Accounting is, of course, an important aspect of any business.  It is also often a complex subject which involves meticulous record keeping and classifications.  Given that, it might be good to examine some of the resources available online for someone looking to learn more about proper accounting techniques and why they are important.

Record Keeping
It’s true – accounting does involve sorting through a large amount of paperwork.  Even in the modern computer world there are still receipts, invoices, deposit slips, and other items printed out that need to be properly filed away, and quite often you’ll find it necessary to maintain the original forms of all these documents.

One of the best resources comes from the IRS.  It is Publication 583: Starting a Business and Keeping Records.  While the publication is geared towards new businesses it is also a handy reference for all businesses regarding what paperwork you need to keep.  The section on record keeping begins on page 11 and provides examples of how to record transactions and what supporting documentation you will need.  It also explains how long you are required to maintain records and even goes as far as to provide sample forms for cash receipts, bank reconciliations, and several other basic accounting reports.  It is also worth noting that the publication is surprisingly easy to read, given that it’s a publication regarding tax law.

Accounting Concepts
Research into web sites that provide free accounting tutorials led to two excellent resources.  The first one is called Simple Studies.  This is a straightforward site with nine lessons on various topics of accounting with related exercises.  The website design is excellent; the text is easy to read and the navigation system is very well structured.  Each lesson spans over several web pages, all of which are about a screen’s height.  The first eight lessons include exercises and solutions so you have a chance to test what you’ve learned.  The only regret is that the lessons only cover the basic principles of accounting and don’t go deeper into the subject.  Here’s a list of topics that are covered:

• Introduction to Accounting
• Accounting for Accruals and Deferrals
• Double-entry Accounting System
• Accounting in Merchandising Companies
• Inventory cost flow methods (FIFO, LIFO, etc.)
• Accounting for Long-term Assets
• Cost Behavior

In conclusion, the Simple Studies tutorial is an excellent resource for anyone wanting to learn or refresh their knowledge of basic accounting principles.

The second resource is the Bean Counter’s Accounting & Bookkeeping Tutorial Site.  While not as well laid out as the Simple Studies site, it does contain more material and interactive exercises.  Besides the basics there are lessons on financial ratios, preparing financial statements, and break-even analysis, just to name a few.  There are also interactive games where you can test your knowledge of business concepts in various simple simulations.

The text is not as formal as Simple Studies; all the lessons are the product of a single author named Dave Marshall who filled the text with humorous text and illustrations in an effort to make the accounting profession not seem so boring.  Despite only having one author, the lessons are very comprehensive.  There are seven basic modules with the title “So, you want to lean Bookkeeping!”  Each of these modules has several sub-lessons complete with exercises and interactive True/False quizzes.

While the site is free, Dave does ask for donations and there are ads, at least on the main page.  However, unlike many other advertiser-supported sites, the ads are not in your face.  You don’t even need to register to use the site.  The site seems to be aimed at people interested in starting their own business; other learning modules are entitled “BC Small Business Tips”, “BC Starting a Business Guide”, and “Running a Profitable Company,” plus one of the ads is for a book that explains how to start a bookkeeping business.

The only criticism is from the web design point of view.  Quite often you will find yourself scrolling down a page which has way too much information jammed into it.  The homepage for the Bean Counter website is a prime example.  Having said that, if you wade through this there lots of good information to be found.  The Bean Counter website is an excellent resource for accounting information, particularly for small businesses and entrepreneurs.

Between these three resources, there’s more than enough information to learn what you need to record transactions and keep track of your company’s important financial information.  Here’s to hoping your revenues always exceed your expenses…

Kenneth R. Horan