... The purpose of my presentation is to inform interested individuals about accounting fraud in small business and narrowing the topic to two main factors that allow the fraud to take place. The presentation will be specifically informational in nature. Once I have finished my presentation, the audience will have a clear understanding of my central idea, which is why limited staff and family trust are reasons that small businesses are victims of accounting fraud. The ideal audience for my presentation would be a meeting of a small business alliance, chamber of commerce, entrepreneur club, and any other group or class that would benefit from learning about accounting fraud in small businesses. My topic would benefit a more specific group of people such as those that are interested in or work in the field of accounting or business. Since my intended audience are adults that are working in the field of accounting or business or have an interest in these fields; my topic is appropriate for the age range, interests and general knowledge of my audience. The importance of my presentation to the audience is significant since the individuals in the intended audience will be either working or interested in business or accounting and quite possibly be involved in a small business at some level. It will be important for them to know about the reasons small businesses are the most common victims of accounting fraud. Once informed about the reasons, they will be able to apply what they...
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...Flo Choi owns a small business and manages its accounting. Her company just finished a year in which a large amount of borrowed funds was invested in a new building addition as well as in equipment and fixture additions. Choi’s banker requires her to submit semiannual financial statements so he can monitor the financial health of her business. He has warned her that if profit margins erode, he might raise the interest rate on the borrowed funds to reflect the increased loan risk from the bank’s point of view. Choi knows profit margin is likely to decline this year. As she prepares year-end adjusting entries, she decides to apply the following depreciation rule: All asset additions are considered to be in use on the first day of the following month. (The previous rule assumed assets are in use on the first day of the month nearest to the purchase date.) * Identify decisions that managers like Choi must make in applying depreciation methods. Mangers must look at an asset and use three factors to determine depreciation. These factors are cost, salvage value, and useful life. “The cost of a plant asset consists of all necessary and reasonable expenditures to acquire it and to prepare it for its intended use” (Wild et al., 2013). In other words, along with the basic cost of the asset itself one must consider what other purchases must go along with this asset to make it function, like wiring and labor to install. The salvage value is what the asset is worth as scrap...
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...Problem Introduction Small-scale business, small-scale industry and small-scale entrepreneurship are used interchangeably to mean a small-scale industry firm. Its deliberation was to refer to the operational definition. Therefore, small businesses are common in many countries, depending on the economic system in operation. A reasonable number of business establishments for instance, small-scale enterprise of different sizes and nature in Nigeria at large and Benue State in particular have accounting system of recording their business transactions. There is no universally accepted definition of small-scale enterprise (S.S.Es) because; the classification of business into small or large scale is subjective. Rather, each country tends to define this category of enterprises depending on the scope and range of activities covered by them and the amount of capital required of them to finance their operations in a particular market economy they are set up particularly, the level of a country is development largely determines the scope and range of activities and the capital base requirement of the small-scale enterprise operating therein. In countries such as Nigeria, United State of America, Britain and Canada, small-scale business in defined in terms of annual turnover and the number of paid employees. In Nigerian for instance, the definition of small-scale enterprises has varied from time to time and according to institution as in other countries. Also, small-scale enterprise is...
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...------------------------------------------------- Fraud and forensic accounting in small business’ Tasha S. Barnes ------------------------------------------------- Fraud and forensic accounting in small business’ Tasha S. Barnes Accounting fraud is serious issues for all businesses, but they are especially challenging for small companies that are “cash strapped”. Fraud undermine decision making, lead to financial losses and, in some cases, even force companies to lay off staff or shut their doors. Fraud is a common problem for small businesses. According to the Association of Certified Fraud Examiners (ACFE), 30 percent of all fraud occurs in small companies. That is a disturbing fact considering that the estimated fraud loses for business of all sizes was nearly $2.9 trillion in 2009. Fraud occurs so frequently in small business for a couple of reasons. A common reason is that small companies typically have small or even single-person accounting staffs and limited internal controls; lack of separation of duty. It is typical to have the accountant also be the office manager and receiving clerk. Problems can arise if for no other reason than on one double checks the work. Besides being more susceptible to errors and fraud, small businesses also are less likely to discover them because financial audits are almost never performed. It seems, as though a new scam comes to light every day, with electronic-media inspired frauds such as phishing and spoofing, joining...
