Bookkeeping Applications (Bookkeeping II)

Learn bookkeeping and accounting, finance, profit and loss in business and commerce. Apply your learning to your own trading business or to work as a bookkeeper in any trading business.

Course Code: BBS203
Fee Code: S1
Duration (approx) Duration (approx) 100 hours
Qualification Statement of Attainment
Get started!
 
Take your number crunching to the next level...
  • Learn ways to apply bookkeeping in business
  • A great course for retailers, manufacturers and primary producers
  • A natural progression from the Bookkeeping Foundations course.
This course covers cash flow management, stock control, budgeting and payroll with particular relevance to businesses selling goods (trading businesses).

A course for retailers, manufacturers, traders, and primary producers.

Lesson Structure

There are 10 lessons in this course:

  1. Introduction to Bookkeeping Applications
    • Stock defines a trading business
    • Bookkeeping requirements for a trading business
    • Steps in processing stock transactions
    • Books required for a trading business
    • Trading businesses and accounting rules
    • Accounting doctrines
    • Accounting standards
  2. Decision Making -How to manage bookkeeping
    • Bookkeepers Terminology
    • Using bookkeeping as a management tool
    • What are business structures
    • Business requirements of companies
    • Financial information, and who uses it
    • Alternative approaches to accounting systems
    • Definitions and bookkeeping processes
    • Double entry bookkeeping
    • Single entry bookkeeping
    • Cash accounting
    • Modified cash accounting
    • Accrual accounting
    • Choosing depreciation methods
    • Depreciation calculation
    • Calculating depreciation with the straight line method
    • What if there is no residual value
    • How to enter depreciation in the books
    • Declining balance method of depreciation
    • Calculating percentage rate of depreciation
    • Units of activity depreciation method
    • Intangible assets
    • Tracking assets and depreciation
    • Closing stock control methods
    • Functional profit and loss in a trading business
    • Informative profit and loss presentation - segmentation, grouping expenses
    • Showing Extraordinary Revenue and Expenses
  3. Managing Cash Flow, Obtaining Finance, Managing Bad Debts and Accounts Payable
    • Definition of cash
    • The cash cycle
    • Cash flow and liquidity
    • Analysing a businesses cash flow
    • Cash flow margin
    • Statements of cash flow
    • Managing costs in a business
    • Financing a business
    • Rules for business funding
    • Business set up costs
    • Thinking outside the box
    • Loss of time and income
    • Managing bad debt
    • Initiating collection
    • Bookkeeping procedures for bad and doubtful debts
    • Accounts payable procedures
    • Accounts payable schedule
    • Ageing report
    • Source Documents -invoice, monthly statement
    • Credit purchasers journal
    • Creditors subsidiary ledger and schedule
    • Cash payments journal and creditors control account
  4. Managing Inventory Part 1
    • Difference between goods and commodities
    • Role of stock in a trading business
    • Purpose of physical stock take
    • Costing goods
    • When an articles cost changes
    • How cost relates to gross profit
    • Difference between cost of goods sold and selling expenses
    • Pricing stock
    • Mark up
    • Margin
    • Stock coding system
    • Stock sheets
    • Journals used in businesses that carry stock
    • Common journals
    • Examples of journal entries
    • Recording purchase returns in the general journal
    • Closing books
    • Closing ledger accounts
