...Commerce Financial Accounting ACCT3013 Prof. Hafiz Imtiaz Reg. No. 2035 – Minahil Raza Reg. No. 2030 - Ahmad Waqas Reg. No. 2001 - Syed Faizan Jaffri December 15, 2013 Difference between Accounting & Finance Accounting is an art of recording, classifying and summarizing the transaction in a significant manner, whereas finance is the management of money and other valuables, which can easily be converted into cash. Functions of Finance Department of an Organization * Preparation of Budget Plans It is duty of finance department of company to make the budget before actual providing money to any department. It helps to fulfill each department with minimum cost. * Financial Management In this function finance department gets money from capital market at very low risk and cost. Finance department analyzes all the resources of funds and create a good financial structure of company. In this structure, finance department analyze whether it will decrease the overall cost of capital on Average basis or not. * Management of Investments of Company After making financial structure, finance department invests debenture holders and shareholders money in best projects for getting highest return on investment. For this finance department takes investment decision. These investment decisions can be taken with the help of capital budgeting and investment analysis techniques. * Management of Financial Risks Financial department takes many measures...
Words: 1304 - Pages: 6
...organizational departments involved in running a business. Three of which are accounting, human resources (HR), and management and they are all important and beneficial to businesses. These organizational departments help in handling the company's needs and assist in allowing them to run efficiently. Each one of these departments is considered an individual business unit with each one being of vital importance to a business’s overall success. Each unit or department has key functions that assist and advice businesses to help them maintain efficient operations. Accounting is a department that is considered to be the backbone of businesses. There are two areas of accounting. One area is called financial accounting which has financial information that businesses make available for the use of the general public, such as customers, creditors, stockholders, and suppliers. Secondly, there is managerial accounting of which provides financial information to managers, supervisors, and department heads so that they can make important business decisions. The accounting department sets up, audits, and maintains financial information for businesses that determines the businesses economic conditions and stability levels (College Grad.com, 2010). The human resources (HR) department is responsible for overseeing the hiring, performance, and termination of employees (Pay Scale, 2010). This department plans, analyzes, assists, and reviews job related issues regarding employees. This department recruits...
Words: 482 - Pages: 2
...The company accounting department currently needs to hire another managerial accountant to focus on the company internal (managerial) accounting system. The CEO is uncertain and not convinced that a managerial accountant is needed at this time. A managerial accountant would benefit the company in a great way. The internal accounting system and developing important accounting information would be the accountant main focus. The managerial accountant would also hold up the company code of ethics. Internal accounting is also known as managerial accounting. There are different objectives of managerial accounting which includes gathering, developing, and transferring information needed by the company. Even though managerial accounting differs from financial accounting, the managerial accountants pay close attention to the company financial statements. The statements provide information that the accountant would use to develop reports on cost of products, fraud, and future on products. Another objective includes planning. A successful company starts with short term and long term goals that are considered strategic plans. “Strategic plans usually set a firm’s long-term direction by developing a road map based on opportunities such as new products, new markets, and capital investments” (Shaw & Wild, 2012 ). The managerial accountant develops goals for the company that is accurate for them to reach. The accountants not only plan on future goals/plans, but also short term. The planning...
Words: 600 - Pages: 3
...MEMO To: CEO From: Accounting Manager Date: February 19, 2013 Re: Need for internal managerial accountant Dear Chief Executive Officer, This is a memo that will state the reasons why and benefits of hiring another managerial accountant. As we all know, the significance of a trustworthy accounting department is essential in any business. Accounting is specifically the most important department of a business for the simple fact that it deals with the company’s money statuses. This includes where a business can and can’t go financially and what it has and has not accomplished in terms of financial objectives. It is essential that a business have a strong internal accounting system because it can mean monetary success or failure. An internal accounting system includes the maintenance of the company’s finances in terms of short as well as long-term goals, strategy formulation for revenue, operational direction and control of the company’s finances, and the organization of resources and assets aligned with the desired budget within the company. All of these duties will be separated and given specifically to the new internal accounting manager. It is desired that a position be made specifically for these duties because of the importance in the company’s finances. One can not get too overwhelmed with other aspects and/or factors within the company to make mistakes or over or under budget the company. There should be a main focus so there are no unanalyzed risks involved. (Wild and...
Words: 548 - Pages: 3
...Memo TO: JOE SMITH From: Billy Joe Date: 10/06/10 Re: Managerial Accountant Message: With us trying to obtain this new contract I feel it is now very important that we put together a 5-year plan, and in doing this I believe it is in the company’s best interest to hire another managerial accountant to focus on internal accounting. Managerial accounting is an activity that provides financial and non-financial information to an organization’s managers and other internal decision makers. This manager’s responsibilities will include formulating strategy, directing and controlling operations, and organizing resources to accomplish the company’s long-term goal. This will help us to gain more information about cost for planning and control decisions. The information gathered will also get to our managers in a more time efficient manner resulting in each division manager being able to improve on the areas they are lacking before they reach failure. This information will also help us to always offer the customer the right product at the right price in the right place at the right time resulting in continues customer satisfaction. Hiring a new managerial accountant will help us in our fight against fraud and other dilemmas by implementing a code of ethics to help employees do right from wrong and by following the IMA’s Statement of Ethical Professional Practice she/he will be able to resolve most ethical...
