There cannot be just one manager in charge of

a large business if they want to work efficiently.

There must be managers at all levels of the
business to make sure that employees do their
jobs and so that the business can run smoothly.
Check out the following levels:

Top level management: They run the

entire business. The business's general
vision and goals are defined by them to
ensure that they are achieved.
Middle level management: They are in
charge of the different departments. There can even be 2 layers of this
type of management if the business is very large.
Lower level management: They work directly with the employees and
supervise what they do and also do administrative tasks such as
performance appraisal and disciplinary hearings.

Top level management functions

Give the various departments instructions for

budgets, policies and schedules.
Ensure that all departments stick to their budgets.
Ensure that all departments work together and
control what they do.
Ensure that all the departments are working to
achieve the objectives of the company.
Responsible for hiring middle managers.
They must be accountable to the company's shareholders, and ensure the
company performs well enough to keep shareholders satisfied.
Setting up the company's main strategies.
Provides guidance to all areas of the business.
Be held accountable for everything that happens in the company and set an
example for middle managers to achieve their goals.
Middle management functions

Carry out the instructions on strategies from the

top level management.
Ensure optimal functioning of lower level
managers.
Report all information about the business to top
level management.
Explain the policies and strategies of top level
management to lower level managers so they
know what they need to achieve.
Ensure that everyone in a department is working towards the same goals.
Provide training to lower level managers.
Planning for all sections.
Set a good example to lower level managers.

Lower level management functions

Provide instructions to all workers for their daily

activities.
Ensure that workers achieve their daily, weekly
and monthly targets.
Provide training to workers.
Ensure that workers remain disciplined.
Control the business's quality of work.
Provide information to middle management.
Responsible for solving the workers' problems.
Keep open communication with workers.
Provide work to the workers every day.
Ensure equipment remains in good condition.

Tasks performed by managers:

Planning.
Organization.
Provide guidance to workers.
Control the work done in the enterprise.

Planning

Planning is a very important part in any business.

Managers need to know who is responsible for which tasks.
That way they can be able to ensure that the job is done properly.
 To ensure that planning is successful in a company, the managers must know
what the company's objectives are.
They must be able to set goals and achieve them.

Organization

Managers must have very good organizational skills to ensure that all their
staff members can work effectively.
A very important part of organizing is the transmission of information.
The correct information must be transmitted.
So everyone in the company must have good communication skills.

Provide guidance to workers

Providing guidance to workers is a very

important management role.
The manager's job is to plan, organize and
coordinate.
Leaders are always looking for new ways to
do things more efficiently in an enterprise.
Managers have people who are paid to do
the work that their managers give them to
do.
You don't have to be a manager to be a leader.
You do need to have leadership qualities to be a good manager.

Control the work that is done in an enterprise

Managers must ensure that all members of staff are properly qualified to do
their jobs.
The manager is responsible for training staff who are not properly qualified.
Financial procedures must also be controlled.
Managers must also evaluate the work people do.
They must then give feedback to the staff members and by letting them know
what they are doing right and wrong.

Other responsibilities of managers

Besides planning, leading, organizing and controlling,

managers must also be able to make important
decisions.
Sometimes they have little time to make the
decisions.
They also have to make decisions that affect other
people's lives.
This includes having to lay people off due to
downsizing when you know they need the work.
Characteristics of good management

Is qualified for his or her job.

Has good skills to work with people.
Is reliable.
Always willing to go the extra mile.
Ensure that his or her workers are happy.
Take responsibility.
Is organized and punctual.
Always set a good example for others.
Have a positive attitude.

Different management styles

Management and leadership styles do not only occur in businesses.

For example, there are learners who are leaders in your school.

Autocratic management style

Autocratic leadership is a management style in which one person controls all

the decisions and takes very little input from other group members.
This management style works well in crisis situations.

Indulgent style

It is a management style where tasks are delegated to others and where they
are given freedom to make decisions about how tasks will be done.

Democratic or participative management style

Where managers and staff participate in the process

of getting tasks done.
It works well when you want your group to respect
you and also feel that they have an important role in
the company in completing tasks.

The principle of Dual Entries

Assets and equity sometimes increase and other times they will decrease.
According to the double entry principle, every entry on the debit side of the
account also has an entry on the credit side of another account.
When we apply the accounting equation B=E-L to the principle of the double
entry, we will see that both sides are balanced in both cases.
Assets

Debit side: When the left side of the accounting equation (assets) increases,
we must debit the account that changes.
Credit side: When the left side of the accounting equation (assets)
decreases, we must credit the account that changes.

Ownership interest

Debit side: When the right side of the accounting equation (owner's equity or
liabilities) decreases, we must debit the account that changes.
Credit side: When the right side of the accounting equation (owner's equity or
liabilities) increases, we must credit the account that changes.

