WEEK 1 INTRODUCTION Interpret Financial Information

Accounting Accounting is basically about storing financial information. It provides a process for recording and refining the information for control, analysis and planning purposes. The main uses of the information are the Owners or Shareholders and the internal management of an operation.

Others that use the information Government authorities Tax department Corporate Affairs Potential Investors Trade Creditors Employees (Unions) Customers Competitors

The aim of processing of financial information is to enable the interested parties associated with the business to: Recognise how it has performed Compare performance against expectations Maintain control over financial affairs Take advantage of business opportunities Establish budgets Examine alternative marketing

Accounting Cycle Business transactions Accounting records Accounting reports Accounting reports are used to: Control Analyse Planning

Basic accounting Reports Profit and Loss Statement Balance Sheet Funds Statement

Business Transactions Week 2 Clear identification of roles and responsibilities: Separation of record keeping and manual handling. Supervision Documentation Authorisation Rotation of Duties Independent checks Physical security

Key operations and financial documents The buying function Ordering  Purchase order form Receiving  Delivery docket  Invoice  Credit Note  Goods inwards record

Production Function Stock records  Bin Cards  Stock cards  Stock sheets  Requisitions

Selling Process Cash Sales Sales docket Cash register tapes Credit Sales Credit Card On Account

Other documents Account invoices Receipts Bank Statements