Certificate Course in Finalisation of Account (Non-Corporate Entity)

Certificate Course in Finalisation of Account

Course Duration: 1 Month
Mode of Delivery: Classroom / Live Online
Session Duration: 1 Hour (Monday to Friday)
Total Sessions: 20 Sessions

Course Objective:

This course is designed to equip students with a comprehensive understanding of the finalisation process of accounts, covering all essential aspects from preparing trial balance to closing the books. Students will learn the skills to efficiently prepare financial statements in accordance with accounting standards and tax regulations, ensuring accuracy and compliance.

Target Audience:

• Accountants and finance professionals

• Small business owners

• Aspiring accountants and tax practitioners

• Individuals looking to enhance their accounting skills

Course Content:

Session 1: Introduction to Finalisation of Accounts

• Overview of finalisation process in accounting

• Importance of finalisation for accurate financial reporting

• Key financial statements: Profit & Loss Account, Balance Sheet, Cash Flow Statement

Session 2: Preparing Trial Balance

• Understanding the trial balance

• Steps to prepare a trial balance

• Identifying and rectifying errors in trial balance

• Checking the balance: Golden rule of accounting

Session 3: Adjusting Entries and Their Importance

• What are adjusting entries?

• Types of adjusting entries (accruals, prepayments, depreciation, etc.)

• How to record and make adjustments before finalising accounts

Session 4: Accounting for Depreciation

• Depreciation methods: Straight-line, reducing balance, and others

• Calculation of depreciation

• Accounting for depreciation in financial statements

• Depreciation adjustment entries

Session 5: Provision for Doubtful Debts

• Understanding provisions and reserves

• How to calculate and record provisions for bad debts

• Adjustments for bad debts and doubtful debts

Session 6: Treatment of Revenue and Expenses

• Revenue recognition principles

• How to account for prepaid expenses and accrued revenue

• Accounting for unearned revenue

Session 7: Closing Entries

• Closing the books at year-end

• How to close temporary accounts (income and expense accounts)

• Transferring balances to the profit and loss account

• Post-closing trial balance

Session 8: Preparing Profit & Loss Account

• Structure of the Profit & Loss account

• Categorizing revenue and expenses

• Calculating gross profit and net profit

• Adjustments in the Profit & Loss account

Session 9: Preparing Balance Sheet

• Structure of the Balance Sheet

• Classification of assets and liabilities (current vs. non-current)

• Adjustments to assets and liabilities before closing

• Balancing the Balance Sheet

Session 10: Preparation of Cash Flow Statement

• Importance of cash flow in final accounts

• Understanding operating, investing, and financing activities

• Direct vs. indirect method for cash flow preparation

• Adjustments to cash flow statement

Session 11: Compliance with Accounting Standards (AS)

• Overview of Indian Accounting Standards (Ind AS)

• Key standards relevant to finalisation of accounts (AS 1, AS 2, AS 4, etc.)

• Impact of non-compliance on financial statements

Session 12: Final Adjustment Entries

• Accounting for income tax, GST, and other final adjustments

• Adjustments for provision for taxes and duties

• Correct handling of year-end tax provisions

Session 13: Final Review of Financial Statements

• Reviewing Profit & Loss and Balance Sheet for accuracy

• Verifying compliance with accounting standards

• Checklist for final verification before closing the books

Session 14: Internal Controls in Finalisation

• Importance of internal controls in the finalisation process

• Common internal control procedures

• How to ensure financial statement accuracy and prevent fraud

Session 15: Accounting Software and Tools

• Introduction to accounting software (e.g., Tally, QuickBooks)

• Using accounting software for finalisation of accounts

• Advantages and limitations of accounting software in finalisation

Session 16: Reconciliation of Bank and Cash Accounts

• How to reconcile bank statements with company records

• Identifying discrepancies and rectifying them

• Recording cash transactions during finalisation

Session 17: Financial Ratios and Analysis

• Key financial ratios (liquidity, profitability, solvency, etc.)

• Analyzing financial health through ratios

• How ratios help in the finalisation of accounts

Session 18: Taxation Aspects in Finalisation

• Impact of taxes on financial statements

• Handling deferred tax, tax provisions, and tax liabilities

• Accounting for tax adjustments and final tax payment

Session 19: Practical Demonstration of Finalisation Process

• Hands-on practice in finalising accounts

• Real-life case studies of account finalisation

• Step-by-step demonstration of closing books and preparing statements

Session 20: Review & Exam Preparation

• Recap of all major topics covered in the course

• Q&A session for resolving doubts

• Preparation for the final exam

Course Materials:

• Course notes and handouts on finalisation processes

• Sample templates for Profit & Loss Account, Balance Sheet, Cash Flow Statement

• Accounting software demonstration guides

• Practice exercises and case studies

Certification:

Upon successful completion of the course and the final exam, participants will receive a Certificate in Finalisation of Accounts from the Institute of Account & Taxation Training.