Bookkeeping and Accounting All-in-One For Dummies [UK edition]

524 Pages·2015·8.77 MB·English

by  Jane E. Kelly

Bookkeeping & Accounting All-in-One For Dummies®
Published by: John Wiley & Sons, Ltd., The Atrium, Southern Gate,
Chichester, www.wiley.com
This edition first published 2015
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Bookkeeping & Accounting All-in-
One For Dummies®
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Table of Contents
Cover
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Book I: Basic Bookkeeping
Chapter 1: So You Want to Do the Books
Delving into Bookkeeping Basics
Defining and Maintaining a Ledger
Using Bookkeeping Tools to Manage Daily Finances
Running Tests for Accuracy
Chapter 2: Getting Down to Bookkeeping Basics
Bookkeeping: The Record-Keeping of the Business World
Wading through Basic Bookkeeping Lingo
Pedalling through the Accounting Cycle
Understanding Accounting Methods
Seeing Double with Double-Entry Bookkeeping
Have a Go
Answering the Have a Go Questions
Chapter 3: Outlining Your Financial Roadmap with
a Chart of Accounts
Getting to Know the Chart of Accounts
Starting with the Balance Sheet Accounts
Keeping an Eye on the Profit and Loss Statement Accounts
Setting Up Your Chart of Accounts
Have a Go
Answering the Have a Go Questions
Chapter 4: Looking at Ledgers
Developing Entries for the Ledger
Posting Sales Invoices
Posting Purchase Invoices
Entering Items into the Nominal Ledger
Cashbook Transactions
Introducing Control Accounts
Understanding How the Ledgers Impact the Accounts
Adjusting for Nominal Ledger Errors
Have a Go
Answering the Have a Go Questions
Book II: Bookkeeping Day to Day
Chapter 1: Planning and Controlling Your
Workload
Introducing Checklists
Sorting Out Your Sales Invoices
Entering Your Purchases Invoices
Checking Cash Payments and Receipts
Reconciling Your Bank Account
Entering Your Journals
Controlling Your Books, Records and Money
Have a Go
Answering the Have a Go Questions
Chapter 2: Counting Your Sales
Collecting on Cash Sales
Selling on Credit
Cashing Up the Cash Register
Monitoring Sales Discounts
Recording Sales Returns and Allowances
Monitoring Trade Debtors
Accepting Your Losses
Have a Go
Answering the Have a Go Questions
Chapter 3: Buying and Tracking Your Purchases
Keeping Track of Stock
Buying and Monitoring Supplies
Staying on Top of Your Bills
Have a Go
Answering the Have a Go Questions
Chapter 4: Doing Your Banking
Making Sure that the Closing Cash Is Right
Reconciling Bank Accounts
Have a Go
Answering the Have a Go Questions
Book III: Undertaking Monthly and Quarterly Tasks
Chapter 1: Adding the Cost of Value-Added Tax
(VAT)
Looking into VAT
Registering for VAT
Paying in and Reclaiming VAT
Completing Your VAT Return
Pursuing Payments and Repayments
Chapter 2: Employee Payroll and Benefits
Staffing Your Business
Using the Real-Time Information System
Collecting Employee Taxes
Determining Net Pay
Taxing Benefits
Preparing and Posting Payroll
Settling Up with HM Revenue & Customs
Handling Payroll Year-End
Have a Go
Answering the Have a Go Questions
Chapter 3: Adjusting Your Books
Adjusting All the Right Areas
Checking Your Trial Balance
Changing Your Chart of Accounts
Have a Go
Answering the Have a Go Questions
Book IV: Working to Prepare Financial Statements
Chapter 1: Producing a Profit and Loss Statement
Lining Up the Profit and Loss Statement
Formatting the Profit and Loss Statement
Preparing the Profit and Loss Statement
Deciphering Gross Profit
Monitoring Expenses
Using the Profit and Loss Statement to Make Business
Decisions
Testing Profits
Branching Out with Profit and Loss Statement Data
Have a Go
Answering the Have a Go Questions
Chapter 2: Developing a Balance Sheet
Breaking Down the Balance Sheet
Gathering Balance Sheet Ingredients
Pulling Together the Final Balance Sheet
Putting Your Balance Sheet to Work
Have a Go
Answering the Have a Go Questions
Chapter 3: Cash Flows and the Cash Flow
Statement
The Three Types of Cash Flow
Setting the Stage: Changes in Balance Sheet Accounts
Getting at the Cash Increase from Profit
Presenting the Cash Flow Statement
Sailing through the Rest of the Cash Flow Statement
Free Cash Flow: What on Earth Does That Mean?
Scrutinising the Cash Flow Statement
Have a Go
Answering the Have a Go Questions
Book V: Accountants: Managing the Business
Chapter 1: Discovering Different Business Types
Finding the Right Business Type
Tax Reporting for Sole Traders
Filing Tax Forms for Partnerships
Paying Taxes for Limited Companies
Have a Go
Answering the Have a Go Questions
Chapter 2: Choosing Accounting Methods
Decision-Making Behind the Scenes in Profit and Loss
Statements
Calculating Cost of Goods Sold and Cost of Stock
Identifying Stock Losses: Net Realisable Value (NRV)
Managing Your Stock Position
Appreciating Depreciation Methods
Collecting or Writing Off Bad Debts
Reconciling Corporation Tax
Dealing with Foreign Exchange
Two Final Issues to Consider
Have a Go
Answering the Have a Go Questions
Chapter 3: Managing Profit Performance
Redesigning the External Profit and Loss Statement
Basic Model for Management Profit and Loss Account
Travelling Two Trails to Profit
Doing What-If Analysis
A Final Word or Two
Have a Go
Answering the Have a Go Questions
Chapter 4: Cost Conundrums
Previewing What’s Coming Down the Road
What Makes Cost So Important?
Sharpening Your Sensitivity to Costs
Putting Together the Pieces of Product Cost for Manufacturers
A View from the Top Regarding Costs
Have a Go
Answering the Have a Go Questions
Chapter 5: Business Budgeting
The Reasons for Budgeting
Budgeting and Management Accounting
Budgeting in Action
Capital Budgeting
Reporting on Variances
Staying Flexible with Budgets
Have a Go
Answering the Have a Go Questions
Book VI: Accountants: Working with the Outside World
Chapter 1: Getting a Financial Report Ready for
Prime Time
Reviewing Vital Connections
Statement of Changes in Owners’ Equity and Comprehensive
Income
Making Sure that Disclosure Is Adequate
Keeping It Private versus Going Public
Nudging the Numbers
Browsing versus Reading Financial Reports
Chapter 2: How Investors Read a Financial Report
Financial Reporting by Private versus Public Businesses
Analysing Financial Reports with Ratios