Introduction to bookkeeping and accounting

Accounting starts with a simple question: where did the money come from, and where did it go? This introductory course from The Open University builds the numerical confidence and bookkeeping knowledge needed to answer it, moving from everyday calculations to the logic behind business accounts.

The learning unfolds in three clear stages: essential numeracy, double-entry bookkeeping and the preparation of key financial statements. It is an approachable starting point for readers who want to understand how transactions become organized financial records—not just how to enter figures, but how the figures relate to one another.

Start with the numbers

The opening section revisits practical skills used throughout bookkeeping, including percentages, fractions, ratios, rounding, negative numbers and calculator use. It also covers BODMAS and rearranging equations. This grounding helps readers check whether a result makes sense, rather than relying on a calculator without understanding what its answer represents.

See how double-entry bookkeeping fits together

From there, the course introduces the accounting equation and the relationship between assets, capital and liabilities. Readers encounter ledger accounts, T-accounts, debits and credits, and the business entity concept. The emphasis is on understanding why transactions have two aspects and how those entries keep the records in balance.

From ledger accounts to financial statements

The final section follows the work through to balancing accounts and preparing a trial balance, balance sheet and profit and loss account. It also considers income, expenses and closing stock. Together, these topics show how day-to-day bookkeeping connects to a broader view of a business’s financial position and performance.

A steady introduction for new learners

Written as a level-one introduction, the material assumes no expertise in mathematics and offers a structured way to get familiar with accounting terms and procedures. It may suit independent learners, students exploring business and management, or anyone who wants a firmer grasp of the principles behind bookkeeping. The course is untutored, so its activities do not provide direct feedback on incorrect answers.