Bookkeeping 101: A Comprehensive Guide for

the Self-Employed
By Evan TanAugust 8, 2018How To
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Your books of accounts will give you a
clear image of how your business is doing
today.
Staying on top of your books of accounts will help you learn how to compute tax and
run your business better.
 Knowing where your money goes will help you create effective business decisions. It
will also save you from forgetting your tax dues and getting penalties.
Bookkeeping 101
Bookkeeping is a necessary part of running a business. It is vital to know where your
money goes and how it’s spent, no matter how big or small your business is.
It is a systematic recording and organization of financial transactions for your
business.
Most of the time, bookkeeping gets interchanged with accounting. But the difference
is quite clear. Accounting is all practice of financial management. Bookkeeping refers
to tasks that you do in recording financial activities.
Bookkeeping may include management of the following:
 Expense payment tracking
 Loan payments
 Customer payments
 General financial reports
 Asset monitoring
Every taxpayer needs to prepare and manage the following books:
 CASH RECEIPTS  – These are sales receipts you get every month. It divides into
Vatable and Non-vatable sales, and include the Output VAT.
 CASH DISBURSEMENT – Keeps track of cash issued. Purchases are set into
Vatable and Non-vatable purchases as well as the Input VAT.
 GENERAL JOURNAL – It’s the record of debits and credits made in the accounts.
 GENERAL LEDGER- It shows the summary of debits and credits made by the
company
 

Types of Books for Bookkeeping

Here are some of the books that you can file for bookkeeping.

Traditional Books of Accounts

These books are usually encoded by hand. It is also the most popular type of books
filed by small enterprises. It costs less and is the most popular type of books of
accounts registered with the BIR.

Loose-leaf Books of Accounts

These books of account are bound journals and ledgers from printed excel
spreadsheets. There might be a need for you to justify why you chose this method
instead of traditional books. And sample printouts may need to be book-bound before
submission to BIR for stamping.
 Computerized Books of Accounts
These books use computer-based apps that enable efficient and fast record keeping. If
you decide to go with this, the system you should use should be BIR-registered.

Examples of these books include Quickbooks, Peachtree, and MYOB.

Books of Account Requirements for Businesses
Here are the requirements for freelancers, sole proprietors, and businesses in retail.

Books of Accounts for Freelancers

For freelancers, you will need the following to create and register your book of
accounts.

 2 copies of BIR Form-1905

 BIR Certificate of Registration photocopies
 Books of accounts including general journals and general ledger. This also includes
your cash disbursement and cash receipt journal.
Books of Accounts for Sole Props Engaged in Service
If you’re a sole proprietor who sells services, here are the requirements you need.

 BIR Form 1901 – Application for Registration for Self-Employed and Mixed
Income Individuals, Estates and Trusts
 Bound books of accounts for registration or stamping. You will also need bound
journals and/or ledgers
 Proof of Payment of Annual Registration Fee (BIR Form 0605) – current year.
Read more about bookkeeping tips for the self-employed here.
Books of Accounts for Business Engaged in Sale of Goods/Retail
Here are the requirements you need if you are a retail business selling goods.

 BIR Form 1903 – Application for Registration for Corporations/Partnerships

(Taxable/Non-Taxable) Including GAIs And LGUs
 Bound books of accounts for registration or stamping. You will also need bound
journals and/or ledgers
 Proof of Payment of Annual Registration Fee (BIR Form 0605) – current year.
Four Key Steps in Bookkeeping Basics
Every small business needs to learn what they need to do for bookkeeping. Here are
the steps to get you started.

