Introduction toIntroduction toPrinciples of AccountsPrinciples of Accounts

What is Principles of Accounts Principles of Accounts ?

The modules cover: Bookkeeping

and Accounting

for Sole Traders

(Partnerships and Limited Companies)

What is Bookkeeping & Accounting Bookkeeping & Accounting ?

Bookkeeping– recording the

transactions of an organization

Accounting– analysis of the

performance of an organization

What is BookkeepingBookkeeping 1 ? You have £10. Your mother/father/aunt

gives you £100 because today is your birthday.

You go with your friends to celebrate your birthday.

You have £15 left after the celebration.

How much money did you spend?

In businesses, all of this would be recorded !

‘Books’ would be kept of all your (financial) activities !!

What is BookkeepingBookkeeping 2 ?

the keeping of Accounts the keeping of accounting

records Accounting records are kept

in ‘Books’ or ‘Ledgers’ In businesses all transactions

are recorded Book-keeping is simply

keeping the records of business transactions Records are kept of all

the (financial) activities

What is BookkeepingBookkeeping 3 ?

record important, useful information. the information must be recorded

accurately it is routine It is recording It is ‘accounting for’ business

transactions Examples of transactions: sale/purchase of goods/services every sale, etc., is shown

in moneyAccounts are kept of all the (financial) activities

Book-keeping is often known as ‘Double entry’

What is Accounting 1Accounting 1? Providing financial information

in an organization – objectively

– consistently

– professionally

– conservatively valued to enable management to

perform three functions

– recording

– analysis

– control

What is Accounting 2Accounting 2?

Using financial information to analyse the performance of management

of (and inside ) an organization

– objectively

– consistently

– professionally

– with reliable techniques for internal management

control

– and comparing overall performance of the organisation

– with (for example) other organizations

What is Accounting 3Accounting 3? Obtaining finance (capital) for

management of an organization

Forecasting management/departmental/ organizational performance

Checking actual performance against planned/forecasted performance

Auditing claims (claimed performance) of organizations

etc.

What is BookkeepingBookkeeping and and AccountingAccounting? Accounting is

– very business-like

– very professional

You must do/be the same

Keeping accounts: – keeps checks on customers and

suppliers

– leads to preparation of overall, summary statements

These Financial Statements are information to the business.

What is BookkeepingBookkeeping and and AccountingAccounting? We cannot keep Accounting records

– without documents (proof of transactions)

– sales, purchases, banking (payment and receipts) documents

these are source documents this documentary evidence:

– tells/shows us the actual transaction

– shows what has happened Accounting records:

– show the impact of these transactions on a business

– show what these transactions mean to a business

AdvantagesAdvantages of studying this subject

To be well-prepared for future career development

All managers need accounting

Easier to find a job All organizations need

accounting Closely related to daily life.

Do I have to be a graduate?

You don’t have to be a graduate to become an accountant, though a degree is preferable. The vast majority of those taking the broad-based ACA (Associated Chartered Accountant) exam – the UK’s best-recognised accountancy qualification – were graduates. ACA entry level requirements include two A-levels and three GCSEs, including good grades in maths and English.

However, an increasing number of organisations are willing to take on school leavers who fulfil the necessary criteria, and who are then trained in-house or by an outside agency.

There are more than 2,000 organisations providing authorised training in the UK. The size or influence of the accountancy firm that trains you is irrelevant; the final qualification is the same. Nearly 40 per cent of trainees work for a business with 20 or fewer partners.

Training takes a minimum of three years and requires that you complete 450 days of technical work experience and pass both examination stages – with 11 exams in total.

If you're training as you work, your employer will pay for your course, as well as providing a modest salary for which you will be expected to help in the office in a variety of areas, including general admin.

Possible Future CareerCareer Development

Pass the prof essional examswith Exemptions

University Graduates

Pass the prof essional examsN o exemptions

N on- University S tudent

A ccountant(A CCA / CI MA / CPA )

Possible Future CareerCareer Development

Pass other management examswith Exemptions

University Graduates

Pass other management examsNo exemptions

Non-University Student

Manager(Business, Public Sector, etc)

Exam (ModulesModules) to be completed in the two years

Year One Year TwoACCN 1

Introduction toFinancial Accounting

ACCN 2Financial & Management

Accounting

ACCN 3 Further Aspects of

Financial Accounting

ACCN 4Further Aspects of

Management Accounting

Criteria for studyingstudying and succeedingsucceeding in this subject

Diligent - hard work Sensitive to figures (not

necessarily good at Math.)

Willing to learn Willing to think critically

Any QuestionsQuestions ?