    • Preparing for new accounting period
    • Transferring balance day closing entries
    • Profit and loss account
    • Balance sheet
  5. Managing Inventory Part 2
    • Perpetual stock control
    • Stock cards and subsidiary ledger
    • Records on stock cards
    • Stock gains and losses
    • Adjustments
    • Errors in stock taking
    • Bar codes
    • Costing sales
    • Inventory turnover ratio
    • Modified general journals for perpetual stock control
    • Valuing stock methods -FIFO, LIFO, Identified cost method, weighted average, etc.
    • Terminology
  6. Establishing and Managing Control Accounts
    • Introduction
    • Grouping accounts
    • Advantages of control accounts
    • Debtors control accounts
    • Debtors subsidiary ledger and control account
    • Cash receipts journal and debtors control account
    • Credit purchasers journal
    • Creditors subsidiary ledger and control account
    • Cash payments journal and creditors control account
    • Control accounts relationship to non current assets
    • What happens at the end of assets useful life
    • Assets register
    • Disposal of non current assets
    • Creditors control accounts relationship to subsidiary accounts
    • Control accounts and expenses
    • Control accounts and inventory
  7. Budgeting Part 1
    • Introduction
    • Budget types
    • Cash budget
    • Capital budget
    • Sales budget
    • Marketing budget
    • Production budget
    • Expense budget
    • Project budget
    • Master budget
    • Inter-relationships between budgets
    • The cash budget
    • Preparing a cash budget
    • Factoring in safety margins
    • Variable Costs
    • Using net profit to evaluate business performaNCE
    • What is profitability?
    • What is gross profit?
    • What is net profit?
    • Cash flow margin
    • Return on assets margin
    • Gearing ratio
    • Owners equity margin
    • Budgeted profit and loss statements
    • Budgeted balance sheets
    • Variances in budgets
    • Budget reviews and performance reports
  8. Budgeting Part 2
    • A problem based learning project (ie. PBL) where you will prepare budgeting for a retail business.
    • PBL project is carefully designed by experts to expose you to the information and skills that we want you to learn.
    • In undertaking the project, you are given:
    • • A statement of the problem (e.g. diseased animal; failing business; anorexia case study);
    • • Questions to consider when solving the problem;
    • • A framework for the time and effort you should spend on the project;
    • • Support from the school.
  9. Payroll, PAYG Taxation, Taxation for Trading Businesses
    • How to set up a payroll system
    • Types of payments made for worek done
    • Employee records to be kept
    • Other records
    • Fringe benefits and taxation
    • Recording wage payments
    • Employee payment summary
    • PAYG Taxation
    • Using time sheets
    • Superannuation or pension funds
    • Taxation law terminology
    • Tax related expenses
  10. Financial Statement Analysis
    • Analysis and interpretation
    • Why do we analyze financial data
    • Using net profit figures to evaluate business performance
    • Analyzing cost centres in business
    • Functional classification on P & L Statement
    • Difference between analysis and interpretation
    • Ratio analysis
    • Trend analysis Vertical analysis
    • Horizontal analysis
    • When should financial data be analyzed
    • Calculating investment returns
    • Return on assets margin, equity margin
    • Cash flow ratio operation
    • Accounts receivable turnover ration
    • Evaluating business performance using net profit ratio
    • Profitability