1. Collect all the documents you need, including bank statements, check and deposit
records. You will also need vendor bills, purchase receipts and invoices. 
2. Record this information from the source documents to your books.
3. Perform procedures like balancing accounts and reconciliations
4. Close the books.
Why You Need Bookkeeping in your Business
Bookkeeping gives you a clear idea of how you are handling your business.
Monitoring how cash flows help you make better business decisions. It also gives you
an idea of what strategies to use to grow your business.
It also saves you much needed time and energy when it comes to filing your taxes.
Keeping track of your expenses and cash flow also helps make sure that you’re not
missing any deductions.
Proper bookkeeping also lets you report to your investors easier. Investors need to see
the crucial information about your financial status. This will help them decide if
you’re worth the investment.
You also avoid any issues with the government if you file and report your taxes.

Bookkeeping Tips You Need to Know About

Here are the bookkeeping basic tips every business owner and freelancer must know.

Double entry bookkeeping

In the double-entry system, every financial transaction has equal and opposite effects
in at least two different accounts.
 For example, you spent P3,000 for premium Angus beef for your restaurant. At first
glance, you’ll think that you’ve lost P3,000. But you’re adding the beef to your
inventory and will use it to create dishes to sell to customers.

So in your system, the entries should be like this:

Inventory: +P3,000
Cash account: -P3,000
The double-entry system shows you the loss of cash and the gain in the inventory.  It
helps you see what’s happening to your business

Keep financial records

There are three main sets of records that you need to maintain – cash book, sales
invoice file, and purchases invoice file.

Cashbook refers to the payments into and out of your bank account.  To have a clear
picture of your financial forecast, it is best to keep this updated.

You can keep your sales invoice file via Word or online accounting systems. It’s also
wise to make notes on invoices, including when you paid them and how.

Here are the other accounts you can create to track your finances:

 Accounts payable or the money you owe to others

 Payroll expenses or your staff salaries and other costs
 Owners’ Equity or the amount you put into the business
 Purchases or supplies you buy for your business
 Retained Earnings or the profits you get
Understanding assets, liabilities, and equity
The accounting equation that can help you balance your books
is Assets=Liabilities+Equity.
To balance the books, you have to understand these initial bookkeeping terms.

Assets – This refers to the property or equipment that you purchased only for your
business. Examples include buildings, inventory, office furniture, and cash.
Liabilities – This is your business’ financial obligations while your business operates.
It includes income taxes payable, salaries payable, and customer deposits.
Equity – This includes all the claims the owners have against the company.
Get help if you need it
Bookkeeping can be a complex process as your business grows. A single transaction
can be time-consuming. Some transactions may involve several entries and may
overwhelm you.

It would be best to hire a professional accountant or bookkeeper to help you.  But

better yet, there are online platforms available such as Taxumo, which can quickly
generate the entries that need to be in your various books of accounts in the correct
format.
Based on the income and expenses you’ve entered, Taxumo can quickly generate the
entries that need to be in your various books of accounts in the correct format.

All you have to do is enter your income and expenses. No more printing, paperwork,
or submitting forms to the BIR.

Keeping your books of accounts need not be complicated.

How to Start a Bookkeeping Business From Home

Whether you've been working as an accountant or bookkeeper for a private company, or just think
that bookkeeping might be the career for you, bookkeeping is a business that you can run from your
home. The challenge, of course, is finding enough clients to earn the type of salary that you need.
Fortunately, many small businesses do not have enough work to make a full-time bookkeeper
financially feasible, so there are customers out there. Market your skills correctly and you'll have a
large client base.

1. 

Train to be a bookkeeper. If you don't already have an education and experience, it's wise to take a

bookkeeping course. Most community colleges offer them, but you can also find them online. You do not need

to become a Certified Professional Accountant (CPA) to be a bookkeeper, though doing so will increase the

variety of services that you can provide to your clients.

2. 

Sign up for a P.O. box at the post office. Most bookkeepers will have to meet with clients in their home office,

but you don't necessarily want to publish your address for just anyone. A P.O. box can help you maintain your

privacy when you are advertising your services.

3. 

