Bookkeeping is at the heart of any business, it is often said to be the “language of business”.
Since the principles of accounting rely on accurate records, bookkeeping is the foundation of accounting. It involves the process of recording, analysing and interpreting the financial transactions of a business or individual.
The discipline of bookkeeping accounts for a large proportion of the accounting process, and a bookkeeper’s duty is to set up financial statements so that an accountant can easily perform legal and tax management routines in a timely manner.
As a skilled and compliant bookkeeper you will be able to produce accurate financial records, to ensure that all accounting activity within your organisation, is legally fulfilled. These records will play an important part towards the successful running of your own business, or if you are in employment, the company you work for.
KEY LEARNING POINTS
This programme will provide you with knowledge of the principles of bookkeeping.
- Gain an introduction to bookkeeping, understand the basic aim of bookkeeping as well recognise why bookkeeping is necessary for Financial, Taxation, Accounting and Banking Purposes
- Examine the four different methods of bookkeeping
- Understand the process of “Double entry bookkeeping”, “Asset” and “Liability” and Debit and Credit” within bookkeeping
- Discover the process of “Balancing the Accounts” and examine the different types of transactions, typical account format and the fundamental principles of accounting systems
- Learn the four broad categories of VAT and how to work out the VAT on a transaction
- Understand the purpose and layout of the cashbook and identify how to make the entries to a cashbook
- Identify the how the petty cash book is used to record small transactions and for paying employees expenses and also recognise the benefits of using a “Three Column Cash Book”
- Understand the common methods of “Dividing the Ledger”, the details contained within the “Sales Ledger” and know how to deal with “Bad Debt
- Explore the concept of “Day Books” and understand how a “Sales Book” is used to control customer dept. and monitor VAT output Tax
- Identify the function of a “Returns Day Book”
- Recognise why VAT records are necessary and how the amount of VAT due to HM Revenue and Customs is calculated. Learn the process of a VAT inspection and what specific records should be maintained
- Identify what business records should include and what auditable documents must be maintained
- Learn how to prepare an Invoice, what information should be included on a purchase order and the benefits of a three copy “Delivery Note”
- Identify the Information required on a “Receipt”
- Learn the difference between “Gross and Net Pay” and understand National Insurance Contribution Legislation
- Understand the “Accounting Definition of Stock” and the importance of “Controlling Stock” accurately
- Learn the layout of Journals, recognise the advantages of using a “Journal” and understand how a business may use “Opening Accounts
- Learn the term “Profit” and understand how profits increase the “Value” of a Business also discover how “Depreciation” is calculated across the cashbook
- Explore the function of the “Profit and loss” account and the concept of the “Trial Balance”
- Learn how the Balance sheet may be used throughout the financial year as well as the difference between “Fixed and Current Assets”
- Learn the meaning of “Working Capital”
- Understand the aim of entities such as clubs and social societies and their accounting needs
- Gain an understanding of the limitations of the income and expenditure method or accounting within club
- Explore the benefits of providing customers with “Trade Credit”
- Clarify the term “Debtor” and “Creditor”
- Document principles of “Credit Control”
- Explain the principles of a business “Partnership”
- Understand legislation covering partnerships such as “The Partnership Act 1890”
- Discover the Advantages and Disadvantages of “Trading as a Partnership”
ADVANTAGES OF THIS COURSE
- This course will prepare you for employment in a bookkeeping or financial administration role.
- If you run your own business, knowledge of bookkeeping will give you a greater understanding of the business, and perhaps you can reduce your accountants’ fees by doing some of the bookkeeping yourself.
- An insight to your business can mean the difference between its success and failure.
- You will be able to make strategic decisions about your business by looking at the business activity and be able decide where to expand or where to save.
- Further your career, improve your salary prospects or manage your own accounts.
- Define essential bookkeeping terms and principles
- Undertake VAT calculations and complete returns
- Set up and operate cashbooks
- Reconcile ledger accounts
- Correct account errors
- Understand trading and profit & loss accounts for a sole trader
- Explain balance sheets for a sole trader
- Close off ledger accounts at year-end
- Describe the accounting requirements of non-profit making organisations