If You're Curious About These Questions...
You should listen to this audiobook
- Have you ever wondered why a business can show a profit on paper but still run out of cash when it matters most?
- What if you could master the 'language of business' and finally understand exactly what your financial statements are trying to tell you?
- Are you curious about the simple, centuries-old system that ensures every single penny in your business is perfectly accounted for?
Listen to Accounting Made Simple — Free Audiobook
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Key Takeaways from Accounting Made Simple
- Understand the fundamental accounting equation—Assets = Liabilities + Owner's Equity—and use it to determine the exact financial position of any business or personal investment.
- Learn how to decode a balance sheet to evaluate a company's financial health at any given moment by organizing its core assets, liabilities, and equity.
- Discover how to track financial performance and calculate net income over time by subtracting the cost of goods sold and operating expenses from your revenue on an income statement.
- Master the cash flow statement to accurately record actual money inflows and outflows, ensuring you avoid pitfalls caused by the time lapse between recorded sales and received payments.
- Find out how to classify your company's cash movements into operating, investing, and financing activities to gain a crystal-clear picture of exactly where your money is going.
Accounting Made Simple — Full Chapter Overview
Chapter 1: Recommendation
Chapter 2: The fundamental accounting equation gauges a company’s financial position using assets, liabilities, and owner’s equity.
Chapter 3: The accounting equation underpins and structures your firm’s balance sheet.
Chapter 4: The income statement records a company’s financial performance throughout a defined, specified time period.
Chapter 5: The cash flow statement documents a company’s inflows and outflows of cash.
Chapter 6: Compute financial ratios to assess your company’s financial health.
Chapter 7: Accountants log each transaction with a specialized double-entry system.
Accounting Made Simple Summary & Overview
Accounting Made Simple (2013) provides a brief introduction to the fundamentals of accounting, illustrating how to read the most important financial statements and draw a conclusion about the numbers. It also outlines the double-entry ledger system, a hallmark of accounting best practices.
Who Should Listen to Accounting Made Simple?
- Small business owners curious about the fundamentals of accounting
- People who want to be able to read and understand a financial statement
- Anyone who wants to know about the basic aspects of accounting
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