22566 Accounting for Small Business 1

Subject level: Undergraduate

Handbook description

This subject develops the knowledge and skills required by accountants in dealing with the problems which are unique to their professional work in the small business sector. It highlights and emphasises the practical matters associated with the initiation and growth of a small business.

Topics covered include: an overview; the requirements of establishing a business – the steps and structures; economic business cycles' growth and future; acquiring and/or financing the business; accounting – records, control, costing and pricing; financial analysis and management; appraisals and acquisitions; the growing trend towards franchising as a form of small business; taxation and tax planning; insurance and risk; business disaster planning and recovery; and business and financial planning and budgeting.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. develop the knowledge and skills required by accountants in dealing with the problems which are unique to their professional work in the small business sector
2. highlight and emphasise the practical matters associated with the initiation, growth and operation of a small business
3. appreciate the particular requirements of small business in regard to raising finance
4. prepare a financial feasibility study and business plan for a small business and present it to a bank for funding approval.

Contribution to graduate profile

This subject provides the first indepth study of the operation and management of a small business as an introduction to the Small Business sub major. As such the course differentiates the particular nature of small business and the skills and techniques which are relevant to small business accounting.

Teaching and learning strategies

Class contact will be three-hour lectures for 12 weeks followed by a student presentation of a business plan prepared for their selected small business. The lectures are supported by six assignments covering the practical application of topic areas covered during lectures. Students are expected to seek out a small business and through discussions and building up a relationship, then undertake research on relevant aspects of small business management and to finally prepare a business plan and on behalf of that small business. The subject combines a varied and condensed material format with a diversity of learning techniques. Range of knowledge and the understanding of practical principles require that the subject be undertaken at an advanced level.

Content

• Background of small business sector
• Selecting a business structure
• Legal and statutory requirements for business structures
• Statutory requirements and taxation
• Accounting records, internal control and security
• Financial analysis and management
• Financing the business
• Appraisals, acquisitions and valuation,
• Franchising
• Business plans and feasibility studies.

Assessment

Assessment item 1: Weekly project work/assignments

Assessment item 2: Final business plan and presentation

Required text(s)

Petty, John, 2000, Australian Business Toolkit, Sydney, CCH