ICB Ultimate Bundle Plus Sage 50 Pro *Exams Included*

Your route toward Fellowship status with the ICB!

  • ICB exam fees, in-house mock exams and registration fees to the value of £1285 are all included with this package.
  • Includes Sage 50 Professional Beginners, Intermediate and Advanced Training with associated Certification.
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  • *FREE Start Your Own Bookkeeping Business course*

Our New Ultimate Bundle now contains more materials, lessons, examples and activities than ever before.

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As a member of the ICB, Level 3 is considered to be the minimum level of skill and qualification required to enable you to trade as a Self Employed Bookkeeper.

This ultimate bundle includes every course currently available under the banner of the ICB PLUS all associated exams.

Includes

  • Personal mentoring and business advice once you have completed your studies
  • In-house mock exams, ICB exams and all associated booking fees to the value of £1285
  • Printed Workbooks containing lessons, examples, activities and assessments, plus Model Answers Workbooks PLUS 3 x Workbooks covering Sage 50 Professional Beginners, Intermediate and Advanced, all to the value of £1950
  • All support and associated software to the value of £1590
  • Unlimited access to BrightPay Payroll Software
  • 24/7 Online ROGO Assessments
  • 3 months access to Sage Business Cloud software for the A3 unit
  • 6 months access to Sage 50 software
  • Over 100 Activity tests and answers
  • Tutor marked Assessments
  • Enhanced Learning resources
  • Award winning expert subject tutor support by e-mail and telephone
  • Guaranteed same day assignment marking
  • FREE Start Your Own Bookkeeping Business course
  • FREE syllabus updates if required
  • FREE repeat lessons
  • New Online ICB exam simulation tests with tutor feedback
  • 12 Months ICB Student registration fee
  • Free Postage and Packaging within the UK
  • FREE access to ICB’s award-winning membership benefits scheme, ICBenefits
  • ICB Exam Fees Included

On completion of your Level 3 studies, you can upgrade your ICB membership status to Member and use the designatory letters ‘MICB’ after your name, plus tap into the professional support and resources available from the Institute of Certified Bookkeepers. Once all courses have been completed (and all exams passed), you will be able to contact the ICB directly to seek full Fellowship Status and use the designatory letters ‘FICB PM Dip.’ after your name. Furthermore, completion of this ultimate bundle will mean that you will be able to offer more services to your clients than ever before!

Prerequisites

As this package is designed for the complete beginner, there are no prerequisites for this course. However, you must have basic numerical skills and a good understanding of the English language.

Online Enhanced Learning Resources.

We significantly reduce the amount of time taken to complete our courses by eliminating the time consuming elements. This includes waiting for assignments to be marked and questions to be answered by tutors or student support services. Many assignments are now taken online with instant marking and answers along with extra self tests and examples. Added to this we have various online resources enabling you to access your content and take tests wherever you have an internet connection. There is no reduction whatsoever in the learning content and outcomes! Statistics prove we have a higher completion rate than all other colleges combined.

Duration

Approximately 595-745 hours average study time with Enhanced Learning. We appreciate that this can seem quite daunting, but we give you up to 5 years to complete this bundle. This equates to roughly 2.5 hours of study per week. The more hours you can dedicate to your studies, the quicker you will be able to complete your studies.
7 hours per week would equate to you completing the entire package within 2 years.

NB – Sage 50 software not compatible with macs. We suggest using Apple Bootcamp to install Windows.

Level 2

‘A1’ Bookkeeping: 

  • The role of the bookkeeper
  • Types of businesses
  • The concepts of Business Entity and Historic Cost
  • Setting up the Bank Account
  • The Analysed Cash Book
  • An Introduction to Double Entry Bookkeeping
  • The concept of Duality
  • Correction of Errors
  • The Journal
  • The Cash Account
  • Two Column Cash Book
  • Debit and Credit Cards
  • Payroll Transactions
  • Credit Transactions
  • An Introduction to Value Added Tax
  • Business Documents
  • Calculating VAT
  • Discounts
  • VAT and the Ledgers
  • Petty Cash
    • Practice activities with model answers
    • Online Knowledge tests
    • Practical assignments
  • Mock Exam
  • Online Mock Exam

‘A2’ Bookkeeping

  • Day Books
  • Control Accounts
  • Three Column Cash Book
  • Bad debts
  • Sale of an Asset
  • Bank Reconciliation
  • Paying the VAT bill
  • The Construction Industry
  • Withdrawal of funds by partners and directors
  • Foreign Transactions
  • Relevant Legislation
    • Practice activities with model answers
    • Online Knowledge tests
    • Practical assignments
  • Mock Exam
  • Online Mock Exam

