This also includes educating staff about the responsibilities of maintaining costs. What are the reports that can be used for financial planning in an organisation? Profit and Loss Balance sheet Revenue and Expenditure report Cash flow statement Debtors and Creditors reports What is the process for preparing budgets or other financial plans? 1. Identify data that needs to be collected.
1. Why do organisations need accurate and timely financial information? What information is required to manage the organisation’s finances? Who is usually responsible for an organisation’s financial management? Organisations need accurate and timely financial information as this information is analysed to produce information that can be used by management and employees in the organisation.
The purpose of accounting information is to help organizations make well-informed business decisions. Accounting allows organizations to understand the financial perspective of the organization, the inflow and outflow of organizational resources and their results. An important function of accounting is organized record-keeping which allows the organization to record spending and receiving patterns. This paper focuses on several accounting aspects of Guillermo Furniture Store. The paper focuses on how budgets and performance reports assist the furniture maker in the decision making process, and how ethics might influence his decisions.
Businesses will charge the GST when the service or product is passed on to the consumer. If your turnover is less than $75,000 then you don't have to register for GST although you may do so. All other businesses, with minor exceptions, need to register for GST. The GST Act 1999 governs the GST - A New Tax System (Goods and Services Tax) Act 1999 http://www.austlii.edu.au/au/legis/cth/consol_act/antsasta1999402/ Question 2 What are audits and why are they carried out? (25 words) An audit is an official inspection of a business.
HOW Dissemination is achieved through a wide variety of pathways, from traditional, face-to-face communication methods, to the use of ICT 2. Why do these people need the information contained in the annual report? Private or public organizations, charities or government services have stakeholders to whom they are accountable. A stakeholder will require financial information to get an understanding of the performance of the organization. This record shows the assets owned, amounts owed, amounts invested in the organization and profitability to better manage the operations.
(Osmond, 2014) Accountants do not always follow the moral guidelines set out by the company’s managerial accounting and thus creating ethical problems within the business. The resultant effect of not following the set out moral values is that stakeholders lose confidence with the company’s financial stability. Ethics will be important in ensuring that the accountants always prepare the books of account in time and update them in time. The accountants will also be in a position to report correct, accurate and ethical information on the financial position of the organization (Osmond, 2014) Managerial accounting is characterized by forecasting for the future sales of the business. It focuses on the users of the company’s business details.
Analysis of the income statement, balance sheet, cash flow statement will be performed. In addition, the information obtained in the above statements should assist management in making decision. Required information to make these decisions will be discussed as well. What does the income statement tell you about the company? Why is this statement important?
GAAP stands for Generally Accepted Accounting Principles. The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.
Accounting is a way to communicate financial information about a business to those who wish to use the information to make decisions. Two types of accounting are management accounting and financial accounting. Management accounting is used by managers to run a business. Financial accounting provides information to various external users. (Horngren, 2012) Financial statements and their related disclosure notes provide information such as the results of operations, the financial position of the business, and cash flows.
Caledonia Products Integrative Problem FIN/370 Finance for Business The following outlines the analytical data and procedures used by a financial analyst who is working for the capital budget department at Caledonia Products. The organization has asked Team A to evaluate the potential risk involved in an upcoming transaction and identify several options in how to proceed. Because this is the team’s first assignments dealing with risk analyzes the team has been ask to further explain the details. The organization analysis will focus on free cash flows, projection of cash flows, projects initial outlay, cash flow diagram, net present value, internal rate of return, and whether or not the project should be accepted. The impact of free cash flows Team A believes that Caledonia should put greater emphasis on free cash flows rather than accounting profits.