April 17, 2021

7 Best Accounting Books for Beginners

We feel proud to see you here looking for the best Accounting books for beginners that will take accountability for a company’s finances in the near future. Students who study accounting are future business leaders in fact. The role of Accounting will likely always be in demand. The U.S. Bureau of Labor Statistics projects that the accountant and auditor job market will grow by 10 percent by the end of 2026. You are now in the right place in both cases for studying accounting and collecting the best accounting books. 

Best Accounting Books for Beginners

Book Name & Author Image Rating Price
Accounting Made Simple: Accounting Explained in 100 Pages by Mike Piper 4.4 See on Amazon
Schaum’s Outline of Principles of Accounting by Joel J. Lerner & James A. Cashin 4.6 See on Amazon
The Accounting Game: Basic Accounting Fresh from the Lemonade Stand by Darrell Mullis & Judith Orloff 4.6 See on Amazon
Accounting QuickStart Guide: The Simplified Beginner’s Guide by Josh Bauerle CPA 4.2 See on Amazon

Warren Buffett Accounting Book: Reading Financial Statements for Value Investing by Stig Brodersen & Preston Pysh

4.7 See on Amazon

An Introduction to Accountancy by S N Maheshwari, Sharad K Maheshwari, Suneel K Maheshwari

4.2 See on Amazon

Fundamental Accounting Principles by John Wild & Ken Shaw

4.0 See on Amazon

1. Accounting Made Simple: Accounting Explained in 100 Pages

Really this book made Accounting simple that addresses the basic concepts in Plain-English with no technical terms. The book has two main sections, part one introduces the Financial Statements that cover the basic Accounting Equation, for example, Assets, Liabilities, Owner’s Equity. It defines “Retained Earnings” and describes the major three types of financial statements that a company needs to produce such Balance Sheet, Income Statement, and Cash Flow Statement. Most essentially, the book teaches you how to use these statements to calculate a company’s liquidity, profitability, leverage, and inventory turnover.

Part Two focuses on “General Accepted Accounting Principles (GAAP)” is where you will understand why all public companies have to use the same accounting principles; the ideas of debit and credit, the difference between “Cash Accounting” and “Accrual Accounting”; how companies balance their books at the end of each accounting session, Depreciation and Amortization; the process how companies keep track of their Inventory and how they calculate the “Cost of Goods Sold.”

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2. Schaum’s Outline of Principles of Accounting

A must-have and one of the best Accounting books for beginners is Schaum’s Outline of Principles of Accounting that make clear basic Accounting concepts and provides extra practice on topics, for example, Debits, Credits, the Chart of Accounts, the Ledger, Inventory Measurement, Net Realizable Value, Recovery of bad Debts, and Methods for accounting interest. In addition, the book covers Fixed Assets, Depreciation and Scrap Value, Methods of Depreciation, Payroll, and Payroll Taxes.

Very easy to understand Schaum’s Outline of Principles of Accounting is the best Accounting study guide. There is a basic discussion in each chapter followed by numerous examples that help the student practice ideas outlined in that chapter. In fact, the textbook covers Accounting 101 completely.

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3. The Accounting Game: Basic Accounting Fresh from the Lemonade Stand

The Accounting Game simplifies the world of Accounting. This book is essential for students, business managers, owners, or aspiring entrepreneurs to understand how to manage account balances? How do increase profits? The Accounting Game makes complex financial accounting ideas as simple and fun as running a lemonade stand.

This book makes a dry subject enjoyable and understandable that will make you able to understand and apply financial terms and concepts like assets, liabilities, earnings, inventory, and notes payable.

The Accounting Game uses the accelerated learning method. You can use your knowledge, passion, and critical thinking skills to quickly lean towards new tasks without feeling like you are in a boring classroom. You will get in this book:

👉 Easy-to-understand explanations of basic concepts.

👉 Quizzes and worksheets to keep records of progress.

👉 Step by step processes for managing a business.

