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Learn the basics of a manual bookkeeping system and use them to understand how the key financial statements, namely the Profit and Loss account (Income Statement) and the Balance Sheet (Statement of Financial Position) are constructed.
If You Understand Double Entry Bookkeeping, You'll Build A Great Foundation For A Career in Bookkeeping And Accounting, With This Tutorial For Beginners.
Short lessons in bookkeeping for the busy person.
You might be returning to work after a long absence (looking after the kids), if so, then this course is a gentle introduction to the bookkeeping basics that will help you decide whether bookkeeping is the right job choice for you.
It is a proven fact that if you gain more skills and qualifications in the workplace then you will open up more opportunities for yourself and you will become more employable as a result.
If you want to excel in a bookkeeping career, you need to fully understand the basic bookkeeping principles and techniques that we cover in this course. You'll find that many of the professional bookkeeping and accounting qualifications start with manual bookkeeping as a foundation basis for your studies.
You may not be interested in obtaining qualifications, you might already own a business and simply want to get to grips with bookkeeping basics so that you can understand what your accountant is talking about!
In this Bookkeeping course, we use lots of examples to demonstrate the techniques and then we also add a worksheet at the end of every lesson to check your understanding of the subject covered. There are also some quizzes to try as well!
Each lesson is short and is designed to be studied in short bite sized sections. Perfect for a coffee break or lunchtime session.
Contents and Overview of the course
At the start of the course, you will learn about the accounting equation and how it impacts the Balance Sheet. In particular you will learn about assets, liabilities and capital.
We devote a whole section of the course to double entry bookkeeping and we learn the rules using a number of different transactions to illustrate how the double entry rules work, as well as how they impact the Balance Sheet.
Later in the course you will learn the differences between revenue and expenses and you will see how these are shown within a Profit and Loss account, but perhaps more importantly you will understand the double entry rules associated with them.
We use T accounts to illustrate how the debit and credit entries are applied to each account, using a series of transactions to demonstrate the rules. Finally having shown you how to balance off these accounts, you are shown how to create a Trial Balance.
The Trial Balance that you prepare will then enable you to create both a Profit and Loss account and a Balance Sheet. There are worksheets in every section to check your knowledge as you progress through the course.
From a practical perspective, we also show you how to prepare a bank reconciliation and how to maintain a cash book, including a petty cash book.
Finally, we provide you with some bonus materials which include checklists for monthly accounts as well as templates for petty cash vouchers.
This course focuses entirely on manual bookkeeping methods but since double entry bookkeeping is the foundation of all accounting transactions, then this is a very good place to start. Most people these days use a computerised accounting system, but the processes are exactly the same. It is better for you to understand the basic principles surrounding accounts because then you will realise what entries are being posted within a computerised accounting system. Also when you fully understand double entry bookkeeping, you will be able to confidently write journals when adjustments need to be made within the accounts.
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|Section 1: Introducing the Accounting equation and basic terminology|
Students will understand some of the jargon associated with the accounts, particularly with regard to assets, liabilities and capital which are found in the Balance Sheet.
Learning the Lingo!
Learn how the accounting equation and the elements of the balance sheet work together. See examples of transactions that are used to demonstrate this.
|Section 2: Double Entry principles|
Here we learn the double entry rules for assets, liabilities and capital. There are a series of worked examples to demonstrate.
In this lesson we discuss stock (inventory) and also introduce the principles of stock returns. We apply the double entry rules and use T accounts to demonstrate.
In this lesson, we introduce the principles of revenue and expenses and discuss profit and loss in very simplistic terms. We also introduce the double entry principles of revenue and expenses and show examples.
|Section 3: Accounting to Trial Balance|
In this lesson, we show you how to balance off the T accounts, and show different examples to demonstrate.
A short lesson, showing how the Trial Balance is created and why it does not always mean that the accounts are absolutely correct at this stage.
|Section 4: Looking at the different ledgers and cash books|
In this lesson we look at the different types of day books, ledgers and cash book and how they work with one another to create the accounts system.
|Section 5: Looking at the banking and cash responsibilities|
Learn a step by step process to reconciling your bank account. One of the most important tasks to ensuring that your accounts are accurate.
Here we introduce the petty cash book and discuss a suitable petty cash system that can be used within your business.
|Section 6: Preparing the Financial Statements|
In this lesson we show you how to construct a Profit and Loss account from the Trial Balance and show you a common layout currently used for the Profit and Loss account.
Finally, we show you how to construct a Balance Sheet from the Trial Balance, as well a Profit and Loss account. You will now understand the component parts of both financial statements.
|Section 7: Bonus Section|
I am a qualified Management Accountant and also the author of several For Dummies books including:
I have also recently written an online course for a third party which is a quick start guide to using Sage 50 Accounts (UK version).
I have worked within an accounting environment for more than 20 years and have been a Sage user for a similar amount of time. I have taught students bookkeeping and accounting both in a classroom scenario and also through my books, which I continue to write and update on an annual basis.