Words: 280 - Pages: 2
...Manufacturing Accounting Riordan Manufacturing, Inc., the global leader in the field of plastic injection molding. The company produces plastic bottles, fans of all sizes, heart valves, medical stents and custom plastic parts. Riordan Manufacturing is fully owned by Riordan Industries and has 550 employees and generates an excess of $1 billion in revenue with a projected $46 million of annual earnings. Riordan has facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan, and Hangzhou, China. Riordan has demonstrated they can be very successful and contend with their competitors as a Fortune 1000 company. There are a few major economic influences affecting Riordan’s operations and strategy including interest rates, unemployment rate, inflation rate, gross domestic product, consumer confidence and currency exchange rates. History Dr. Riordan started Riordan Manufacturing after purchasing a in 1992 when he obtained the venture capital to purchase a fan manufacturing plant in Pontiac, MI. Riordan’s primary plant for making custom plastic parts is the Michigan plant. In 1993 the company also began to produce plastic containers for beverages out of Albany, GA. The most recent the venture for Riordan is its expansion to China as the main manufacturer of fans. Riordan’s main customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers. Riordan Accounting System Each Riordan...
Words: 1479 - Pages: 6
...Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010-023X 103 Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology (IT) has shifted over the last decades (Teng & Calhoun, 1996) to become an important part of how companies manage...
Words: 4119 - Pages: 17
...International Journal of Trade, Economics and Finance, Vol. 1, No. 1, June, 2010 2010-023X Information Technology roles in Accounting Tasks – A Multiple-case Study Maria do Céu Gaspar Alves Abstract—Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs information technology (IT) investments and the rapid pace of technological change. Organizations are responding in different ways and at different rates to the wide range of IT based opportunities and pressures. The purpose of this paper is to focus on the effects of IT related organizational changes on the management accounting function and to contribute to the body of knowledge about to what extent IT affects the ability to solve accounting tasks. The relationship between IT and accounting practices was investigated qualitatively using six case studies and we will measure the impact of IT on accountants’ tasks. The findings suggest a tendency for change and the decentralization of accounting tasks. Index Terms—Accounting, Accounting Information Systems, Financial Documents, Information Technology, Management Information System. I. INTRODUCTION Nowadays the business world is changing at a faster and faster pace. The reasons given for this is globalization, highs IT investments and the rapid pace of technological change in combination with escalating costs of research and development (Frishamar, 2002). The role of information technology...
Words: 4110 - Pages: 17
...Kudler Fine Foods Accounting System Kudler Fine Foods is considering hiring a consulting firm to assist in the implementation and execution of a new accounting system. Although Kudler Fine Foods has been able to satisfy the organizations needs with the old accounting system, upper management has decided they have the budget to implement a new accounting system. The budget for the new accounting system is $50,000 (Apollo Group, Inc, 2011). Moreover, the key features of the system will stay the same but some of these features will be upgraded. In addition, upgrading the accounting system will include new core technology, added benefits, and prove to be more cost effective in the long term. Key Features The key features and systems that will be included with the accounting system upgrade are Enterprise Resource Management, auditing software, budgeting software, Customer Relationship Management, Knowledge Management, Forecasting and Replenishing, and finance and account software. These key features will ensure the finance and accounting department can successfully track all expenditures and revenue. Furthermore, the new system will allow the department to make adjustments as needed to ensure the organization thrives and can effectively provide the best quality product for their customers while providing for their employees. Core Technology The implementation of the latest technology is important to stay competitive; Enterprise Resource Planning...
Words: 663 - Pages: 3
...Financing Versus Accounting People frequently confuse the two terms of accounting and financing. The reason is that finance and accounting both deal with the financial aspect of an organization or business. The difference is how the managers in these departments deal with the finances. Accounting mainly handles examining and preparing financial records and making sure that they are accurate (Kajanová, 2011). They also have to ensure that the organization is running efficiently and that the taxes are properly paid and on time. Where as finances handles mainly strategies and plans for long term financial goals on an organization. Financial mangers base their decisions on the financial information that was gathered by the accounting department (Kajanová, 2011). That way they can make the best decision for their organization. Accounting and Finance mangers have to work together to operate an efficient and effective organization. The purpose of this paper is to compare and contrast the differences between accounting and financing. Even though both accounting and finance both handle the financial parts of different health organizations, they both handle their finances in very different ways. In accounting, the main areas of concern are keeping financial records, producing production reports, analyses and different statements, reporting all of the information to heads of departments, and occasionally watching investors and the markets (Financial Managers, 2012). In addition,...
