Bookkeeping: basic principles

Wycliffe International
58 pages
Preface: During my years of working in Togo and Benin I noticed that there was a need for bookkeeping training. The most pressing needs were training in managing the cash box and bookkeeping for literacy or translation projects. To meet this need, an introduction to bookkeeping has been devised. It consists of twelve lessons spread over one week. The course is designed principally for people working in the areas of literacy or translation. The lessons are support material for the course and for its assignments. These lessons have not been conceived as personal tutoring aids separate from the additional explanations given in the classes themselves. The daily Bible meditations are integral to the course. Their sole focus is money. Some extracts from the Bible are included in the lessons. The meditations are given by either the course participants or by the teachers. Discussions in class deal with practical situations. This aspect of the course is important.
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Table of contents _ 2 Preface _ 4 Preface to the English Translation _ 5 Introduction _ 6 Bookkeeping in the Bible _ 7 Lesson 1 _ 12 What is bookkeeping for?_ 12 A. Understanding and listing the reasons why bookkeeping is important for a project _ 12 B. Being familiar with the necessary qualifications for a cashier_ 12 Lesson 2 _ 14 Principles of effective bookkeeping _ 14 A. Knowing the fundamental principles for good bookkeeping and cash-box management_ 14 B. Knowing the risks one is exposed to when these principles are not followed_ 14 Lesson 3 _ 16 The cash book _ 16 A. Knowing the essentials for managing the cash book _ 16 B. Knowing the difference between a simple cash book and an analytical cash book_ 16 Lesson 4 _ 19 Controlling the money – checking the balance _ 19 A. Checking the balance recorded in the cash book and the money in the cash box _ 19 B. Researching an error in the balance and correcting it_ 19 Lesson 5 _ 25 Controlling the money – security _ 25 A. Appreciating the need for an internal cash box audit _ 25 B. Knowing how to keep the money safe _ 25 C. Knowing what to do if the cashier needs to be away _ 25 Lesson 6 _ 28 The different categories of expenses and receipts _ 28 Knowing how to define the various categories of expenses and receipts within an organization or project_ 28 Lesson 7 _ 32 Procedures for receiving money and spending it _ 32 A. Knowing how to follow the procedure for receiving money into the cash box_ 32 B. Knowing how to follow the procedure for making a payment: verification of the invoice, authorization, advances, paying the invoice _ 32 Lesson 8 _ 35 Documentary evidence _ 35 Preparing all the documents and knowing their use _ 35 Lesson 8a _ 36 Documentary evidence – the receipt (receiving money)_ 36 Preparing the receipt; dealing with a receipt _ 36 Lesson 8b _ 38 Bookkeeping Basic principles English translation October 2007 3 Documentary evidence – the invoice (expenses and receipts) _ 38 A. Checking an invoice requiring payment _ 38 B. Preparing an invoice for a service or for goods sold _ 38 Lesson 8c_ 41 Documentary evidence – authorization (expenses) _ 41 A. Knowing how to check an authorization for an expense _ 41 B. Knowing how to establish an authorization _ 41 Lesson 8d _ 44 Documentary evidence – the advance (expenses) _ 44 A. Being able to establish and/or check the document for an advance on expenses _ 44 B. Being able to distinguish between an advance and a down payment_ 44 Lesson 8e_ 46 Documentary evidence - various _ 46 Identifying and using various forms_ 46 Lesson 9 _ 47 The budget _ 47 Knowing how to draw up a budget _ 47 Lesson 10 _ 50 The monthly summary – the financial report_ 50 Preparing and presenting a monthly summary of income and expenses_ 50 Lesson 11 _ 53 Banks _ 53 Knowing how to use banking services_ 53 Lesson 12 _ 56 Inventories _ 56 A. Knowing how to organize and to maintain an inventory of goods_ 56 B. Knowing how to decide when an inventory is necessary and when it is not _ 56
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