OCR Level Cambridge Technicals in Business Unit 4: Business Accounting What is business accounting? Everywhere we look, we are confronted by businesses of every shape and size imaginable From the giants of Ford, British Airways or HSBC to the local corner shop, driving instructor or your local hairdresser What is business accounting? Whatever size the business is, whatever product it makes or sells, however old or new it may be, every business will require some form of accounting All businesses will have to account for their finances and their business activities So, what exactly is business accounting? Business accounting is about knowing how much money is in the business, where it has come from, and how it is being used So, what exactly is business accounting? Money comes from: - Sales - Investors - Lenders Money is also used to re-invest in the business A manager presented with accurate accounting Money is information used to: will be in a costs to make better- Pay position - Pay more informed dividends decisions Why we need to it? It is important to understand of business Understanding the purposethe ofpurpose these reports is accounting, because business reports a useful management skill inaccounting all industries are used by owners to make decisions These reports will be used to: record; monitor and measure; manage and communicate business information What will you learn? After completing this unit you will: Understand the purpose of accounting and the categorisation of business income and expenditure Be able to prepare profit and loss accounts and balance sheets Be able to review business performance using simple ratio analysis Be able to prepare a cash flow forecast Thank you for using this OCR resource Other OCR resources are available at www.ocr.org.uk To give us feedback on, or ideas about, the OCR resources you have used e-mail resourcesfeedback@ocr.org.uk ...OCR Level Cambridge Technicals in Business Unit 4: Business Accounting What is business accounting? Everywhere we look, we are confronted by... measure; manage and communicate business information What will you learn? After completing this unit you will: Understand the purpose of accounting and the categorisation of business income and