Preheat the oven to 350°F (175°C). Line two baking sheets with parchment paper.
In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
In a large bowl, using an electric mixer, beat the softened unsalted butter and granulated sugar together on medium speed until light and fluffy, about 3 minutes.
Add the egg, vanilla extract, and almond extract to the butter mixture and beat until combined.
Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined to form a smooth dough.
Divide the dough in half and wrap each half in plastic wrap. Refrigerate for at least 1 hour until firm.
On a lightly floured surface, roll out one portion of dough to about 1/4-inch thickness.
Use cookie cutters to cut out desired shapes and place them about 1 inch apart on the prepared baking sheets.
Bake in the preheated oven for 8 to 10 minutes, or until the edges are just beginning to turn golden.
Remove from oven and allow cookies to cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.
Repeat rolling and cutting with the remaining dough.
Once cooled, decorate the cookies as desired with royal icing or your preferred frosting.