Accounting for non accounting professionals

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Accounting for non accounting professionals

  1. 1. Accounting For Non Accounting Professionals Munir Ahmad – Manager Projects Accounts
  2. 2. Agenda <ul><li>What is Accounting </li></ul><ul><li>Why Accounting </li></ul><ul><li>Basic Classification of Accounts </li></ul><ul><li>Basic Accounting Equation </li></ul><ul><li>Accounting Cycles </li></ul><ul><li>Basic Financial Statements </li></ul><ul><li>Understanding Financial Statement </li></ul>
  3. 3. What is Accounting <ul><li>Accounting is a process of recording, analyzing, interpretation and communication of financial transactions. </li></ul>
  4. 4. Why Accounting <ul><li>To know the status of affairs </li></ul><ul><li>To know the state of affair </li></ul><ul><li>Responsibility to Stake holders </li></ul><ul><li>Legal Responsibility – Company Law </li></ul><ul><li>International Standards </li></ul><ul><li>Taxation law </li></ul>
  5. 5. Basic Classification <ul><li>Capital </li></ul><ul><li>Liabilities </li></ul><ul><li>Assets </li></ul><ul><li>Sales </li></ul><ul><li>Expenses </li></ul>
  6. 6. Basic Accounting Equation <ul><li>Capital = Assets </li></ul><ul><li>Capital + Liabilities = Assets </li></ul><ul><li>Capital + Liabilities + Sales = Assets + Expenses </li></ul><ul><li>Capital + Liabilities = Assets </li></ul><ul><li>Capital = Liabilities </li></ul>
  7. 7. Accounting Cycles <ul><li>Capitalization </li></ul><ul><li>Purchase </li></ul><ul><li>Sales </li></ul><ul><li>Payroll </li></ul><ul><li>Operations </li></ul>
  8. 8. Capitalization Cycle <ul><li>Formation of Business Organization </li></ul><ul><li>Sponsors investment </li></ul><ul><li>Financing Arrangement </li></ul><ul><li>Initial Public Offering </li></ul>
  9. 9. Purchase Cycle <ul><li>Purchase Requisition </li></ul><ul><li>Request For Purchase </li></ul><ul><li>Repeat Order Request </li></ul><ul><li>Market Inquiry </li></ul><ul><li>Comparative Statement </li></ul><ul><li>Purchase Order / Work Order / Sub Contract </li></ul><ul><li>Goods / service Receipt </li></ul>
  10. 10. Sales Cycle <ul><li>Customer inquiry </li></ul><ul><li>Quote / Performa invoice </li></ul><ul><li>Customer order </li></ul><ul><li>Acceptance of Order </li></ul><ul><li>Advance </li></ul><ul><li>Dispatch </li></ul><ul><li>Invoice </li></ul><ul><li>Receipt </li></ul>
  11. 11. Operation Cycle <ul><li>Capacity Planning </li></ul><ul><li>Master Production Scheduling </li></ul><ul><li>Material Requirement Planning </li></ul><ul><li>Shop Floor Control / Posting </li></ul><ul><li>Ware Housing </li></ul>
  12. 12. Basic Financial Statements <ul><li>Balance Sheet </li></ul><ul><li>Profit and Loss Account </li></ul><ul><li>Cash Flow </li></ul><ul><li>Notes to The Accounts </li></ul>
  13. 13. Payroll And Allied Matters <ul><li>Induction </li></ul><ul><li>Pay Package </li></ul><ul><li>Deduction </li></ul><ul><li>Net Pay </li></ul><ul><li>Provident Fund </li></ul><ul><li>Gratuity </li></ul><ul><li>Bonus </li></ul>
  14. 14. Understanding Balance Sheet <ul><li>Format </li></ul><ul><li>Comparative Figures </li></ul><ul><li>Notes </li></ul>
  15. 15. Corporate & Management Reporting <ul><li>Corporate Reporting </li></ul><ul><li>Management Reporting </li></ul>
  16. 16. Control (GL) and Sub Ledger <ul><li>General Ledger </li></ul><ul><li>Accounts Payable </li></ul><ul><li>Accounts Receivables </li></ul><ul><li>Inventory </li></ul>
  17. 17. Understanding Profit and Loss <ul><li>Format </li></ul><ul><li>Comparative Figure – (Annual Accounts) </li></ul><ul><li>Notes to the Accounts </li></ul>
  18. 18. Understanding Cash Flow <ul><li>Format </li></ul><ul><li>Comparative Figures </li></ul><ul><li>Notes </li></ul>
  19. 19. Financial Statement Analysis <ul><li>Ratio Analysis </li></ul><ul><li>Vertical </li></ul><ul><li>Horizontal </li></ul><ul><li>Time Series </li></ul><ul><li>Industry Average </li></ul>
  20. 20. Cost Accounting <ul><li>Costing For Planning </li></ul><ul><li>Costing For Pricing </li></ul><ul><li>Costing For Control </li></ul><ul><ul><li>Bills Of Materials </li></ul></ul><ul><ul><li>Routing </li></ul></ul><ul><ul><li>Material Standard, Actual and Replacement rates </li></ul></ul><ul><ul><li>Activity Resource Cost </li></ul></ul>
  21. 21. Financial Planning <ul><li>Projected Financial Statement </li></ul><ul><li>Revenue, Cost and Profit Center Budget </li></ul>
  22. 22. Taxation <ul><li>Corporate Taxation </li></ul><ul><li>Individual Employee Taxation </li></ul><ul><li>Sales Tax </li></ul><ul><li>Custom Duty </li></ul><ul><li>Federal Excise Duty </li></ul>

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