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4. Accounting QuickStart Guide: The Simplified Beginner’s Guide

You can utilize the Accounting QuickStart Guide to supplement existing material for high school, undergraduate, or graduate courses. This is one of the best Accounting books for beginners to learn the fundamental principles of both financial and managerial accounting in an engaging and educating format. The book is the potential to understand accurately core accounting concepts such as the fundamental accounting equation, financial statements, managerial accounting, and more through practical, real-world examples. Accounting QuickStart Guide exclusively covers:

👉 The Logic and Methods of Classic Double-Entry Accounting.

👉 Business Entity Types; Pros, Cons, and Financial Statements.

👉 The Principles of Financial Accounting, Managerial Accounting, and Tax Accounting.

👉 GAAP Standards and Why They Matter to Accountants.

👉 How to Fraud-Proof Business using simple Accounting Tactics.

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5. Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

Warren Buffett Accounting Book is a step-by-step guide of Warren Buffett’s value investing style. It starts from conducting your own financial statement analysis that uses a stock screener to select potentially undervalued stocks and ending with calculating their intrinsic value. It’s a clear and concise overview of the value investing methodology.

This book gives a great overview of the stock market and a great deep overview of financial statements. If you have a background in finance and are hooked on your accounting skills and every line of the income statement, balance sheet, and cash flow statement you need it.

The book teaches you the following things:

👉 Two methods for calculating the intrinsic value of a company.

👉 What is a Discount Rate and how does it work.

👉 How to read an Income Statement, Balance Sheet, and Cash Flow Statement.

👉 How to calculate important ratios to properly value any business.

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6. An Introduction to Accountancy

The popular and well-known An Introduction to Accountancy textbook offers students with knowledge of basic accounting principles and practices in a systematic manner. Simplicity is a unique feature that has made this book popular among students. It enables students to understand the subject and solve practical problems with ease.

This book is highly effective because of the updated text, plentiful illustrative examples, and the end-of-chapter exercises with answers. The book comes with the latest questions and problems from examinations conducted by different professional bodies and universities. It is essential for students who study BCom, BBA, MCom, MCA.

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7. Fundamental Accounting Principles

To succeed in introductory Accounting, Fundamental Accounting Principles is definitely the best accounting book for beginners. The book is crucial for its step-by-step approach, FAP streamlines complex accounting processes and helps students build confidence by mastering key concepts and procedures.

Using the early dynamic entrepreneurs of the chapter, the vignettes appeal to all students and show the relevance of accounting. Students are encouraged to think like entrepreneurs and apply what they have learned. Different assignments provide instructors with materials to teach, evaluate, and challenge students at different levels.

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Importance of Accounting Study & Role of Accounting in Business

Essentially, accounting helps you to track income and expenses, ensure statutory loyalty and provide quantitative financial information to investors, management, and government that can be used in business decision making and plays a vital role in operating a business.

There are three main financial statements generated by your records.

  1. The income statement provides you with profit and loss of information.
  2. The balance sheet gives you a clear picture of the financial position of your business on a given date.
  3. The cash flow statement is a bridge between the income statement and the balance sheet and reports the cash generated and spent over a period of time.

If you want to continue your business, it is important to keep your financial records clean and up to date. Here are a few reasons why studying accounting is important.

The financial records reflect the results of operations as well as the financial position of your small business or corporation. In other words, they help you understand what your business is doing financially. Not only will clean and up-to-date records help you keep track of expenses, gross margins, and potential debt, but it will also help you compare your previous data to your account records and allocate your budget appropriately.

Laws and regulations vary from state to state, but proper accounting systems and procedures will help you ensure legal compliance with your business.

The accounting function will ensure that certain obligations such as sales outlets, VAT, income tax, and pension funds are properly addressed.

Budgeting and future projections can create or break a business and it will play an important role when it comes to your financial records.

Business trends and estimates are based on historical financial data to keep your activities profitable. This financial data is most appropriate when providing well-structured accounting processes.

Businesses need to file their financial statements with the Registrar of Companies. Listed companies have to file their stock exchanges as well as direct and indirect tax filing purposes. Needless to say, accounting plays an important role in all these situations.

7 Best Book for Financial Accounting Reviews

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