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
- 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.
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?
- 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)
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
Accounting for Liabilities and Equity
- Current Liabilities and Long-Term Liabilities
- Contributed Capital and Retained Earnings
- Adjusting for Accruals
- Adjusting for Deferrals
Preparing Financial Statements
- The Income Statement
- Statement of Owners’ Equity
- The Balance Sheet
- Performing Bank Reconciliation
- Performing Account Analysis
- Course Review Material