Proper accounting is crucial for the prosperity and survival of any organisation. Our complex economic system depends on accurate, trustworthy and relevant financial records and reports. While this module focuses on the accounting required for a sole trader, the skills and knowledge you'll learn are of central importance for accounting, and managing in any organisation, whether for-profit, not-for-profit or governmental.
Unit 1: Introduction to accounting
You'll begin by being introduced to the scope and structure of the module and the purpose of bookkeeping and accounting, as well as the skills, knowledge and ethics required for accounting.
Unit 2: Essentials of double-entry bookkeeping
You'll be introduced to the key principles of the double-entry bookkeeping system, which is based on the accounting equation.
Unit 3: Accruals accounting explored
You'll develop an understanding of recording a wide range of transactions through ledger accounts.
Unit 4: Control over the ledgers
This introduces the books of original entry that underpin ledger accounts as well as the different ways that ledger accounts are monitored, controlled and corrected.
Unit 5: Preparing financial statements
You'll revisit end-of-period adjustments and how they are used to prepare financial statements. You'll learn how to derive useful information from incomplete records and how to prepare manufacturing accounts.
Unit 6: Essentials of cost and management accounting
You'll be introduced to the basic concepts and principles of management accounting, including cost analysis, accounting control systems and cost bookkeeping. You'll also cover the differences between manual and computerised accounting systems.
Unit 7: Management accounting applications
You'll consider some important management accounting applications, applying the concepts and principles of management accounting introduced in Unit 6.
Unit 8: Preparing for the exam
The final unit is designed to help you revise the module teaching materials and prepare for the end-of-module examination.
There will also be a tutorial on incomplete records, and you’ll have access to video tutorials on suspense accounts, bank reconciliations and control account reconciliations.
You will learn the fundamental concepts and techniques of financial and management accounting as well as a range of relevant skills. These include double-entry bookkeeping, advanced numeracy, reading and analysing relevant case studies, using information and communication technologies, preparing appropriate reports and using and manipulating spreadsheets.
This module has vital vocational relevance if you wish to work as a bookkeeper or aspire to any managerial role where you are accountable for your performance. It is of particular relevance if you wish to qualify as a professional accountant, as this module is designed to be an ideal springboard for such an ambition.
On successful completion of Fundamentals of accounting (B124), you will be able to apply to become a Member of the Institute of Accountants and Bookkeepers (IAB) with the designation MIAB. The conditions of membership with the IAB, including any annual fees and the requirement for referees, will need to be confirmed directly with the IAB.
You’ll get help and support from an assigned tutor throughout your module.
They’ll help by:
Online tutorials run throughout the module. While they’re not compulsory, we strongly encourage you to participate. Where possible, we’ll make recordings available.
Course work includes:
You’ll also be provided with printed module books and have access to a module website, which includes:
A non-programmable calculator. Some type of spreadsheet software is useful but not essential.
You can study this module on its own or use the credits you gain towards an Open University qualification.
B124 is a compulsory module in our:
B124 is an option module in our:
Fundamentals of accounting starts once a year – in October.
This page describes the module that will start in October 2026, when we expect it to start for the last time.
As a student of The Open University, you should be aware of the content of the academic regulations, which are available on our Student Policies and Regulations website.
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There may be extra costs on top of the tuition fee, such as set books, a computer and internet access.
If your income is not more than £25,000 or you receive a qualifying benefit, you might be eligible for help with some of these costs after your module has started.
There may be extra costs on top of the tuition fee, such as set books, a computer and internet access.
If your personal income is £25,000 or less, or you’re on certain benefits, you could qualify for a grant and OU top-up funding to cover 100% of your course fees. Apply online at the same time as you register on your module.
For more information on how to apply, visit our Part-Time Fee Grants for students in Scotland page.
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Read more about Open University Student Budget Accounts (OUSBA).
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Over 30,000 employers have used the OU to develop staff so far. If the module you’ve chosen is geared towards your job or developing your career, you could approach your employer to see if they will sponsor you by paying some or all of the fees.
You can pay part or all of your tuition fees upfront with a debit or credit card when you register for each module.
We accept American Express, Mastercard, Visa and Visa Electron.
We know that sometimes you may want to combine payment options. For example, you may wish to pay part of your tuition fee with a debit card and pay the remainder in instalments through an Open University Student Budget Account (OUSBA).
We know that sometimes you may want to combine payment options. For example, you may get support from your employer to pay part of your tuition fee and pay the remainder by credit or debit card.
For more information about combining payment options, contact an adviser.
Please note: your permanent address/domicile will affect your fee status and, therefore, the fees you are charged and any financial support available to you. The fee information provided here is valid for modules starting before 31 July 2026. Fees typically increase annually. For further information about the University's fee policy, visit our Fee Rules.
