...Run a Better Business with Accounting Jesse Pulley Man-104 June-06-2013 Instructor Natalie Rufa Accountants are a crucial part to my business success. The key is finding the right professional to provide the services that my business needs to advance.( http://www.wahm.com, paragraph 1) I as a business owner/manager must educate myself on the questions to ask and the services that will help me achieve my goals. I realize that it can become a little overwhelming, but here are 5 things you need to consider before you hire that accountant. 1) Does the accountant demonstrate the ability to help find ways to get you financial gain? 2) Will the accountant be accurate and trustworthy? 3) Is the accountant up to date with their own taxable responsibilities? 4) What tools does the accountant harbor that will help you in your financial gains and losses? 5) Does the accountant’s references hold credibility? These are crucial questions to use when searching for the right financial advice and planning. The accountant or accounting classes are crucial to keep finances, documents, and records balanced, as well as being organized. It is proof for the operation of any business. Financial statements show the physical numbers of the cash flow and losses, they also make it easier to prove to a bank if ever a loan is needed.(http://www.oakhillbp.com paragraph 2) Having an accountant or the skills of one is beneficial and highly crucial to keep your business clear and clean...
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...Introduction According to the American Accounting Association, accounting is a process to measure, identify and communicate to show economic information by the user. ( http://tutor2u.net/business/accounts/intro_accounting.htm). Besides that accounting also can be define as the language of business because it is a system to record , analyse and summarize of financial transaction ( http://www.cliffsnotes.com/study_guide/Introduction-to-Accounting.topicArticleId-21081,articleId-21001.html). Accounting is a transaction of selling and buying . After that organise these information presenting it for decision-making. Accounting is important to record all of the business transaction easy for the owner to know whether they are financially successful and to know how much they owed and how much they owned.(Frank Wood & Alan Sangster ,2008,Business Accounting 1 eleventh edition, pg4) Summary Accounting is a process where the user identify, measure and communicate the economic information to perform decision and judgement. Bookkeeping is required in accounting to record data . There are two equation used in accounting which is accounting equation (assets equal to liabilities plus equity) and profit determination equation (profit equal to revenue minus expenses). Double entry system is used inside the book keeping. T-account is a shape use when doing double entry system. It divided into left-hand side called “debit” and right-hand side called “credit”...
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...Accounting Information for Managers To Make Better Decisions 1 Abstract This paper analysis how the accounting information would support the decision making process. The main goal of an accounting system is to provide financial information about the organization including financial situation and the performance of the organization. The decision makers should know the situation of the organization either by comparing competitors or previous periods’ performance in order to achieve the objectives of the company and this being possible by using accounting information. In addition, this thesis studies the importance of having effective and efficient accounting system to make better decision as it relates to increase the profitability target of an organization. Organizations should replace their weak accounting system in order to ensure that each team member in the Accounts Department is conscious of their role to produce good accounting information (1, Okoli Margaret). The result of this paper describes that providing right information to the right people in time via management reporting to maximize the use of reports in decision-making. 2 Introduction Any organization should survive and excel in the fast paced and ever changing market. We are living in the digital era so information can be found everywhere via websites, databases documents, reports, and emails. However, it’s important to read the historical data-set during decision making process but providing report in quick...
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...of Contents Introduction: 2 P1.1: Accounting in tourism or hospitality organization. 3 P1.2: Difference between financial and management accounting 3 P1.3: Difference between a sole trader, a partnership and a limited company 4 P1.5: Use of financial software in Tourism and Hospitality business 5 P1.6: Impact of changes in IT and internet on hotels and airlines 6 P2.1: Double-entry book-keeping 6 P2.2: Calculattion and account for VAT on purchases and Sales 7 P2.3: Cash receipts, cash payments and bank reconciliation 8 P3.1: How a trial balance is constructed 8 P3.2: Trial balance along with adjustments used to prepare fianl accounts 9 P4.1: Sources of finance available to a business 9 P4.2: Reasons and the process of budgetary control 10 P4.3: How to prepare a simple cash budget 11 Conclusion: 12 References…………………………………………………………………………………………………………………………………………….13 Introduction: Business organizations face intense competition in today’s global business world. Tourism and hospitality are very large industry. A lot business organization is competing for their success in tourism and hospitality industry. The success of business organizations depends mostly on managerial decision making. However managers cannot make proper decisions if there is no information available. Financial information is the most important information for all kinds of business organizations. Without proper financial...
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...Advanced Accounting Information Systems 1 INTRODUCTION • We’ll also discuss how to hasten or improve the development process through: – Business process reengineering – Prototyping – Computer-aided software engineering (CASE) tools © 2012 UMT Advanced Accounting Information Systems 2 BUSINESS PROCESS REENGINEERING • Business process reengineering (BPR) is the analysis and redesign of business processes and information systems to achieve significant performance improvements. – Reduces a company to its essential business processes. – Reshapes organizational work practices and information flows to take advantage of technological advancements. © 2012 UMT Advanced Accounting Information Systems 3 BUSINESS PROCESS REENGINEERING • BPR: – Simplifies the system. – Makes it more effective. – Improves a company’s quality and service. • BPR software has been developed to help automate many BPR tasks. © 2012 UMT Advanced Accounting Information Systems 4 BUSINESS PROCESS REENGINEERING • Michael Hammer has set forth several principles that help organizations successfully reengineer business processes: - Organize around outcomes, not tasks. • DO AWAY WITH: Assigning different parts of a business process to different people, with the resulting handoffs, delays, and errors. INSTEAD: Each person’s job is designed around an objective, outcome, or process rather than a task needed to complete a process. • © 2012 UMT Advanced Accounting Information...