Register your business with the government. Laws vary by state. Talk to your local Department of Commerce

and Department of Licensing to receive the forms that you need to establish your business and to learn if you

need a license to do bookkeeping. For example, in Texas, you register your business through the Department
of State and you need a license to be an accountant, but not a bookkeeper. You can notify the federal

government of your business by applying for an Employer Identification Number (EIN). You can also create a

business name for yourself and file a "Doing Business As" or "DBA" notice.
4. 

Set up a separate space in your home. Remember that you will be meeting with clients, so your work area

shouldn't just be a laptop on your kitchen table. If possible, use a separate door to enter the space. Have

comfortable seating for clients and set up your computer so that you can show them screens if necessary.
5. 

Create marketing materials advertising your services. This should include a business card that has your phone

number and a simple pamphlet that lists the bookkeeping services that you provide, such as general record

keeping, tax preparation and payroll services. Discuss your experience and what you can do to help the

business.
6. 

Send your marketing materials to new businesses that are opening in your area. Many new business owners

will soon find that the finances are a bit more than they can handle. Find these new businesses by joining your

local Chamber of Commerce or by reading the newspaper for DBA listings.

Certified Public Bookkeeper (CPB)

Overview
Accreditation
The Certified Public Bookkeeper (CPB) license is accredited by the National Association
of Certified Public Bookkeepers (NACPB). The license is recognized throughout the
United States and its properties.

Overview
The CPB license is the premier accreditation for bookkeepers providing bookkeeping
services to small businesses and nonprofit organizations. The license allows you to
place "CPB" behind your name and assures clients of your bookkeeping knowledge,
skill, experience, and ethics.

The nationally recognized license helps you:

 Distinguish yourself,
 Build credibility,
 Validate bookkeeping knowledge,
 Demonstrate bookkeeping skill,
 Verify bookkeeping experience, and
 Confirm professional ethics.

The license validates your knowledge, skill, and experience in:

 Bookkeeping,
 Accounting Principles,
 Payroll, and
 QuickBooks.

You obtain and maintain your license by:

1. Passing a four-part exam,

2. Verifying bookkeeping education and experience,
3. Agreeing to abide by a professional code of conduct, and
4. Maintaining 24 hours of continuing professional education (CPE) each year.

Requirements
1. Pass the four-part Uniform Certified Public Bookkeeper Examination,
2. Possess an associate or bachelor's degree in accounting or complete the
Education Alternative,
3. Possess one-year (2,000 hours) of bookkeeping or accounting experience,
4. Agree to abide by the Code of Professional Conduct,
5. Obtain 24 hours of CPE credit each year, and
6. Complete and submit the Application for Licensure.

Education Alternative
If you do not possess an associate or bachelor's degree in accounting, you may
substitute the requirement by passing the following courses:

1. Accounting Fundamentals
2. Accounting Principles
3. Payroll Fundamentals
4. QuickBooks Fundamentals (Desktop) or QuickBooks Online Fundamentals

CPB Application for Licensure

You should not complete the CPB Application for Licensure (Application) until you
have passed the Uniform Certified Public Bookkeeper Examination, possess an
associate or bachelor's degree in accounting or completed the Education Alternative,
and agree to abide by the CPB Code of Professional Conduct. The 24 hours of CPE
credit annual requirement begins once you obtain your CPB license.

The Application is available as a downloadable, fillable PDF file. PDF reader software,
such as Adobe Acrobat Reader, is needed to view or print the document. The Reader
is available as a free download from the Adobe website.

To download the Reader, click here.

To access the Application, click CPB Application for Licensure.

Accounting Fundamentals Exam

Competency
The Accounting Fundamentals Exam is used to test the candidate's bookkeeping and
accounting competency. The Exam consists of 50 multiple choice questions and
simulations. To pass the Exam, you must receive a minimum of 75% (37 out of 50
questions).

