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Understanding Financial Management: Single vs. Double Entry

Learn the basics of financial management through single and double entry methods. Understand the advantages, tracking key items like cash, bank transactions, and assets. Explore how double entry reduces errors and fraud. Follow accounting flow for accurate record-keeping. Improve your practice with proper documentation and bill verification methods. Discover more through additional readings on balancing accounts, NGO accounting, and basis of accounting.

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Understanding Financial Management: Single vs. Double Entry

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Presentation Transcript

  1. Financial Management

  2. Single Entry • Where do you find it?

  3. Single Entry • Tracks key items • cash • bank • Assets • sales • debtors?

  4. Evolution

  5. Double Entry Concepts

  6. What is double entry? • More jobs for accountants? • Backup system for accounts? • Recording each voucher twice?

  7. Double Entry Illustration

  8. Adapted from www.principlesofaccounting.com

  9. Adapted from www.principlesofaccounting.com

  10. Adapted from www.principlesofaccounting.com

  11. Adapted from www.principlesofaccounting.com

  12. Adapted from www.principlesofaccounting.com

  13. Adapted from www.principlesofaccounting.com

  14. Adapted from www.principlesofaccounting.com

  15. Click graphic to skip • Adapted from www.principlesofaccounting.com

  16. Adapted from www.principlesofaccounting.com

  17. Click graphic to skip • Adapted from www.principlesofaccounting.com

  18. Advantages • Reduced errors • Reduced fraud

  19. Accounting Practice

  20. Accounting Flow • Details • Account Head • Vouch for • One side of double entry • Cash Control • Analysis • Second side of entry • Proof • Memory

  21. Supports Bills & Cash Memos

  22. Proper Support • Genuine • Address / contact information of vendor • Prepared / signed / dated by vendor • Clear description of items, rate, value • No alteration

  23. Taxi Payments • Vehicle number and model • Driver / owner’s name, phone number, address • Distance, places travelled • Time and date • Odometer reading

  24. 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.

  25. Doubt • Name of Buyer? • Date of bill / cash memo

  26. Further Reading • AccountAble 2: Balancing the Accounts • AccountAble 89: NGO Accounting • AccountAble 90: Basis of Accounting

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