‘A3’ Bookkeeping

  • Setting Up a New Business
  • Getting Started
  • Rebuilding data & manual configuration
  • Company set-up wizard
  • Opening balances
  • Product Codes
  • Setting up New Customers/Suppliers
  • Adding New Customers
  • Invoices with Trade/Settlement Discounts
  • Settlement Discounts
  • Customer Invoicing Procedure
  • Supplier Invoices
  • Corrections
  • Customer Receipts & Supplier Payments
  • Customer Receipts
  • Payments on Account
  • Bad Debt Write Offs & Sale of Assets
  • Bad Debt Write Off
  • Bad Debt Recovered
  • Sale of Assets
  • Bank Reconciliation
  • Wages / Salaries & Voluntary Deductions
  • Wages & Salaries
  • Voluntary Deductions
  • Cash Account & Petty Cash Account
  • Cash Account
  • Petty Cash Account
  • Allocating Credit Notes
  • Health & Safety
  • The Use of Computers
  • Exam Preparation
  • Mock Exam

Level 3

‘M4’ Course content in detail (please scroll down for M5, M6 and M7)

  • Legislation and ethics
  • The Data Protection Act
  • Money Laundering
  • The Proceeds of Crime Act 2002 (POCA)
  • The Money Laundering Offences
  • The Bribery Act
  • Codes of ethics and practice
  • Reporting suspicious behaviour
  • Accounting Concepts
  • Going Concern
  • Consistency
  • Prudence
  • Accruals (or Matching Concept)
  • Supplier and Customer Reconciliation
  • Control Accounts
  • Purchase and Sales Ledger Control Accounts
  • Set offs
  • Dishonoured payments and receipts
  • VAT Returns
  • VAT periods
  • Filling out the VAT return
  • Submitting the return
  • Ledger entries to record the payment or refund of vat
  • The end of paper VAT returns
  • Postage and packing charges
  • Bad Debts and VAT
  • Cash Accounting
  • Who can use the scheme?
  • Transactions with customer and suppliers based outside the UK (Imports & Exports)
  • Summary of VAT Return entries
  • Other VAT Schemes
  • The Flat Rate Scheme
  • Retail Schemes
  • The Margin Scheme for Second Hand Goods
  • Filling in the VAT return
  • Partial Exemption
  • Correction of Errors
  • The Journal
  • Aide memoire
  • Errors that will affect the trial balance
  • The suspense account
  • Introduction to Final Accounts
  • An introduction to profit
  • Gross profit
  • Stock Valuation
  • Net profit
  • Items of additional income
  • Discounts allowed and received
  • Non-trading businesses
  • Subsequent years trading
  • The Balance Sheet
  • The Accounting Equation
  • Developing the balance sheet
  • Working Capital
  • VAT registered businesses
  • Long Term Loans
  • Accruals and Prepayments
  • Disposal of Assets
  • Corrections to Final Accounts
  • Cash Budgets

‘M5’

  • Legislation and Ethics
  • Manual Partnerships
  • Working in a partnership
  • Bookkeeping entries for Partnership accounts
  • Capital Accounts
  • Partnership sharing ratios
  • Partnership Appropriation Account
  • Interest on Capital
  • Interest on Drawings
  • Salaries
  • Share of profit
  • Drawings
  • Balance Sheet
  • Revaluation of Assets
  • Changes in the partnership during the year
  • Goodwill
  • Admission of a new partner
  • Retirement of an existing partner

‘M6’

  • Legislation
  • Statement of Assets and Liabilities
  • The Receipts and Payments Account
  • Income
  • Subscriptions
  • Accrued subscriptions brought forward
  • Prepaid subscriptions brought forward
  • Carried forward balances at the end of the year
  • Written off subscriptions
  • Life Member Subscriptions
  • Event Income
  • Insurance claims
  • Fund raising events
  • Donations and Bequests
  • Gift Aid
  • Loans from members
  • Prepaid expenses – brought forward and carried forward
  • Accrued expenses – brought forward and carried forward
  • Other adjustments

‘M7’

  • Limited Companies
    • Shareholders and Directors
    • Shareholders
    • Directors
    • Executive Directors
    • Non-Executive Directors
    • The Administrative Requirements of a Limited Company
    • The Memorandum of Association and the Articles of Association
    • The Company Secretary
    • Private Limited Companies
    • Public Limited Companies
    • Types of Share
    • Ordinary Shares
    • Preference Shares
    • Loans and Debentures
    • Accounting for Shares Issues
    • The Share Premium Account
    • The Distribution of Profits and Retained Earnings
    • Distribution of Profits
    • Retained Profits
    • Limited Company Financial Statements
    • The Profit and Loss Account
    • The Balance Sheet
    • Dividends
    • Directors’ Loan Accounts
    • Reserves
    • Revenue (or Distributable) Reserves
    • Capital (or Non-Distributable) Reserves
    • Debentures and the Payment of Interest
  • Limited Liability Partnerships
    • Employment Status in LLP’s
    • Final Accounts for a LLP
    • Interest on Capital
  • Mark-up & Margin Calculations
    • Mark-up and Margin
    • Profit Calculated as the Difference Between Cost Price and Selling Price
    • Profit Calculated as a Percentage Increase on the Cost Price
    • Calculation of Profit Using Percentages
    • Expressing Mark-up as a Fraction Rather Than a Percentage
    • Margin (also known as Profit Margin or Sales Margin)
  • Ratios and Performance Indicators
    • Different Measures
    • What is a Ratio?
    • What is a Percentage?
    • The Financial Statements
    • The Financial Ratios
    • The Profitability Ratios
    • The Liquidity Ratios
    • Financial Position Ratios
  • Cash Budgets
    • The Cash Budget
    • Including the Bank Balance in the Cash Budget
    • Preparing a Cash Budget Using Changes in the Balance Sheet

