2nd Edition by Edwin Olima FCCA
this book we have kept things relatively simple. The concepts
however can be applied to many businesses. In addition, sales,
purchases and bank transactions
over ninety percent of business transactions.
So you now understand how to account for over ninety percent
of the transactions of a business. The remaining ten percent or so
of transactions may need the advice of an accountant.
software allows you to do all that you have done in this book. The
work pack in this book is excellent practice material for learning
how to use accounting software packages. You may enter your sales
and purchase invoices
a computer screen form that allows line by line entry as you did in Chapter
. Or you may enter the details using a computer screen form
that actually looks like an invoice. You then fill in the details of
this virtual invoice with the details of an actual invoice.
Once you save the virtual invoice a fresh one pops up
allowing you to enter the next invoice.
software should allow you to enter and match bank receipts
the sales invoices
also payments to suppliers
to their purchase invoices
updating your trade debtor
as well as your bank account at the same time.
be entered line by line via a computer screen form into the bank
account or through a computer screen form that looks like a bank
cheque or bank pay in slip. Again, once you have entered and saved
the detail of one cheque or pay-in slip a fresh form pops up for the
next one. The software should also allow you make journals with a
special computer journal form.
be purchased as an added feature for your accounting software. This
is useful where you have many employees
main advantage of accounting software is that you can get instant
reports of your debtors
bank balances. In addition reports on VAT
, the profitability and wealth of
the business are also instant. Thus saving compilation time. Some
time is saved on data entry since repetition of certain data items
may be avoided (e.g. client name, product name & description
It is the experience of most accountants that accounting software
that is not used properly is of little help in compiling statutory
accounts as it takes a lot of time finding out where the errors have
been made and correcting them. So if you do purchase software ensure
that you also get proper training on how to use it. This training
will last you a lifetime and save a lot of time and aggravation for
you and your accountant.
now enter into complicated deals of financing, factoring of debts,
hire purchase, etc and in these cases the advice of your accountant
is invaluable in getting the accounting right and not forgetting tax
types of business like construction, manufacturing, to name but a
few have special accounting needs and an accountant is necessary
accountant is a good source of help as they can use all their
experience/knowledge and also be more specific to your needs. Other
accountancy books can provide you with some further information on
accounting issues and if studied conscientiously they will increase
your knowledge of accountancy.
Your Knowledge – PRACTICE, PRACTICE, PRACTICE!
is worth doing the exercises in this book at least three times over
a period of say three months so that you have a good recall of the
essentials of financial accounting. You have done the first round
make a note to do the second round (about 6 hours or less will be
needed) and the third round (about 4 hours will be required).
Value Your Skill and/or Time at up to
£25,000 per year!
by timing yourself you can find out how many transactions you can
process per minute. If you charge £0.50 per transaction and can
process 1 transaction every two minutes you can earn £15.00 per
hour which translates to turnover of £25,200 per year (working 35
hours per week for 48 weeks a year)! The faster you are, the higher
your earnings per hour.