ACCOUNTING PRINCIPLES ESSENTIALS

INTRODUCTION FOR ACCOUNTING PRINCIPLES ESSENTIALS

Businesses are often involved in a series of simple to complicated business transactions. All accounting entries are required for external reporting to governmental and/or financial institutions, as well as to track internal profitability. With a solid understanding of basic accounting principles, terminology, and financial statements, bookkeepers and business owners can effectively communicate and interpret the financial results of an enterprise.

This programme will highlight basic accounting cycle, purpose and interpretation of financial statements and the importance of record management in accounting for internal and external users of financial information.

Who should attend: Entrepreneurs, busines managers and accounts personnel. This course serve as a refresher course for accounting and finance personnel and anyone with an interest in accounting and finance.

COURSE OBJECTIVES

On completion of the programme, participants will be able to:

1. Understand the purpose of accounting (communication, not confusion)
2. Understand the accounting process, the accounting equation, debits and credits double entries for assets, liabilities, revenue or gains and expenses and losses.
3. Understand the steps performed in the accounting process via the accounting cycle.
4. Knowing the source documents in the sales cycle and purchases cycle
5. Ability to comprehend the purpose of financial statement and the methods that accounting events are recorded as transaction.
6. Understanding the basics on how to analyse financial statements for decision making purposes.
7. Understanding and performing double entries for adjusting entries: depreciation, accruals, correction of entries and prepayments

COURSE CONTENT

Module 1: Mastering the principles

• Understand the purpose of accounting
• Understand the accounting process and the accounting equation
• Understand debits and credits
• Prepare the trial balance
• Understand the balance sheet and income statement
  • Prepare the general journal
  • Overview of the general ledger system

Module 2: Recording and presenting financial data

• Overview of cashbook, bank reconciliation, and petty cash record.
• Overview and understanding sales and purchases journals and reconciliations of debtors and creditors
• Perform daily and monthly routines
• What is Accounting for year-end adjustments
• Extract a trial balance and draft a balance sheet and income statement

Module 3: Understanding and performing common adjusting entries

•  Account for non-routine transactions:
  • Depreciation
  • Acquisition and disposal of assets
  • Bad and doubtful debts
  • Provisions and accruals

Module 4: Year-end procedures

• Understand year end procedures for:
  • Income Tax and SST tax
  • Non-current (fixed) assets records update
  • Other year end entries

Module 5: Types of financial reports

• Understand, read and interpret the typical financial reports
  • Statement of Comprehensive Income (Profit and Loss Statement)
  • Statement of Financial Position (Balance Sheet Statement)
  • Statement of Cash flow
  • Receivables aging report.