chisomprince / free-fintech-engineering-bootcamp

Free learning materials on Fintech Engineering!

Fintech Engineering Bootcamp [Work In Progress]

Welcome to the Fintech Engineering Bootcamp repository! This open-source resource aims to provide a comprehensive understanding of fintech engineering principles, focusing on the intersection of financial technology and software engineering.

What is Fintech Engineering?

Fintech engineering involves applying technology to innovate and improve financial services, covering areas such as digital banking, cryptocurrencies, payment systems, and more. This boot camp equips learners with foundational knowledge and skills in both finance and technology domains.

Table of Contents

1. Introduction to Accounting 101
2. Database Design
3. Building a Backend Service in Nest JS
4. Additional Topics

Introduction to Accounting 101

Principles of Accounting

• Revenue Recognition:

  • Understanding when and how to recognize revenue, adhering to the revenue recognition principle.

• Matching Principle:

  • Aligning expenses with related revenues in the same accounting period.

• Conservatism Principle:

  • Prudent treatment of assets and liabilities, preferring lower valuations or recognizing potential losses.

• Full Disclosure Principle:

  • Disclosing all relevant information that could influence financial statement users.

Types of Accounts

• Assets

  • Current Assets
  • Fixed Assets

• Liabilities

  • Current Liabilities
  • Long-term Liabilities

• Expenses

  • Operating Expenses
  • Non-operating Expenses

• Equity

  • Common Stock
  • Retained Earnings

• Income

  • Sales Revenue
  • Other Income Sources

Chart of Accounts

• What are Charts of Accounts?

• Account Numbering System

  • Understanding the numbering conventions and structures used in the chart of accounts.

• Account Categories and Types

  • Exploring the classification of accounts into categories such as assets, liabilities, equity, income, and expenses.

• Account Hierarchy

  • Organizing accounts hierarchically to facilitate financial reporting and analysis.

• Customization and Flexibility

  • Discussing how the chart of accounts can be customized to suit specific business needs and industry standards.

• Integration with Accounting Software

  • Implementing and managing the chart of accounts within accounting software systems.

• Consistency and Standardization

  • Maintaining consistency in account naming conventions and classifications across the chart.

• Relationships Between Accounts

  • Understanding how different accounts relate to each other and impact financial statements.

General Ledger

• Ledger Accounts

  • Understanding the concept and purpose of ledger accounts in recording financial transactions.

• Posting Process

  • Explaining the process of posting entries from journals to ledger accounts.

• Account Balances

  • Understanding how account balances are calculated and maintained in the general ledger.

• Adjusting Entries

  • Exploring the use of adjusting entries to ensure accurate financial reporting in the general ledger.

• Trial Balance

  • Understanding the creation and purpose of the trial balance using data from the general ledger.

• Closing Entries

  • Discussing the process of closing entries to reset temporary accounts in the general ledger.

• Reporting and Analysis

  • Utilizing data from the general ledger for financial reporting and analysis purposes.

• Balance Sheet

  • Incorporating the information from the general ledger into the creation and understanding of the balance sheet.

• Income Statement

  • Utilizing data from the general ledger for the preparation and analysis of the income statement.

Rules of Debits and Credits (Double Entry)

• Understanding the basic principles of double-entry accounting.
• Identifying when and how to use debits and credits for different types of accounts.
• Explaining how debits and credits affect specific accounts in financial transactions.
• Clarifying the relationship between the accounting equation and debits/credits.
• Addressing common misconceptions or challenges in applying debits and credits.

Database Design (Practicals)

• Table Structure

  • Creating the Currency tables
  • Creating our GL Chart of Accounts table
  • Creating our Inventory table
  • Creating our Vendors/Suppliers table
  • Creating our Customer table
  • Creating our Sales table
  • Creating our Receipts table
  • Creating our Invoice table
  • Creating our Transactions table
  • Creating our Transaction History table
  • Creating our Credit Notes table
  • Creating our Purchase/Bills table
  • Creating our Banks/Cash Accounts table
  • Creating our Assets table
  • Creating our Expenses table

• Posting into our transaction table

• Calculating Account Balances

• GL Calculations

Building a Backend Service in Nest JS

• Creating our controllers
• Building our accounting models
• Creating our GL processes

Additional Topics

Advanced Accounting Concepts

• Consolidation Accounting
• Fair Value Accounting

Financial Reporting Standards

• International Accounting Standards (IAS)

Risk Management in Fintech

• Credit Risk Management
• Operational Risk

Fintech Regulatory Frameworks

• Know Your Customer (KYC) Regulations
• Payment Services Directive (PSD2)

Feel free to contribute to this open-source project by forking the repository, making changes, and submitting pull requests!

Contributors

• Favour Onuoha