T-bills

The left side is the debit side and the right side is the credit side.
According to the principle of double entries, an entry must be made on the
debit side of one account for every entry made on the credit side of an
account.
When we transfer something to Assets, we must transfer the same value to
Owner's Equity or Liabilities so that the Ledger balances.

Examples:

When the owner deposits money into his business:

Bank: Bank increases. Effect on accounting equation: Assets (+)
Capital: Capital increases. Effect on accounting equation: Owner's interest (+)

Purchase of equipment:
Bank: Bank reduced. Effect on accounting equation: Assets (-)
Equipment: Equipment increases. Effect on accounting equation: Assets (+)

Salary paid:
Bank: Bank reduced: Effect on accounting equation: Assets (-)
Salary: Salary increases, ownership decreases. Effect on accounting
equation: Owner's interest (-)

Receive current income:

Bank: Bank increases. Effect on accounting equation: Assets (+)
Current Income: Current Income increases, owner's equity increases. Effect
on accounting equation: Owner's interest (+)

Withdrawal:
Bank: Bank reduced. Effect on accounting equation: Assets (-)
Withdrawals: Withdrawals increase, owner's equity decreases. Effect on
accounting equation: Owner's interest (-)
General ledger

Steps: Transactions → Source documents → Auxiliary journals → General ledger

The General Ledger contains all the information about all transactions in the
company.
The transactions in the Cash Receipts Journal (KOJ) and Cash Payments
Journal (KBJ) must be transferred to the General Ledger.
The General Ledger has 2 sides. The Debit side on the left and the Credit
side on the right.

Divisions in the General Ledger

Balance sheet accounts:

Equity Accounts: Capital, Withdrawals
Asset accounts such as: Buildings, Equipment, Vehicles, Bank, Exchange.
Nominal Accounts:
Income Accounts: Current Income, Rental Income
Expense Accounts such as: Wages, Salaries, Water and Electricity, Consumer
Goods

All accounts in the General Ledger have a specific number, called a folio
number.
All Balance Sheet Accounts begin with B and all Nominal Accounts begin with
N.

The opening of accounts in the General Ledger

First all accounts must be opened.

Steps:
List all the accounts you will need and sort them by Balance Sheet and
Nominal Accounts.
Assign folio numbers: Use B for Balance Sheet Accounts and N for
Nominal Accounts.

Transfer from the CRJ to the General Ledger

We need to transfer the balances from the Cash Journals to the correct
General Ledger accounts.
The column totals are posted on the last day of the month.
Various accounts are transferred individually on the same day that the
transaction took place.
We do not post the total of the miscellaneous account.
We use the folio numbers to indicate where and from where the transfers are
made.
There is a direct link between the KBJ, the CRJ and the Bank Account.
All transactions appearing on the debit side of the Bank Account are
summarized in the CRJ, and all transactions on the credit side of the Bank
Account are summarized in the KBJ.
Balancing the General Ledger
Basic rules for balancing the General Ledger

Accounts with entries on one side of the account are simply added up. (a/b
stands for bring down)
Accounts with entries on both sides of the account we balance as follows:
Step 1: Draw lines for the totals on opposite sides exactly across each
other. Ensure that there is a line open on the side with the smallest
total to enter the amount of the balance.
Step 2: Pick up the largest side and write down the amount between
the lines on both sides.
Step 3: Calculate the shortfall on the side containing the smallest
amount and write the amount as Balance o/d (Balance carried over).
We do these 3 steps on the last day of the month.
Step 4: Bring down the balance on the opposite side as Balance a/b.
This will happen on the first day of the next month.

Preparation of the Trial Balance

When we have balanced all the accounts in the General Ledger, we must
check that we have indeed applied the principle of the double entry for all the
transactions.
The debit side and credit side must be equal.
For this we prepare a Trial Balance.
All the Balances are written on the debit side of the General Ledger accounts
in the debit column.
We then get all the totals of the debit and credit column.
If the totals are the same, we know that the debits equal the credits.
The Trial Balance then balances.
If the Trial Balance doesn't balance, we know something is wrong.
We then have to go through all the transactions again and make sure they
were correctly posted.

Errors that may occur in the Trial Balance

Picked up wrong.
Duplicate entries not enforced everywhere.
CRJ or KBJ was picked up incorrectly.
Amounts were incorrectly transferred to the General Ledger.
Transfer has been transferred to the wrong side.
Accounts are not balanced correctly.

Errors that do not appear in the Trial Balance

Transactions that were not accounted for.

Incorrect amounts were entered on both sides.
Subscription profit is on the correct side of the wrong account.