Bank Accounting for Beginners - Part 3

This 4-part series will be held January 21, 25, 27 and 29. You can register for the series HERE.

Designed for bankers new to the accounting department and those seeking a refresher course on the basic accounting concepts targeted for the activities of a financial institution. This series will cover:

  • General application of accounting practices to include a discussion of double-entry accounting, the general ledger and the flow of accounting transaction activity into a balance sheet and income statement.
  • The impact of debits and credits posted to the major categories of assets, liabilities, equity, income, and expense. 
  • An overview of the Accounting Standards Codification (ASC) and the concept of Generally Accepted Accounting Principles in the United States (U.S. GAAP) and the role of the Financial Accounting Standards Board (FASB).
  • Examples and exercises to illustrate accounting transactions for major asset, liability, equity, income, and expense items will play a significant role in the learning experience.
  • Beginners discussion on the principles of consolidation with examples and sample consolidating schedule.
  • Discussions related to basic and important internal controls with description of why controls are important to the overall accounting and financial reporting process of the institution.
  • Take-away exercises will be provided to participants after each session.

Covered Topics

The webinar series will generally cover all major asset, liability, equity, income, and expense line items in a financial institution’s basic balance sheet and income statement.

January 21, 2021 Series Part 1: The first webinar will explain general accounting practices to include a discussion of double-entry accounting, the general ledger, and U.S GAAP. This part will also focus on the major interest bearing asset categories to include cash, investment securities and loans and the associated income and expenses that flow to the income statement. Accounting entry examples and exercises will be provided.

January 25, 2021 Series Part 2: The second webinar will focus on non-interest bearing assets to include premises and equipment, other real estate owned and prepaid expenses, to include the associated expenses that flow to the income statement. This part will also look at the practice of accruing for future expenditures and other liabilities, to include a discussion on official checks and the associated debits and credits that keep the bank’s official checks in balance. Accounting entry examples and exercises will be provided.

January 27, 2021 Series Part 3: The third webinar will focus on a interest bearing liabilities, to include deposits, and borrowings, and debt, and the associated interest expenses that flow to the income statement. The capitalization of interest payable on deposits accounts and the handling of debt issuance costs will also be discussed. Accounting entry examples and exercises will be provided.

January 27, 2021 Series Part 4: The fourth webinar will focus on the equity section of an institution’s balance sheet, to include the basic concept of common equity instruments and the roll forward of the current year’s net income or net losses intoin to the equity equation. Accounting entry examples and exercises will be provided. The basic concepts of consolidation accounting will also be discussed in this last part of the series.

Who Should Attend?

The course is designed for those who are new to bank accounting or those who are looking for a refresher on the accounting practices and basic components of the balance sheet and income statement of a financial institution. Time should be allowed for post-session follow up work on accounting exercises provided as part of the learning experience.