Bookkeeping Foundations

Learn Bookkeeping Online

Bookkeeping is a key aspect of any business, large or small. Large businesses usually employ accountants to work out their incomings and outgoings. Smaller businesses often keep their own records. If bookkeeping is not done, or not done properly it can be very costly to bring in an accountant to sort it out.

This course works through all you need to know to successfully conduct bookkeeping at an elementary level. It will help students to apply their skills to a small business so the accounts can be recorded in a timely fashion and organised in a logical way. Take control of finances and gain a greater insight into the profitability of a business.

Course Duration: 100 hours approximately. Self-paced.

Course Content

There are 13 lessons in this course:

Introduction – Nature, Scope and Function of Bookkeeping

• What is bookkeeping
• Difference between accountants and bookkeepers
• History of bookkeeping

Bookkeeping Terminology

• Understanding language
• Why do we need bookkeeping
• Bookkeeping as a management tool
• Business structures
• Business structures vary internationally
• Financial information
• Accounting conventions and doctrines
• Accounting standards
• Australian accounting standards
• UK accounting standards
• International cooperation on standards

The Balance Sheet

• What is a balance sheet
• Assets and liabilities
• Components of a balance sheet
• What items do not appear on the balance sheet
• Example of a Balance Sheet
• Tracking business performance
• T format balance sheet
• Balance sheet allocations
• What is working capital

Analysing and Designing Accounting Systems

• What is an accounting system
• Understanding the flow of information in bookkeeping
• Other business documents -statements, order forms, quotations
• Steps in the bookkeeping process
• Designing the System
• Analyzing business needs
• Designing the accounting system
• Designing the chart of accounts
• Writing a chart of accounts
• Designing the type of journals needed

The Double Entry Recording Process

• Ledgers
• Opening up the general ledger
• Ledger accounts/sub ledger
• The general ledger
• Entries resulting from transactions
• Recording transactions
• Different types of accounts
• A trial balance
• Ledger accounts and double entry bookkeeping
• Recording entries
• Rules to follow
• Analysis chart
• Footing ledger accounts
• Balancing ledger accounts
• The trial balance
• Accounting for drawings
• Revision of definitions and processes

The Cash Receipts and Cash Payments Journal

• Recording cash transactions in journals
• Multi column receipts journal
• Cash payments journal
• Multi column cash payment journal
• What discounts are allowed
• Accounting discounts allowed and received

The Credit Sales and Purchases Journal

• Credit sales and credit purchases
• Credit sales journal
• Debtors subsidiary journal and control account
• Using a debtors schedule
• The credit purchases journal
• Creating a creditors Subsidiary Ledger and schedule
• The cash payments journal and creditors control account

The General Journal

• Recording non standard transactions
• Designing the general journal
• Posting to a general journal
• General journal entries and ledgers
• Anomalies
• Recording credit purchases of non current assets
• Recording owners contributions or withdrawals
• Recording debts that are written off
• Recording contra entries
• Recording purchase returns
• Other uses for a journal

Closing the Ledger

• Closing at the end of the accounting period
• Preparing for the new accounting period
• Transferring balance day closing entries
• Profit and loss account
• Determining gross profit
• Simple profit and loss account
• Balance sheet
• Businesses making a loss rather than profit
• Owner withdrawing revenue
• The end results

The Profit and Loss Statement

• Introduction
• The balance sheet and how it relates to Profit and Loss Statement
• Using net profit figure to evaluate business performance
• What is profitability?
• Gross Profit
• Net Profit
• Cash flow margin
• Return on assets margin
• Gearing ratio and how it relates to cash flow
• Return on owners equity margin
• Informative profit and loss presentation
• Segmentation
• Functional classification - Grouping expenses
• Showing extraordinary expenses and revenue
• Accounting for unused materials or stock
• Why do we need to calculate the cost of materials used

Depreciation on Non-current Assets

• Intangible assets
• Depreciation methods
• Depreciation calculation methods
• Calculating depreciation with the straight line method
• What if there is no residual value
• How to enter depreciation into the books
• Declining balance method of depreciation
• Calculating percentage rate of depreciation
• Production units method of depreciation
• What about intangible assets
• Keeping track of assets and depreciation
• Asset register
• End of Useful life for assets
• Loss disposal of asset account

Profit Determination and Balance Day Adjustments

• Cash and accrual accounting
• Cash accounting
• Accruals accounting
• Balance day adjustments to final accounts
• How to record prepaid expenses
• Showing in the general ledger
• What about if we actually owe unpaid expenses on balance day
• Receiving income in advance
• Other balance day adjustments & stock, bad debts, depreciation, discounts
• A more comprehensive treatment of trial balance
• Partnerships
• Companies
• Clubs and non-profit organisations
• Using a ten-column worksheet or spreadsheet

Cash Control: Bank Reconciliation and Petty Cash

• Ways of handling money
• Outgoing monies (payments)
• Methods of controlling cash
• Recording cash transactions
• The cash book
• Bank transactions and the cash book
• Bank reconciliation statements
• The cash cycle – cash flow and liquidity
• Account receivable turnover ratio
• Operating cash flow ratio
• Inventory turnover ratio
• Professional journals

Cash Control: Budgeting

• Introduction
• Budget types
• The cash budget
• Factoring in safety margins
• Variable costs
• Budget reviews
• Taxes and budgets
• GST or VAT taxes
• Tax input credits
• Taxable supplies

Workload, Additional Reading and Assessment

Study when, where and however much you want. For most students, the course can be completed with a total of around 100 hours of study - a commitment close to that may be needed to achieve desired learning outcomes.

The following books, available on this site, may be relevant supplementary reading for business managers.

• Business Operations
• Management
• Starting a Business

Assignments are completed at the end of each lesson. Submissions are sent to our highly qualified tutors for marking and feedback. There is also progress tests which are instant, so you can identify any gaps.

A Final Exam is completed at the end of module. This is optional. If you pass the exam, you will receive a Statement of Attainment in Bookkeeping Foundations.

How This Course Could Help You?

This course is valuable to anyone with a small business, who is self-employed, or who wants to take a greater role in a small business by overseeing all aspects of bookkeeping. The skills learnt here will stand you in good stead for now and the future.

Study this course by itself or along with other management or business subjects to improve your business acumen. 

Thinking of Enrolling? Get in Touch!

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