Basic Accounting & Bookkeeping tactics SME entrepreneur must adopt

1. IMPORTANCE OF
BOOKKEEPING
AL-TIJAARAT AL-RAABEHAH
PAKISTAN

2. 2
SHORT VIDEO…

3. 3
WHY BOOKKEEPING?
AND…
THIS IS THE FOREMOST REASON TO ADOPT
B O O K K E E P I N G
THIS IS YOUR
BUSINESS!!!

4. 4
6 COMMON BUSINESS Q’s
1. Do you continually analyze your business performance?
2. How liquid is your business? Do you have enough cash?
3. What are your receivables and payables?
4. What is your turnover?
5. What is your current and future stock positions?
6. Do you have accurate timely financial information?
Every entrepreneur must honestly ask himself…

5. 5
ANSWERS TO 6CQ’s
1. Inventory Management
2. Receipts and Payments
3. Expense Management
4. Business Profitability
5. Performance Analysis & Budgeting
5 main things to know about…

6. 6
5 BOOKKEEPING HABITS!
1. Track you inventory
2. Track your receipts and payments
3. Track your expenses
4. Book review / performance review periodically
5. Know your taxes
Every entrepreneur must do…

7. 7
A BOOKKEEPING EXCERSIE…
• Customer gives you an order of 10 pcs @ Rs. 100/- each.
• You ordered these items to your supplier @ Rs. 70/- each.
• You received these items from your supplier with bill.
• Your paid your supplier.
• You delivered the order to your customer and raised the bill.
• Your customer paid to you.
• Prepare Profit & Loss with books / registers.
Let’s record these transactions…

8. A. PURCHASE RECORDING
B. SALES RECORDING
C. CASH BOOK
D. PROFIT & LOSS
E. ANALYSIS
8
STEPS FOR RECORDING
ANY IDEA…

9. 9
1. Stock Register
Date Item Particulars Purchase Sale Balance
12-Jul-2020 Item A Supplier A 10 10
2. Purchase Register
Date Item Supplier Purchase Rate Amount
12-Jul-2020 Item A Supplier A 10 70 700
3. Cash Book
A. PURCHASE RECORDING
Date Particulars Party Receipts Payments Balance
1-Jul-2020 Opening Balance 2,000
12-Jul-2020 Purchase Payments Supplier A 700 1,300

10. Date Particulars Party Receipts Payments Balance
1-Jul-2020 Opening 2,000
12-Jul-2020 Purchase Payments Supplier A 700 1,300
13-Jul-2020 Sales Receipts Customer A 1,000 2,300
10
B. SALES RECORDING
1. Stock Register
Date Item Particulars Purchase Sale Balance
12-Jul-2020 Item A Supplier A 10 10
13-Jul-2020 Item A Customer A 10 0
2. Sales Register
Date Item Customer Sale Rate Amount
13-Jul-2020 Item A Customer A 10 100 1,000
3. Cash Book

11. 11
C. CASH BOOK ACCOUNT
T-Account Cash Book
DR. CASH BOOK CR.
1-Jul Opening Bal 2,000
13-Jul Receipts from Customer A 1,000 12-Jul Paid to Supplier A 700
31-Jul Closing Bal  2,300
3,000 3,000

12. 12
D. PROFIT & LOSS
A SIMPLE ONE…
TOTAL SALES 1,000.00
LESS: COST OF GOODS SOLD
COST OF ITEM SOLD (700.00)
GROSS PROFIT 300.00
LESS: ADMIN EXPENSES (150.00)
NET PROFIT 150.00
Now you can easily manage your taxes…

13. 13
E. ANALYSIS
A SIMPLE ONE…
TOTAL SALES 1,000.00
GROSS PROFIT 300.00
GP MARGIN % 30%
NET PROFIT 150.00
NP MARGIN % 15%
MARGIN ROI
INVESTMENT 700.00
PROFIT 150.00
ROI % 21%

14. 14
FEW MORE EXERCISES…
Lets test your learning…

15. 15
ANSWERS…
Mark your results…
Scenario
Cash
Payments
Cash
Receipts
Stock Purchases Sales
1 You received a payment for goods you sold 
2
You collected the car from your garage mechanic after it had been serviced that day
and you paid the invoice.

3 You received a telephone call from your supplier ensuring goods to be delivered.
4 You supplied 10 pcs of sports equipment to the customer. 
5 The monthly telephone bill paid. 
6 You paid rent. 
7 You took delivery of stock which you purchased from your supplier. 
8 You received a telephone call from your customer ordering goods to be sent.
9
Invoices from your suppliers for goods you have purchased would be recorded
where?

10 Receipts for items you delivered would be recorded where? 
11 Deliveries to your customers would be recorded where? 
12
Invoices which you have issued to your customers for items they have purchased
would be recorded where?


16. INVENTORY
MANAGEMENT
AL-TIJAARAT AL-RAABEHAH
PAKISTAN
PART I
NEXT

17. 17
ANY QUESTIONS
Q / A
?

18. 18
THANK
YOU