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Top 7 Accounting and Finance Books Every AAT Student Must Read

Empower your AAT journey with these essential reads! Equip yourself with the knowledge you need to excel with our top 7 choices for accounting and finance books.

Finance books are excellent learning resources as you study your AAT qualifications. They also offer professional perspectives that deepen your understanding of key accounting concepts. But with countless accounting finance books available worldwide, what finance books should you read to help with your studies?

So, in this article, we'll share our top 7 picks for accounting and finance books that you must read.

Basic Accounting by Nishat Azmat & Andy Lymer

Basic Accounting by Nishat Azmat & Andy Lymer

Accountancy is more than just Math problems. Unlike other business programmes, accountancy involves following accounting practices, adhering to frameworks, attention to detail, and critical thinking. These qualities make accountancy subjects technical and complex. That's also what professors Nishat Azmat and Andy Lymer want to address.

In their book Basic Accounting: The Step-by-Step Course in Elementary Accountancy, they turned complex foundational accounting concepts into simpler topics. The book also breaks down the concepts into bite-sized chapters that progress with difficulty. This makes the book easy to read for beginners and even non-accounting students.

Some of the topics and concepts discussed in this accountancy book are:

  • Double-Entry Bookkeeping
  • Accounting Cycle
  • Ledger Accounts Book
  • Financial Statements
  • Bank Accounts Reconciliation
  • Credit Transactions
  • Depreciation
  • Basic Costing
  • Corporate Accounting
  • Partnership Accounting

Basic Accounting by Azmat and Lymer can be valuable learning material for AAT Level 2 students. Since the book makes the accounting concepts more digestible, it introduces the topics to students better.

The Bookkeeper Rises: Build a Successful Bookkeeping Business that Works for You and Gives You the Life You Really Want by Jo Wood and Zoe Whitman

The Bookkeeper Rises: Build a Successful Bookkeeping Business that Works for You and Gives You the Life You Really Want by Jo Wood and Zoe Whitman

Becoming a self-employed bookkeeper is a rewarding opportunity to practice your profession while earning. So, if you plan to start a business, consider reading The Bookkeeper Rises: Build a Successful Bookkeeping Business that Works for You and Gives You the Life You Really Want.

The Bookkeeper Rises helps bookkeepers like you become self-employed and be your own boss. This book teaches you how to set up your business and earn revenue by providing bookkeeping services to multiple clients. The book also covers 35 inspirational stories from self-employed accountants and bookkeepers to motivate you with their success stories.

Some of the topics and concepts discussed in this book are:

  • Setting up Your Bookkeeping Practice Business
  • Designing Services that Answer Your Client's Needs
  • Finding Clients and Projects
  • Sales and Pricing Strategies for Your Bookkeeping Services

The Bookkeeper Rises: Build a Successful Bookkeeping Business that Works for You and Gives You the Life You Really Want is one of the best bookkeeping books for AAT Level 3 and 4 students with AATQB designation. This book helps aspiring professionals build a business once they apply for an AAT licence.

Warren Buffett and the Interpretation of Financial Statements by Mary Buffet and David Clark

Warren Buffett and the Interpretation of Financial Statements by Mary Buffet and David Clark

Anyone who wants to enter the world of finance should learn how to read financial statements, let alone learn accounting. As Warren Buffett, one of the most successful value investors and founder of Berkshire Hathaway, once said, "Unless you are willing to put in the effort to learn accounting—how to read and interpret financial statements—you really shouldn't select stocks yourself."

To explore Warren's success and deep appreciation of financial statements, consider Mary Buffet and David Clark's book on interpreting financial statements.

The book Warren Buffett and the Interpretation of Financial Statements dives deep into the contents of financial statements. Not only that, but the book also details how every figure in the report can indicate the business' financial health.

Some of the topics and concepts discussed in this book are:

  • Tips Before Beginning to Invest
  • Durable Competitive Advantage in the Market
  • Key Points to Study Before Investing in a Company
  • Pieces of Advice and Indicators in the Financial Statements

Warren Buffett and the Interpretation of Financial Statements are perfect materials for AAT Level 4 students because they have a unit on drafting and interpreting financial reports. It's also a helpful resource for taking AAT Level 3, as the book reminds you of the importance of financial statements in businesses.

The Finance Book: Understand the Numbers Even If You're Not a Finance Professional by Stuart Warner and Si Hussain

The Finance Book: Understand the Numbers Even If You're Not a Finance Professional by Stuart Warner and Si Hussain

Finance books are often filled with jargon. That is what the book The Finance Book: Understand the Numbers Even If You're Not a Finance Professional wants to avoid when you read it. This book, written by Stuart Warner and Si Hussain, aims to bridge the gap between financial knowledge and individuals with no background in this profession.

The book removes the unnecessary complexities of the subject, making the topics easy to understand. It also provides the information in a beginner-friendly and concise format. Further, the book's modular structure helps you pick chapters in the book that you only want to learn or are relevant to you.

