Financial Management

Single EntryWhere do you find it?

Single Entry• Tracks key items

• cash

• bank

• Assets

• sales

• debtors?

Evolution

Double EntryConcepts

What is double entry?

Recording each voucher twice?

More jobs for

accountants?Backup system

for accounts?

Double EntryIllustration

Adapted from www.principlesofaccounting.com

http://www.principlesofaccounting.com/


Click graphic to skip


Advantages

• Reduced errors

• Reduced fraud

AccountingPractice

ProofMemory

DetailsAccount Head

Vouch for

One side of double entryCash Control

AnalysisSecond side

of entry

Accounting Flow

SupportsBills & Cash Memos

Proper Support

• Genuine

• Address / contact information of vendor

• Prepared / signed / dated by vendor

• Clear description of items, rate, value

• No alteration

Taxi Payments• Vehicle number and model

• Driver / owner’s name, phone number, address

• Distance, places travelled

• Time and date

• Odometer reading

Checking Bills• Check…

• Items purchased are clearly shown

• Calculation (Price x Quantity)

• Totals

• Tick off the figures

• Look for Approval

• Mark As Paid after Payment.

Doubt

• Name of Buyer?

• Date of bill / cash memo

Further Reading

• AccountAble 2: Balancing the Accounts

• AccountAble 89: NGO Accounting

• AccountAble 90: Basis of Accounting

Financial Management

Documents

Transcript of Financial Management