Financial accounting is the process of recording all business transactions and preparing reports that show how a business is performing financially. These reports are called financial statements.

It helps business owners and other people (like investors or lenders) understand how much profit the business makes, what it owns, and what it owes.

Mainly external users, such as:
• Investors (to decide if they should invest)
• Banks (to decide if they should lend money)
• Government and tax authorities (to ensure taxes are correct)
• Business owners (to track performance)

Income Statement: This shows profit or loss.
Balance Sheet: This shows assets, liabilities, and owner’s equity.
Cash Flow Statement: This shows where cash comes from and where it goes.

Some key rules accountants follow include:
• Going Concern – the business will continue operating.
• Consistency – use the same methods every time.
• Accrual – record income and expenses when they happen, not just when cash is received or paid.
• Prudence – do not overstate profits or assets.
• Materiality – record only information that matters to users.

✅ Practice questions daily — repetition builds confidence.
✅ Create flashcards for accounting terms.
✅ Work through simple examples before moving to complex ones.
✅ Review your notes weekly.
✅ Try online quizzes or past exam papers

• Attention to detail
• Logical thinking
• Basic math skills
• Consistency and practice
• Understanding how transactions affect financial statements

Start with:
1. The accounting equation
2. Debits and credits
3. Journal entries
4. Trial balance
5. Basic financial statements

Accounting is a skill; the more you practice calculations and journal entries, the more confident and accurate you become in exams and real-life work