Book-keeping and Accounts for Entrepreneurs

<p><strong>Chapter 1 – Accounting fundamentals</strong></p> <ul> <li>The nature, purpose and role of accounting </li> <li>Branches of accounting </li> <li>Accounting terms – assets, liabilities, income, expenditure etc </li> <li>Basic concepts – the business entity, underlying assumptions, accounting equation </li> <li>Users of accounting information and their needs – to include qualitative characteristics</li> </ul> <p></p> <p><strong>Chapter 2 – The business plan- Preparing a plan to present to a bank/financier</strong></p> <ul> <li>Appreciation of costs and cost structures </li> <li>&nbsp;The concept of breakeven </li> <li>The basics of budgeting and planning</li> </ul> <p><strong>Chapter 3 – Financing</strong></p> <ul> <li>Sources of finance </li> <li>Financing options, costs, advantages/disadvantages</li> </ul> <p><strong>Chapter 4 – Keeping the books</strong></p> <ul> <li>Source documents and records </li> <li>Books of original entry </li> <li>Computerised entry</li> </ul> <p></p> <p><strong>Chapter 5 – Double entry accounting system</strong></p> <ul> <li>Principles of the double-entry system </li> <li>Nominal and personal ledgers </li> <li>Control accounts – explanation and purpose </li> <li>The trial balance – preparation and purpose</li> </ul> <p></p> <p><strong>Chapter 6 – Income statement and Balance Sheet (sole trader)</strong></p> <ul> <li>Preparation of basic income statement and balance sheet&nbsp; from trial balance <ul> <li>Would introduce revenues, expenditures, accruals, depreciation, stock valuation</li> </ul></li> <li>Layout of the financial statements</li> </ul> <p></p> <p><strong>Chapter 7 – Accounts of limited companies</strong></p> <ul> <li>Differences, additional requirements&nbsp;</li> </ul> <p><strong>Chapter 8 – Cash Flow Statement</strong></p> <ul> <li>Preparation of&nbsp; a cash flow statement</li> </ul> <p><strong>Chapter 9 – Interpretation of financial statements</strong></p> <ul> <li>Need to interpret accounts </li> <li>Usefulness and application of ratio analysis </li> <li>Main accounting ratios; relationships between ratios</li> </ul> <p></p> <p><strong>Chapter 10 – valuation of companies</strong></p> <ul> <li>Book v market value </li> <li>Some simple valuation methods </li> </ul>