ACCOUNTING BASICS: a Guide to (Almost) Everything

Would you like to know what Accounting REALLY MEANS? In this short tutorial we'll take 1 simple example and follow it through all 8 Steps of the Accounting Cycle - from start to finish - you'll build a solid understanding of all the Accounting Basics we encounter along the way. Stuff like the Accounting Equation, Debits & Credits, Double-Entry Accounting, T-Accounts, the Trial Balance etc.

If you're an Accounting Beginner, then I recommend watching this all the way through to the end - at least once - to get a complete picture of how Accounting works. Afterwards, you can jump into my Accounting Basics Playlist (see below) and explore every topic in more detail.

🎬LEARN ACCOUNTING BASICS FOR FREE

⏱️TIMESTAMPS
00:00 - Intro
00:16 - What is Financial Accounting?
01:11 - STEP 1: IDENTIFY TRANSACTIONS
01:29 - STEP 2: PREPARE JOURNAL ENTRIES
01:32 - What is a Journal Entry?
01:36 - What does a Journal Entry look like?
02:05 - What is Double Entry Accounting?
02:58 - What is the Accounting Equation?
04:17 - STEP 3: POST TO GENERAL LEDGER
04:22 - What is the General Ledger?
04:43 - Posting to Accounts
04:49 - What is an Account?
04:58 - The 6 Types of Account - Assets, Liabilities, Equity, Revenue, Expenses & Dividends
05:21 - What are T-Accounts?
06:00 - What does the General Ledger look like?
06:18 - STEP 4: UNADJUSTED TRIAL BALANCE
06:22 - What is a Trial Balance?
06:43 - How to build a Trial Balance
07:10 - Why is it called Trial Balance?
07:28 - STEP 5: POST ADJUSTING ENTRIES
07:32 - What are Adjusting Entries?
07:40 - IFRS vs GAAP
08:21 - What is the Accrual Method of Accounting?
08:41 - Adjusting Entries Example
10:14 - STEP 6: ADJUSTED TRIAL BALANCE
10:41 - STEP 7: CREATE FINANCIAL STATEMENTS
10:44 - What are Financial Statements?
10:59 - What are the three types of Financial Statements?
11:10 - What is the Balance Sheet?
11:28 - What is the Income Statement?
11:43 - Profit vs Cash Flow
11:54 - What is the Cash Flow Statement?
12:04 - Who would use Financial Statements?
12:34 - STEP 8: POST CLOSING ENTRIES
12:41 - What are Closing Entries?
12:51 - Closing Entries Example
13:10 - Post Closing Trial Balance
13:20 - THE ACCOUNTING CYCLE

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#accounting #accountingbasics #accountingstuff

[AccountingStuff]

I packed a lot into this one! Here are the timestamps if you'd like to skip to a section...

⏱️TIMESTAMPS
00:00 - Intro
00:16 - What is Financial Accounting?
01:11 - STEP 1: IDENTIFY TRANSACTIONS
01:29 - STEP 2: PREPARE JOURNAL ENTRIES
01:32 - What is a Journal Entry?
01:36 - What does a Journal Entry look like?
02:05 - What is Double Entry Accounting?
02:58 - What is the Accounting Equation?
04:17 - STEP 3: POST TO GENERAL LEDGER
04:22 - What is the General Ledger?
04:43 - Posting to Accounts
04:49 - What is an Account?
04:58 - The 6 Types of Account - Assets, Liabilities, Equity, Revenue, Expenses & Dividends
05:21 - What are T-Accounts?
06:00 - What does the General Ledger look like?
06:18 - STEP 4: UNADJUSTED TRIAL BALANCE
06:22 - What is a Trial Balance?
06:43 - How to build a Trial Balance
07:10 - Why is it called Trial Balance?
07:28 - STEP 5: POST ADJUSTING ENTRIES
07:32 - What are Adjusting Entries?
07:40 - IFRS vs GAAP
08:21 - What is the Accrual Method of Accounting?
08:41 - Adjusting Entries Example
10:14 - STEP 6: ADJUSTED TRIAL BALANCE
10:41 - STEP 7: CREATE FINANCIAL STATEMENTS
10:44 - What are Financial Statements?
10:59 - What are the three types of Financial Statements?
11:10 - What is the Balance Sheet?
11:28 - What is the Income Statement?
11:43 - Profit vs Cash Flow
11:54 - What is the Cash Flow Statement?
12:04 - Who would use Financial Statements?
12:34 - STEP 8: POST CLOSING ENTRIES
12:41 - What are Closing Entries?
12:51 - Closing Entries Example
13:10 - Post Closing Trial Balance
13:20 - THE ACCOUNTING CYCLE

