting period to write off temporary account balances by transferring the amount to permanent accounts. read more
- audit and detection of financial fraud
- planning and budgeting for companies
#7 – accounting
The Ultimate Beginners Guide to Accounting
author: greg shields
book review:
providing an overview of financial statementsfinancial statementFinancial statements are written reports prepared by a company’s management to present the company’s financial affairs for a given period (quarterly, semi-annually, or annually). These statements, which include the balance sheet, income statement, cash flows, and statement of stockholders’ equity, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity of reporting across all financial statements. levels. read more, analysis and principles followed by accounting practice, this book offers simple explanations that are easy to follow to relate accounting terms and concepts in business use.
key points
some of the main topics covered in the book are as follows:
- the statement of cash flows
- the cpa and public accounting
- tax accountingtax accounting is the framework that considers tax returns rather than the disclosure of public financial statements when recording and presenting business transactions in the account books. complies with company internal revenue code rules and policies.read more
- accounting reportsaccounting reportsaccounting reports are created using a company’s accounting data to check transactions book by book over a period of time certain. Accounting reports also include financial statements, such as cash flow statements, profit and loss statements, and balance sheets. read more: the income statement
#8 – accounting quick start guide
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author: josh bauerle cpa
book review:
It is a very complete book that covers almost all the main accounting topics and terms; The book is very useful for small business owners as it outlines the procedures for handling small business accounting.
key points
some of the main topics covered in the book are the following:
- principles of financial accountingfinancial accountingfinancial accounting refers to bookkeeping, that is, identifying, classifying, summarizing, and recording all financial transactions in the income statement, balance sheet, and cash flow statement. cash. it even includes the analysis of these financial statements.read more, managerial accounting and tax accounting
- types of business entities; its pros, cons and its financial statements
- gaap standards and their relevance for accountants
- the logic and methods of classical double-entry accounting
#9 – the accounting game
author: darrell mullis
book review:
Using the world of a child’s lemonade stand to teach the basics of managing finances, this book makes the subject engaging and understandable. The author has readers use their senses, emotions, and critical thinking skills to learn. the book focuses primarily on business owners/managers and budding entrepreneurs.
key points
Some of the key learnings that the book imparts are as follows:
- business accounting proceduresaccounting proceduresthe accounting procedure is the process of a standardized nature that performs a specific accounting function designed to incorporate better risk management policies to fulfill these functions efficiently. includes invoicing, invoices to suppliers, bank reconciliation, which requires complete and simplified procedures. read more and creating financial reports
- financial accounting
- step-by-step processes to manage accounting in business
#10 – boot camp for bookkeepers
author: angie mohr
book review:
this book shows small business owners the essentials of record keeping record keeping is a basic stage of accounting that teaches us how to keep track of monetary business transactions with the goal of keeping a permanent record of all transactions, knowing the correct image of assets-liabilities, profits and losses, etc., keeping track of expenses in order to minimize them and having important information for legal and tax purposes.read more, and why it is crucial For the success of a company keep track of financial data. the author shows business owners how to sort through information and paperwork, record what’s important, and use that information to grow a business for success.
key points
some of the main learnings that the book imparts are the following:
- recording/accounting purpose
- analysis and monitoring of financial informationfinancial informationfinancial information refers to summary data of monetary transactions that are useful for investors to understand the profitability of the company, its assets and growth prospects. Financial data about people, such as bank statements from previous months, tax return receipts, help banks understand a customer’s creditworthiness, ability to pay, etc.read more
- start a business , grow a business and exit a businessexit a businessexit a business strategy is a plan by which a person running an existing business plans to liquidate his or her interest through sale or other transfer mechanism to achieve an exit with losses or meet immediate cash requirements. read more
recommended articles
here is the guide to accounting books for beginners. here we provide the list of top 10 basic accounting books to read in 2022 & a preview of what those books propose & takeaway you can refer to the following books for more information –
- books of accounting
- books of accounting standards
- books of management accounting
- books of finance
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