Learn how to do Bookkeeping studying online.
This is as simple as it gets for a subject that can be confusing. Self paced, online study like this allows you to take your time and digest the information at your own pace. For many people can be much more achievable than trying to keep up with a lecturer in a classroom where getting behind is a slippery slide to simply not learning what you need to know.
COURSE STRUCTURE
LESSON 1 SCOPE & NATURE OF BOOKKEEPING
Introduction
What is bookkeeping?
Why is record keeping important in bookkeeping?
What are the books?
Terminology and the bookkeeper’s world
Financial information
Hints and tips for making bookkeeping stress free from day one
Case study: Sally’s hairdressing studio
Review what you have been learning
LESSON 2 ACCOUNTING NORMS
Accounting conventions
Business Entity Convention
Going Concern Convention
Accounting Period Convention
Monetary Entity Convention
Recognition of Law
Accounting Doctrines - consistency, relevance, materiality, verifiability
Accounting standards
International Standard Setting Process
Case study: A freelancing business
LESSON 3 THE BOOKKEEPING PROCESS
Understanding the flow of information in bookkeeping
How and when do you record transactions?
Case study: Carlo’s chiropractic
LESSON 4 DOUBLE ENTRY BOOKKEEPING
Ledgers
Opening up a general ledger
Ledger accounts and sub ledgers
General Ledger
Entries resulting from transactions
Recording transactions
Case study: A gardening services
LESSON 5 CHART OF ACCOUNTS – BALANCE AND INCOME STATEMENTS
About the chart of accounts
Case study: Rob the builder
LESSON 6 LEDGER ACCOUNTS -PROFIT AND LOSS STATEMENTS
Ledger accounts and double entry bookkeeping
Footing ledger accounts
The trial balance
Accounting for drawings
Case study: Jimmy loses everything
LESSON 7 CASH RECEIPTS AND PAYMENTS JOURNALS
Journals - Day books
Journals appropriate for a Service Business
Recording cash transactions in journals
Case study
LESSON 8 WHAT COMES NEXT?
Starting a Bookkeeping Business
Considering blockchain
Where to keep learning and developing skills
Final assessment
WHAT IS BOOKKEEPING REALLY ABOUT?
Bookkeeping involves keeping records of wealth that comes to, and that leaves the ownership of a legal entity.
A legal entity can be a person or organisation that is recognised by law – as such they can legally enter into a contract. If they fail to meet the legal requirements of the contract, they can be open to litigation (be sued).
Bookkeeping allows us to track the ownership of money, property or even intangible things such as services.
A business can help control its financial future through its bookkeeping system. Information relating to financial transactions can be used to prepare budgets and set future financial goals. Businesses need this information to help answer questions, such as:
- Will the business have enough cash to pay its bills?
- What are the assets of the business worth?
- Can the business afford to borrow money?
- Is the business financial enough to expand its operation?
- Should the selling price be amended?
Bookkeeping allows you to keep track of Payments made for Goods and Services.
GOODS
A ‘good’ is an object or product that you can physically touch, It is something that we buy or obtain, a tangible commodity that can be produced, bought, sold, and traded.
Goods may include:
1. Free Goods: These are wants which are satisfied for ALL people at the same time without anyone having to do anything about it, such as air everyone breathes air.
2. Economic Goods: goods and services that are useful, relatively scarce, and transferable and which you can buy if you have money.
Tangible goods could therefore be a car, chocolate bar, gate etc.
Types of economic goods include:
1. Consumer goods - intended for final use by the consumer. Consumer goods are usually seen as
- durable (expected to last for more than three years) or
- non-durable (expected to last less than three years with regular use)
2. Capital goods - items such as machinery and equipment that used in the creation of other goods.
SERVICES
Intangible refers to something that does not have a physical presence. For example, health care or accountancy or travel. If we book a holiday, we do not own a physical thing, we are booking an experience. It is intangible.
Intangible goods also include things such as:
- advice,
- consultancy work,
- labour,
- experience, and,
- knowledge.
A service is work that is performed by someone for another person. A service is a task or work that is completed for someone else or society.
Examples of Services
- A nurse who is caring for a group of individuals is offering their services.
- A teacher teaching a class of students is providing a service.
- An employee in an organisation is providing services.
- A factory working making goods is providing a service by creating the good.