The Exam tests the following:

 Accounting: The Language of Business

 Analyzing Business Transactions
  Analyzing Business Transactions Using T Accounts
 The General Journal and the General Ledger
 Adjustments and the Worksheet
 Closing Entries and the Postclosing Trial Balance
 Accounting for Sales and Accounts Receivable, and Cash Receipts
 Accounting for Purchases, Accounts Payable, and Cash Payments
 Cash
 Payroll Computations, Records, and Payment
 Payroll Taxes, Deposits, and Reports
 Accruals, Deferrals, and the Worksheet
 Financial Statements and Closing Procedures

Accounting Principles Exam

Competency
The Accounting Principles Exam is used to test the candidate's accounting principles
(GAAP) competency. The Exam consists of 50 multiple choice questions and
simulations. To pass the Exam, you must receive a minimum of 75% (37 out of 50
questions).

The Exam tests the following:

 Accounting Principles and Reporting Standards

 Accounts Receivable and Uncollectible Accounts
 Notes Payable and Notes Receivable
 Merchandise Inventory
 Property, Plant, and Equipment
 Accounting for Partnerships
 Corporations: Formation and Capital Stock Transactions
 Corporate Earnings and Capital Transactions
 Long-term Bonds
 Financial Statement Analysis
 The Statement of Cash Flows

Payroll Fundamentals Exam

Competency
The Payroll Fundamentals Exam is used to test the candidate's payroll competency.
The Exam consists of 50 multiple choice questions and simulations. To pass the
Exam, you must receive a minimum of 75% (37 out of 50 questions).

The Exam tests the following:

 The Need for Payroll and Personnel Records

 Computing Wages and Salary
 Social Security Taxes
 Income Tax Withholding
 Unemployment Compensation Taxes
 Analyzing and Journalizing Payroll Transactions

QuickBooks Fundamentals Exam

Competency
The QuickBooks Fundamentals Exam is used to test the candidate's QuickBooks
competency. The Exam consists of 50 multiple choice questions and simulations. To
pass the Exam, you must receive a minimum of 75% (37 out of 50 questions).

The Exam tests the following:

 Introducing QuickBooks
 Managing Expenses
 Sales and Income
 More Customer Transactions and Reports
 Bank Reconciliation and Bank Transactions
 Reports
 Customizing QuickBooks
 Tracking Inventory
 Billable Time and Costs
 Payroll Setup
 Payroll Processing
 Adjustments and Year-end Procedures
  Setting Up a Company File

QuickBooks Online Fundamentals

Exam
Competency
The Exam is used to test the candidate's QuickBooks Online competency. The Exam
consists of 50 multiple choice questions and simulations. To pass the Exam, you must
receive a minimum of 75% (37 out of 50 questions).

The Exam tests the following:

 QuickBooks Online Navigation and Settings

 QBO Chart of Accounts
 QBO Transactions
 Banking
 Customers and Sales
 Vendors and Expenses
 Inventory
 Employees and Payroll
 QBO Adjustments
 QBO Reports

How to start a bookkeeping business

Accountant & Bookkeeper Guides

6 min read
If you've ever thought of starting a bookkeeping business, now's the time. There are fewer barriers to
entry than ever. Read our seven tips on how to get started.
 

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Why not?
The benefits of starting a bookkeeping business are hard to deny. You can choose your own
schedule, decide how much you get paid, and be selective about who you work with.

Plus, with smart technology, it's getting easier to set up. So why not jump in? Here are seven
tips to starting a bookkeeping business.

1. Design your business model

Understanding why you want to be a bookkeeper and why you want to work with small
business is essential. This will form the foundation of your business model. Ask yourself:

 Who do I want to serve?

 What solutions am I going to provide?

 How am I going to deliver these solutions?

Consider your end goal: are you building a business to sell on? How many employees do you
want? Do you want your business to go global?

Knowing where you eventually want to end up is helpful when you begin planning. It will guide
how you do business, whether you want to hire anyone, what kind of clients you want to take
on, and how hard you’ll chase new business.

It’s also helpful to develop a contingency plan in case you’re unable to work for a period of
time. Whether this is due to illness or a family matter, it’s incredibly helpful for your brand if
you’re able to offer your clients a suitable alternative.
2. Getting set up
With the right software and apps it's easy to work with people wherever you are in the world.