[alrom]

I’m a financial accountant for over 20 years. All accounting students MUST watch this video. Very well done

[Comatose]

This is a legitimate college course. I'm an Accounting major and am taking Acct 301 and this guy went over...everything I've learned in that class lol. Granted there's more detail in the class, homework, you learn how to actually prepare the financial statements, etc. But all the topics are the same. Good job man.

[alexandrapatrick]

If by some miracle i pass this class it will be thanks to you. This lesson literally made more sense than an entire semester. Thank you!!

[zionsim]

why i came here? cos i didnt listen to my teacher in zoom

[hannab]

2 weeks into my accounting degree and nothing made sense to me until I watched your video. It's wonderful how you managed to break down a lot of high level content into smaller bits and pieces and show us the links between the concepts. Amazing teacher! Thank you so much! <3

[spicy]

Well this summed up my two years of accounting classes.

[ExxonMobilCompany]

fantastic video Everybody wants to be financially independent and live a better life. With savvy investing, an inexpensive lifestyle, and diligent budgeting, this is not difficult to do. I'm glad I realised early on that achieving financial freedom requires hard work.

[emotisean]

This is the channel I have waited for. Thank you for existing and making all our lives easier.

[EnzeHD]

Just completed my bachelors in accounting and finance, this was a pretty good summary of financial accounting as a subject!

[ziairam]

Currently a senior and I lovee this video because the bases that it covers over feels familiar yet naturally things I do feel are meant to be done. You have helped me realize what major is definitely catching my eye, will be watching more videos !!

[paulsmith]

I was a CPA for more than 30 years before retirement. This is a great video. It would have been nice to have this overview as I waded through Accounting I, which was a fifteen week course.

[AdrianTheR]

Mate, your channel it's the top visual learning resource for Accounting students/graduates. Cheers from Scotland 👍

[JunemarFlores]

This is the most creative and interesting channel that offers free accounting tutorial. Kudos to you, sir!

[annamitchell]

I got my accounting degree 30 years ago and to this day there's probably still nobody in that university who could explain it as well as this. I especially love the scales illustration of debits and credits - it made so many terms I never thought about the meaning of make sense - Balance Sheet, balancing the books, out of balance. Also the comment that debits and credits don't mean good or bad, or plus/minus - it's little things like that that can make all the difference between confusion to clarity and confidence. DEALER is handy too. Amazing teaching. Well done You.

[tolgonaiturgazieva]

Perfectly summed up my one-semester course in 14 mins, bravo!

[teojz]

I have just finished my accounting test, i gotta say you really helped me a lot, I had two semesters of accounting and still confused a hell. your videos are so easy to understand and so well professionally edited, i watched all videos in this channel in only two days and understood so many concepts and calculations in just two days than the two semesters i had in college. To be honest, you are literally the best accounting channel in the internet. I recommended your channel to alot of people, hope this channel will grow big and have millions subscribers. I also always try not skip ads to support your channel 🤘

[theworkingbiblecollegestudent]

These videos are a lifesaver. I’m in ACC213 and struggle with the exams, my college doesn’t have an accounting tutor and referred me to YouTube, my own professor referred me to YouTube and now I know why! These videos helps click everything in place. Thank you

[AlibanjiGanji]

So useful I've been studying business management at Swansea Uni for about 5 weeks now and I was really struggling with accounting but this video was a great and concise way of explaining the basics. Thank You

[emmanjnatri]

This is the ONLY accounting tutorial I've watched from beginning to end without sleeping halfway through😂. Great tutorial!!!