Introduction
We all have applied the process of accounting on a daily basis at some personal level sub-consciously. If you have ever made personal budgets, managed your bills, have made projections about future income or have made financial plans for your future you have used the essence of accounting in your personal life.
It’s a common misconception that accounting is only for accountants. Accounting is now recognized as a life skill that one uses in personal as well as commercial existence. Not being familiar with accounting principles and terminology can prove disastrous for any manager or businessperson.
It will be like driving a car blindfolded. You may be adept at driving but being unable to see the traffic or signals will ultimately lead you to crash. Accounting is considered as
Over the years accounting has evolved and has sprouted into several branches that have become an indispensable part of any business because of its utility. How can a business keep track of financial transactions?
How can the profitability and financial position of a business be calculated? Accounting is the process of systematic recording of financial transactions, classifying them and reporting them in the manner most useful to the users of financial information.
Some of the most used branches of accounting are financial accounting, cost accounting and management accounting. With the passage of time and increasing popularity, the field of accounting now presents a plethora of job prospects for management graduates and professionals.
How can financial records be used to make financial projections? How can financial data be presented in a most useful manner? How can accounting be used as a tool in controlling function? All these questions are unriddled through accounting.
Investors and shareholders utilize accounting information to make crucial capital decisions, employees need accounting information to analyses if they are being paid fairly, and managers need accounting information to make decisions regarding costs, expenses and future course of action. Various stakeholders put accounting to use to fulfil their diverse information needs.
This training course aims to make its participants not just aware of the fundamentals of accounting but also coach them on how these fundamentals are applicable in their daily life. Any professional seeking to get well versed in the basics of accounting may opt for this training course.
It provides an introductory window to types, processes, systems, framework and techniques of accounting. It also acts as a refresher course for professionals who have been out of touch with accounting and want to once again get acquainted with the fundamentals of the subject. This course will prove to be the first step for anyone aiming to climb the tall staircase of financial prowess.
Course Objectives
Upon successful completion of this course participants shall be able to achieve the following objectives:
- Realize the need for accounting information in different aspects of the business
- Understand the multi-facets of accounting and their application in personal as well as professional life
- Be adept at reading and interpreting financial statements
- Be aware of various accounting concepts and conventions
- Understand what financial statements include and how they are prepared
- Understand what and how accounting information is used in various management functions of planning, organizing, directing and controlling
- Understand how accounting skills help in tax planning
- Achieve coordination among various departments through the smooth flow of financial information
Who Should Attend?
- Entrepreneurs/small business owners/start-up founders
- HR, marketing, production, finance executives and managers
- Accounting assistants
- Retail investors
- Financial analysts
- Relationship managers
- Financial advisers
- Financial planners
Course Outline
Module 1: Understanding Basics of Accounting
- Introduction to Financial Accounting
- Users of Financial Statement
- Double Entry System
- Generally accepted accounting principles
- Some Accounting Terminology
Module 2: Capturing Data for Financial Accounting
- Accounting cycle
- Chart of Accounts
- The distinction between Capital Expenditure and Revenue Expenditure
- Cash and accrual systems of accounting
- Posting to General Ledgers
- Journal Entries
- Accounts Receivable / Accounts Payable Ledgers
- Bank Reconciliation / Cash Reconciliation
- Provisions
- Depreciation
- Inventory valuation
Module 3: Case Study – 1
- Examples of Double Entry Transactions
- Journal Entries
- General Ledger
- Trial Balance
Module 4: Components of Financial Accounts
- Balance Sheet
- Income & Expenditure Account
- Cash Flow Statement
- Statement of Changes in Equity
- Notes to Financial Statements
Module 5: International Accounting & Reporting Standards
- International Accounting Standards (IAS)
- International Financial Reporting Standards (IFRS)
- Generally Accepted Accounting Principles (GAAP)
Module 6: Analyzing Financial Statement
- Ratio Analysis
- Vertical P&L and Balance Sheet
- Horizontal P&L and Balance Sheet
Module 7: Capital Expenditure
- Capital Investment Appraisal
- Return on Investment
- Payback period
- Net present Value
- Internal Rate of Return
- Lease or Buy Decisions
Module 8: Budget Process and Management
- Preparation of Master Budget
- Fixed v/s Flexible Budgets
- Quarterly Reviews
- Forward Planning
- Budget/ Actual Comparison
- Zero – Based Budgeting
Module 9: Cost Accounting
- Total Absorption Costing
- Marginal Costing
- Contribution Margin
- Break-even Analysis
- Sensitivity Analysis
- Variance Analysis
- Price Variance
- Quantity Variance
- Mix Variance
- Management Accounting
Module 10: Case Study – 2
- Understanding Financial Statements of a Listed Company