Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

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1 Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

2 Office Organization & Function What is an Office?

3 Office Organization & Function What is an Office? The office in an organization is a centre for information and administration.

4 Office Organization & Function The most common functions in an office are as follows: Purchasing Personal (HR) General administration Finance Sales and Marketing

5 Office Organization & Function Importance of organization chart: Organization chart provides a summery of the structure of a business. Organization chart can improve internal communication within a business.

6 Office Organization & Function Organization chart can improve employees understanding of their role within a business organization.

7 Office Organization & Function There are different kinds of departmentalization: Functional departmentation Geographic departmentation Product/ brand departmentation Centralisation / Decentralisation

8 Office Organization & Function Functional departmentation It involves setting up departments for people who do similar job. Eg: sales department, HR department etc.

9 Office Organization & Function Geographic departmentation Where the organization is structured according to geographic area, some authority is retained at Head Office but day to day operation on a territorial basis.

10 Office Organization & Function Product / Brand departmentation Some organizations group activities on the basis of products.

11 Office Organization & Function Centralisation A centralised administration department involves as many administrative tasks as possible being carried out at a single central location, such as head office.

12 Office Organization & Function Centralisation (Advantages) Consistency. Senior managers can take a wider view of problems and consequences (big picture). Duplication of service can be avoided.

13 Office Organization & Function Centralisation (disadvantages) Lack of familiarity with each local situation. Procedure may not suit all local office. Always reliance on head office.

14 Office Organization & Function Decentralisation When administrative tasks are carried out at various separate locations, the administration function is said to be decentralised.

15 Office Organization & Function Decentralisation (Advantages) Decisions are made by individuals with knowledge of the local situation. Decision can be made more quickly. Local manager may be more motivated.

16 Office Organization & Function Decentralisation (Disadvantages) There is duplication of activities. Cost are increased.

17 Policy Manual What is Policy Manual?

18 Policy Manual What is Policy Manual? A policy manual should help to ensure that all personal follow procedures and best practices.

Policy Manual The main types of transections that most business enter into are sales, purchases, paying expenses, paying employees and purchasing

19 Policy Manual The main types of transections that most business enter into are sales, purchases, paying expenses, paying employees and purchasing fixed assets. In order for management to control the transections of the business there must be a system of authorisation of transections in places.

20 Double Entry Bookkeeping Basic Principles What is double entry bookkeeping?

21 Double Entry Bookkeeping Basic Principles The basic principle of double entry bookkeeping is that for every debit (DR) entry there must be a corresponding credit (CR) entry.

22 Double Entry Bookkeeping Basic Principles Debit (DR) entries in ledger accounts are increases in assets or expenses and decreases in liabilities and income.

23 Double Entry Bookkeeping Basic Principles Credit (CR) entries in ledger accounts are increases in liabilities and income and decreases in assets or expenses.

24 Double Entry Bookkeeping Basic Principles So here is a brief reminder of the basic double entry that you are likely to come across:

25 Double Entry Bookkeeping Basic Principles Sales of good DR Bank/Receivables CR Sales

26 Double Entry Bookkeeping Basic Principles Receipts from receivable DR Bank CR Receivable

27 Double Entry Bookkeeping Basic Principles Purchase of materials DR Material control CR Bank / payables

28 Double Entry Bookkeeping Basic Principles Payment of payables DR Payables CR Bank

29 Double Entry Bookkeeping Basic Principles Payment of Wages DR Wages expenses CR Bank

30 Double Entry Bookkeeping Basic Principles If in doubt with double entry remember the following rules:

31 Double Entry Bookkeeping Basic Principles Debit Entry Increase in an asset Decrease in a liability Increase in an expense Decrease in income

32 Double Entry Bookkeeping Basic Principles Credit Entry Increase in a liability Decrease in an asset Increase in income Decrease in an expense

33 Accounting Equation The basic accounting equation is as follows: Asset Liabilities = Capital + Profit Drawings

34 Cost Ledger Accounting Transections are initially recorded in books of prime entry which are totalled and totals posted to the ledger accounts.

35 Books of Prime Entry

36 Cost Ledger Accounting A system in which the cost accounting and financial accounting functions are combined in one system of ledger accounts is known as an integrated system.

37 Cost Ledger Accounting Integrated system save time and administrative effort. Integrated system avoid the need for periodic profit reconciliation (it means profit differences do not arise with Integrated system).

38 Cost Ledger Accounting A system in which there is a cost ledger for the cost accounting function and financial ledger for the financial accounting functions is known as an interlocking system.

39 Cost Ledger Accounting Cost ledger control account is an ledger account which record the cost of financial items.

40 Computerised Accounting System A computerised accounting systems allow much quicker and more accurate entries to the accounting system.

41 Computerised Accounting System Batch Processing It involves transections being grouped and stored before being processed at a regular intervals, such as daily, weekly or monthly.

42 Computerised Accounting System Batch Processing (Advantages) If any record go missing it is possible to locate the batch in which the missing record should belong. Errors in transection records can be located more quickly by identifying its batch number.

43 Computerised Accounting System Batch Processing (Disadvantages) The lack of update information means batch processing is usually not suitable for systems involving customer contact. Batch processing is suitable for internal, regular tasks such as payroll.

44 Q & A

Introduction to Bookkeeping

Introduction to Bookkeeping Course map This document outlines the course structure. Course orientation Lesson 1: Welcome Lesson 2: Getting your diploma Lesson 3: How do I study this course? Unit 1: Welcome