Published by Pearson Business (January 10, 2011) © 2011
Martin QuinnBook-keeping and Accounts is an ideal book for first-time or relatively novel entrepreneurs. It follows the cycle of events of a typical new business venture from an accounting view.
After a grounding in some fundamental accounting concepts and terms, the reader is guided on the accounting elements of a business plan and sources of finance for a business venture. Basic book-keeping is then explained and this leads into the preparation of key financial statements - the income statement, balance sheet and cash flow statement. Finally, guidance on how to analyse accounts and value a business is given, both of which are particularly relevant to the entrepreneur who is ready to move on to the next venture or expand an existing one.
Examples in plain English throughout the book explain key book-keeping and accounting topics. Additionally, QuickBooks accounting software is used in several chapters to augment these examples and expose the benefits of accounting software to a busy entrepreneur.
Chapter 1 – Accounting fundamentals
- The nature, purpose and role of accounting
- Branches of accounting
- Accounting terms – assets, liabilities, income, expenditure etc
- Basic concepts – the business entity, underlying assumptions, accounting equation
- Users of accounting information and their needs – to include qualitative characteristics
Chapter 2 – The business plan- Preparing a plan to present to a bank/financier
- Appreciation of costs and cost structures
- The concept of breakeven
- The basics of budgeting and planning
Chapter 3 – Financing
- Sources of finance
- Financing options, costs, advantages/disadvantages
Chapter 4 – Keeping the books
- Source documents and records
- Books of original entry
- Computerised entry
Chapter 5 – Double entry accounting system
- Principles of the double-entry system
- Nominal and personal ledgers
- Control accounts – explanation and purpose
- The trial balance – preparation and purpose
Chapter 6 – Income statement and Balance Sheet (sole trader)
- Preparation of basic income statement and balance sheet from trial balance
- Would introduce revenues, expenditures, accruals, depreciation, stock valuation
- Layout of the financial statements
Chapter 7 – Accounts of limited companies
- Differences, additional requirements
Chapter 8 – Cash Flow Statement
- Preparation of a cash flow statement
Chapter 9 – Interpretation of financial statements
- Need to interpret accounts
- Usefulness and application of ratio analysis
- Main accounting ratios; relationships between ratios
Chapter 10 – valuation of companies
- Book v market value
- Some simple valuation methods