Accounting Made Easy

for Non-Accountant
Business Person
OBJECTIVES OF THIS
TALK
1. What Accounting and its purpose?
2. Importance of Accounting.
3. How accounting relates to business?
4. What inventory is and how to manage the
same?
What is Accounting
 Accountingisthatitisthe
actofcollecting,organizing.
andinterpretingfinancialdata
 Importance of Accounting

It assesses & shows what

happen to your business,
therefore affording you an
informed decision
 Balance Sheet
Shows the financial
position of the business
The body
 What you
own
owe
your net worth is
INCOME STATEMENT
IS YOUR BUSINESS
doing fine?
Examination of the Vital
Statistics
We want Profit
Income Statement
Statement of Cash Flow
Checks if there is enough
blood in your business
Inflows & outflows of cash
We want positive Cash
Flow
Statement of Changes in
Equity
Equity This year- less last
year
Have you grown over the
year?
Inventory one of the
account titles in the
balance sheet
Classification of Inventory
CAPEX
OPEX
 CAPEX subject to
depreciation
OPEX Beginning add
purchases less used
 3 Salient Things of a good business:
1. Cash
2. Management
3. Accountant/Bookkeeper
Those are the basics.
 What else can an
Accountant do?
Internal Control
Documentation of Policies & Procedures
Feasibility Study
Internal Audit
External Audit
Tax Consultancy