Accounting record keeping

Accounting record keeping

How to keep accounting records

Learning outcomes

• Identifying the main types of accounting
• Understanding nature of accounting records ( handwritten vs computer based)

Open Ended

State the two main disciplines of accounting and explain their differences

From the following statements below select whether they relate to

Financial accounting or Management accounting

Multiple Choice

Reports are produced in a standard format, usually on annual basis above transactions

• Financial Accounting

• Management Accounting

Multiple Choice

The purpose of this type of accounting is to assist in decision making, planning and control

• Financial Accounting

• Management accounting

Multiple Choice

Reports are produced to meet the needs of a business for the use of internal stakeholders

• Financial Accounting

• Management Accounting

Multiple Choice

There is often a legal requirement to produce reports for this purpose

• Financial Accounting

• Management Accounting

Accounting Record keeping

• In the next slide you will watch a video explaining the tips on how the business may keep accounting records
• Please concentrate and analyse what the speaker is explaining 
• Take notes (to be submitted as evidence for active participation)

Multiple Select

What are the two ways (or forms) in which accounting records might be kept by a business?

• Television records

• Manual/handwritten records

• House keeping

• Computer records

Multiple Select

What computerised accounting program is mentioned in the video?

• Quick books

• Sage

• Pastel

• Xero

• Microsoft excel

Open Ended

What other computer application programs that you know can be used for accounting computer record system?

Accounting records are usually kept in one of the two forms

• Handwritten records

• Computer records

Hand written accounting records

• Traditional form of keeping books of accounts 

• The main record kept by these businesses is the ledger

Computerised Accounting records

• Business transactions are input into a computer

• Currently there are various accounting application on the market 

• Including Sage, QuickBooks, Xero etc

• Major advantage is “ Very accurate” record keeping method

• However, it is time consuming to set up (especially to smaller businesses)

Record keeping practical points

• Whether business transactions are recorded by hand or using computer “the basic accounting principles remain the same”

• When maintaining financial accounts bear in mind that the records are kept:

• Accurately

• Up – to- date

• Confidential (not to be revealed to unauthorized people)

Homework (due - Monday)

Research and write an essay arguing for or against computerised accounting records or manual/handwritten accounting records