Accounting Training in Chandigarh

Accounting Training in Chandigarh at IPAT Institute. This subject explores the fundamental principles and practices of accounting, including financial statements, bookkeeping, journal entries, ledger maintenance, trial balance, and preparation of balance sheets. Students will acquire the necessary skills to record, analyze, and interpret financial data.

Accounting Training Course in Chandigarh

Overview of Accounting: Accounting is consolidating the financial transactions of a company using a systematic approach. It involves recording, analysing, reporting, and retrieving financial transactions when required. Accounting is mandatory for legal reasons, taxes, and to understand business health. Accounting ensures that every business transaction is accounted for and if you need to pull out information about any expense you can do so with ease.  Accounting can be divided into two parts; financial accounting and management accounting.

Financial accounting deals with the proper presentation of the transactions in the form of financial statements such as income statements which are shared with people outside the business. Management accounting is a form of accounting whereby the management department receives financial information so they can take vital business decisions to ensure efficient business continuity. Management accounting is part of the internal process as it is used for improving the overall business. It includes information such as the budget.

Importance of Accounting: Accurate and transparent accounting is essential for maintaining the financial health of organizations. It provides meaningful information to business owners, investors, creditors, and regulators for making informed decisions.

Objectives of Accounting: The three key objectives of accounting are as follows.

• Record keeping: The fundamentals of accounting include record keeping which is the primary function of accounting. A business must use standard forms of storing and retaining information so it can be retrieved when the need for it arises. Thorough and accurate storage of records is essential for all transaction-related purposes.
• Reporting: Financial reporting is a key accounting objective after record keeping. Accounting enables businesses to record and report their financial status at the end of a particular period. It involves putting together transaction details and reports that are necessary to make sense of a certain aspect of a business during a specific time period. Financial statements are results of aggregating financial information of a business and these are useful tools for reporting the financial parts of a business.
• Analysis: The reports which are based on the business records are analysed in accounting. When business health needs to be determined then the business reports are analysed. Analysis in accounting enables accountants to find out ways to improve business efficiency, upgrade processes, and to see where unnecessary expenses are being made. Analysis of financial reporting allows your business to run without problems as it ensures no discrepancies are found.

Key accounting reports

The critical accounting reports are as follows.

Balance sheet: The balance sheet contains information about the total liabilities, assets, and stockholder equity. It gives information about the company’s resources and how these sources are being financed. A balance sheet can help you make better business decisions.

Profit and loss statement: The profit and loss statement is also known as P&L and income statement. It shows the revenues and expenses of a business over a period of time. A business is going in the right direction when the profits exceed its losses.

Statement of cash flows: This report summarizes the cash that is received or paid. It doesn’t reflect the non-cash transactions that take place such as purchases made on the basis of credit. It contains three parts; investing, operating, and financing. It gives information about cash generation.