Btec National Business Unit 5

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Wrotham School BTEC Task Sheet Front Cover Name of Centre: Wrotham School Title of Course: BTEC National Subsidiary Diploma in Business Studies Unit Number and Title: Unit 5: Business Accounting Name of assessors: Mr Williams Mr Toher Deadline for completion: Statement of Context: Understanding how a business operates and what makes it successful requires knowledge of the accounting process. This unit introduces you to the purpose of accounting and its role in the management of a business organisation. Accounting involves the recording of business transactions, and this in turn, leads to the generation of financial information, which can be used as the basis of good financial control and planning. Inadequate record-keeping and a lack of effective planning ultimately lead to poor financial results. It is vital that owners and managers of businesses are able to recognise the indications of potential difficulties. Remedial action can then be taken. In this unit you should develop the skills and knowledge needed to understand and manage finances. The unit is divided into two parts. The first is an understanding of the accounting processes necessary to provide accurate and relevant financial information. The second part is the practical aspect of carrying out those accounting activities. Scenario 1 Your friend, Carrie, started her own business just over 1 year ago. She is still excited about being her own boss and making a lot of money. Despite hearing that 50% of small businesses fail in the first year of trading, Carrie did not worry about her accounts. However, after a serious meeting with her bank manager Carrie is concerned that her business might be close to bankruptcy. To help prevent this happening, Carrie has been advised to seek some help with regard to her Accounts and Finances. As a BTEC National Business
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