Self Assessment Tax Returns

The Level 4 Certificate in Self-Assessment Taxation is made up of six topics:

  1. Underpinning Knowledge
  2. Entering Details of Personal Income onto a Self-Assessment Return
  3. Entering Details of Business Income and Expenditure for Unincorporated Businesses onto the Relevant Returns
  4. Chargeable Gains
  5. Calculate Tax and National Insurance Contributions due and File Returns
  6. Foreign Income and Residence Basis

The learning outcomes for each topic are listed below:

Topic 1 – Underpinning Knowledge

Learning Outcomes:
1.1 Duties and Responsibilities of the Bookkeeper / Tax Agent
1.2 Explain what is meant by the terms: Income Tax, Capital Gains Tax
1.3 Explain the principles of taxation appropriate to individuals, Sole Traders and Partnerships
1.4 Identify the main sources of Income and reliefs for an individual
1.5 Identify the types of returns that may be completed
1.6 Identify sources of assistance

Topic 2 – Entering Details of Personal Income onto a Self-Assessment Return

Learning Outcome:
2.1 Identify the main sources of personal income
2.2 Identify the various types of tax reliefs that can be claimed
2.3 Identify the elements of Employment Income and allowable expenses, and complete the relevant pages
2.4 Explain the types of Income from property and allowable expenditure and complete the relevant pages

Topic 3 – Entering Details of Business Income and Expenditure for Unincorporated Businesses onto the Relevant Returns

Learning Outcome:
3.1 Identify the returns that need to be completed by sole traders and partners
3.2 Explain the principle of basis periods applicable to sole traders and partnerships
3.3 Explain the purpose of, and determine, adjusted trading profits for sole traders and partnerships
3.4 Explain the purpose of Capital Allowances (Equipment, Motor Vehicles and Other)
3.5 Identify trading losses for individuals and partnerships
3.6 Complete the partnership return and the relevant section of the self-assessment return
3.7 Complete the relevant sections of the self-assessment return
3.8 Explain the purpose of Simpler Income Tax for the Simplest Small Business and complete the Self-Assessment Return

Topic 4 – Chargeable Gains

Learning Outcome:
4.1 Explain the elements of capital gains tax
4.2 Apply relief’s deferrals and exemptions
4.3 Explain the treatment of gains and losses

Topic 5 – Calculate Tax and National Insurance Contributions due and File Returns

Learning Outcome:
5.1 Determine taxable income and tax payable
5.2 Identify NI Contributions payable
5.3 Explain the procedure for payment and administration

Topic 6 – Foreign Income and Residence Basis

Learning Outcome:
6.1 Explain how to treat foreign income
6.2 Explain the criteria for residence and remittance

Course Includes:

  • 1 x Workbook
  • 1 x Activity answer book
  • Online Assessments
  • Online Mock Exam
  • Exam fee included

Financial Statements (Micro and Small Businesses)

Learning Outcomes

Underpinning Knowledge

1.1 – Explain the purpose of financial statements, the legal framework that govern these and the role of accounting standards.

On successful completion the candidate will be able to:

  • Define the purpose of Financial Statements
  • Explain the need to comply with the Companies Act
  • Outline the role of the Financial Reporting Council (FRC)

1.2 – Explain the statutory returns that need to be made for an incorporated entity

On successful completion the candidate will be able to:

  • The company Confirmatory Report
  • Annual accounts to Companies House
  • Corporation tax return to HMRC

1.3 – Explain the objectives of financial statements and their use and users.

On successful completion the candidate will be able to:

  • Outline the elements of the conceptual framework for financial reporting
  • Identify the elements of financial statements
  • Understand and apply the qualitative characteristics of financial statements
  • Understand and apply the accounting concepts
  • Identify the user groups and state clearly the way in which they use financial statements

1.4 – Explain the objectives of Internal Management Accounting.

