Accounting Basics

In this section, you’ll learn the basics of accounting—from the basic accounting equation to the different account types, and what debits and credits are. Trust me, it’s easier to grasp the basics than you might think!

If you’re new to accounting, you might think it’s a very confusing and complicated set of rules and numbers with a lot of jargon. For larger and complex businesses, it kind of is!

Lots (maybe most) websites and textbooks make accounting so much more complicated than it needs to be. Yes, at some point you will need to know about GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) etc.

Once you have some experience, those principles and standards can help to fill in the blanks. But for actually learning what accounting is and how to actually do accounting, the below articles will cover everything you need to know.

Below you’ll find lessons for all the most basic, basic, basic, fundamental things you need to know. Once you know these fundamentals you can put them into practice and learn by doing your own journal entries, preparing your own financial statements, and so on.

Learning these absolute basics of accounting, and learning them deeply, will give you such a good core knowledge that everything you learn afterwards will seem like a piece of cake.

I’ve listed these topics in order of how I think you need to learn them. I encourage you to go through each lesson (even if you think you know some of them). It never hurts to brush up on your basic accounting knowledge!