PURPOSE OF ACCOUNTING

• What is Accounting, Book-Keeping, Transactions and an Account?
  
• Accounting concepts, cycles and equations
  
• Matching concepts in timing and operational control.
  
• Accounting standards in used.
  
• Main grouping of accounts
  
• Users and benefits of accounting information.

FAMILIARIZATION OF DAILY KEY ACCOUNTING TERMS

• Grouping of Accounts
  
• Distinction with examples between:
  - Revenue and other income
  - Revenue expenditure and Capital expenditure
  - EBITDA – its usefulness and calculations
  
• Distinction with examples between:
  - Non-Current, and Current Assets
  
• Distinction with examples between:
  - Non-Current Liabilities and Current Liabilities
  
• Meaning of Property, Plant and Equipment verses Investment properties
  
• Major Component Costing method for PPE
  
• Definition of Intangible assets and when can it arise
  
• What are Biological assets
  
• What is Right of use assets
  
• What are contingent assets and contingent liabilities.
  
• Assets Depreciation, Amortization, Impairment and Appreciation (capital reserve)

DAILY TRANSACTIONS PROCESSING

• Transaction Processing Framework
  
• Transactional documentation processing for sales, purchase, sales and purchase returns.
  - Matching Concepts – Timing and Documentations,
  - What document to match?
  - Checking and approving,
  - Account coding, posting and following up trail

 DOUBLE ENTRY ACCOUNTING SYSTEMS

• Roles and rules of double entry accounting system
  
• Chart of Accounts – Mother rule of all postings
  
• Various Books of Account – Gen. Ledger, Purchase Ledger, Sales Ledger, Journals, Cash books, Petty Cash Book, Fixed Assets Register, etc.
  
• Accounting double entries for Assets, Liabilities, Revenue, Expenditure and Capital.
• Double entries for non-current assets disposals
  
• Journal entries for correction of errors.
  
• Double entries for selected Sales and Service Tax under:
  - Payback of sales tax exemptions given earlier
  - Free goods and services
  - Service tax for Imported taxable services
  - Claiming service tax refund of digital tax incurred for resales.
  - Bad debt relief and its subsequent recovery
  - Upon deregistration of taxable service provider
  - Withholding tax:
  Absorbed by payee
  Absorbed by payer
  
• Calculation and double entries for Right of Use Assets and its double entries for lessee and lessor.
  
• Double entries on Hire Purchase and its single effective interest calculation.
  

MONTH AND YEAR END CLOSING ADJUSTMENTS

• Journal Double entries for monthly adjustments such as prepayments, accruals and provisions for expenses, assets depreciation and amortizations.
  
• Provisions for bad and doubtful debts, provision for stock obsolesces and provision for asset impairment.
  
• Treatment of non-payable expense provisions
  
• Extraction of Trial Balance and Financial Statements for financial performance analysis:
  - Statement of Income (Profit and Loss Account)
  - Statement of Other Comprehensive Income
  - Statement of Financial Position (Balance Sheet)
  - Statement of Cash flow.
  
• Closing Stocks Valuations
  
• Cost of Sales Calculation
  

TYPES OF SCHEDULES REQUIREMENTS TO SUPPORT MONTHLY ACCOUNTS AND ANNUAL AUDIT AND TAX COMPUTATIONS

• Monthly Accounts
  
• Annual Accounts
  

BANK RECONCILIATION AND PETTY CASH CONTROL SYSTEM

• Accounts that need to reconcile:
  - Every Bank Account
  - Every intercompany and related companies’ account
  - Creditors account
  - Customers account
  
• Process of preparing the reconciliation statement
  - Identified the difference between your record of their accounts and their record of your accounts – their statement of account.
  - Investigate the cause of the difference and then:
  Adjust your records (books of account)
  ? Inform the other party to correct their account if it is their mistake.
• Bank Reconciliation:
  - The 2 methods:
  Adjusted Cash Balance method, that involved 2 steps.
  Direct method.
  - Starting point – can be from cash book balance or from bank statement balance.
  
• Petty Cash Control:
  - Imprest System management
  - Payment policy and procedures
  - Record maintenance
  - Reimbursement management
  - Posting to General Ledger
  - Fraud and abuse control.
  

PREPARATION AND UNDERSTANDING OF FINANCIAL STATEMENTS

• Minimum information to be shown in the Financial Statement:
  - Statement of Profit and Loss
  Operating Expense classifications
  - Other Comprehensive Income components
  - Statement of Financial Position
  Presentation – Current & Non-Current OR order of Liquidity
  Treatment of major part change to PPE under component costing method.
  Treatment of Bearer Plants and Specific Living Animals in assets
  Understand what is Deferred Tax Assets and Deferred Tax Liabilities.
  - Statement of Cash Flow
  Presentation – Direct or Indirect (How to identify).
  Cash Flow from Operating, Investing & Financing Activities with examples
  Reading cash flow statement make easy.
  - Statement of Change in Equity.
  
• Various Qualitative information that needs to be shown in the Financial Statement
  
• Understand the different Audit Opinions

FINANCIAL ANALYSIS BUSINESS PERFORMANCE FROM FINANCIAL STATEMENTS

• Application of Financial / Accounting ratios:
  - Profitability (returns on Sales, Assets Invested, Equity, Investments).
  - Liquidity
  - Actual meaning of over trading and its calculation
  - Efficiencies
  - Stability
  
• Common cash ratios

BUDGETARY CONTROL – VARIANCE ANALYSIS BETWEEN ACTUAL AND BUDGET

• Sales Variance analysis matrix
  - Price
  - Volume
  Value mixed, and
  Quantity mixed
  
• Operating expenses analysis matrix
  
• Manufacturing material variance analysis
  - Usage and Price
  - Mix and Yield
  
• Production Labour Variance analysis
  - Hour usage
  - Rate
  - Idle time
• Overhead variance analysis
  - Direct overhead
  - Indirect overhead
  
• Variance analysis contribution to business performance.
  
• Factors that give rise to variances

INTERPRETING THE FINANCIAL ANALYSIS AND BUDGETARY CONTROL FOR IMPROVEMENT RECOMMENDATION