You don’t need a huge amount of infrastructure to get started. Get a computer, a mobile and
then get online.

Online accounting software will let you look at accounts at the same time as your client. This
means you can talk through their questions over the phone, reducing the number of meetings
you have.

Smart accounting software will also allow automatic data entry, daily bank reconciliation and
payroll.

You should also consider practice management software. These tools enable you to manage
workflows and get your business in order. They come free with some accounting software and
are getting smarter all the time.

Shop around for your software, and don’t just look for in-product features. If the provider has a
partner program, it will help you grow your business.

3. Narrow your focus: who is your ideal client?

Accounts payable, bank reconciliations, inventory management, tax returns? What are you
going to offer as in your newly started bookkeeping business?

Maybe you'll focus on serving a niche like real estate or construction? By positioning yourself as
a specialist, you’ll be able to target your marketing and talk specifically to one audience.

It's tempting to offer everything in an attempt to attract prospective clients. But if you aren't
able to deliver on what you promise, you could get yourself into trouble. Start small and don’t
over promise on what you’re able to do.

Once you’ve identified your ideal client, then you can put specific solutions together for them.

Combine relevant services into packages and offer them to your client that way. This allows
them to choose the general service level they want. You can then work together to customise
the package to their specific needs.

Present the packages in person or on a call, so you can walk your clients through them. Once
you've agreed on a package of services, set the fees upfront. Don't advertise fees on your
website – remember it’s about pricing the client and not the service. 
Offer your clients multiple convenient payment options, such as credit card, GoCardless, Stripe,
or electronic transfer.

4. Build a digital presence

Think of your website and digital presence as your shop front. It should communicate clearly
who you are and what you do.

Your website should be clean, uncluttered and informative. Think about the kind of information
you'd want to see and consider what you’d leave out.

Make your website personal. Show your passions and personality. Put yourself in the shoes of a
prospective client. Why would they want to contact you over another bookkeeper?

A good social media presence is as important as a good website. Facebook, Twitter and LinkedIn
can all help you reach prospective clients. Set up a Facebook business page that clearly outlines
the services you offer.

5. The importance of networks

Setting up a bookkeeping business as a sole practitioner can be a little isolating. Connect with
your peers.

Networking opportunities exist through social media channels and industry organisations. With
online networking you can find like-minded bookkeepers who use the same software, serve the
same industries, or work in the same area.

6. Have confidence in yourself

One of the biggest challenges that people face when starting out is confidence and motivation.

Give yourself confidence in your abilities by being your best client. Keep your books up-to-date
and in order. It will make you feel good about your work.

Stay motivated by referring back to your plan. What are your goals? What’s driving you? Keep
these in mind when you’re faced with decisions like taking on an extra client, increasing your
fees, or hiring your first employee.

To learn more about the ins and outs of setting up your own business, check out our small
business guide on how to start a business.

7. Remain open-minded
While you’ll set yourself up to succeed, you need to be willing to admit when things go wrong.
Learn from your mistakes, adapt your plans, and change them if required.

Open yourself up to new ways of working, too. Take advantage of apps that can:

 give your practice an edge

 make business easier for your clients

Take advantage of courses and training to learn new skills and expand your service offering.
Don't be afraid to increase fees as your capabilities grow.

Where to start
Starting a bookkeeping business is going to take a lot of effort, but the barriers to entry have
never been lower. There are great tools to work with, and there are plenty of people to support
you. Bookkeepers have an awesome community.

You’ll find all the resources you need to get started, free, through the Xero bookkeeping
partner program.

