Introduction to Fundametals of Accounting and Bookkeeping

Welcome Friends, you are welcome to learnvern. I am Anshu Sachan.

I am a chartered accountant and from the last 10 years I have been training people in different topics of Basic accounting Fundamentals, account finalisation and taxation. This course is about fundamental accounting and bookkeeping.

In this generation frends, everyone wants to open their own business. Someone wants to start a small business but the problem is that I don’t know anything about accounting. I would be able to do the business, but what about accounting. Look, Accounting of your business is very important. That means, if you are doing any business then the accounting of that business is extremely valuable. Based on the accounting you would be able to make good and calculated decisions. It's not like that I am from science or arts or any other background, and I know about how to do business but I don’t know anything about accounting. Will it work?

IN today’s world, it would not work. Because if you know how to do business then you should also know how to interpret the accounting. I am not saying that you should yourself write accounts, but you should be able to understand the accounting.

If you are a businessman or if you are a student, what happens initially is, they get confused about what should get debited and what should get credited, what would be the entry for this, how can I do this, how can I make the accounting? How can I make a bank reconciliation statement? What should be the general payroll? And like this there are many more questions.

We usually get confused about what we should do. Okay…

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So, if you are a small business man or if you are a student, or you have just completed your graduation and want to make a career in the business accounting field. For that you would be facing a lot of different interviews. Now, if you want to crack the interview. Imagine you have applied for data entry operator or for junior accountant. Or you are applying for a process outsourcing firm. You all might know that, India is one of the most favoured countries for the Chartered Accountant of the US and UK. They are outsourcing their work to India. This means that, in this service industry there is a large scope for growth.

So in order to get into the process level or entry level you need to crack different interviews. What happens in the interview is. You would be asked questions about the basic accounting, about the fundamentals and the accounting rules. That's why you should be well versed with the topic. Okay.

In this course of fundamental accounting and bookkeeping what would we learn? We would learn from the basics. That means we would be starting from the base level of accounting. We will be learning about what we call accounting? What is a transaction? How can we identify a transaction? The difference between a transaction and a financial transaction? As I cannot book all the transactions, we would be identifying which transactions can be booked in the accounting.

Not just that! We will also be learning about Fundamental of Accounting Principles. The 3 golden rules of accounting, we will learn about these all in detail. After that we will be learning about fundamentals of accounting assumptions and also about fundamentals of accounting concepts. It is the very basics of accounting. Before you start Journal Entry, you should be aware of basic accounting principles, rules and assumptions. We will learn that in this course.

As we advance further, we will learn about the bookkeeping process. What is the starting point of bookkeeping? Which step would be the next one? When does bookkeeping end? What is the accounting period? What is the reporting period? We will learn the whole flow process of the bookkeeping, about where it starts and where it ends.

Not just that, we will also learn about payroll, bank reconciliation statements. About many different kinds of financial statements. What happens sometimes is. When you go and crack the interview, you would be given a journal entry, and you have to provide the journal entry from the transactions that they would give. Then from the journal entry you would be asked to make a balance sheet and also a profit and loss statement. In short they will ask you to make a financial statement. After doing this course, you would be able to do that.

So, in this course we will also be learning about journal entry, about how to make them. We will also learn to make a balance sheet and the profit and loss account. All of these were about the interview questions. Second thing that happens sometimes is, when you go to give an interview. They will give you a balance sheet and a P and L. That this is a company and this is its balance sheet and P&L. Now you need to analyse the balance sheet and tell us, is this balance sheet good or not. And is this business do able or not. If this business is in profit or loss. Do you understand me? This thing is called financial statement interpretation. Which means that, someone has given you a financial statement, now how would you interpret it?

So in this course of fundamentals of accounting and bookkeeping we will also learn about the interpretation of the financial statement. This course is not just for a student of commerce background or a student or for an entrepreneur. This course is for everybody. Doesn't matter if you are an entrepreneur, student, doing a job, or searching for a job, or preparing for an interview. It is for everyone. This is basic accounting, suppose if you want to learn Tally, but before you can learn tally, you should be aware of the basic accounting. Okay. Not just tally, if you want to learn about any accounting software. If you have a clear understanding about the fundamentals of accounting and bookkeeping, then you would be able to learn that program or software very efficiently.

So friends. Lets go and start the course of fundamental accounting and bookkeeping, today.

In the next session, we will be learning about definition and importance of accounting. Thank you…