Each lesson culminates in an assignment which is submitted to the school, marked by the school's tutors and returned to you with any relevant suggestions, comments, and if necessary, extra reading.

Aims

  • Outline of the nature of trading businesses and their bookkeeping requirements. Review bookkeeping procedures.
  • Describe the selection of bookkeeping processes to suit particular business needs and the advantages and disadvantages of each.
  • Describe: cash flow management and cash flow margins and returns on investment, business finance methods, how to manage bad debts and accounts payable procedures.
  • Describe the nature of stock and the periodic system used to record inventory.
  • Outline various control accounts and their use.
  • Outline budgeted reports used in trading businesses and their preparation methods.
  • Outline methods used in payroll systems and taxes applicable to payroll; describe a range of taxes applicable to trading businesses.
  • Analyse the financial position of a business

Does this sound like you?

This course is for anyone wanting to take the next step after completing Bookkeeping Foundations or needing to brush up on rusty bookkeeping skills.

 

This Course is for Trading Businesses

Trading businesses sell things rather than services. They are retailers primary producers and manufacturers, rather than service providers.

The operation of a trading business creates a need to record both the buying and the selling of such goods.  This is in addition to the usual recording needs of the typical service business.

The definition of trading inventory excludes some items which may be sold from time to time by a business.  Non-current assets (fixed assets) such as equipment and vehicles may be sold for a profit at the end of their useful life, however, when such assets are purchased, they are usually purchased with the intention of not reselling the items to generate a profit.  An owner of a business usually buys non-current assets with the intention of owning them for several accounting periods for the purpose of earning income

 


FINANCING A BUSINESS

When starting a business, it will generally need money to finance it for example fund will be needed for:

  • The set-up phase (rent in advance, bonds, office equipment, telephones, computers, staff wages, marketing costs and perhaps the purchase of products you are selling (unless you are setting up a service type business). 

  • To cover day to day running costs, until the business starts to generate a turn-over - and hopefully also a profit. 

As an example: to set up a furniture showroom, money is needed to rent the showroom, maybe employ staff, buy the furniture, market your business and so on. A lot of capital will be required. 
Less capital may be required to set up small a cleaning business, the proprietor may print off some leaflets about the business and the rates and drop them into letterboxes of houses in the local area. There will have initial costs of buying cleaning materials and equipment. But the cost will be substantially less than opening a furniture business.  
Some businesses will not require much initial funding at all for example a professional writer working from a home office only needs need is a computer, scanner/printer and telephone. There is very little outlay but it will be a lot harder to generate income in the initial phases (until you are better recognized) then when you are selling (say) furniture.

Funding
It is easy to underestimate the amount of money needed to finance a business - and this is the fastest way to failure! 
There are many ways to fund the set-up of a business:

  • Use owner’s savings.
  • Use owner’s assets (liquidate them).
  • Borrow against assets (mortgage or equity release).
  • Bank overdraft or loan
  • Credit cards
  • Business grants
  • Private investors
  • Borrow from family
  • Work in paid work your job until adequate turn-over is generated

No matter how a business is funded it needs:

  • Sufficient money to set up the business.
  • Sufficient funds to run the business, until it starts to generate income.
  • To make enough profit to make the business viable (i.e. continue with the business).

Where and how money is borrowed will depend on what the business plan is, however when taking out large loans from a bank or anyone, ensure that the business is able to to repay the loan. Funding a business by using the equity in a family home can lead to disaster – if the business fails the home may be lost! 

 

HOW CAN THIS COURSE HELP YOU?

 

If you want or need sound knowledge of accounting, bookkeeping and business finance - the basis of all successful business management - this course is for you and also if you:

  • Want to work as a senior bookkeeper in a trading business
  • Have started their own business and need  financial record keeping skills
  • Have a management role in business but lack the basics of accounting procedures and record keeping
  • Want to be able to create, read and analayse financial reports
  • HOW THIS COURSE CAN BENEFIT YOU

    You will know more, understand more and be able to undertake more bookkeeping tasks once you complete this course.

    This is substantial training, and well beyond what a basic bookkeeper needs. Having these additional bookkeeping skills makes you a more valuable prospect for employment in any type of finance industry job.

    Graduates may use their learning in any of the following ways:

    • To improve the management of your own small business
    • To find a job in financial services -as a bookkeeper or something else
    • To improve your employment prospects working in any office situation
    • To start a small business offering bookkeeping services
    • As a stepping stone toward further studies and employment prospects in finance or accounting

 

ACS is an Organisational Member of the Association for Coaching (UK).

Member of Study Gold Coast Education Network.

ACS Global Partner - Affiliated with colleges in seven countries around the world.

Since 1999 ACS has been a recognised member of IARC (International Approval and Registration Centre). A non-profit quality management organisation servicing education.


How can I start this course?

You can enrol at anytime and start the course when you are ready. Enrolments are accepted all year - students can commence study at any time. All study is self paced and ACS does not set assignment deadlines.

Please note that if a student is being assisted by someone else (e.g. an employer or government subsidy), the body offering the assistance may set deadlines. Students in such situations are advised to check with their sponsor prior to enrolling. The nominal duration of a course is approximately how long a course takes to complete. A course with a nominal duration of 100 hours is expected to take roughly 100 hours of study time to complete. However, this will vary from student to student. Short courses (eg. 100 hrs duration) should be completed within 12 months of enrolment. Certificates, Advanced Certificates and Awards (eg. over 500 hours duration) would normally be completed within 3 -5 years of enrolment. Additional fees may apply if a student requires an extended period to complete.
If a student cannot submit their assignments for 6 months to ACS, they should advise the school to avoid cancellation of their student
registration. Recommencement fees may apply.