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...Effects of Technology on the Accounting Profession University of Phoenix ACC/340 Accounting Information Systems Effects of Technology on the Accounting Profession Businesses have become more competitive, consumers are more informed, and technology has changed the way the world communicates. Information technology (IT) and the resulting ‘information age’ are continuously impacting every facet of accounting. (Bagranoff, Simkin, & Strand-Norman, 2006) This paper will examine how accounting information systems (AIS) are bringing about changes within the accounting profession. Additionally, a variety of technologies and how they affect accounting practices at Exclusively Yours Salon will be discussed. Accounting Information Systems and the Accounting Profession Today’s business environment is marked by increased competition and the need for better and faster information for decision making. According to Bagranoff, Simkin, and Strand-Norman, 2006: Because IT now captures transactions, AISs can produce financial statements almost in real time. Of course, some of the adjustments that accountants must make to the records are not done minute-by-minute, but a business can certainly track sales and many of its expenses continually. (p. 15) Additionally, large amounts of accounting records are increasingly presented only in an electronic fashion. Companies are reporting their financial outcome quarterly and an increasing number of companies are transferring their financial...
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...THE APPLICATION OF INNOVATIVE MANAGEMENT ACCOUNTING PRINCIPLES FOR ENHANCING PROFITABILITY AND COMPETITIVENESS: AN EXPLORATORY STUDY OF JAMAICAN MANUFACTURERS Phillip C. James University of Technology, Jamaica College of Business and Management School of Business Administration ABSTRACT This study represents the first in management accounting research in Jamaica which seeks to determine the extent to which innovative management accounting principles (IMAPs) are applied in the manufacturing sector. The aim is to determine if manufacturers in Jamaica are using IMAPs to improve export competitiveness and enhance profitability .The study also seek to determine the factors that prevent manufacturers from adopting these management accounting principles. Five manufacturing organizations were examined using an exploratory case study approach. Results indicate that companies adopting IMAPs have more reliable information for decision making, higher levels of profitability and competitiveness when compared with non- adopting companies. Key Words: Innovative Management Accounting Principles, Profitability, Competitiveness 1. INTRODUCTION The manufacturing environment of the twenty-first century has changed considerably when compared with what existed decades ago. Arising from this development and with the increase in global competition, the need for accurate cost information has become an imperative. Manufacturers worldwide have suddenly realized that the continued...
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...Question 1 Revenue: * The total money collected by the business for the sales of goods or services provided during the accounting period for that particular year. * Including net sales or exchange of assets or anything that will increase the owner’s equity before any expenses are being subtracted. Service revenue: * Reports the fees that are earned by the company during the accounting period in the income statement. * It’s operating revenue, so it will appear at the beginning of the company’s income statement. Sales Revenue: * Reporting of the sales of merchandise * It is also revenue generated by the company’s sales operations before deducting expenses. Interest Revenue: * Non-operating income/revenue for companies that do not involve money lending. * Its interest earned by a company during a accounting period. Dividends Revenue: * Distribution of earnings to shareholders in different forms. * Mutual funds are paid out of income, normally on a quarterly basis, from income generated by investments. Expenses: * Incurred in a company’s effort to generate income, representing the cost of the business.. * In the form of actual cash payments, or depreciation of an assets. * It’s always minus in the income statement. Salary Expense: * Money paid to employees for their services. Rent Expense: * The expenses incurred when occupying a space during a accounting period. Utilities Expense: * The cost of usage of lightings...
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...Russell AIU Online Abstract Accurate accounting and the understanding can make or break your company or organization; not to mention possible jail time in the worse cases. The first way of ensuring accurate accounting is understanding the objectives. The second way is to understand the terminology of the accounting process and in the financial reporting aspects. The third way is to understand the ethics behind the accounting and reporting process. The forth way is to impement your role in the accounting process. Career Fair The primary objectives of accounting, basic terminology in the accounting process, the financial reporting, the ethics and the individual role each of us can play in the accounting process will be discussed in the following paragraphs. There are a multitude of things that happen at once but this will cover the basics for this career fair. Primary Objectives of Accounting There are a couple of ways businesses stay afloat by being financially stable and earning income. The process of financial information and conducting the financial record up keeping are vital to any organization, ensuring transparency of all information at the guidelines require you to prepare and produce them. The accounting cycle and the operating cycles are your intervals for reporting financial information. "This information is generally used by internal and external stakeholders to measure the organization's fiscal health" (M.U.S.E. Accounting Principles, 2013). The cycles and requirements...
