PRINCIPLES OF ACCOUNTS

INTRODUCTION TO ACCOUNTING PRINCIPLES

AIMS OF A BUSINESS

THE AIM OR ANY BUSINESS WHETHER SMALL OR LARGE IS TO BE SUCCESSFUL.

To achieve this, it is imperative that it practices sound management techniques:

 Employs competent and skilled staff

 Purchases goods/ services competitively
 Sell goods/ services competitively
 Manages finances
 Makes a profit

Basic concept of fi nancial control

Managing the financial aspect of any business is important to enable the business to trade effectively and create good
relations with suppliers and customers.

FORM A BUSINESS

TRADE WITH OTHERS

MONEY CIRCULATES

GOOD MONEY MANAGEMENT

 CONSTANT CASH FLOW

 CREATE CONSTANT CASH FLOW
 REMAIN IN BUSINESS

GOOD MANAGEMENT CONTROL BAD MANAGEMENT CONTROL

PROFIT LOSS

BUSINESS SUCCEEDS BUSINESS FAILS