Accounting for Exceptional Results

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Accounting for Exceptional Results Overview

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Accounting for Exceptional Results Overview

Index Introduction 3 Assignments 4 Training Videos

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Study Time

4

Support

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Sitting the Final Exam

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Overview 6 Detailed Summary

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Version 1.7

Copyright © Strategise Execute Achieve Pty Ltd No part of this publication may be copied, reproduced, scanned, or stored in any electronic database, whether in whole or in part, in any form or by any means. Universal Business Team will not hesitate to take appropriate legal action if its rights in this respect are infringed. This Strategise Execute Achieve Pty Ltd document is provided as a useful resource. While we are confident in the products and services, you need not purchase them and should make your own enquiries and determine what is suitable for your circumstances. Although every effort has been made to provide accurate and up to date information, in issuing the document, no obligation is assumed to keep it up to date, nor is any liability assumed for the contents or for the performance of any products and services acquired or their pricing and no endorsement or guarantee is made or intended of anything in this Brochure by any Strategise Execute Achieve Pty Ltd entity or by any officer, employee, agent or representative thereof.

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Accounting for Exceptional Results Overview

Introduction

This course is broken up into 5 modules; here is a summary: MODULE

ITEM



1

Introduction to Accounting, Validation & Classification

and Registered Tax Agents for SEA Business Tools.



2

The Financial Reports Explored

The whole aim of this course is to enable anyone to better understand their business



3

Financial Analysis

financial statements, in view of making educated decisions that will positively influence



4

Managing your Business



5

Cash Flow & Forecasting

Welcome to this ‘accounting course for non-accountants’, developed by Accountants

profits, cash flow and equity growth. The difference between this course and other accounting courses are:

• It has been written using the unique ‘top-down’ approach, meaning you can study it using your own financial reports; ‘normal’ accountancy courses spend months (or even years) on theory, and it is only then that you would start to refer to a set of financial reports as part of your study.



• Easy reading – we have made every attempt to make the course easy to understand, regardless of your level of education.



• Business development focused – rather than just a study course, we are pointing out ways to become more financially secure.

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Accounting for Exceptional Results Overview

Assignments

Study Time

At the end of each module, there is an online assignment. The idea is that after each

The time required to study for each module and to complete the assignment will

module, you get to test yourself on the new skills and knowledge that you have learnt.

vary from person to person, however in approx. terms you should plan to set aside

The assignments are assessed online and the results are returned to you by email.

between 6 – 9 hours for each module. You will need to allow the following for each

This course is designed to be self-paced so that you can complete the course in a time frame that suits you. We would encourage everyone to set goals and be a finisher!

module: a) 3 to 6 hours to read the workbook b) ½ to 1 hour to watch the supporting video

Training Videos

c) 1 to 2 hours to complete and lodge the assignment d) You may like to further explore a topic (beyond what is covered in the course); and example of this would be to further investigate tax in your region.

Each module is supported by a ‘video’ lesson, delivered via the www.

e) Make sure you allow also allow time to apply your new knowledge and ideas

seabusinesstools.com website. To access these videos, you will need to log on to

to your own financials. This will greatly accelerate your learning, and give you

the website.

maximum benefit (and return on investment!) from this course.

If you are having any difficulty understanding a topic, or would like to see some area

If you have had no ‘exposure’ to business financials previously, and find that the

covered in more detail, please send your questions/suggestions to the team at SEA.

course is taking longer than this, it would be better not to rush it, but rather to ensure that you understand each section before moving on. Each module is like a building block, and you will need to understand each one before studying the next module. If you have been involved in business finances and/or accounting before you may find that you can complete the course faster than the times suggested. SUGGESTION: Add a recurring appointment in your schedule now to ensure you set time aside to complete this course; be a finisher!

Accounting for Exceptional Results Overview

Support As an Accounting for Exceptional Results student, you will have access to:

•

Module Workbooks 1 – 5



•

Module Assignments 1 – 5



•

Videos to assist with your studies

As a part of your purchase, you will have access to a variety of resources on the website such as:

•

An Accounting Glossary of Terms used in the industry



•

Frequently Asked Accountancy related questions to review



•

White Papers on specific issues/topics (as and when applicable)

This course has been built for YOU and YOUR Finance Team!

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Accounting for Exceptional Results Overview

Sitting the Final Exam Once you have passed all of the 5 Module Assignments, you can apply to sit the final exam – however, this is optional, unless your employer insists on it. This is an online exam, which is OPEN BOOK, meaning you can refer to your Module Workbooks during the exam. SEA is testing your ability to do work correctly, not just your ability to store information in your memory. It must be completed in 3 hours. You cannot take the exam question booklet with you (after the exam), and as the questions may be reused in later exams, you will not get your answer booklet returned to you. You will receive a comprehensive report, showing any areas that you need to study further.

