Setting the Foundation

Accounting basics is the first step to becoming a rockstar bookkeeper. Remember bookkeeping is accounting. And these basics will provide you with the foundation you need to understand how accounting works in the background. Because not having knowledge of these basics is the #1 reason why people who jump out there and do bookkeeping without training fail at it.

In order to be a rockstar bookkeeper, you need to understand the fundamentals of accounting. Many of the mistakes made in a company’s books are the result of not understanding how accounting works or any of its moving parts. The person learns the software and when they make mistakes they are unable to fix them or make them worse because they don’t understand the underpinnings of how accounting works.

These fundamentals fall under the Generally Accepted Accounting Principles, or GAAP for short.  

GAAP is the set of rules that serves as the foundation for the accounting industry. They are made up of the rules, standards, and principles that we as accounting professionals must follow for adequate financial reporting.