WTF is Accounting

The textbook defines accounting as the “process of organizing, analyzing, and communicating financial information that is used for decision-making."

But there’s more to it than that.

In the Personal MBA, Josh Kaufman argues that finance doesn’t have to be boring bean counting the way its made out to be.

And that actually it’s pretty straightforward when you focus on what’s actually important.

and I think his definition is actually far better.

He writes “Accounting is the process of ensuring the data you use to make financial decisions is as complete and accurate as possible.”

The course breaks down a few key areas of accounting that are each important to understand.

The course ranges from the tactical knowledge you need day to day — recording transactions, tracking inventory, handling invoices — all the way to a broader understanding of how money works inside a business, and how to track, understand, and use that data to make good decisions.