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...Renee’ Johnson “The Importance of Accounting in Business” It important to take accounting in business because starting a business often requires entrepreneurs to understand and complete a variety of business functions. An important business function when starting a small business is accounting. In business there are endless stacks of financial documents, and accounting will provide a clearer picture for success in business. Whether you are an entrepreneur you mu9st keep records your business for tax and legal purposes. Many small businesses started as a hobby or side business use cash basis accounting. This accounting method records and recognizes transactions when cash changes hands. It provides entrepreneurs with a simple method for maintaining accounting information. As companies grow and expand, they may need to change to the accrual accounting method. Accrual accounting is the most widely used method in business; it records and recognizes transactions as they occur, regardless of cash changing hands. Forecast Financial Estimates Entrepreneurs may need to provide banks, lenders or investors with a financial forecast relating to the new small business venture. This information is essential for obtaining outside financing for business startup costs. Entrepreneurs usually write a business plan, which includes an economic forecast, expected startup and monthly expenditures, and pro forma financial statements. This accounting information is heavily relied upon by lenders...
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...Skip to main content. Subscribe to the Houston Chronicle | Shopping | Classifieds | Obits | Place an Ad | La Voz Register | Sign In ------------------------------------------------- Top of Form Chron.com Local Directory Bottom of Form * Home * Local ------------------------------------------------- In Local * ------------------------------------------------- Neighborhoods * ------------------------------------------------- Houston & Texas * ------------------------------------------------- Traffic * ------------------------------------------------- Weather * ------------------------------------------------- Education * ------------------------------------------------- Politics & Policy * ------------------------------------------------- Election 2013 * ------------------------------------------------- Chronicle Investigates * ------------------------------------------------- Obituaries * ------------------------------------------------- Staff Blogs * ------------------------------------------------- Reader Blogs * ------------------------------------------------- Columnists * ------------------------------------------------- Opinions & Editorials * ------------------------------------------------- La Voz (Español) ------------------------------------------------- Neighborhoods ...
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...De La Salle Lipa College of Business Economics, Accountancy, and Management Accounting Software: Boon or Bane A Term Paper Presented to Dr. Josephine Magbojos CEAS, English Department In partial Fulfillment of the Requirements for Comski2 2014 by Briones, Kristine Norien Resma, Maria Angelica F. Abstract The development of technology brought many changes in the accounting world and the development of accounting software is one of its biggest contributions. Accounting softwares are beneficial for a business and a company for it to produce a financial report faster and easier. The use of different programs for the calculations and reporting made its way to no more manual accounting which is more complicated to do. To maximize the benefits of its uses the advantages and disadvantages of these softwares must be identify before using it. Hence, with proper knowledge of its positive and negative effect, a business or an auditing firm will be able to properly utilize its functions that will then produce financial reports which are essential to the company’s economic decision making. Technology has been an integral part of everyone’s daily lives. Different machineries, gadgets, softwares, and equipment have changed the ways of living of the Filipinos. These things ease the job of a worker, helps a student do home works and research faster, and a mother do household chores. Many developed softwares that are useful for the management of the organization. Like...
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...America In discussing the impact of one of the most important laws passed in Congress to legislate the accounting and reporting rules of corporations, I need to give a brief definition and some background information for the Sarbanes-Oxley Act. In 2002, the Sarbanes-Oxley Act was passed into law by the United States Congress. After a series of high profile corporate scandals, such as Enron and WorldCom, the Congress of the United States passed this legislation “to improve and maintain investor confidence. The law requires companies to have more independent board directors (not just company insiders), to adhere strictly to accounting rules, and to have senior managers personally sign off on financial results.” (Bateman, 173). Before the fall of corporations like Enron and WorldCom, there was also far too much corporate fraud during the Internet bubble. According to Stanley Block and his co-authors, “The major accounting firms had failed to detect fraud in their accounting audits, and outside directors were often not provided with the kind of information that would allow them to detect fraud and mismanagement.” (Block, 12). What is the definition, in a nutshell, of the Sabarnes-Oxley Act? This is something that needs to be defined and understood before examining the positive and negative impacts of this law upon corporate America. The Sarbanes-Oxley Act “establishes strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor...