On successful completion the candidate will be able to:

  • Distinguish the difference between Financial and Management accounting

Limited Company Financial Statements

2.1 – Prepare Financial Statements for a Limited Company and/or a Limited Liability Partnership to ensure they comply with the relevant Accounting Standards and Company Legislation

On successful completion the candidate will be able to:

  • Post relevant entries to the accounts for the provision and payment of corporation tax
  • Complete details for the fixed assets register
  • Understand and apply the accounting concepts that are contained in FRS105 Sections 2 and 3 and FRS102 Section 1A
  • Prepare a Statement of Financial Position with the relevant minimum accompanying notes under any of the formats in FRS105 (Section 4) and FRS102 Section 1A (Appendix A)
  • Prepare a Statement of Incomes per the format in FRS105 (Section 5) and FRS102 Section 1A (Appendix B)
  • Prepare a set of notes to the accounts as per the format in FRS105 (Section 6) and FRS102 Section 1A (Appendix C)
  • Understand the nature of voluntary disclosures

2.2 – Explain the elements of company finance

On successful completion the candidate will be able to:

  • Define the terms:
  1. Share capital
  2. Reserves
  3. Equity
  • Distinguish between ordinary shares and preference shares
  • Explain the process of a share issue
  • Explain what is meant by issuing shares at a premium
  • Define the term loan notes

An Introduction to Consolidated (Group Accounts)

3.1 – Explain the general principles of consolidation and prepare a set of Group Accounts to include both a Subsidiary and an Associate under FRS102 Section 9
Note: This is a voluntary disclosure under FRS 102 Section 1 (A)

On successful completion the candidate will be able to:

  • Explain what is meant by the single entity concept
  • Establish the group structure
  1. – Apply what is meant by fair value adjustments and fair value consideration
  2. – Determine the net assets of the subsidiary
  3. – Calculate the goodwill on acquisition
  4. – Calculate the non-controlling interest
  5. – Determine the retained earnings of the group
  6. – Draft a Consolidated Statement of Financial Position
  • Define the term Control
  • Explain the treatment of pre and post-acquisition reserves and acquisition of a subsidiary part way through the year
  • Explain the treatment of inter-company trading
  • Prepare a Consolidated Income Statement
  • Explain what is meant by the terms Associate and significant influence
  • Explain the principle equity accounting
  • Identify an Associate in a group structure

The Statement of Cash Flows

4.1 – Explain the purpose of the Statement of Cash Flows and prepare the Statement based on FRS102 Section 7

On successful completion the candidate will be able to:

  • Explain the need and purpose of The Statement of Cash Flows
  • Outline the elements of The Statement of Cash Flows as detailed in FRS102 Section 7
  • Prepare a Statement of Cash Flows showing clearly cash flow from:
  1. – Operating Activities,
  2. – Investing Activities
  3. – Financing Activities
  4. – The subsequent increase/decrease in cash or cash equivalent
  • Interpret and prepare a set of notes on a company’s cash position as outlined in The Statement of Cash Flows

Interpretation of Financial Statements

5.1 – Analyse and Interpret Limited Company Financial Statements using Performance Indicators and Ratio Analysis.

On successful completion the candidate will be able to:

  • Calculate Profitability Ratios:
  1. – Return on Capital Employed (profits before interest and tax divided by capital employed (total assets less current liabilities)
  2. – Gross Profit % of Sales
  3. – Net Profit % of Sales
  • Calculate Liquidity Ratios and Asset utilisation:
  1. – Current Ratio
  2. – Acid Test
  3. – Receivables Collection Period
  4. – Payables Payment Period
  5. – Inventory Turnover
  6. – Asset Turnover
  • Calculate the following financial structure ratios:
  1. – Gearing
  2. – Interest Cover
  • Analyse and interpret a set of performance indicators for a limited company over a series of years and comment on the financial performance
  • Compare a set of figures with other organisations and industry figures

Corporation Tax for Small and Micro Entities

This qualification will enable the candidate to carry out the role of an employed or self-employed bookkeeper, and/or tax agent, submitting relevant documents to both Companies House and HMRC on behalf of clients or employers for limited liability entities in accordance with FRS105 and FRS102 Section 1A.

Learning Outcomes

Underpinning Knowledge

  • 1.1 Understand the duties and responsibilities of a Tax Agent
  • 1.2 Understand what is meant by an accounting period for Corporation Tax purposes

Calculate Adjusted Trading Profits

  • 2.1 Understand the purpose of adjusted trading profits and identify disallowable expenditure
  • 2.2 Compute adjusted trading profit for the period

Capital Allowances

  • 3.1 Understand the nature and purpose of capital allowances
  • 3.2 Prepare a computation for capital allowances

Calculation of Profits Chargeable to Corporation Tax

  • 4.1 Understand Taxable Total profits
  • 4.2 Determine the Corporation Tax Liability
  • 4.3 Complete a CT Return

Gains Losses and Reliefs

  • 5.1 Understand the procedure for determining gains and losses
  • 5.2 Apply reliefs, deferrals and exemptions
  • 5.3 Distinguish between Trading and Non-Trading Losses

Payment and Administration

  • 6.1 Understand the process of payment and administration

Diploma in Payroll Management

Learning Outcomes

Demonstrate knowledge and understanding of the theory of payroll

  • Demonstrate a basic understanding of the law relating to payroll, discrimination, employment status, data protection and confidentiality
  • Understand and explain the legislation for PAYE and National Insurance Contributions (NICs)
  • Understand and explain the requirements of the Working Time Directive
  • Demonstrate an understanding of the Statutory Minimum Wage
  • Demonstrate an awareness of the legislation concerning the provision of a pension scheme and the different types of pension schemes together with the effect they may have on PAYE and NI deductions
  • Demonstrate understanding of the schedule of submissions to HMRC under the “Real Time Information” (RTI) scheme
  • Understand how a business may receive recompense for statutory payments including the effect of Small Employer’s Relief and when this may be applied
  • Understand what information must be submitted to HMRC and the relevant deadlines that apply

