Book Review: Accounts Demystified by Anthony Rice
Date of Review: 11th June 2011
There should be nothing too difficult about accounts. After all, in its most basic form it is a record of how money comes into your business, and how it then exits it. It has always been a slight source of confusion that I couldn’t get my head around it – I mean it can’t be that tough, can it?
Which is where Anthony Rice’s book “Accounts Demystified” comes in. Setting the book out into three main sections (The Basics, Interpretation, and Analysis) allows the author to present accounts concepts in a way that anyone can understand. But these three sections are further sub-divided into 12 sessions which take the understanding to a more detailed and byte-sized level.
The key to the simplicity of this book is understanding that the author is not an accountant. His knowledge has been built up through trial and error, and a sudden realisation that accounts can be simple. His reaction to that is that there are a number of explanatory diagrams throughout the book explaining concepts such as funding structures, as well as how balance sheets change as a transaction progresses.
The education of accounts is hung on the hook of two fictional companies, Wingate and Silk Bloomers Limited. This allows the author to present concepts in a practical context, that allows understanding that might otherwise be dry and difficult.
This is a clever book. The use of fictional companies to explain accounting concepts is not new, but coupled with the easy to understand diagrams and tables, the reader can follow the development of accounts as a company evolves and matures. I would recommend this book for anyone who was having difficulty working out what to record for their financial transactions, and for those that need just a little extra ‘push’ into a region where all is clear.
With a huge glossary of terms no stone appears to have been left unturned, and with this authors website, this is as a complete a package of accounting practices that I have seen.
TOTAL MARK 5/5
Review by: Will Roney