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...Lacy’s Bookkeeping and Accounting Services. Internal Factors Strengths Weaknesses Management Owners are Certified Public Accountants Small size can restrict option Offerings Unique services, certified professionals, Three high-end CPA firms as experience in diversity, humble and patient competitors with over 30 years of establishment in the country Personnel Receptionist/Reservations has over 10 None years working history, speak Spanish and English Finance Excellent growth in sales revenue Limited resources compared to CPA firms with over 30 years establishment R&D Continuing efforts to keep updated on taxes High-end firm has separate and other local accounting issues that clients tax CPAs that specialize in may benefit from those areas only External Factors Opportunities Threats Consumer/Social Small businesses in Georgia are growing due Some consumers may prefer to the economy; businesses prefer handling brand name CPA firms with their own accounting records and cannot over 30 years of history afford the high-end CPA firms being established Continued: Competitive Professional Certified Public Accountants High-end CPA firm may try that offer unique services to incorporate same unique Continued: features, we do not have any patents Technological Possess local software that is user friendly High-end firm may afford for clients to network their electronic accounting program Economic...
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...CW’s Accounting and Bookkeeping Palace Bachelors Capstone Final Project Christie D. Welch MT499P-01 Dr. Patricia Wolf Table of Contents Section 1: Executive Summary (Business Description) 2 Section 2: Code of Conduct 7 Section 3: Marketing Plan (Strategy and SWOT) 9 Section 4: Operations 14 Section 5: Finance 18 Section 6: Cash Flow Analysis 19 Section 7: Information Management 21 Section 8: Management Summary 24 References 28 Appendix 31 Section 1: Executive Summary (Business Description) CW’s Accounting and Bookkeeping Palace During the fall of 2014, I plan to open CW’s Accounting and Bookkeeping Palace. This company will mainly advertise to the small businesses within the surrounding area. During tax season CW’s will also do personal taxes. We will treat each customer as an individual. We will strive to grow with the ease of confidence and a great reputation. CW’s will be located on the North side of Jacksonville where there are only a few accounting firms. The business will try to establish a professional accounting/bookkeeping service that will reflect our quality performance and fill a wide range of business needs (Starting a booking business). As our company grows will expand to bring in more clients but to start off it will be for small businesses that either do not have an accountant or that is dissatisfied with the performance of their current accountant. Vision Statement Our vision statement is, “Drop off your books and...
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...the manufacturer or a wholesaler. Grocery stores are considered as a part of the retail industry. They sell a variety of food and non-food products, such as meat, produce, cereal, dairy products, health and beauty aids and cleaning products. Regardless if the store is a major supply chain or a small business; their ultimate goal is provide products for customer’s consumption. Gary's Market is a small sized, family owned grocery store that has been in the business since 1979. Gary's Market is one of Memphis best kept secrets for breakfast, lunch, dinner and selling merchandise by the bulk for low prices. The owner, Mr. Gary has been in the retail business for 40 years. He has proven that hard work and support can provide great results. He states, "I wanted to work for myself and have a legacy to leave for my children." His wife, two daughters and three sons work at the grocery store. Gary has two sons working as the managers, his oldest son is the treasurer, his wife is the manager of the kitchen, his oldest daughter is a secretary, his youngest daughter is financial advisor and Gary is the accountant/CEO. They all have an important part in the business. Starting a small grocery business pose as a challenge. He received a substantial amount of money from his grandparents. He wanted to invest his money in a company that he knew his grandparents would be proud. He decided that he want to own a grocery store that sold products for a reasonable price. Mr. Gary opened his store in...
