Bookkeeping and Accounting - The Ultimate Finance Course

What is Financial Accounting and how can this help with Advanced Bookkeeping.

The Trial Balance is also referred to as the Initial Trial Balance and is the started point prior to adjustments being made to created the Extended Trial Balance. Take a look at the format of the Trial Balance and the purpose that it serves to to users of the Accounting System.

The Trial Balance is a useful document as it help reveal errors, but not all. Take a look at the errors it can reveal and how you can correct these, and also the errors not revealed with some examples.

The transportation of goods from a supplier or to a customer are called Carriage Costs. Their treatment within the ledger accounts depends on who covers the costs and where they are coming from/to.

The Extended Trial balance is the preparation stage for the compilation of the Financial Statements.It expands on the Initial Trial Balance by adding adjustments and sorting the Ledger Accounts into the relevant statement headings.

The High Low Method is used to determine the Variable and Fixed cost elements of activity levels that are Semi-Variable by Cost Behaviour. It is a useful method used in Management Accounting when costing production output levels.

Please view this before commnecing Section 4. These video have been deliberately made in silence, and there is not an error within your course.

Lesson Aims:

•Be able to setup accounting software (Sage 50 Accounts).

•Enter information relating to the organisation at the beginning of an accounting period.

•Setup customer and supplier accounts

•Process sales and purchases transactions.

•Invoices and Credit notes

•Payments and Receipts (Cash and Credit customer).

•Produce reports:

•Routine customer and supplier reports.

•General ledger and management reports.

This lesson is for your information only and should be used as an educational guide.

It is not and shall not constitute legal or financial advice.

Set  up a business profile in order to create and enter your business transactions.

Check your business details and learn how to amend details such as contacts, addresses and business entity.

Access help and support within the software package.

Setting system dates can save time and help avoid errors within transactions and reporting. Learn about the different system dates including the program date and accounting date whilst learning how to set and change these.

Safeguard your data with regular backup and restore points.

Setup debtor (Trade Receivable) accounts and enter opening balances for all of your credit customers. This is the Sales Ledger which is the memorandum for the Sales Ledger cOntrol Account.

Have you entered all of your customer accounts correctly? Now is the time to check this and make changes if necessary. You will also be introduced to your first report within the accounting software.

Customers and suppliers change from time to time, be it names, contacts, addresses, email details or credit limits. See how to make the changes you require.

Cleanse your system of defunct or unused customers and suppliers by changing their status and archiving inactive accounts.

All businesses are different due to entity (sole trader, partnership or limited company), size or industry. This means that all businesses will have unique accounts (chart of Accounts). Learn how to amend and change these within the correct groupings (See coding groups attached).

Before you begin processing your transactions, you need to make sure that your starting point is correct. This is the place and time to enter your account opening balances.

There are two ways to enter customer invoices into Sage, individually which is more time consuming but detailed, and as a batch which is quicker but omits the finer aspects of the financial document. Learn how to do both in this lesson.

A Credit Note is the opposite of an invoice which is refunding a value to your credit customer (debtor/trade receivable).

There are two ways to enter customer credit notes into Sage, individually which is more time consuming but detailed, and as a batch which is quicker but omits the finer aspects of the financial document. Learn how to do both in this lesson.

There are two ways to enter supplier invoices into Sage, individually which is more time consuming but detailed, and as a batch which is quicker but omits the finer aspects of the financial document. Learn how to do both in this lesson.

Process cash and credit payment through the bank in a way that correctly records the transactions within the relevant nominal ledger account and against the Sales/Purchase Ledger customer or supplier (where applicable).

Record payments into customer or supplier accounts that are not to be allocated to a particular transaction.

Move monies between accounts such as Petty Cash (Cash in Hand), Current Accounts, Deposit Accounts, Savings Accounts and credit Cards.

Withdraw money for small business expenditure and replenish the petty cash imprest balance.

Payments reoccur on a regular basis, such as Direct Debits and Standing Orders. See how you can enter these into the accounting system to save time and create efficiencies.

Does the balance of your bank match the bank statement? Have you recorded everything that is in the bank and documented this correctly within the accounting system? This is the lecture that will show you how to perform this exercise.

Look at how simple errors can be corrected within the system.

Understand how to apply and use the journal to correct a number of errors where you would like to create an audit trail for the changes being made.

Unpaid debts are an unfortunate part of business. Take a look at how you can cleanse your system and remove unpaid debts through bad debt write-off.

This process of apportioning service department expenses among the production departments is called secondary distribution of overheads. In other words, secondary distribution is the reapportionment of service department expenses among the production departments after completion of primary distribution.

Example: Rent is apportioned to the Cost Centres: Production, Stores, Selling & Distribution and Administration based on building area. This is the primary distribution. Stores Cost Centre is allocated to Production and Selling & Distribution based on numbers of requisitions. This is secondary distribution.

A very quick overview of the 3 types of inventory (stock).

Forecasting uses trend analysis to predict and anticipate future income and costs. Identical Annual Change is a method that can be used where the trend is travelling in a consistent manner.

Forecasting uses trend analysis to predict and anticipate future income and costs. Average Annual Change is a method that can be used where the trend is travelling in an inconsistent manner with slight variations between periods that can be levelled out.

Operating Budgets are classed as a Fixed Budget and used for Budget Setting. What happens if actual production changes from that of the Fixed Budget? You need a way of comparing the budget with the actual costs on a like for like basis. This is where a Flexible (Flex) Budget comes into play. Watch how a Fixed Budget can be revised to then compare variances with actual costs.

The Moving Average is a simple technical analysis tool that smooths out  data by creating a constantly updated average value.

I hope you have enjoyed the course that you have enrolled onto. Please see below some other courses I have created to help you learn and advance in the areas of Bookkeeping, Payroll and Finance & Accounting:

Payroll Management - The UK Payroll System

Debits and Credits (The Bookkeeping Dual Effect)

Manual Payroll - Understand Your Software Calculations (UK)

Bookkeeping and Accounting - The Ultimate Finance Course