Demonstrate knowledge and understanding of, and be able to calculate, the various payments that can make up an employee’s gross Pay

  • Calculate the correct gross pay for each pay period for employees who are paid an annual salary, weekly wage, hourly pay, overtime, piecework and bonuses including statutory payments when appropriate
  • Understand and explain statutory payments of sickness, maternity, paternity and adoption pay
  • Understand the procedures to use when an employee is paid in advance for a period to be taken as paid holiday

Show knowledge and understanding of, and be able to calculate through the use of tables the amount of National Insurance Contributions that will be deducted from gross pay

  • Understand and explain the difference between contracted in and contracted out NI contributions
  • Use appropriate tables to determine the NI contributions for a gross pay figure
  • Using the current legislation, calculate the NI contributions
  • Be able to correctly calculate the NICs for an employee being paid for periods (such as holidays) in advance

Show knowledge and understanding of the concept of PAYE, together with the use of tax codes to correctly calculate the amount of PAYE to be deducted in a given period

  • Understand how tax codes are calculated and applied
  • Given a tax code to be applied, be able to calculate the amount of free pay that an employee may earn in any given period
  • Determine the amount of pay that is taxable for an employee with a given tax code
  • Determine the correct amount of PAYE to be deducted for a given period
  • Calculate the amount of PAYE to be deducted when an employee is being paid in advance
  • Understand how to deal with notifications of change in tax code issued by HMRC (Forms P6 and P9)

Show knowledge and understanding of other statutory deductions that can be applied to an employee’s pay

  • Demonstrate understanding of the process used to repay student loans
  • Determine the correct deduction towards repayment of a student loan
  • Understand when and how an attachment of earnings may be used

Directors

  • Demonstrate understanding of the requirement for directors NI deductions to be treated differently from ordinary employees
  • Correctly calculate the NI deductions for directors using the “non-Cumulative” (“Alternative” or “Table method”) and the “Cumulative Director method”

Benefits in Kind (BIK)

  • Understand the concept of BIK and the impact it has on an employee’s pay and their employer’s costs
  • Calculate the appropriate costs and deductions when an employee is provided with the following benefits by their employer: company car, private fuel, loan, private health insurance, other common basic benefits assuming all required details are provided
  • Understand how to complete forms P11D, P11D(b) and P9D with details relating to the above benefits and the deadlines by which they must be submitted

Construction Industry Scheme

  • Understand and explain the basic principles behind the Construction Industry Scheme (CIS)
  • Understand the duties of a contractor to verify sub-contractors
  • Correctly calculate the amount of tax to be deducted if applicable
  • Understand how to make appropriate adjustments to payments to HMRC for CIS tax
  • Accurately complete a CIS300 form at month-end for a contractor business in the construction industry
  • Accurately complete a CIS132 form at month-end for a subcontractor business in the construction industry
  • Understand the duties of a sub-contractor to submit relevant invoices within appropriate timescales
  • Explain why tax may be deducted at source from such an invoice
  • Understand the different methods of reclaiming tax deducted depending on the legal entity of the business (i.e. sole trader v limited company)

Understand and be able to complete the various forms that apply to a business running a payroll system

  • Understand when and how to complete a P45 form and where each part should be sent / stored
  • Demonstrate an understanding of how a P46 (starter checklist) form is completed and used
  • Demonstrate an understanding of the use of form P11 with payments and deductions for directors and regular employees on various payment schedules, statutory requirements and with differing tax codes including when payments are being made in advance
  • Accurately complete a P60 form at year-end for each employee
  • Demonstrate an awareness of all other relevant payroll forms

Demonstrate practical skills in the application of a payroll package

  • Utilising knowledge of the theory of payroll, demonstrate a full understanding of a sophisticated payroll package by installing, setting up, configuring and using it to produce accurate, comprehensive reports from a range of payroll scenarios encountered in a business of up to 10 employees
  • Set up the details of a new business including appropriate company and existing employee details. Some existing or new employees may be directors who undertake to have their NI deducted using different methods or employees who work irregular hours. Enter and process payroll for a variety of different pay periods and produce reports detailing gross pay, deductions and net pay for each period
  • To adequately secure the business’ payroll data, carry out periodic back-ups of payroll-related information
  • Produce summary reports for defined periods
  • Perform the necessary actions within the software to handle an employee leaving and produce the required documentation
  • Configure a new employee within the software according to information provided
  • Where possible, carry out or simulate a month end procedure under RTI and produce a number of required reports including potential adjustments resulting from CIS deductions and any other recoverable amounts. Note: under the new RTI scheme it is impossible to produce the month end information unless you are using a live business. Be prepared to be able to show what information would be submitted or to explain how this would work