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...accountants and CPAs as just technicians or clerks, bookkeepers perform some of the same daily tasks as do accountants and certified public accountants. Many bookkeepers work as freelancers for small businesses in need of financial recordkeeping. Bookkeepers maintain daily accounting records, posting debits and credits, generating invoices for clients and checks for vendors as well as handling payroll. Many small business owners often double as bookkeepers. Bookkeepers typically lack the education of an accountant or CPA, as they gain on-the-job experience. Professional organizations for bookkeepers help to improve professional recognition for bookkeepers by accounting professionals as well as providing certification programs of abilities and skills. Accountants Accountants have a four-year college degree. While many accountants have an educational background in accounting, some are more general business majors. Companies that generate more than a million dollar in sales each year might have an accountant on staff or hire the services of a professional accountant from an accounting firm managed by a certified public accountant. As the company grows, the accounting department expands to handle the increased fiscal responsibilities within the organization. Accountants work with accounting clerks and technicians who handle daily financial entries. Accountants oversee or perform billing, make general ledger entries, review accounts payable activity completed by clerks or...
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...Greenlight Accounting, LLC [pic] Executive Summary Thorough documentation for individual and small firms is an essential element in financial record keeping and tax filing. Personal income from investments, land, compensations, employment, dividends, and interest can sometimes be an over burdensome task for an individual or family to manage and keep track with throughout the year. For businesses, it’s imperative all transactions be logged with accurate bookkeeping and that taxes stay filed in a timely manner to ensure the efficiency of the organization remains intact. Greenlight Accounting is that face-to-face, personal touch and military friendly accounting firm ready to assist with the most miniscule task associated in the process for all Federal, State and local compliances at low affordable and comparable rates. Expanding this one step further is the benefit of green accounting, which is also a service we will be providing, but one that is considered fairly new to the business world, as well as the accounting arena. Table of Contents I. Background and Green Marketing Product Strategy 4 II. Objectives, Pricing, and Goals 5 III. Strategic Plan 5 IV. Marketing Strategy 7 V. Competitive Analysis 9 VI. Customer Analysis 10 VII. Selling Tactics 10 VIII. Evaluation 11 IX. Conclusion 11 References 12 ...
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...Advantages The direct write-off method is simple, and can be used by individuals that maintain a company's set of books yet have no extensive accounting education. Unlike the allowance method that estimates probable losses using various ratios and factors, the direct method is based on an actual amount which may be more superior to the small business owner. Disadvantages Since the direct write-off method records the loss only when the account is determined uncollectible, it may result in a loss from a prior period being charged against unrelated income in a future period. This may result in the distortion of a company's true profit of a given period, and does not comply with GAAP matching principle, which requires expenses to be matched with their associated revenues within the same period.Advantages The direct write-off method is simple, and can be used by individuals that maintain a company's set of books yet have no extensive accounting education. Unlike the allowance method that estimates probable losses using various ratios and factors, the direct method is based on an actual amount which may be more superior to the small business owner. Disadvantages Since the direct write-off method records the loss only when the account is determined uncollectible, it may result in a loss from a prior period being charged against unrelated income in a future period. This may result in the distortion of a company's true profit of a given period, and does not comply with GAAP matching...
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...of Accounting Unit 1 IP Abstract The paper is about a hypothetical scenario requiring the writer to give and informative introductory class on the subject of accounting. The primary objectives of accounting are identified and described in basic terms. Basic accounting terminology is identified and defined using the New York State Society of CPA’s Accounting Terminology Guide. A brief personal example is given regarding personal ethics and how they have applied to accounting. Lastly, the roll of technology and its effects on small business are discussed. When learning anything it is sometimes best to start with the simplest of terms. To understand accounting it is best to think of it as the “Language of Business.” (Riese, 2013) Thinking of accounting this way makes the phrase the cornerstone to which all the other stones of accounting can be laid in order to build understanding. The primary function of accounting is to document by quantity, measure, classify, summarize, and communicate in a very accurate manner using monetary terms the financial transactions of businesses. (Pilchar , n.d.) The sound practice of this language tells investors whether or not to invest in the business. Understanding the language of accounting is important to making good financial decisions. It has been said that the English language one of the most difficult to learn. For those entering the business world accounting can be just as tough. In order to comprehend business speak...
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