Some of the topics and concepts discussed in this accounting and finance book are:

  • Cash versus Accruals Accounting
  • Profit and Loss
  • The Balance Sheet
  • Cash Flow Statement
  • Business Tax
  • Interest Payment
  • Tangible Fixed Assets and Depreciation
  • Goodwill and Other Intangibles
  • Stock
  • Capital and Reserves
  • Financing and Revaluation
  • Investing Ratios
  • Equity Finance
  • Debt Finance
  • Profit Planning
  • Finance Budgeting and Forecasting
  • Investment Appraisal

The Finance Book: Understand the Numbers Even If You're Not a Finance Professional is helpful for AAT students taking the level 4 qualification. Since students can take finance course units at AAT level 4, this finance book can complement and solidify your understanding of financial concepts.

How to Build a Better Business Plan: A Hands-On Action Guide for Business Owners by Alastair Thomson

How to Build a Better Business Plan: A Hands-On Action Guide for Business Owners by Alastair Thomson

Business owner or not, every aspiring finance professional should know how to write or read business plans. Writing and reading business plans are much-needed skills for understanding a company's financial viability and evaluating investment opportunities.

Written by Alastair Thomson, this book outlines a comprehensive guide on how to put your entrepreneurial ideas into writing. How to Build a Better Business Plan provides actionable frameworks to help you create a data-driven business plan and attract high-value investments. It also focuses on developing your ideas, determining influencing factors, identifying potential problems, and developing solutions in your business.

Some of the topics and concepts discussed in this finance and accounting book are:

  • Executive Summary
  • Market Analysis
  • Organisation and Management
  • Products and Services
  • Sales and Marketing
  • Capital Investment
  • Projection of Finances
  • Funding Request
  • Risk Analysis

How to Build a Better Business Plan is one of the top finance books from which AAT students from all levels can benefit. This is because business plans are valuable aspects of costing and management accounting.

The Psychology of Money by Morgan Housel

The Psychology of Money by Morgan Housel

There is more to money and personal finance than just earning and spending. Human psychology is a decisive yet underlying factor in how people handle money. That is what the book The Psychology of Money by Morgan Housel tries to expand on.

Housel's book is a New York Times bestseller that examines the effects of human behaviours and mindsets on financial management. The book explores your biases, emotions, and outlooks and how they collectively influence your personal finance.

Some of the topics and concepts discussed in this best finance book are:

  • Luck and Risk
  • Compounding Interest
  • Getting Wealthy vs Staying Wealthy
  • Man in the Car Paradox
  • FIRE (Financial Independence Retire Early)
  • Retirement Planning and Index Funds
  • Power, Wealth, and Title
  • The Power of Success Stories
  • Pessimism and Optimism

Ultimately, this book aims to improve your relationship with money and even help you achieve financial independence.

The Psychology of Money is one of the best finance books for students, with over 4 million copies sold worldwide. AAT students from all levels will gain insights from this book, but it's more relevant to AAT Level 4 students. This is because students taking AAT Level 4 have optional finance units like Cash and Financial Management and Credit and Debt Management.

Cash Flow Surge: 101 No-Cost and Low-Cost Fast Action Strategies to Boost Your Business Cash Flow by Alastair Thomson

Cash Flow Surge: 101 No-Cost and Low-Cost Fast Action Strategies to Boost Your Business Cash Flow by Alastair Thomson

The business' cash assets and its ability to generate cash are the two most important aspects of any business. Available cash means the business can anticipate future opportunities and crises that it may face. As Sir Richard Branson once said, "Never take your eyes off the cash flow because it's the lifeblood of businesses."

To help improve the business's cash flow, consider reading Cash Flow Surge: 101 No-Cost and Low-Cost Fast Action Strategies to Boost Your Business Cash Flow.

Cash Flow Surge by Alastair Thomson explores the art of managing your business's cash flows. The book delves into strategies that improve your company's sales and revenue while minimising and reducing expenses.

Some of the topics and concepts discussed in this book are:

  • Identifying the Biggest Problems in the Company
  • Cutting Costs by up to 90%
  • Building Better Sales Funnels and Operations
  • Maximising the Value of Each Sales
  • Signs that Your Business is Overspending
  • Reducing Costs even without Automation
  • Managing Receivables and Payables

Cash Flow Surge: 101 No-Cost and Low-Cost Fast Action Strategies to Boost Your Business Cash Flow is a great finance book for AAT Level 4 students studying interpreting financial statements. Having equipped with insights on identifying bottlenecks and potentials, Level 4 students can better analyse cash flow statements and give better recommendations.

Importance of Reading Finance Books to Your AAT Studies

Importance of Reading Finance Books to Your AAT Studies

Strong reading habits are important when you are pursuing your AAT studies. Reading exposes you to a broader range of information, further solidifying your understanding of essential accounting concepts. It also hones your critical thinking skills, allowing you to dissect information, identify key points, and apply them to your AAT assessments. All these benefits from reading can improve your test performance, eventually helping you pass your exams.

Conclusion

Your AAT studies should go beyond your lectures and class sessions, and you can start now by investing in books on finance. This helps you pass your AAT assessments and broaden your knowledge in accounting.

Let us help you kickstart your AAT accounting journey! Our comprehensive AAT courses include online e-Learning platform, live classes, AAT-approved learning materials, and Kaplan books offered at the most affordable price. e-Careers also won the 2024 AAT Tutor of the Year and the PQ Magazine Editor's Choice in 2023.

Contact our career advisors at ask@e-careers.com or visit our AAT Accounting page for more information about our AAT courses.

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