Costing and Budgeting

Learning Outcomes

Underpinning Knowledge

  1. Distinguish between Financial Accounting and Management Accounting as information systems.
    • Understand the relationship between Financial and Management Accounting systems.
    • Explain how different types of businesses have differing information needs from their accounting system. E.g. Service, Retail and Manufacturing.
    • Understand the importance of planning, budgeting and control within a business.
    • Define the terms: Cost/Expense Centre, Profit Centre and Investment Centre.
  1. Identify and classify cost by: element, function and nature (behaviour)
    • Classify the three elements of cost: Materials, Labour and Expenses.
    • Distinguish between Direct and Indirect Cost (Overhead).
    • Define the terms Cost Unit and Prime Cost.
    • Classify cost by function: Production, Selling and Distribution and Administration.
    • Classify cost by nature (behaviour): Fixed Cost, Stepped Fixed Cost, Variable Cost and Semi-Variable Cost.
  1. Understand the importance of identifying and reporting relevant information
    • Report information to management in an orderly manner.

Accounting for Materials, Labour and Overheads

  1. Understand the importance of stock (inventory) control and its valuation.
    • Define the terms: Maximum level, Minimum level and Re-Order Level
    • Prepare stock (inventory) valuations for issues of materials and closing valuation based on FIFO and AVCO methods (periodic and perpetual methods.
    • Explain what is meant by the term: The lower of cost or net realisable value
  1. Determine labour cost
    • Distinguish between Direct and Indirect labour.
    • Calculate the cost of labour based on the following methods of payment: time rates, piecework and bonus schemes.
    • Calculate and identify the cost of overtime and idle (down) time.
  1. Determine material costs
    • Distinguish between direct and indirect materials.
    • Calculate the cost of materials used in a job or process.
  1. Understand the process of Allocation, Apportionment and Absorption (Recovery) of Overhead
    • Explain the meaning of the term Absorption Costing.
    • Prepare an overhead analysis to show overheads clearly allocated directly, or apportioned to, a cost centre.
    • Determine an overhead recovery (absorption) rates based on labour or machine hours.
    • Calculate the overhead chargeable to a job, batch or process using an appropriate overhead recovery rate

Costing Systems

  1. Identify the characteristics of various costing systems
    • Explain the characteristics of the following costing systems: Job, Batch and Process.
  1. Calculate the cost of a job, process or service
    • Prepare the cost of a job, process or service identifying clearly the main elements of cost.
    • Calculate the profit or loss on a particular job, process or service.
    • In the preparation of the cost of a process students need to demonstrate an understanding of Normal and Abnormal gains/losses.
    • Calculate the cost and selling price using mark up and margin.

Break Even Analysis

  1. Understand the principle of Marginal Costing as an aid to decision making.
    • Understand the terms: Contribution, Break-Even Analysis, Break-Even Point and Margin of Safety.
    • Calculate the break-even point of a business in terms of units of output and value of turnover by the use of a break-even chart or by formula.
    • Determine the margin of safety and explain why such information is useful to management when making decisions.

Introduction to Budgets and Budgetary Control

  1. Prepare a budget for: Income, Labour, Material and Overhead
    • Understand why it is important for businesses to prepare budgets.
    • Explain the role and purpose of functional budgets.
    • Prepare a budget to show: income, labour, material and overhead cost for a budget period.
  1. Prepare a Cash Budget
    • Prepare a Cash Budget on a month by month basis.
    • Explain why it is important that businesses plan their cash flow.
  1. Compare budget to actual performance and analyse the variances for income and the elements of cost
    • Prepare a flexible budget to make a ‘like with like’ comparison to actual performance and identify the variances.
    • Explain to management the possible causes of the variances for labour, material and overhead together with the sales variance. NB the analysis will not include any sub-division of the variances.

Business Insight

Chapter One – Understanding Cost behaviour

  • Introduction
  • The Importance of Costing
  • Understanding Cost Behaviour
  • Separating Fixed and Variable Elements – The High-Low Method
  • Contribution
  • Value Analysis / Value Engineering

Chapter Two – Forecasting and Budgeting

  • Introduction
  • Limitations of information used for decision making
  • Factors to consider when forecasting future sales
  • Approaches to preparing sales forecasts
  • Purpose of preparing budgets

Chapter Three – Preparing Budgets

  • Introduction
  • Standard Costing
  • The Master Budget
  • The Key Budget Factor
  • The Sales Budget
  • The Production Budget
  • The Materials Usage and Purchases Budgets
  • The Labour Usage and Cost Budgets
  • The Overheads Budget
  • The Budgeted Income Statement

Chapter Four – The Cash Budget

  • Introduction
  • The Cash Budget
  • Including the Bank Balance in the Cash Budget
  • Preparing a Cash Budget Using Changes in the SFP

Chapter Five – Targets and Monitoring Performance

  • Introduction
  • Prepare a Flexed Budget
  • Reasons for Variances
  • Using Flexed Budgets for Different Scenarios
  • Performance Measurement
  • Non-Financial Performance Indicators
  • Labour Control Ratios
  • The Balanced Scorecard

