Accounting Basics Explained Through a Story

New to Accounting? In this video I will introduce you to the world of accounting by telling you a story. This quick tutorial gives you an introduction to accounting and explains the concepts of income statement (Profit & Loss), balance sheet and the accounting equation (Assets = Liabilities + Equity).

You will also learn through examples what assets, liabilities and equity are. I will also introduce you to the concept of the T account. This is something that we will look into more detail in the Debits & Credits video.

You will follow a day of an Italian beach business and see how this is reflected in two financial reports - although this is a simple example, it can be applied to more complex situations.

📊 What You'll Learn:
▪️ The essence of accounting and its role as the business language.
▪️ A practical scenario of running a business in Italy and the challenges involved.
▪️ The importance of systematic financial recording and analysis.
▪️ Key insights into financial statements like the Income Statement and Balance Sheet.
▪️ How daily business activities translate into accounting terms.

00:00 Financial Statements Explained
00:53 Claudio's Beach Business
02:13 Income Statement (which is Revenue - Expenses)
03:31 Balance Sheet
06:21 Claudio's Balance Sheets at different points in time

In the next video of our accounting basics series, we'll take a look at Debits & Credits and in the video after that will take a closer look at the balance sheet.

🚩Let’s connect on social:

Note: This description contains affiliate links, which means at no additional cost to you, we will receive a small commission if you make a purchase using the links. This helps support the channel and allows us to continue to make videos like this. Thank you for your support!

#Accounting

[abeazar]

I am a CPA, and I couldn't have given an easier to understand explanation myself. Thanks and I am looking forward to your next videos, both Accounting and Excel...Abe Azar

[danielecristallini]

As a person who's got a post-graduate degree in Finance and Accounting I must say that this is the easiest and clearest way I've ever had these concepts explained to me. I wish someone had explained me balance sheet in such an entertaining way back when I was a newbie. You really have a talent for teaching Leila! Keep up the great job. As an Italian, though, I can't help asking myself whether our friend Claudio holds a license to sell his stuff on the beach :P. Don't tell me please. Better not to know :)

[stevennevin]

As an accountant I have to say you have distilled the essence of accounting very clearly and concisely here.👏

[M.A.Sammani]

There is no accountant explained it on this simplified, professional way. Thank you.

[timmyjan]

Her voice makes me very relaxed I mean it as best possible compliment :)

[Pankaj-Verma-]

The whole series of Accounting will be a great hit as many are searching for a course which they can easily understand.

Thank you so much for creating this.

[excelisfun]

Very cool Accounting Story, Teammate!!!

[KiyosakiSays]

“The word accounting comes from the word accountability. If you are going to be rich, you need to be accountable for your money.” - Robert Kiyosaki

[ManthaarJanyaro]

Love the way you teach...
.
.
Teacher of the year..!

[michaelbidemidairo]

I'm super glad you started this series

[vijayarjunwadkar]

I wish I could learn it this way, when I studied in college! Story telling is indeed the best way! Nice video once again, keep them coming! Thanks! :-)

[robertakwasiadjei]

You are one in a million. I must say that you've made a lots of significant changes in work career. God bless you Leila

[gabrielcampos]

i'm about to finnish my accounting class in the University and this, clearly explained and vissually appeling, would have saved me so many hours.
Expecting more topics for accounting

[jedski]

I’m an accountant but I still watched the video. Amazing introduction for non-accountants!

[dawnw]

I have owned a business for 8 years and I never quite understood the balance sheet. This is very helpful!

[sherryizzie]

Love the way you started the introduction course with a story, make it more interesting:):)

[mohamed.montaser]

never thought accounting would be so cool like that

[DariusLG]

I randomly ran across this video but I enjoyed the entire video and the way she taught and explained the subject. I've taken classes before but it was a great refresher and I'd be interested in watching more videos like this one.

[shubhsjbp]

Wow my 2 years of MBA couldn't make it that simple, like the way this 5 - 10 min video made it.... you have absolutely blessed with magical teaching skills... if possible please make a video on teaching tips as well... it would be very helpful for us professionals who can do the stuff but can't create that knowledge :)

[amamaarif]

THANK YOU SO MUCH. I was actually choosing subjects for my a levels and I couldn't find anything on what accounting WAS and this video helped a lot