Understanding Business Accounting for Dummies - UK Edition - Colin Barrow

Understanding Business Accounting for Dummies, by John A. Tracy and Colin Barrow is a great book for anyone who takes an interest in the world of business, and seeks an understanding of accounting.

When studying accounting for the first time in my first year at University, I struggled with the concept throughout the year. There tends to be those who can do it, and those who can't with accounting, and unfortunately, I was one of those ...
...for higher level understandings of the subject. In the end, I had to retake the module after I failed my first attempt.

As I was struggling with the course textbook, I went in search of a more simplistic look at accounting and its relation to business situations. The 'For Dummies' series is obviously a worldwide known brand, and this particular instalment didn't disappoint.

Written by John A. Tracy (a former accountant at ... more

Understanding Business Accounting for Dummies, by John A. Tracy and Colin Barrow is a great book for anyone who takes an interest in the world of business, and seeks an understanding of accounting.

When studying accounting for the first time in my first year at University, I struggled with the concept throughout the year. There tends to be those who can do it, and those who can't with accounting, and unfortunately, I was one of those who struggled. The course text book was complex, and meant for higher level understandings of the subject. In the end, I had to retake the module after I failed my first attempt.

As I was struggling with the course textbook, I went in search of a more simplistic look at accounting and its relation to business situations. The 'For Dummies' series is obviously a worldwide known brand, and this particular instalment didn't disappoint.

Written by John A. Tracy (a former accountant at Ernst and Young) and Colin Barrow (venture capitalist and author of 'Starting a Business For Dummies') it is a great look at accounting, and ultimately helped me pass the accounting module at the 2nd attempt.

It is 402 pages long, and has the following chapter titles:

PART ONE: ACCOUNTING BASICS
1.Introducing Accounting for Non-Accountants
2. Bookkeping 101: From Shoe Boxes to Computers
3. Taxes, Taxes and More Taxes
4. Accounting and Your Personal Finances

PART TWO: GETTING A GRIP ON FINANCIAL STATEMENTS
5. Profit Mechanics
6. The Balance Sheet from the Profit and Loss Account Viewpoint
7. Cash Flows and the Cash Flow Statement
8. Getting a Financial Report Ready for Prime Time

PART THREE: ACCOUNTING IN MANAGING A BUSINESS
9. Managing Profit Performance
10. Business Budgeting
11. Choosing the Right Ownership Structure
12. Cost Conundrums
13. Choosing Accounting Methods

PART FOUR: FINANCIAL REPORTS IN THE OUTSIDE WORLD
14. How Investors Read a Financial Report
15. Professional Auditors and Advisers

PART FIVE: THE PART OF TENS
16. Ten Ways Savvy Business Managers Use Accounting
17. Ten Places a Business Gets Money From
18. Ten (Plus One) Questions Investors Should Ask When Reading a Financial Report

PART SIX: APPENDIXES
Appendix A: Glossary: Slashing through the Accounting Jargon Jungle
Appendix B: Accounting Software

INDEX

Throughout the book, there are icons at the side of the page that brings your attention to particular points of reference. This is good for those who will be scan reading, allowing you to pick out the most vital information. The icons include:

- Tip - Important points and practical examples
- Remember - Important topic
- Jargon Alert - gives defnitions of accounting jargon (full definitions in appendix)
- Warning - Topics that can be difficult in the accounting world
- Technical Stuff - Specialised accounting stuff, but can be important topics
- Real World Example - self explainatory
- Key Concept - points out keys building blocks of accounting
- Online - references to websites which can be of help

All in all, this is a fantastic book which has allowed me to gain a firm grasp of the accounting world, considering I was a complete novice. It isn't too heavy going, and the points that can be are pointed out if you want to avoid them.

It is rich in information, very useful to me passing the subject, and good value for money at £17.99 (considering my core textbook for the course cost £44.99). I've only recommended this book as mildly interesting as it is accounting, and to me it isn't a particularly stimulating subject. This book was all about me gaining a grasp of the subject rather than really inspiring me to be an accountant. In the first sense I feel it is a great study guide and I would highly recommend this book. 

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