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close this book Accounting for the microbusiness a teaching manual - A Handbook for Volunteers
close this folder The system
View the document The preliminary interview
View the document Lesson # 1
View the document Lesson # 2
View the document Lesson # 3
View the document Lesson # 4
View the document Installation of the system
View the document Follow-up visits
View the document Month end financial statements
View the document Analysis

The preliminary interview

 

THE INTRODUCTORY INTERVIEW

OBJECTIVES:

a. To establish a working relationship with the owner.

 

b. To study his learning potential and knowledge of accounting.

 

c. To understand every business transaction that the company makes in order efficiently organize the books.

MATERIAL AIDS:

Aid # 1. The Questionnaire.

PROCEDURE:

 

1.

This should be a loose interview session using the questionnaire as a guide.

2.

It should be conducted in the owner's company so that the teacher can get a first hand idea of the company's operations, review the firm's paperwork and look at any rudimental accounting system that might be in use. In this way the instructor should be able to judge the difficulty or ease that teaching this person may present.

3.

The understanding of all commercial transactions is indispensable. After the interview you should be able to state all the business policies of this company. This will include how postdated checks are issued, received and handled; whether the company incurs expenses or receives income from outside the business; who pays for the transportation of merchandise, etc.

4.

After the interview list all the accounts this company needs to carry and in what manner you ought to organize the books to facilitate entries.

5.

It might be pointed out that the teacher should not attempt to change the company's business practices at this point. He should only figure out how to account for them. During the lesson the concept of the separation of the owners' cash from that of the company will be introduced, Most fundamental business policy changes should be suggested only after the first month's financial statements are compiled. In this manner the instructor can demonstrate with facts how changes may improve the company's condition.