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| Aim of Module | To provide students with the practical experience and skills to enable them to help a manager/owner of a small business set up and operate their accounting system. |
| Credits | 7 |
| Knowledge Assumed From | AA200 Applied Accounting |
| Suggested Time | 70 student learning hours |
| Prescription Expiry Date | Nov 2002 |
| Topics | Highest Skill Level | Suggested Assessment Percentage | |
| 1 Business Failure | R | 5 | |
| 2 Computerisation | C | 10 | |
| 3 Security/Back up | A | 10 | |
| 4 Chart of Accounts Design | A | 5 | |
| 5 Control Accounts | A | 5 | |
| 6 Accounting Process on Computer | A | 40 | |
| 7 Reconciliation’s | A | 5 | |
| 8 Reporting | A | 10 | |
| 9 Month end/Year end Processing | A | 10 | |
| 100 | |||
| 1 Business Failure |
| R | 1.1 | List the common causes of small business failure. |
| 1.2 | List management problems faced by small businesses. |
| 2 Computerisation |
| C | 2.1 | Identify possible reasons for a small business to consider the purchase of an accounting package. |
| C | 2.2 | Identify possible problems for a small business associated with the purchase and installation of an accounting package. |
| C | 2.3 | Identify potential one-off and on-going costs associated with the purchase. |
| C | 2.4 | Identify the likely time frames from decision to purchase through conversion/implementation. |
| 3 Security/Back up |
| C | 3.1 | Identify potential security/integrity risks for a small business. |
| A | 3.2 | Plan a processing schedule for all types of business transactions, including processing to the general ledger, month end roll-overs, and if possible, a year end roll over. |
| 4 Chart of Accounts Design |
| A | 4.1 | Design (or adjust the default) chart of accounts to suit the management needs of the small business. |
| A | 4.2 | Explain why a particular code structure was chosen for the general ledger, and any other associated modules, ie. department, location, sales type etc. |
| 5 Control Accounts |
| C | 5.1 | Explain the role of control accounts in the accounting process. |
| A | 5.2 | Set up control accounts in the chosen accounting package. |
| 6 Accounting Process on Computer |
| A | 6.1 | Set up and check entries for the required master files ie. General Ledger, Stock, Debtors, Creditors, Sales etc. |
| A | 6.2 | Sort business transaction into type according to the modules chosen in the accounting package. |
| A | 6.3 | Prepare batches of transactions (if batch processing) including control totals, and the recording thereof. |
| A | 6.4 | Process transactions through the appropriate menu options. |
| A | 6.5 | Print associated transaction (edit/audit) lists and check. |
| A | 6.6 | Prepare manual summaries of at least one area of the business that is still completed manually, eg. payroll and process those entries through the general journal. |
| A | 6.7 | Process correcting entries, if required. |
| A | 6.8 | Print a trial balance. |
| A | 6.9 | Process relevant balance day adjusting entries. |
| A | 6.10 | Print an adjusted trial balance. |
| 7 Reconciliation’s |
| C | 7.1 | Explain the importance of reconciliation’s for control purposes. |
| A | 7.2 | Reconcile manual records to computer records for the modules chosen for the small business eg. Stock, Debtors, Creditors, Cashbook. |
| 8 Reporting |
| A | 8.1 | Print fully classified statements for a small business. |
| A | 8.2 | Print appropriate reports from the modules chosen, eg. Aged Debtors Trial Balance, Sales Analysis, Stock Movements etc. |
| 9 Month end/Year end Processing |
| C | 9.1 | Explain the steps to complete month end processing and year end processing. |
| A | 9.2 | If possible, complete a month end roll over. |
| Note | ||
| > | It is essential that the practical part of this course be completed using a common small business integrated accounting package such as Trader. | |
| > | All assignments should revolve around a small business, normally a sole trader. | |