Overview

Detailed Summary BOOK ONE – Introduction to Accounting, Validation & Classification PART A: INTRODUCTION TO ACCOUNTING 1.1 Introduction 1.2

Generally Accepted Accounting Principles (GAAP)

1.3

Bookkeeping vs Accounting

1.4

The Suite of Financial Reports

1.5

How the Financial Reports Interact

1.6

Double Entry Bookkeeping

PART B: VALIDATION & CLASSIFICATION 1.7

Your Chart of Accounts

1.8

Tax Codes

1.9

How to Correctly Classify Transactions

and managers. It has been written using a practical approach (‘top-down’). You

1.10

Expense…or Capital Purchase?

will learn how to pick up a set of financial reports, analyse them, be intelligent

1.11

Work expense…or private?

as to cause & effect, and be able to plan events to result in improved financial

1.12

Verification & Auditing

performance and results.

1.13

Only Valid Transactions!

1.14

Bank Reconciliation

1.15

End of Period Adjustments

This course has been written for NON-ACCOUNTANTS, including business owners

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Accounting for Exceptional Results Overview

BOOK TWO – The Financial Reports Explored PART A: THE PROFIT & LOSS STATEMENT 1.16

Understanding your Profit & Loss Report

1.17

What is EBIT?

1.18

Calculating your Cost of Goods Sold

1.19 Inventory 1.20

Periodic Inventory Method

1.21

Perpetual Inventory Method

1.22

Introduction to Tax

PART B: INVESTING – THE BALANCE SHEET 1.23

Main Entity Structures

1.24

Assets versus Liabilities

1.25

Owner’s Equity

1.26

The ‘Accounting Equation’

1.27

What is a Balance Sheet

1.28

The Balancing Act!

1.29

Current vs Non – Current

1.30

Managing by (Personal) Net Worth

1.31

Realisable Value

PART C: ASSET REGISTER & DEPRECIATION 1.32

Asset Control

1.33

Asset (Capital Purchase) or Expense

1.34

What is Depreciation?

1.35

Depreciation Schedule (including Asset Register)

1.36

Asset Cost

1.37

Calculating Depreciation

1.38

Accounting for Depreciation

1.39

Gain or Loss on Disposal

1.40

Log Book Use

1.41

Low Value Pool

BOOK THREE – Financial Analysis PART A: PROFIT & LOSS RATIOS 1.42

Analysis & Management Decisions

1.43

What are Ratios?

1.44

Gross Profit (GP)

1.45

Gross Profit Percentage

1.46

Cost of Goods Sold

1.47

What is Spoilage?

1.48

What is Work in Progress (WIP)?

1.49

Productivity Factor

1.50

Expense Ratio

1.51

Net Profit (NP)

1.52

Net Profit Percentage

1.53

Interest Cover

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Accounting for Exceptional Results Overview

1.54

Trend Analysis

1.55

Monitoring Expenses by Percentage

1.56

Trend Analysis – Supply of Goods

1.57

Part Year Figures

1.58

Mark – Up vs Margin

PART B: BALANCE SHEET RATIOS 1.59

The Need for Analysis

1.60

Over and Under Trading

1.61

Balance Sheet Ratios

1.62

Equity Ratio

1.63

Debt/Equity Ratio (Gearing or Leverage)

1.64

Liquidity Ratios

1.65

The Working Capital Cycle

1.66

Current Ratio

1.67

Quick Ratio

1.68

Debtor Days

1.69

Creditor Days

1.70

Stock Turn Ratio & Days

1.71

Return on Investment (ROI)

1.72

Return on Assets (ROA)

BOOK FOUR – Managing your Business PART A: MANAGING YOUR PROFIT & LOSS 1.73

Calculating Break Even

1.74

Sustainable Business Model

1.75

Fixed and Variable COGS

1.76

Contribution Margin

1.77

Break Even Calculator Tool

1.78

Break Even Unit Sales

1.79

How to use your Break Even knowledge

1.80

How can I increase Sales & Profits?

PART B: MANAGING YOUR BALANCE SHEET 1.81

A Pathway for Financial Management

1.82

Balance Sheet Audit

1.83

Cycle of Continual Improvement

1.84

Need for Planning

1.85

The Financial Operating Cycle

1.86

Sustainable Growth

1.87

Strategic Financial Plan

1.88

Office Procedures for Accurate Financials

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Accounting for Exceptional Results Overview

BOOK FIVE - Cash Flow & Forecasting PART A: CASH FLOW 1.89

What is Cash Flow?

1.90

Profit does NOT Equal Cash!

1.91

Working Capital Cycle – Revisited!

1.92

Cash Affecting Activities

1.93

Source and Application of Funds

1.94

The Cash Flow Statement

1.95

Cash effect from the Sale of Non – Current Assets

1.96

How to estimate Cash Requirements

1.97

Cash Flow Projections

1.98

Monitoring Results

1.99

Budgeting for Tax

PART B: FORECASTING 2.00

What is your Financial Target?

2.01

Survival & Incentive Break Even

2.02

Fixed & Variable Costs

2.03

Analysing your Costs

2.04

Fixed & Variable Overheads

2.05

Economic Cycle

2.06

Effects of Inflation

2.07

Business Planning

2.08

Divisional Budgets & Analysis

2.09

Budget vs Actual Comparison & Analysis

2.10

Business Mathematics

Preparing for the Exam

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