In the modern world, things change so fast that after a blink of an eye the world seemed changed. Few things remained unchanged, and one of these is accounting. Of course, few frameworks have been created over the 20th century to tackle issues such as fraud and transparency.
Indeed, although the basic method of accounting remained the same, many people do not approach the discipline and look at it almost with a skeptical eye. As if the understanding of it is reserved to few wise men, part of a small circle. These men use their own language to communicate.
This language so strange and intriguing gives offspring to the financial organization of any business, small or big, individual or multinational. In this book, we are going to burst this myth. Indeed, accounting is “simple.” Correct, I did not say “easy,” because it is not. Actually, I believe that accounting is the art of making easy things hard. Single transactions that in the real world seem straightforward in the accounting world sometimes become incomprehensible.
For example, a single payment form your customer, with a credit card, with a consequent assessment of bank fees, can become a plethora of journal entries, where you have to debit or credit multiple accounts in a dance of magic movements that seem almost to replicate the birds of paradise mating dance.
This dance so confusing at outsiders’ eyes, is instead linear and amusing at the female’s eyes. The enlightened accountant, like the bird of paradise female, is able to translate the input immediately from the real world in accounting output. He does not think in words but in Journal Entries.
My wish, at the end of this book, is for you to form the accountant mindset. Eventually, the real world will not seem so far apart from the accounting world. On the one hand, this book will approach the discipline in the simplest way possible. On the other hand, the language used will be straight-forward and easy to understand. This will make the comprehension of the discipline quickly digested to anyone.
You will learn everything I learned about accounting during my MBA and as Financial Analyst/Assistant Controller for a Real Estate Investing Firm in San Diego, CA.
TABLE OF CONTENTS
Why I Wrote This Book
Accounting Revealed in 100 Pages
PART ONE: The Accounting Cycle
1. The Power Of Accounting
2. Double-Entry System
3. The Accounting Wheel
PART TWO: Financial Statements
4. A Brief Overview of the main financial statements
5. The Income Statement 6. The Balance Sheet
7. The Cash Flow Statement
PART THREE: The Financial Toolbox 8. The Ratio Analysis
9. The Consultant Framework
About The Author
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