accounting for non accounting professionals
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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