(WebFinance, Inc, 2013) Simplified it is the process of evaluating the current business, let’s say their effectiveness, and their future in their industry. Why is it so important? Financial statement analysis involves the carful select of data from various financial statements, such as the one that we will be referring to in this report. The data from the reports is used primarily to forecast the financial health of the business [in this case Competition Bikes]. When analyzed it makes it easier for c-level executives and management to make future decisions.
4. The inefficiency of international companies having to understand and use a myriad of different accounting standards depending on the countries in which they operate and the countries in which they raise capital and debt. Executive talent is wasted on keeping up to date with numerous sets of accounting standards and the never-ending changes to them. 5. The inefficiency of investment managers, bankers, and financial analysts as they seek to compare financial reporting drawn up in accordance with different sets of accounting standards.
Organizational change processes are theories that can be applied in the business world. Carefully planned businesses changes are helpful because the theories have been carefully prepared and researched. Business owners should consider business trends to stay competitive in today’s economy. The staff mayt need to learn new skills or modify job duties. Because management and boards oversee businesses, they should carefully examine the impact of any change on the business.
These items take a lot of time to do manually. Now the auditor can let the software do the hard part, and focus more on the examination part of the audit. Groupware is software that allows the sharing of information between computers and networks. Programs such as Lotus Notes and Microsoft Exchange are examples of groupware. Time and billing software allows the auditor to quickly record and bill the hours spent on an audit.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
This required the FDIC to review financial reports and accounts activities regularly. When mismanagement or acquisition of risky assets happened, the FDIC could warn the bank in order to help the bank get back on the right track, which also helped to achieve the central bank's regulatory intent. * The FDIC would promote competition in the banking sector appropriately, in order to provide the public with lower prices and better quality services. The deposit insurance system was to protect the small and medium-sized banks and to promote fair competition and effective methods, which would enable depositors to form a consensus. Whether deposits went into the big or small banks, their levels of protections of the system were the same.
“ Complexity of the Business Environment. The increasing complexity of business operations magnifies the difficulty of distilling economic events into summarized reports.” (Weygandt, 2007) 2. “Necessity for Timely Information. Today, more than ever before, users are demanding information that is current and predictive.” (Weygandt, 2007) 3. “Accounting as a Control and Monitoring Device.
This is the most important quality of someone that works in accounting because you are responsible for recording all the financial information for the company and any wrong information could discredit your business and may also put you into a lot of trouble. Having great mathematical skills would also be another quality because you have to know your percentages and how to come with the figures for the budget as well. Also, having some knowledge of what investments would be good for the business as well. The type of education that I would require for my accounting staff would be that they are certified to be an accounting; I would also prefer that they have the work experience in the accounting as well. Having the experience in management would be a must as too, you would need to know how to handle yourself in certain situations when it comes to dealing with problems may occur or with dealing co-workers that work in your
Riordan Strategic Plan Team C MGT/498 November 20, 2013 Instructor Riordan Strategic Plan Strategic planning is necessary for a company’s growth and success. Businesses clearly must define company goals and conduct extensive research to get a grasp of industry trends, which allows them to take advantage of available business opportunities. They can achieve this by carefully analyzing a particular business industry, and an honest assessment of their company's strengths and weaknesses in meeting the needs of the industry. The strategic plan will allow Riordan Manufacturing to focus on a particular niche in the marketplace, which makes sales, advertising, and customer management more effective. The plan allows
Career Exploration Analysis DeAnn Scroggins COM/530 May 25, 2015 Dr. Charles Sherman Career Exploration Analysis Education is an important step in building a career path. Education provides essential knowledge which can help in sharpening desirable skills for specific careers. Communication varies depending on career, and organizational culture. Communications for accountants (530) prepares accountants for various and diverse styles of communication necessary to succeed in the finance based business world. Planning a career path can seem ominous, but with the help of Career Exploration it manages the unmanageable, delivering reliable and realistic options.