This new series of videos investigates aspects associated with owning and operating a small business. Using case studies of real firms from both the trading and service sectors, the series considers the importance of monitoring cash flow, source documents, financial reports etc in ensuring the health of a business.
 
1.  Source Documents

In this program we show how important it is to keep track of cash flow, and the first step in doing this is to examine the information on the source documents. The program considers  a number of examples of source documents and also looks at:

• how to write a cheque
• how to sort cash and credit card vouchers before filling in a bank deposit slip, and
• how to design good business forms, such as invoices.

This program shows how to keep track of the cash in a small business. We look at the golden rules for maintaining petty cash, and the concept of 'cash at bank' is explained as we examine the bank statement. The terms debit and credit are explained as is the concept of bank reconciliation.

3.  Journals

Information from source documents are recorded in journals. The journals considered in this program are:

• cash receipts and payments journals,
• sales and purchases journals,
• purchases returns and sales returns journals, and
• the general journal.

4.  General Ledger

In this episode we show how to sort the information in the journals into individual accounts in the general ledger. We see how debits appear on the left hand side and credits on the right, and introduce some basic rules of accounting. The program also shows how to balance each of the general ledger accounts and create a trial balance.

5.  Financial Reports

In this episode we show how to work out how much profit or loss the business has made and work out the value of a business. The program demonstrates how to create a balance sheet and two ways to present the Balance Sheet. The difference between current and non-current assets is explained, and how to calculate working capital.

6.  The Bottom Line

In this episode we look at how the profit and loss reports and the balance sheet can be used to tell how well the business is going and how to plan for the future. The program shows how to calculate various ratios and how to work out and use operating and cash budgets.

Format : 6 x Videos, Facilitator Workbooks
Length :  30 mins each
Source :  Produced in Australia by Open Training Services (1997)

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