Management & Accountant Work as a Team

 

Welcome to Go Beyond the Numbers.

In this report you will:

• Discover how management and accountant work as a team.
• Understand the importance of accuracy and time when dealing with source documents
• Know the flow of information behind financial reporting
• Appreciate the real value of Financial Reports

We will look at how each transaction is recorded.

Accountant Supports Management

Management produce plan, implement the plan, check and Do and take action.
As the plan is implemented when management do business, transactions are occurring. Each transaction, for example Sales, when we buy or we sell it produces an Invoice.
We either produce an invoice or we receive an invoice for what we buy.

If we pay or collect we either produce a receipt or receive a receipt for all payment. Payment Vouchers, sometimes we create a payment voucher for the payment that we make.

We send or deliver goods, it is going to be delivering orders.
If we issue cheques, there’s going to be cheque butts. There’s also banking in slip.

So every transaction, everything we do creates a source document. These documents must be sent to the accounting office.

These documents may come from different branches and offices but it goes into the accountant.

One very important thing is, these documents must be recorded in an accurate fashion. If these documents have wrong information, the accounting reported will be wrong.

The accountant records transactions only through the source documents. If it arrives there in an accurate and timely fashion it goes to the process of bookkeeping or what I call score keeping.
The financial reports will then be produced.

Bookkeeping is the detailed report. The management is not interested in this details but they are interested in the summary.
The financial reports are the summary of what is happening. Whatever we do eventually ends up in the summary.
Whatever we do eventually ends up in the Profit and Loss Account, Balance Sheet, and Cash Flow.

Business Education starts when you know how to interpret, understand, and analyze the financial reports, when we go to checking we will be able to find out who is doing what in the business, and if we change what we do here, the financial reports also change.

Next we will look at the details of how these source of documents are recorded. We will look at the books of accountant.

How Transactions Impact Bookkeeping

Management

• Plan the Business
• Do the Business
• Send Documents for Bookkeeping
• Check Reports
• Take Action

Accountant

• Turn the Plan into Budget
• Process source documents
• Produce Management Financial reports

Documents must be accurate and sent in ON TIME for processing.

What is Profit and Loss?

It is the movement of stock and Product in and Out. We will have income for sales that have COME in or coming in.
Expenses is money for Costs gone or going out. Profit is income GREATER than Expenses. Loss is income LESS than Expenses.

What is Balance Sheet?

A balance sheet is “What you’re WORTH”
Assets are what you own. Liabilities are what you owe.

What you OWN minus what you OWE equal your NET WORTH.

What is Cash-Flow?
Cash flow is the “Movement of Cash IN and OUT.
Inflow is Cash IN during the reporting period.
Outflow is Cash OUT during the reporting period.

Inflow minus Outflow is equal to Net Cash Flow.

Documents must be Accurate and sent in On time for processing.

Here’s a Hot tip to get the most from “Go Beyond the Numbers”

• I encourage you to Find a Learning buddy
• Discuss the Flip Charts with your buddy. When you can speak about the lesson you know it.
• Repeat the process again after 24 hours, 7 days then, 3 weeks then, A month then..

Financial Literacy is to learn to read and interpret financial reports and “Go Beyond the Numbers” to make your business successful

I trust you enjoy the Video above.

This is one tutorial from our on line course “Go Beyond the Numbers”.

Our experience has shown you have 2 solutions to your financial literacy needs

• In house purpose designed and delivered program for your selected management team

• The use of an On line course spread over a period of weeks to be taken at the learners personal pace.

Colin Burr