Lamar Van Dusen : Accounting in Action

Views:
 
Category: Entertainment
     
 

Presentation Description

Lamar Van Dusen is telling about Accounting in Action in this document. He is a professional in Accounting.

Comments

Presentation Transcript

slide 1:

ACCOUNTING IN ACTION Lamar Van Dusen

slide 2:

Introduction Why Learn  Why would you want to learn bookkeeping and keep up to date financial records anyway  Cant you hire an accountant to come after the end of the year and get your check book and shoe box and do your taxes Sure you can And yes you will have adequately fulfilled your taxpayer obligations.

slide 3:

But in order to run a business and know what where and when to take corrective actions requires business information. How do you get and where do you find this information You dont if you dont keep accurate and current records about your business financial activities.

slide 4:

Accounting 1. Includes bookkeeping 2. Also includes much more BOOKKEEPING DISTINGUISHED FROM ACCOUNTING Accounting: Is the art of analyzing recording summarizing reporting reviewing and interpreting financial information.

slide 5:

Bookkeeping: Is the process of recording and classifying business financial transactions activities.  Bookkeepings objective is simply to record and summarize financial transactions into a usable form that provides financial information about a business or an individual. Bookkeeping 1. Involves only the recording of economic events. 2. Is just one part of accounting

slide 6:

Identification Select economic events transactions Recording Record classify and summarize Account ing Reports SOFTBYTE Annual Report Prepare accounting reports Analyse and interpret for users Communication THE ACCOUNTING PROCESS

slide 7:

1. Source Documents: Analyse Transactions 2. Journalize the transactions 3. Post to ledger accounts 4. Prepare a trial balance 5. Journalize and post adjusting entries 6. Prepare adjusted trial balance 7. Prepare financial statements 8. Journalize and post closing entries 9. Prepare post-closing trial balance STEPS IN THE ACCOUNTING CYCLE

slide 8:

Users of Financial Information  Who needs financial information about a business besides the owners  Users can be grouped into two broad categories namely internal users and external users.  Internal users are the managers and the owners and employees who actually work for the business.  External users include lenders and other creditors suppliers investors customers and governmental regulatory and taxing agencies.

slide 9:

Why do they need financial information  Users need this information to make knowledgeable decisions.  Lenders and other creditors want to make sure that they will be paid back for the credit that they have extended to a business.  By analyzing financial information they at least have something to base their lending or credit decision on.  The days of the "friendly" banker are gone. You need to provide them with financial information as a basis for their loan decisions.  A "good ole boy" handshake wont cut it now.  Customers also want to make sure that the business theyre buying products or services from is going to be around and not be in such a poor financial position as to have to close its doors.

slide 10:

QUESTIONS ASKED BY INTERNAL USERS Can we afford to give employees pay raises this year Is cash sufficient to pay bills What is the cost of manufacturing each unit of product Which product line is the most profitable

slide 11:

QUESTIONS ASKED BY EXTERNAL USERS Is the company earning satisfactory income How does the company compare in size and profitability with its competitors Will the company be able to pay its debts as they come due What do we do if they catch us

slide 12:

THE ACCOUNTING PROFESSION  Public accountants offer their expertise to the general public through the services they perform.  Private accountants are employees of individual companies and are involved in a number of activities including cost and tax accounting systems and internal auditing.  Not-for-profit accounting includes reporting and control for government units foundations hospitals labour unions colleges/universities and charities.

slide 13:

ETHICS To Solve Ethical Dilemma 1. Recognize situation and ethical issues involved 2. Identify and analyse elements 3. Identify alternatives and weigh effects on stakeholders Ethics  Standards of conduct

authorStream Live Help