Learn Accounts On Your Own In 6 Steps

Accounting is a crucial process required for the success of businesses both big and small. While large businesses will employ sizable accounting departments with many employees (as well as doing business with a separate auditing firm), smaller businesses may employ only a bookkeeper. In a single-person business, the business owner will need to be able to handle the accounting themselves, without the help of a bookkeeper. In this situation, it may be necessary to learn accounting on your own so that you can smoothly manage your business. Learning accounting will also help you obtain a position as a bookkeeper.

Steps:-

1

Purchase an entry-level book on accounting. If you are starting with no prior knowledge, it is a good idea to begin reading an entry level book. The best books for establishing a foundation of knowledge are the kind you can purchase at any bookstore; "Accounting for Dummies" would be an example. Reading through this book and working the included exercises will allow you to obtain a general overview of fundamental accounting concepts.

2

Augment your knowledge with online research. The Internet is a very useful tool for learning accounting concepts quickly and inexpensively. Websites like accountingcoach.com offer free lessons in many areas of accounting. You can also look up the text of nearly any important accounting standard online. Standards and opinions issued by the Financial Accounting Standards Board (FASB) or the Accounting Principles Board (APB) can be located online.

3

Purchase a financial accounting textbook. After obtaining a broad base of accounting knowledge, you should begin working out of a college-level textbook. Look for textbooks covering "financial accounting," which provides the basis for bookkeeping and the preparation of financial statements. Work through this textbook, making sure to work plenty of sample problems.

4

Take courses in accounting if possible. If you can afford to take formal classes in accounting, you will have an opportunity to learn from an experienced professional. Many community colleges and universities have courses in accounting that you can take to earn a certificate; you can also take courses as a non-matriculated student.

5

Begin applying your knowledge to your own business if applicable. If you are learning accounting to help you run your own business, apply the concepts you learn to your ongoing business practices. For example, you should make the switch from single-entry to double-entry bookkeeping. Double-entry bookkeeping (in which each journal entry involves both a debit and credit entry) is required for larger companies, and allows for much greater control over financial information. Make sure to also apply areas of knowledge such as cash control procedures.

6

Obtain a job as a bookkeeper if desired. If you are learning accounting so that you can eventually work as a bookkeeper, you should make yourself aware of job opportunities. You may able to get a job working with an experienced bookkeeper with little prior experience. You can also try to get a job in an administrative assistant position with light bookkeeping responsibilities to build your skills.