WEEK 1INTRODUCTION

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 orShareholders and the internal

management of an operation.

Others that use the information

Government authoritiesTax departmentCorporate Affairs

Potential InvestorsTrade CreditorsEmployees (Unions)CustomersCompetitors

The aim of processing of financial information is to enable the interested parties associated with the business to:

Recognise how it has performedCompare performance against expectationsMaintain control over financial affairsTake advantage of business opportunitiesEstablish budgets Examine alternative marketing

Accounting Cycle

Business transactionsAccounting recordsAccounting reports

Accounting reports are used to:ControlAnalysePlanning

Basic accounting Reports

Profit and Loss StatementBalance SheetFunds Statement

Business Transactions Week 2

Clear identification of roles and responsibilities:Separation of record keeping and manual

handling.SupervisionDocumentationAuthorisationRotation of DutiesIndependent checksPhysical security

Key operations and financial documents

The buying functionOrdering

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 SalesSales docketCash register tapes

Credit SalesCredit CardOn Account

Other documents

Account invoicesReceiptsBank Statements