Accounting for non accounting professionals

Accounting For Non Accounting Professionals

Munir Ahmad – Manager Projects Accounts

Agenda

What is Accounting Why Accounting Basic Classification of Accounts Basic Accounting Equation Accounting Cycles Basic Financial Statements Understanding Financial Statement

What is Accounting

Accounting is a process of recording, analyzing, interpretation and communication of financial transactions.

Why Accounting

To know the status of affairs To know the state of affair Responsibility to Stake holders Legal Responsibility – Company Law International Standards Taxation law

Basic Classification

Capital Liabilities Assets Sales Expenses

Basic Accounting Equation

Capital = Assets Capital + Liabilities = Assets Capital + Liabilities + Sales = Assets + Expenses Capital + Liabilities = Assets Capital = Liabilities

Accounting Cycles

Capitalization Purchase Sales Payroll Operations

Capitalization Cycle

Formation of Business Organization Sponsors investment Financing Arrangement Initial Public Offering

Purchase Cycle

Purchase Requisition Request For Purchase Repeat Order Request Market Inquiry Comparative Statement Purchase Order / Work Order / Sub

Contract Goods / service Receipt

Sales Cycle

Customer inquiry Quote / Performa invoice Customer order Acceptance of Order Advance Dispatch Invoice Receipt

Operation Cycle

Capacity Planning Master Production Scheduling Material Requirement Planning Shop Floor Control / Posting Ware Housing

Basic Financial Statements

Balance Sheet Profit and Loss Account Cash Flow Notes to The Accounts

Payroll And Allied Matters

Induction Pay Package Deduction Net Pay Provident Fund Gratuity Bonus

Understanding Balance Sheet

Format Comparative Figures Notes

Corporate & Management Reporting

Corporate Reporting Management Reporting

Control (GL) and Sub Ledger

General Ledger Accounts Payable Accounts Receivables Inventory

Understanding Profit and Loss

Format Comparative Figure – (Annual Accounts) Notes to the Accounts

Understanding Cash Flow

Format Comparative Figures Notes

Financial Statement Analysis

Ratio Analysis Vertical Horizontal Time Series Industry Average

Cost Accounting

Costing For Planning Costing For Pricing Costing For Control

Bills Of Materials Routing Material Standard, Actual and Replacement

rates Activity Resource Cost

Financial Planning

Projected Financial Statement Revenue, Cost and Profit Center Budget

Taxation

Corporate Taxation Individual Employee Taxation Sales Tax Custom Duty Federal Excise Duty