What you'll learn
Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions to provide a clear picture of an entity's financial health. It involves tracking profits, losses, expenses, and income, and is used by businesses and individuals to make financial plans, prepare budgets, and comply with legal obligations.
Key aspects of accounting
- Recording: Keeping a systematic record of all financial transactions.
- Summarizing: Grouping transactions into meaningful reports, such as the balance sheet, income statement, and cash flow statement.
- Analyzing: Evaluating the summarized data to assess the financial health and performance of the entity.
- Reporting: Communicating the financial information to stakeholders, including management, lenders, investors, and government bodies.
Types of accounting
Who uses accounting information
- Internal stakeholders: Management uses accounting data to evaluate staffing, manage inventory, and make strategic decisions.
- External stakeholders:
- Lenders: Assess the company's ability to repay loans.
- Investors: Evaluate potential investments.
- Government bodies: Ensure tax compliance.
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Course Syllabus
Core accounting principles
- Introduction to Accounting: Basic concepts, accounting terms, objectives, and users of accounting information.
- The Accounting Cycle: Recording transactions, journal entries, ledger posting, and preparing a trial balance.
- Financial Statements: Preparation of trading and profit & loss accounts, and balance sheets.
- Accounting Concepts and Principles: Key concepts like entity, going concern, and accrual basis, along with qualitative characteristics of accounting.
- Depreciation: Methods for calculating and accounting for depreciation.
Computerized accounting (often includes Tally)
- Software Fundamentals: Introduction to the specific software, company creation, and configurations.
- Data Entry and Transactions: Recording various transactions using accounting vouchers (receipt, payment, sales, purchase, contra, etc.).
- Inventory Management: Creating stock groups, stock items, and generating inventory reports.
- Report Generation: Creating financial statements (Balance Sheet, P&L Account) and other reports like the Day Book and Trial Balance directly from the software.
Other common topics
- Business Organizations: Introduction to different types of business entities like trading and manufacturing.
- Taxes: Basic understanding of taxes like VAT, Service Tax, and TDS, and how to handle them in the accounting software.
- Inventory Control: Principles and methods of inventory valuation.
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