Understanding accounting is one of the most valuable skills anyone interested in money, business, or investing can develop. Yet, for many, the subject feels intimidating.
Mike Piper’s Accounting Made Simple attempts to change that by breaking down key concepts into plain English. This short guide promises to give readers a working knowledge of accounting without requiring a background in finance or mathematics.
Who is Mike Piper?
Mike Piper is a certified public accountant (CPA), personal finance writer, and the author of several well-regarded books in the Made Simple series. He is also the creator of the blog Oblivious Investor, where he writes about investing, retirement planning, and personal finance. Piper’s strength lies in distilling complex financial topics into clear explanations that are accessible to everyday readers.
Lessons from the Book
One of the main takeaways from Accounting Made Simple is that accounting is less about crunching numbers and more about understanding how money moves through a business. Piper covers essential topics such as the accounting equation, financial statements, depreciation, accruals, and cash flow. Readers walk away with the ability to read a balance sheet, income statement, and statement of cash flows.
Another key lesson is how accounting principles impact investment decisions. By understanding how companies report earnings, assets, and liabilities, individual investors can make more informed decisions when evaluating stocks, including broad investments like the S&P 500. For entrepreneurs, the book offers a foundation for managing a small business or startup with greater financial confidence.
Criticisms of the Book
While the book delivers on its promise of simplicity, some readers may find it too basic. Those who already have experience with finance or who are looking for in-depth coverage of accounting rules may find the content lacking. The book avoids technical detail, which makes it approachable but also limits its usefulness for advanced study.
Another criticism can be its brevity. At just over 100 pages, the book can feel more like a crash course than a comprehensive guide. Readers looking for detailed examples or more practice problems may need to supplement it with additional resources.
Should Readers Buy It?
For most readers looking to improve their financial literacy, Accounting Made Simple is worth buying. It is inexpensive, easy to read, and can be completed in just a few hours. The book is particularly useful for beginners, small business owners, and anyone who wants to better understand financial statements before working with a financial advisor or making investment decisions.
Those who want a more advanced, technical, or textbook-style approach to accounting may find it less useful, but even then, Piper’s book serves as an excellent starting point.
Final Thoughts
Mike Piper’s Accounting Made Simple succeeds in removing much of the fear surrounding accounting. It offers readers a clear and concise overview of essential principles that are directly applicable to personal finance, business, and investing. While it won’t replace a formal course, it provides a valuable foundation for anyone who wants to understand how money moves through businesses and how that information can influence financial decisions.
For anyone seeking to learn the basics of accounting in a straightforward way, this book is a solid first step.
Winchell House 
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