OVERVIEW VIDEO
Book Review
I have a question for you, when you were in school or a young adult do you recall anyone teaching you the skills required to manage your finances, to keep records, to do balance sheets, stock controls, budgets, etc? Thats why we have Basic Bookkeeping, because it is our view that young adults ought to have these skills to be able to be the good stewards of their finances and their households in a way that will be honourable and pleasing to God.
I would like to read to you from the introduction:
Do not be intimidated if you do not understand all the terms that are used here, this book has been written to explain in simple terms what each of these Bookkeeping terms mean. The preparation for the balance sheets and income statements is vital for every business, without this necessary funds cannot be obtained from banks and other similar financial institutions. Basic Bookkeeping teaches on a self-study basis. It shows how to do the books of prime entry and go on to do the general ledger in such a way that a trained bookkeeper or accountant can use this information to produce monthly and annual balance sheets and income statements. Proper record keeping is essential for any business. No balance sheet or income statement can be prepared without proper record keeping, often however personnel lack the necessary knowledge and experience to complete even the most elementary records.
You may think this is more than is required if a student isn't going to go into running their own business. We feel it to be extremely beneficial to young ladies that are going to wives and young men who are going to be husbands, to be able to have a basic understanding of bookkeeping skills.
Basic Bookkeeping gives instruction on how to do the following:
- Writing receipts
- Cheques
- Controlling petty cash
- Completing orders
- Completing accounts receivable statements
Lets take just one simple aspect controlling petty cash. That is simply a monthly budgeting step which is of great value to any individual.
Basic Bookkeeping also teaches:
- Purchases book
- Sales journal
- Bank reconciliation
- Petty cash balancing
- Writing up the accounts receivable ledger and accounts payable ledger
Finally the student will learn about basic stock management and how to complete their general ledger.
Im sure you can agree by now that any student who does this course is going to gain some skills for life. For example, a wife whose husband is running a business can help with the monthly financial records. She would also be able to keep a management of personal finances in such a way that there is understanding about bank reconciliations, budgeting etc. The course is written in such a way that it presumes we know nothing and to me it is a gift to have had this written for us. An accountant wrote this for the layman as it were, so we can understand, teach and learn the skills necessary for this function of Bookkeeping. I hope you are inspired to pass these skills onto your children! Don't be overwhelmed if you don't have them yourself because you will learn them as you go through this course.
Description
Basic Bookkeeping has been compiled to assist the learner with the fundamentals of how to keep the books of a small business. It works on a do and review basis with emphasis on the application of the materials being studied. This is achieved by writing the books up for a small business on a simulation basis.
Format
Each task is performed one step at a time, and the attempt is compared with a suggested solution provided. Differences are compared with that of the suggested solution.
Exercises start with the fundamentals of receiving money, receipting it, banking it and recording it in a manual record called the Cash Book. Payments are then made for expenses using the cheque payment method, cheques made out and relevant data entered into the same Cash Book. The Cash Book and Bank Statement are then balanced, which is known as the bank reconciliation.
The same process is completed using the petty cash needs of the business, as well as the sales and purchases, together with debtors (accounts receivable) and creditors (accounts payable), and relevant stock entries. Once these exercises have been mastered for a two month period, the learner then transcribes the data into a manual General Ledger, from which a trial balance is extracted and financial reports are prepared, particularly the Income Statement and the Balance Sheet of the business for the training period under review.
Completing the course will not qualify someone as an accountant, but it will certainly assist an individual in learning what the record keeping and accounting process consists of, what records are required to keep a proper set of books, and how to maintain them in an acceptable order for an accountant to finalise them for a specific accounting period.
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