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...(founded). Over-use of the passive voice can make paragraphs officious and tedious to read. Prefer the active voice. For example, passive voice = The paper was completed on time. Active voice = the student completed the paper on time. See Center for Writing Excellence > Tutorials & Guides > Grammar & Writing Guides > Active & passive voice] by Kathy Kudler back in 1998. In this paper, four ideas will be addressed. The first on is to find out ["find out" is a "phrasal verb," two words that together mean something different from their individual meanings--looking up each word in the dictionary would not produce the meaning, which could cause misinterpretation in an international business communication. Use other words, like "discover" or simply "found"] what Kudler Fine Foods key business and accounting information needs are. The second is to analyze what strengths and weakness [Misspelling--The plural of "weakness" is "weaknesses"] Kudler Fine Foods has with the store current system. This will include software and hardware. The third is to show Kudler Fine Foods some opportunities that deal with technology and give suggestions to help improve Kudler’s Fine Foods opportunities. The fourth is to seek out threats the Kudler’s Fine Foods may encounter with the current system by...
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...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...
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...Explaining Basic Accounting Concepts and Business Structures University of Phoenix 11/20/2010 Accounting 537 Explaining Basic Accounting Concepts and Business Structures There are many important aspects of accounting. The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual and cash bias methods are different ways to count revenue and will be discussed. The final area of review is the different types of business structures. Generally Accepted Accounting Principles. Generally accepted accounting principles are a set of standards and procedures (Kieso, 2007). The AICPA’S Code of Professional Conduct requires all financial statements in accordance with GAAP. The source of hierarchy is based on four categories; A, B, C, and D with A being the most authoritative and D being the least. A/CPA accounting interpretations, Implantation guides, and widely recognized and prevalent industry practices are all included in the D level. The C level is made up of emerging issues and practice bulletins. Level B is no longer issued bulletins, audit and accounting guides, and statements of position. Level A is made up of FASB standards, interpretations, and staff positions, APB Opinions, and AICPA Accounting research bulletins. The hierarchy lists the...
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...Basis The two main methods in accounting used to keep track of income and expenses are the cash basis and the accrual basis. The cash basis is the preferred method in small companies and its income is not counted until cash is received and expenses are not counted until they are paid. When using the accrual basis income is recorded when the order is made or the service occurs, and the same with expenses, they are recorded when the goods or service are received. Smaller companies will use the cash basis of accounting but when their business grows, it is mandatory to use the accrual method if the business has sales of more than $5 million, or if you have inventory and sales of $1 million on an annual basis. Identify What Standard Setters have said as to the superiority of accrual accounting relative to a cash basis. The Financial Accounting Standards Board (FASB) is recognized by the Securities and exchange commision as the accounting standard setter for public companies. The FASB believes that using accrual accounting provides a better picture of a company’s true financial health, and for this reason is a better choice than cash accounting. The FASB is recognized by many organizations as an authoritative entity. Alicia states that in finance literature there seems to be an emphasis on cash and why if cash is so important why does the FASB focus on accrual accounting. The FASB promotes financial reporting and focuses on accrual accounting because it provides useful information...
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...accountant and want to choose accounting field as my career path after graduation. In accounting field, a good knowledge in accounting, constant accuracy and working experience are important for a success. Traditionally, the accounting process involves record keeping recording, classifying, reporting, and interpreting economic events. While I was in high school, I focus on classes involving math and business. Few years ago, I was more than certain that becoming a business accounting major was what I wanted. My interest in business came from my family. There a lot of responsibility and application of high moral and ethical standards. First, while I was in high school, I focus on classes involving math and business. I was doing well in these courses gives me an indication of whether accounting is the right career for me. I spoke to my guidance counselor in high school about beginning a career in accounting field. My counselors can give me more information about accounting. I was interesting the facts she gave me. I believe that with the experience I've had in high school can help me get through a lot of challenges of being a business student. Second, my interest in business came from my family. Many in my family went to school for business and I'm here to follow. Naturally, if you love what you do, the money becomes less important. My family always taught me it’s better to be your own boss then someone telling what to do. They showed me it better way to become responsible and...
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...ACCOUNTING IP 1 BY MELANIE.KELLY7 AIU ONLINE Good afternoon students. Today I am going to briefly go over some accounting information that is necessary in the accounting business. First of all are the Primary objectives of accounting. A business has two main objectives; they are to earn profit and to remain solvent. The Primary objectives of the accounting function in support of an organizations two main objectives are to process financial information and to prepare financial statement at the required time. Processing financial information involves recording and summarizing the businesses daily transactions by posting it in the general ledger. The general ledger can be very simple to a more complex system. Through the processing of business transactions the financial statements can be prepared. The financial statements give the company’s management team information regarding profit and the solvency of the company. Before you can understand accounting you need to familiarize yourself with the basic terminology of accounting. Debits and credits are used to describe the transactions recorded to the accounts in a double entry system. A debit is a transaction of value added to an account. A credit is value removed from the account. Accounts are established to provide a record of individual transactions of the business. A group of accounts are called a general ledger. To record transactions in the general ledger...
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