intro to principles of accounts
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Introduction toIntroduction toPrinciples of AccountsPrinciples of Accounts
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What is Principles of Accounts Principles of Accounts ?
The modules cover: Bookkeeping
and Accounting
for Sole Traders
(Partnerships and Limited Companies)
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What is Bookkeeping & Accounting Bookkeeping & Accounting ?
Bookkeeping– recording the
transactions of an organization
Accounting– analysis of the
performance of an organization
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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 !!
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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
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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’
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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
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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 )
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Possible Future CareerCareer Development
Pass other management examswith Exemptions
University Graduates
Pass other management examsNo exemptions
Non-University Student
Manager(Business, Public Sector, etc)
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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
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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
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Any QuestionsQuestions ?