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Financial Accounting

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Introduction

Financial Accounting Financial accounting or 'book-keeping' is the process of recording financial transactions from the day-to-day operation of a business. The sale of goods to a customer and the subsequent settlement of the debt are two examples of financial transactions. Sales Accounting When credit sales are made to customers, a record needs to be kept of amounts owing and paid. Payment is normally requested with an invoice. An invoice usually gives details of goods supplied, quantities, prices and VAT. Credit sales are usually made on weekly a basis, which means that the customer has to pay within that period to obtain the discounts, if any offered. Overdue payments need to be chased, so sales accounting systems normally produce reports analysing the indebtedness of different customers. Debt control is vital to business profitability and computerised systems can produce prompt and up-to-date reports as a by-product of the main application. Human Resources The human resources (personnel) ...read more.

Middle

The production department must know exactly what is required and when; it must also have the staff with the necessary skills and any machinery must have the appropriate facilities and production capacity. Marketing A marketing function is a vital part of many large national and international businesses; it aims to generate information, from a wide range of data sources, to support marketing decisions. Three such decision areas are: 1. Strategic and relating to, for example, expansion of the company's existing market share and the identification of new marketable products; 2. Tactical, for example, planning the marketing mix; 3. Operational, for example, day-to-day of sales calls and ad hoc promotions. At the operational level, data gathered from sales invoices, sales force staff and accounting information could be used to establish customer types. This means customers can be classed as 'low', 'medium' or 'high' volume users according to the frequency and volume of their orders. This helps sales staff target a particular category of customer and to plan the timing of sales calls. ...read more.

Conclusion

ICT Services Apart from small firms, most organisations need specialist staff to develop, introduce, maintain and update the various systems that make use of information technology. The responsibilities of ICT Services are much broader than those traditional held by wholly centralised computer services or data processing departments because communication is a larger part of IT with the introduction of the internet and E-mail amongst other things.. The development of cheaper and more powerful microcomputer systems has resulted in computer facilities being distributed more widely. For this reason, ICT Services needs to provide a much more flexible service and support user systems at the point of use. For example, uses of network workstations need support when equipment, such as a shared printer, breaks down or they may require help in the use of software on the network. This contrasts with a centralised department, which holds all the computer equipment, carries out all computer processing and restricts user access to specialised applications, run through dedicated terminals. ICT Services may be known variously as Computer Services, Management Information Services or less commonly now, the Data Processing Department. ...read more.

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