BASIC ACCOUNTING CONCEPTS
- Definition and purpose of accounting.
- Role of accounting in decision-making.
- Key users of accounting information.
- Financial Statements Overview.
- How Different Business Entities Present Accounting Information.
- International Financial Reporting Standards (IFRS) Principles.
FINANCIAL STATEMENT INTERPRETATION
- The Statement of Financial Position (Balance Sheet):
- Understanding assets, liabilities, and equity.
- The accounting equation: Assets = Liabilities + Equity.
- The transaction behind the balance sheet.
- The Income Statement: Revenue, expenses, and net income.
- Profitability measures.
- Gross profit.
- Income from operations.
- Net income.
- The transaction that affects income statement.
- The Statement of Cash Flows:
- Operating activities.
- Investing activities.
- Financing activities.
- Differences between cash flow and net income.
- Cash and Cash Equivalent.
ACCOUNTING CYCLE OVERVIEW
- Debits and credits.
- Recording Transactions: Journal entries.
- General ledger.
- Pre-adjusting trial balance.
- Adjusting journal entries.
- Post-adjusting trial balance.
- Closing journal entries.
- Software tools for bookkeeping (e.g., PeachTree, QuickBooks, Excel).
EFFECTIVE BUDGETING STRATEGIES
- Budgeting Basics: Importance of budgeting in business.
- Types of budgets.
- Operating budgets.
- Sales budget.
- Production budget.
- Purchasing budget.
- Raw materials budget.
- Labor budget.
- Overheads budget.
- Operating expenses budget.
- Selling, general and administrative expenses budget.
- Budgeted income statement.
- Cash budgets.
- Capital Budget.
KEY FINANCIAL RATIOS
- Financial Ratios and Analysis.
- Liquidity ratios.
- Activity ratios.
- Profitability ratios.
- Efficiency ratios.
- Using ratios for decision-making.
- Common-size income statements analysis.
- Horizontal analysis.
- Vertical analysis.
CASH FLOW STRATEGIES
- Composition of assets.
- Working capital management.
- Working capital.
- Net working capital.
- Introduction to working capital cycle.
- Cash Flow Management.
- Understanding cash inflows and outflows.
- Identifying cash flow issues.
- Strategies for maintaining healthy cash flow.
