38; Diploma in Accountancy Can be Helpful For Career
Financial Accounting Course & Diploma in Accountancy Can be Helpful For Career
Financial accounting has many topics to learn for example basics of accounting, debits and credits, how tomake profit and loss , Balance sheet, trail balance. How to review financial statements etc. Many Accounting institute offers Accounting courses as well as one year Accountancy diploma covering various useful topics, these courses are helpful for those students looking for an accounting course even from non accounting background people can learn the basic of accounting and understand the basic principal of accounting and accounting standards.
For example one of the important concept in financial accounting is bank reconciliation, in the current topics I will explore the concept of bank reconciliation and the benefits or this exercise in accounting course, as the word reconciliation shows it is the matching of two different statements of accounts for example the reconciliation of company’s own bank book with the bank statement provided by the banker, it can be done on monthly quarterly or daily basis depending upon the nature of the business and volume of transactions, similarly there can be party reconciliation where two statements of accounts of both supplier and customer is reconciled to find out the difference between the balance.
Basically need of bank reconciliation in accounting arises when there is difference in the balances of two statements one is company cash book and another is bankers statement, in practical scenario there are remote chances that these two balances match each other hence it requires an exercise to match the balances and figure out the differences and establish the reasons of such differences. It is important to perform the task of bank reconciliation at the end of each month.
Accounting diploma or Accounting courses from an established accounting institute will help you to understand such basic accounting principles
To continue with the topic during the bank reconciliation exercise there is a need to identify the needs and types of differences and decide whether such adjustments of cash or cheques recorded in the statements are needed or not, the necessary to make any adjustments depends upon the nature of the type of difference, there could be broadly two types of differences.
1) Any informational difference this represents any information which is included in the bank statement but not truly reflected in bank or cash records of the company
2) Timing difference, usually it is caused by the different in timings in recording the transactions in the cash book and bank statement, in such type of difference no adjustment entries are passed.
For example:- -mistakes in items erroneously committed by company or bankers staff. -Payments or receipts made directly to bank account. -Bank charges or interest credited by bank
All such transaction have to be recorded in cash book before preparing any bank reconciliation statement, therefore when we start from unadjusted cash book balance after recorded adjustment entries, only the adjusted balances goes to the reconciliation statements, thereafter we proceed with the rectification caused due to timing difference.
Author is working with Institute of Finance student can learn Diploma in Taxation or corporate training