What to Know Before You Start Financial Accounting

If you’re just starting out in accounting, take a moment to research some videos on YouTube. This is so you can find a teacher who speaks to you and is able to break down the information in layman’s terms.

Use keywords such as financial accounting, accounting for beginners, or just accounting.

By approaching your beginning steps this way, you’ll find that you’ll read your textbook with a purpose. Moreover, you’ll enjoy what you’re learning as well.

For the Basics

Here’s a favorite at the moment – Professor Tony Bell from Thompson Rivers University.

He gets into the nitty-gritty of getting started with the financial statements. In addition, there are 9 units available for you to consume. What I like is how each video is short enough for you to take something away.

Hence, let’s say you start with Unit 1.

In under 45 minutes and broken down into 5 parts, you’ll be able to define the following terms:

  • asset
  • liability
  • stockholder’s equity
  • revenue
  • expense

Additionally, you’ll then be able to categorize them based upon a given example company, which in this case is Fred’s Tailoring Service. From thereon, you’ll take those elements and plug them into the basic financial statements you’ll create which are the:

  • income statement
  • statement of retained earnings
  • balance sheet

Keep in mind, this is very basic. You’re given enough to research more on the information at hand. However, the video is very well presented that you can combine just Unit 1 videos alone with the first chapter of your accounting textbook.

Furthermore, this will allow you enough confidence to work on your textbook problems.

After going through Unit 1, I wanted to look at some actual financial statements of existing companies. So where do we go online to find that?

Here are a few places:

For More In-Depth Explanations

If you’re planning to take Managerial Accounting as well, you might want to check out NotePirate’s Introduction to Financial Accounting free online course.

Just like Professor Tony Bell, the course is entirely in video and available on YouTube. Each video is also short enough for you to learn something.

In addition, Dave, the presenter goes into the details about financial accounting. So, if you’re looking for more in-depth explanations, I suggest you check out this series.

Good luck with your course!

-Thu

What are your thoughts on beginning financial accounting? Share them below!

 

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