Philippines Bookkeeping Services

All businesses registered in the Philippines must comply with the Philippines
Bureau of Internal Revenue bookkeeping regulations. These regulations
apply to corporations, branch offices, representative offices, ROHQ, RHQ and
partnerships.
Bookkeeping is the recording of financial transactions, and is part of the
process of accounting in business. Information extracted from the
bookkeeping will be used to evaluate a company’s financial position.
Dayanan can assure your business financial reports are accurate, reliable
and clear by providing the following bookkeeping/accounting services done
by our registered certified public accountants. We offer the following
services:

Dayanan Bookkeeping Services

Accounting and Bookkeeping

We carry out a complete and accurate record keeping of your business
transactions.  We use accounting software for efficient bookkeeping
processing to maintain correct and up-to-date financial records. We ensure
that our recording process is in compliance with the latest financial
accounting standards.

Our services include the following:

 Chart of Account Set-up and Management

 Set-up of Accounting System and General Bookkeeping Set-up
 Accounts Payable Processing (Voucher System)
 Accounts Receivable Management
 Fixed Assets Management
 Expense Report Processing
 Bank Reconciliation
 Payroll Services
Management Accounting
Our management accounting services give your Company a deeper
understanding of your internal business operations, these reports allow your
Company’s board of directors to make profitable financial decisions.

Our CPAs can prepare the following reports:

 Profit and Loss vs. Budget Comparison

 Cash Forecast and budgeting
 Revenue Projections
 Preparation of other Management Reports as required
Financial Controlling
Outsource your financial controlling to Dayanan Business Consultants, a
more cost – effective solution than hiring an internal finance and Accounting
Team.  Services include:
 Internal Control Set-up
 Accounting and Financial Policy Set-up
 Set-up of Receivable and Payable Procedures and Policies
 Analysis of Financial Reports
Financial Analysis
An important tool in your management’s decision making is the evaluation by
our CPAs of your company Financial Information.
Some of the financial analysis services, your company can outsource are:
  Profitability Analysis
 Review of Sales Contracts and other contracts for impact on accounting
policies
 Product Cost Calculations
Statutory Reporting and Compliance

Dayanan will ensure that your Company complies with Philippine Accounting
and Reporting Standards, Bureau of Internal Revenue Regulation and filings
with all government agencies.
 SEC Reporting
 Period – End Reporting (Quarterly, Annually etc.)
 BIR Mandatory Reports (Monthly, Quarterly and Annual Reports)
Submission of the following reports

 Expanded Withholding Taxes (BIR Form 1601-E)

 Final Withholding tax Returns (1601 – F)
 Value Added Tax Returns (2550M and 2550Q)
 Income Tax Returns (1702Q)
 Compensation Withholding Taxes (1691-C)
 Certificate of Creditable Withholding Taxes (2307)
 PEZA Reporting compliance
 Payroll Compliance
Transfer Pricing
The Bureau of Internal Revenue (BIR) is now enforcing compliance with
Transfer Pricing Regulations. All foreign owned companies in the Philippines
must present to the BIR upon request, a Transfer Pricing Analysis Study to
justify their income from their parent company, subsidiaries and affiliates.
Dayanan can prepare a complete Transfer Pricing Analysis encompassing:

 Transfer Pricing System Design

 Year End Adjustment
 Risk Management
 Transfer Pricing Control Framework
 Benchmarking
 PRO Industry Solution
Audit Support Solutions
  Outsourcing of Auditors that meets your Company’s requirements
 Assist in your audit preparation of your financial reports
 Special Audit Services (fraud audit, internal control compliance etc.)
We are your hands-on partner and advisor, it’s our duty to provide services
with the highest standards of professionalism and integrity. Contact us for
an evaluation of your bookkeeping and accounting requirements.