Words: 817 - Pages: 4
...Letter Of Transmittal January 20, 2014 Abul Kashem Associate Professor, The Department of Accounting Govt. Shah Sultan College, Bogra. Subject: Submission of the term paper on Accounting Concept of VAT. Dear Sir, I am very delighted to inform you that, I have completed the term paper on Accounting Concept of VAT. Successfully as a partial requirement. I enjoyed preparing this assignment and it helped me to gain knowledge about the Accounting Concept of VAT. I also very grateful for your kind help and advice. Besides, I have finished this task in a friendly environment and the entire team worked very hard while preparing this term paper. I aspire that this study will fulfill your suggestion and expectation. If you need any further assistance to interpret this study, please inform us. It will be our pleasure to clarify your questions. Sincerely Most: Hosnaara Akter Department of Accounting Govt. Shah Sultan College, Bogra. Acknowledgement First of all we would like to thank Almighty whose gracefulness let I complete this term paper. Besides, a comprehensive work like this must owe credit to a multiple of statement. Certainly, I should thank those kind ones whose help and kind support enable me to complete this TERM PAPER. Especially I indebted to our course teacher Abul Kashem who helped me both forming and editing this work. During this period I also worked really hard. Our classmates also shared their knowledge and experience...
Words: 1394 - Pages: 6
...Determining Financial Viability The relationship between finance and accounting are very similar but they definitely have their differences. “Accounting and finance are the methodical or precise recording, reporting, and assessment of financial deals and transactions of a business. Accounting is an essential part of finance. Accounting produces information about the operations of a business. The end-product of accounting is composed of financial declarations such as balance sheets, income declarations which include the profit and loss accounts, and the declaration of changes in financial position which includes sources and uses of funds declaration” (Difference Between Accounting and Finance). Accounting and finance both need each other. A company needs both. To determine financial viability within a heath care organization, they need a functioning finance and accounting departments. In a health care organization, there needs to be a high functioning finance department. There needs to be an innovative way to run a health care facility. “The current economic situation, together with the uncertainty of healthcare reform, has fueled the demand for efficient and effective facilities” (Elting, D. 2009). Financial departments have to run an efficient department to assure that they are not faced with high debts that could cause a healthcare to shut down. With all of the changes occurring in healthcare there needs to be a financial team that can try and run a...
Words: 587 - Pages: 3
...Determining Financial Viability Finance and accounting go hand- in- hand so to speak. It is hard to have one without the other. Individuals who are in finance control money. Finance is the business or act of managing the monetary resources of an organization or person. Accounting is the activity, practice, or profession of maintaining the business records of a person or organization and preparing forms and reports for tax or other financial purposes. There is a need for both to determine financial viability within a health care organization. “A business’ finances are just as important, but very different from the accounting. When considering a business’ finances, you will review all of the accounting data to make monetary decisions affecting the business. The accounting data may help you with financial planning, reviewing the performance of the business, and ensuring that the business is meeting the legal obligations, such as tax reporting.”(Elgar, Peter, 2011 pg 1) So with this being said, both departments are very important not just to the organization but to each other as well. Financial viability is the ability to continue to achieve its operating objectives and fulfill its mission over the long term of the business. Having the funds available to excel in the health care organization is critical not just for consumers but for healthcare professionals, hospitals and clinics. Finances makes for more opportunities to invest in newer technology and studies. So it goes...
Words: 534 - Pages: 3
...balances. The added security and control will not only serve to increase productivity but it will also decrease loss and waste. ACCOUNTING DEPARTMENT This report will start with the Accounting department as it is the easiest to see and understand the method we are using and why we are using them. The bare basics with be to form and accounting role which will be applied to all members of accounting. This role allows all member of accounting to perform the roles necessary to perform the basic shared duties of the Accounting department. This also prevents anyone who does not have the basic accounting role from performing accounting duties. Now that the basic accounting role has been addressed, the specialized roles need to be assigned. This report will do this first by defining the specialized Accounting roles that are needed. These roles are General Ledger, Payroll, Sales and Purchasing, Accounts Payable, Accounts Receivable, Order Entry, Procurement, Sales and Purchasing History, Invoice and Shipping, Financial Reporting, there are also EDI, Bar Code Reading, and Executive Decision Support Systems roles exclusive to the San Jose. These roles are best handled in a three stage process of checks and balances. The first part will be one person to enter the accounting information be it payroll, accounts payable, purchasing, or any other accounting information. Which we be handle by the entry specialist role (Payroll Entry, Purchasing Entry, Accounts Payable Entry, and so...
Words: 1060 - Pages: 5
...Applications Many operational departments work with information systems and software applications on a daily basis. Software applications make the organization of data for many departments more readily available. The accounting department for instance has accounting software applications that help to perform everyday accounting also organizing the company’s accounting information in a readily accessible form (Pearlson & Saunders, 2006). In the management department, the operational mangers can use a number of applications for many different tasks like organization, scheduling, or production of the department (Pearlson & Saunders, 2006). The human resources department uses information systems to keep employee file confidential and software applications to maintain the employee files. The application systems allow the department to organize employee files which enable the department to track employee training, hiring, as well as termination (Pearlson & Saunders, 2006). The accounting department uses the software applications to help in preparing payroll, accounts payable, account receivable, and providing customer invoicing. The applications used in the accounting department have to communicate with each other to keep the information accurate. The applications also have to share information with other information systems throughout the company. One of the departments accounting needs to communicate with is human resources. The human resources department handles employees of the company...
Words: 445 - Pages: 2