Simply click on the ENROL OPTIONS button at the top of this screen and follow the prompts.

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We also have Afterpay that will allow you to pay for your course or payment plans in four instalments (if you are in Australia).


What do I need to know before I enrol?

There are no entry requirements that you need to meet to enrol in our courses, our courses are for everyone.
If you are under 18, we need written permission from your parent/ guardian for your enrolment to continue, we can arrange that after you have enrolled.

You don’t need to purchase any additional resources to complete our courses.

We aim to teach you the essentials without you having to purchase any specific computer program.
We recommend that you have access to a word processing program, such as Microsoft Word or Google Docs, so that you can easily complete and submit your assignments.

You sure can. We are here to help you learn whatever your abilities.

Yes, if you are enrolling in a Certificate or Advanced Certificate, you might be eligible for credits if you have evidence of your previous studies or relevant experience. More information is here.

We recommend that you are able to browse websites, send emails and conduct online research. You will need to be able to type and submit your assignments.
If you have limited computer skills, we can make special arrangements for you.

This is possible, it depends on the institution. We recommend that if you would like to use our courses that you contact the institution first. Our Course Handbook is a good resource for this.

Our courses are written in English and we only have English speaking academic staff. If you can read and complete your assignments in English, our courses are ideal for you.

Our courses are designed to build knowledge, hands on skills and industry connections to help prepare you to work in the area, running your own business, professional development or as a base for further study.

This course has been designed to cover the fundamentals of the topic. It will take around 100 hours to complete, which includes your course reading, assignment work, research, practical tasks, watching videos and anything else that is contained in the course. Our short courses are a great way to do some professional development or to learn a new skill.

It’s up to you. The study hours listed in the course are a rough guide, however if you were to study a short course (100 hours) at 10 hours per week, you could finish the course in 10 weeks (just an example). Our courses are self-paced, so you can work through the courses in your own time. We recommend that you wait for your tutor to mark and return your assignment before your start your next one, so you get the benefits of their feedback.

The course consists of course notes, videos, set tasks for your practical work, online quizzes, an assignment for each lesson (that you receive feedback from your tutor from) and ends in an exam (which is optional, if would like to receive the formal award at the end), using our custom built Learning Management System - Login.Training.

Our courses are designed for adults to gain professional development and skills to further their careers and start businesses.

Our custom online learning portal allows you to conduct your learning online. There may be practical tasks that you can do offline. You have the option of downloading your course notes or print them to read later.

There is also the option to pay an additional fee for printed course notes and or USB (availability limited to location and deliverability).

Yes, if you don’t have access to the internet, you can receive the course as paper notes or on a USB stick for an additional fee. We can also make alternative arrangements for you to send your assignments to us.

We offer printed notes for an additional fee. Also, you can request your course notes on a USB stick for an additional fee.

Yes, your tutor is here to help you. Simply post any questions you have in your login.training portal or contact the office and we can pass on a message to your tutor.

We are more learning focussed, rather than assessment focussed. You have online quizzes to test your learning, written assignments and can complete an exam at the end of the course (if you want to receive your certificate). You will not receive a pass/ fail on your course work. If you need to add more details on your assignment, we will ask you to resubmit and direct you where you need to focus. If you need help, you can ask your tutor for advice in the student room.

Each module (short course) is completed with one exam.

Exams are optional, however you must sit an exam if you would like to receive a formal award. You will need to find someone who can supervise that you are sitting the exams under exams conditions. There is an additional cost of $55 (AUS) $50 (O/S) for each exam.
More information is here

There are practical components built into the course that have been designed to be achieved by anyone, anywhere. If you are unable to complete a task for any reason, you can ask your tutor for an alternative.