How? (Not Why?): The Road to

Becoming a Certified Bookkeeper
POSTED ON APRIL 13, 2015BY STVENSONTUPASPOSTED
IN BOOKKEEPING, CERTIFICATION, EDUCATIONTAGGED ACCOUNTING, BOOKKEEPING, CAT
LEVEL 1, CERTIFIED, CYCLE, EXAM, NIAT, PHILIPPINES, UNITED KINGDOM
 
 
 
 
 
 
5 Votes

The Accountancy program in our curriculum includes a National Institute of

Accounting Technicians (NIAT) Certificate in Bookkeeping, as stated in our college
catalogue. However, surprise met me eye to eye when I was informed by my
classmate that upon his inquiry to the Accountancy OIC and the Management
Accounting Chairperson, they answered that we are not required but encouraged. At
that instance, though surprised, I was not regretful of paying the examination fees of
Php 2,500.00 (discounted price for students) since my payment will be refunded by
Menzi Trust Fund Inc., my ever benevolent grantor.
One has to pass the Certified Accounting Technician (Level 1) Exam to become a
member of the Institute of Certified Bookkeepers, thereby having the right to use the
MICB suffix. In the Philippines, such certification is not much recognized by hiring
professionals but in the United Kingdom, it is highly acknowledged; that is, if one
intends to work as a bookkeeper. For further information about how this certification
and other certifications (i.e. CAT Level 2 Exam- Registered Cost Accountant, CAT
Level 3 Exam- Certified Accounting Technician) can boost your CV, please
visit niat.edu.ph.
 Earlier, I took the exam for which I have prepared for seven days. The test officially
started at 8:30 AM and ended at 12:30 PM. We were given four hours to read,
analyze, and comprehend the problem and to write the requirements. Yes, you were
right at reading it: problem—without an “s,” indicating singularity. Last year, the
exam was a mixture of problem-solving and essay-type questions. In fact, two BS
Accountancy graduates from our school, University of St. La Salle, got a 100% rating.
But after having answered the exam administered to us earlier, I can say that I can’t
get a perfect score. I studied about internal controls, special journals, single-entry
bookkeeping, cash to accrual basis of accounting, correction of errors, ratio analysis,
and the voucher system, among others but none of these came out in the exam. The
CAT Level 1 Exam has four modules:

Module 1: Review of Bookkeeping Skills

Module 2: Completing the Accounting Cycle
Module 3: Constructive Accounting
Module 4: Special Journals
None about Modules 3 and 4 came out in the exam; by none is meant 0/100. Seems
easy, eh? Yeah, it wasn’t hard but it was tiring—tiring to the extent that your
weariness impedes your ability to analyze and your knowledge reservoir has turned
into a pitcher with few mL of liquid that you need to turn upside down for that little
knowledge to drop. Simply, tedious.

Our review focused on challenging topics especially in constructive accounting. One

of our reviewers even said, “It’s close to impossible that they will let you create a
worksheet for that will consume a large amount of your time.”

As soon as we received our final papers (questionnaire and answer sheet), we began to
answer. It is important for one to write his e-mail address correctly because results
shall be sent there. The exam was simple. There is not much detail to analyze or
confusing information, except for one which, I believe, made me the only one to have
erred—foolishly. The problem used up about 3 and a half pages; the rest of the pages
are for the answers. We were asked to do the steps in the accounting cycle:

1. Journalize the transactions without minding the posting references and explanations
(31 points).
2. Post them to the ledger accounts and create an unadjusted trial balance. Create a 10-
column worksheet (8 points)
3. Make the adjusting entries and post the adjustments to ledger. Complete the
worksheet (24? points).
4. Prepare a Statement of Financial Condition.
5. Prepare a Statement of Changes in Equity.
6. Prepare a Statement of Comprehensive Income.
7. Journalize the closing entries (4 points).
8. Make a post-closing trial balance (6? points).
9. Journalize the reversing entries (5 points).
I cannot remember the distribution of points to every requirement but the total number
of points is one hundred (100). Finally, the exam, which was good for four hours, is
done. Now, I have to extend my waiting, no agony involved since I’m not overly
concerned, to 2-3 months. Still, I pray for favorable results.

By the way, agony will be involved again upon release of exam results for both
parties. For examinees who failed, agony will be present for an obvious reason. For
the qualifiers, why? It’s because the annual membership dues are close to a hundred
bucks.