Chapter Six – The Operating Cycle

  • Introduction
  • The Operating Cycle
  • You have been given the following information
  • Backwards Ratios
  • The Need for Funding to Finance the Operating Cycle
  • The Costs of Holding Current Assets (Stock)
  • Managing the Operating Cycle by Reducing Investment in Stock
  • Managing the Operating Cycle by Reducing Investment in Debtors
  • Other Options to Reduce the Investment in Debtors

Chapter Seven – Short Term Financing Decisions

  • Introduction
  • Sources of finance
  • Other Sources of Finance
  • Short-term versus Long-term Finance

Chapter Eight – Short Term Decision Making

  • Introduction
  • Relevant Costs
  • Non-Relevant Costs
  • Make or Buy?
  • Non-Financial Factors
  • Closure (Shutdown) Decision Making

Chapter Nine – Capital Investment Decision Making

  • Introduction
  • Interest
  • The Time Value of Money
  • Present Values of Future Cash Flows
  • The Payback Period
  • The Internal Rate of Return

Exam preparation

End of course tests are the perfect way to ensure you have the best possible chance of success. Our specialist examinations department will provide you with detailed feedback, advice and support plus any additional lessons you may need prior to taking exams.

Please note: Past ICB examination papers are no longer valid under the new syllabus.

Exams

Papers ‘A1’ and ‘A2’ are online examinations and can be completed from home or wherever a student has uninterrupted access to a secure internet connection. Paper ‘A3’ is also a home based assignment.

Papers ‘M4’, ‘M5’, ‘M6’ and ‘M7’ are online examinations and ‘M8’ is taken externally at a Pearson VUE testing centre. Click here to locate your nearest centre for the ‘M8’ Certification exam.

The Self-Assessment Tax Returns exam will comprise of one online assessment (included in this package), taken in the candidate’s home or place of work.

The Diploma in Payroll Management exam (also included) is also taken in the candidate’s home or place of work.

The cost of all other course examination fees (Costing and Budgeting, Management Accounting, Financial Statements and Corporation Tax for Small and Micro Entities) are all included in this course package.

The cost of exams can increase at the discretion of the awarding body (ICB). We will pay for all exam fees up to the agreed value at the time of purchase, but any increase in exam fees will need to be paid for by the student.

Level 2 Assessment

The testing of knowledge and skills for the qualification will comprise three online assessments, all of which are taken in the candidate’s home or place of work. The first two will test the concepts that underpin the double entry system for a variety of types of businesses; the third will test the set up and data entry to trial balance using a computerised system. The content of each assessment is listed below.

Paper A1 – Basic double-entry bookkeeping to trial balance

Home /place of work based assessment to include:

  • Underpinning knowledge
    • Knowledge of the different categories of business that exist
    • Terms in bookkeeping (assets, liabilities etc.)
    • Banking procedures
    • Understanding the different categories of VAT (standard, reduced, zero, exempt, outside the scope)
  • Calculation the value of the capital investment for a sole trader
  • Calculation of business documents including calculation of VAT
  • Showing an understanding of the effect of entering transactions into a bookkeeping system for sales, purchases, overheads, capital items, returns, personal items etc.
  • The effect of making and receiving payments including bank, cash and petty cash transactions
  • Calculation of account balances
  • Production and explanation of a trial balance

Paper A2 – Further double entry bookkeeping to trial balance

Home /place of work based assessment to include:

  • Underpinning knowledge
    • Ethics
    • Legislation relevant to the bookkeeper
    • Accounting concepts
  • Further double entry including the following
    • Topics from paper 1
    • The content of control accounts
    • Writing off a bad debt
    • Construction Industry Scheme
    • Posting non-sole trader entries (subscriptions, donations, drawings of partners, directors’ loan accounts etc.)
  • Entry of payroll journals
  • Calculation of the value of a suspense account in a system that does not balance
  • Reconciliation of debtors, creditors and bank balances
  • Correction of errors that do not affect the trial balance
  • Production and explanation of a trial balance

Paper A3 – Data entry to trial balance using a computerised accounts package

Home /place of work based test to include the use of a computerised accounting package to include:

  • Opening of entries
  • Entry of cash and credit transactions
  • Production of a trial balance
  • Production of reports for debtors, creditors, bank, VAT and the audit trail

The three assessments should be taken in the order listed above. Each assessment will generate an accreditation notification. Successful candidates will need to pass all three assessments to gain the full qualification.

Grading

The full qualification will be graded at Distinction with Honours, Distinction, Merit or Pass

All assessments are taken at home or at the place of work, and each test will be graded as follows:

  • Distinction 95 -100%
  • Merit 90 – 94%
  • Pass 85 – 89%
  • Fail 0 – 84%

Once all assessments have been successfully completed a final certificate can be applied for which will be graded at Distinction with Honours, Distinction, Merit or Pass. Unit results will be aggregated. To achieve the relevant grade in the full qualification, the following aggregate marks must be achieved:

  • Distinction with Honours 295 marks and above
  • Distinction 285 – 294 marks
  • Merit 270 – 284 marks
  • Pass 255 – 269 marks

Level 3 Assessment

The testing of knowledge and skills for the qualification will comprise three online assessments, all of which are taken in the candidate’s home or place of work plus one assessment taken at an external ICB centre. Note: the assessment may also test elements of the Level 2 Certificate in Bookkeeping.