When you complete the course work and the exam and you will be able receive your course certificate- a Statement of Attainment. Otherwise, you can receive a Letter of Completion.

You can bundle the short courses to create your own customised learning bundle, Certificates or Advanced Certificates. More information is on this page.

Yes, our courses are built to be applicable for people living anywhere in any situation. We provide the fundamentals, and each student can apply their own unique flair for their own interests, region and circumstances with the one-on-one guidance of a tutor. There is also a bit of student directed research involved.

Employers value candidates with industry skills, knowledge, practical skills and formal learning. Our courses arm you with all of these things to help prepare you for a job or start your own business. The longer you study the more you will learn.

ACS has an arrangement with OAMPS (formerly AMP) who can arrange Professional Indemnity from Australian and New Zealand graduates across all disciplines. Ph: 1800 222 012 or email acs@oamps.com.au.


Who are ACS Distance Education?

ACS Distance Education have been educating people for over 40 years.

We are established and safe- we have been in education for over 40 years.
We are focused on developing innovative courses that are relevant to you now and what you will need to know in the future.
We are focused on helping you learn and make the most of your experience.
You can enrol at any time, you can work on your course when it suits you and at your own pace.
We are connected to many industry bodies and our staff participate in continuous improvement and learning activities to ensure that we are ahead of what learning is needed for the future.

Our courses are not accredited by the Australian Government. However many of our courses are recognised and held in high regard by many industry bodies.

Our courses are written by our staff, who all have many years experience and have qualifications in their speciality area. We have lots of academic staff who write and update our courses regularly.


How do I enrol my staff/ sponsored students?

Yes, you can do a request for a bulk enrolment and request an invoice on our Invoice Request Form

We can prepare an invoice, quote or proforma invoice. Simply complete your details on our Invoice Request form

We can arrange bulk discounts for your course enrolment, please get in touch with us to discuss your needs.

Yes, we have many students who are in locked facilities, such as prisons or hospitals. We can cater by also offering paper notes at an additional cost.


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Course Contributors

The following academics were involved in the development and/or updating of this course.

David Crothers

Extensive international experience in business and finance. Chartered Accountant with 20 years experience in corporate and financial roles. David has a FCA, GAICD, B.Sc.Econ (Hons), Cert IV TAA.

Kate Gibson

Kate has 12 years experience as a marketing advisor and experience as a project manager. Kate has traveled and worked in a variety of locations including London, New Zealand and Australia. Kate has a B.Soc.Sc, Post-Grad. Dip. Org Behaviour (HR).

Sonia Andrews

15 years experience in business, bookkeping and accounting.





Tutors

Meet some of the tutors that guide the students through this course.

Tracey Jones

B.Sc. (Hons) (Psychology), M.Soc.Sc (social work), Dip. SW (social work), PGCE (Education), PGD (Learning Disability Studies).

Tracey has over 20 years experience within the psychology and social work field, particularly working with people with learning disabilities. She is also qualified as a teacher and now teaches psychology and social work related subjects.

She is a book reviewer for the British Journal of Social Work. Tracey has also written a text book on Psychology and has had several short stories published.

Yvonne Sharpe

RHS Cert.Hort, Dip.Hort, M.Hort, Cert.Ed., Dip.Mgt.

Over 30 years of experience in horticulture, education and management, Yvonne has travelled widely within and beyond Europe and has worked in many areas of horticulture from garden centres to horticultural therapy. She has served on industry committees and been actively involved with amateur garden clubs for decades.

Sarah Berry

B.Sc.(Hons)

Sarah completed a Bachelor of Science (Zoology) with Honours from The University of Queensland in 2014. With an honours project focusing on glow worms in Australia, she then moved onto a PhD in Aquaculture from James Cook University working with Australian prawn farmers to grow bigger, better prawns. She has a wide range of scientific experience over the past 5 years in physiology, genetics, ecology, molecular technology, statistics, animal health, care, and nutrition. Sarah is currently continuing her work in research while publishing her PhD work.

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