1. The Nature of….

2. Working as an accountant…
Routine Daily Activities
Processing bills, banking, recording transactions
Periodic Accounting Activities
Paycheques, tax returns, end of the year reports
Other Activities
Negotiations, meetings, travel, interviews

3. The Accounting ‘Cycle’
The usual length of the fiscal period is one year.
The accounting cycle can be thought of as a series of procedures carried out during each fiscal period.

4. Becoming an Accountant
Entry level to high-level… and everything in betweeen.
For most positions, you need to study and have experience.

5. Professional Organizations
To be fully qualified accountant, you must complete one of the following designations:
CGA (Certified General Accountant)
CMA (Certified Management Accountant)
CA (Chartered Accountant)

6. This usually requires 2-3 years of professional experience (for which you will get paid) as well as 4-6 years of post-secondary education.

7. CGA options… Corporations & small/medium enterprise
Information Technology
Government / not-for profit
Public Practice (Auditing)

8. CMA
Society of Management Accountants place their emphasis on management accounting (budgeting, inventory costs, financial ratios)
Most graduates take management positions as opposed to working in public practice.

9. CA
The longest standing body in the professions. (The Canadian Institute of Chartered Accountants – CICA)
Practical experience of 30 months is required with a four day exam at the end. (The UFE exam.)
CAs can choose careers in any area of accounting.

10. GAAP!!!

11. Roles in Accounting
Accounting Clerk (Bookkeeper)
Accountant

12. Accounting Clerk Usually do routine accounting tasks:
Properly recording daily transactions
Making payroll calculations and preparing the payroll.
Carrying out banking transactions

13. Accountant Broader in scope Develop accounting systems for businesses
Insuring GAAP are used.
Interpreting financial data
Participating in management meetings
Supervising the work of accounting employees.

14. Computers and Accounting
Computers are important, useful, and utilized every day in the accounting profession.
They are however, merely tools for accountants.
The do not make accounting skills unnecessary!

15. Review Name the three types of business ownership.
What is the difference between a service business and a merchandising business?
Name the three professional accounting designations in Canada.

16. It is time for YOU to start being an accountant!
On the top left hand side of the the sheet provided, make a list of everything you own (you can pretend if you like!) and a dollar value associated with it.
On the right hand side, make a list of everything you owe (money to parents, money to a friend, car loans, etc…)
Make it legible, and in good form as in the following example…

17. Mr. Alexander Financial Position February 6, 2012
ASSETS
LIABILITIES
The big question is….. What is my Net Worth?
(A fancy name for Net Worth is Equity!)

18. This brings us to the fundamental accounting equation:
Assets – Liabilities = Owner’s Equity
(Remember, Equity means net worth, so we are calculating the net worth for the owner of the business!)

19. When we look at Mr. Alexander’s Assets and Liabilities
We see that Assets – Liabilities = Net Worth (Equity)
471, – 292, = 178,758.04
That is, Mr. Alexander’s Equity (or Net Worth) is $178,758.04
The fundamental accounting equation has allowed us to find
out what he is worth!!

20. This is the same approach we take to finding out how much a business is worth!
Assets – Liabilties = Owner’s Equity
(How much a business owns,
minus how much it owes,
equals how much it is worth!)

21. Homework Exercises 1-6 on page 17 of your text book.
(For question 5 & 6, use the handout you were given.)