Practical Accountancy Training and Work Experience
Bookkeeping For Beginners
Our bookkeeping for beginners courses cover:
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Debits and credits Double entry bookkeeping is based on the concept of Debits and Credits. Our bookkeeping for beginners course shows how every transaction has both a credit and a debit impact. The accounting equation states that Capital equals Assets less Liabilities, and a core bookkeeping principle is that an increase in Expenses, Assets or Capital is recorded as a Debit, whilst an increase in Liabilities, Income or Drawings is recorded as a Credit. Our bookkeeping for beginners courses explain how different types of transaction (purchases, sales, payment of invoices, taking a loan etc) are classified and recorded in double entry bookkeeping, and how these are entered in the commonly used accounting software packages (Sage, Quickbooks, IRIS, TAS & VT).
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Assets and liabilities Another important Accounting concept covered by our bookkeeping for beginners training is that of assets and liabilities. Assets are what belongs to the company and are of value to the business. Liabilities are what the company owes to other organisations and individuals. The Balance Sheet groups these into long term and short term or current assets and liabilities. Current Assets include money in the bank account, Sales invoices due to be paid soon (trade receivables) and stock in hand (inventory), whilst Current Liabilities comprises bills due to be paid soon. The financial value of these indicate the liquidity of the company. Long term assets are also known as Fixed assets and are buildings, machinery in a factory, vehicles and office equipment and furniture, whilst long term liabilities include loans and mortgages, which need to be paid back later.
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Year-end statements At the end of the fiscal year each business prepares a series of year-end statements. These statements record and analyse financial activities for the year enabling the managers to make business decisions. The profit and loss statement summarizes the income and expenditure of the company, showing the profit or loss for a specified financial period. The end of year balance sheet summarizes the assets and liabilities of the company, showing the financial health of the organisation. Our bookkeeping for beginners courses explain how to produce these and other regularly used reports and how the individual transactions feed into them.
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