Accounting Basics

Introduction

Understanding basic accounting concepts is a must for every small business owner.

Even if you have an accountant that takes care of that “accounting stuff”, you need to know accounting basics such as debits and credits and some accounting terminology.

Accounting is setting up a system of recording and summarizing financial transactions in such a way that they can later be analyzed or used to communicate with others.
This explanation of accounting basics will introduce you to some basic accounting principles and accounting concepts

Objectives:

Identify the significance of accounting in operating the business.
Gain basic accounting knowledge and skills needed to better support management.
fairly recognize and arrange account classifications inside the accounting framework in the organisation.
precisely account for transaction influencing resources, liabilities and values.
rightly account for transaction affecting incomes and expenses.
successfully plan statement of salary and balance reports.
proceed hands-on bank reconciliation, account analysis, and General Ledger (GL) to sub-record reconciliation.
Course Outline:

Day 1

Importance of Accounting in Business

– The function and goal of Accounting
– Accounting mechanism
– the basic accounting equation

The Accounting Principles

How does Accrual Accounting differ from Cash Basis Accounting?
What are the revenue recognition and the matching principle?
Day 2

Accounting Cycle

Accounting Cycle process.
Identifying and Analysing Business Transactions.
Recording Transactions.
Recording Closing Entries furnishing Financial Statements
providing Post-Closing Trial Balance
Analysing and Recording Transactions

Utilising Accounts to Summarize Transactions
The principles of Debits and Credits
Supplying Trial Balance (TB)
Day 3

Accounting for Assets

Cash and Bank Accounts.
Accounts and Notes Receivable and Allowance for Doubtful Debts
Inventory and Cost of Sale
Fixed Assets and Intangible Assets
Day 4

Accounting for Liabilities and Equity

Current Liabilities and Long-Term Liabilities
Contributed Capital and Retained Earnings
Adjusting Entries

Adjusting for Accruals
Adjusting for Deferrals
Day 5

Preparing Financial Statements

The Income Statement
Statement of Owners’ Equity
The Balance Sheet
Hands-On Workshops

Performing Bank Reconciliation
Performing Account Analysis
Course Review Material