Paper M4 – reconciliations and final accounts of a sole trader:

Home / place of work based assessment to include:

  • Underpinning knowledge
  • Reconciliation and correction of errors (customer and supplier reconciliations, bank reconciliation, correction of errors including the clearance of a suspense account balance)
  • The calculation of summary figures for control accounts
  • VAT Returns (cash and standard VAT returns only)
  • Posting adjustments including disposal and acquisition of fixed assets
  • Revaluation of assets
  • Final accounts of a sole trader (profit and loss account and balance sheet)

Paper M5 – final accounts of a partnership

Home / place of work based covering knowledge and skills assessment to include:

  • All of the requirements for paper M4 but set in a partnership scenario plus:
  • Underpinning knowledge
  • Ethical considerations
  • Underpinning knowledge of the legal requirements for a partnership
  • Final accounts of a partnership including the appropriation account and production of partners’ current accounts
  • Calculations and bookkeeping entries to record a change of partnership (partnership ratios, goodwill, the effect on capital and current accounts etc.)

Paper M6 – final accounts of a not-for-profit organisation

Home / place of work based knowledge and skills assessment to include:

  • All of the requirements of paper M4 but set in a not-for profit scenario plus:
  • Underpinning knowledge regarding not-for-profit organisations
  • Understanding the different requirements of a chart of accounts for such an organisation
  • Understand the concepts of the different forms of income for not-for-profit organisations including a subscriptions account
  • Posting adjustments including the subscriptions account and disposal and acquisition of fixed assets
  • Final accounts of a not-for-profit organisation

Paper M7 – Management accounts of incorporated businesses

Home /place of work based assessment to include:

  • Final accounts including adjustments for a limited company (internal management accounts format only)
  • Limited liability partnerships
  • calculation and interpretation of ratios

Paper M8 – Level 3 External Assessment

This is a single assessment to be taken at an ICB examination centre. The assessment will be a mixture of multi-choice and data entry questions which will cover all elements of the syllabus.

Self-Assessment Tax Returns

The testing of knowledge and skills for the qualification will comprise one online assessment, taken in the candidate’s home or place of work. The assessment will be available to complete for a period of forty-eight hours. The exam will consist of a series of tasks, some of which will involve entering amounts into screens that closely replicate screens from an on-line self-assessment return. Other tasks involve calculations that demonstrate an understanding of the nature of the calculation of tax, National Insurance Contributions, Capital Allowances, Capital Gains Tax and adjusted net profit.

Financial Statements (Micro and Small Businesses)

This can be taken from home or work, and comprises of one 3 hour exam. You will have 2 weeks from when you receive the exam to take it. Once activated you will have 3 hours to complete it.

Corporation Tax for Small and Micro Entities

This can be taken from home or work, and comprises of one 24 hour exam. You will have 2 weeks from when you receive the exam to take it. Once activated you will have 24 hours to complete it.

Diploma in Payroll Management

The exam can be taken from home by assignment.
You have 14 days to access the exam once you’ve applied for it, and 24 hours to complete the paper once you have started it.
Results can take up to 28 days, although this is quite rare.

Costing and Budgeting

This can be taken from home or work, and comprises of one 3 hour exam. You will have 2 weeks from when you receive the exam to take it. Once activated you will have 3 hours to complete it.

Business Insight

This can be taken from home or work, and comprises of one 3 hour exam. You will have 2 weeks from when you receive the exam to take it. Once activated you will have 3 hours to complete it.

Grading

The full qualification will be graded at Distinction with Honours, Distinction, Merit or Pass

All assessments must be successfully achieved to gain the full qualification. Each assessment will generate a separate accreditation notification.

The home or work place based assessments will be graded as follows:

  • Distinction 95-100%
  • Merit 90-94%
  • Pass 85-89%
  • Fail 0-84%

The assessment taken at an external ICB centre will be graded as follows:

  • Distinction 90-100%
  • Merit 80-89%
  • Pass 70-79%
  • Fail 0-69%

Once all assessments have been successfully completed a final certificate will be awarded which will be graded at Distinction with Honours, Distinction, Merit or Pass. Unit percentage results will be averaged. The following average % marks show an example of how the final grade might be awarded (note the same range of marks may give a different overall result depending on the number of Passes, Merits and Distinctions achieved):

  • Distinction with Honours – 98% and above (with all five papers being graded at Distinction)
  • Distinction – 95-97% overall (with all papers graded at least at Merit or Distinction)
  • Merit – 90-94% (can be a mixture of individual grades)
  • Pass – 80-89% (can be a mixture of individual grades)

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