The report lists out the benefits of keeping a proper accounting records and followed by, a brief description of how a computerized accounting system works.
Executive Summary Firstly, the report lists out the benefits of keeping a proper accounting records and followed by, a brief description of how a computerized accounting system works. Secondly, it lists out the possible benefits gained from the setup of a cost accounting system and a brief description job costing, the most suitable costing method in your business. Finally, it states out the disadvantages of a sole trader and both advantages and disadvantages of a limited company. The report recommends the immediate setup of both accounting and job costing system. The changeover of current business into a form of limited company is to be delayed. CONTENTS Executive Summary 1 Introduction 3 2 Findings 4 2.1 Records Keeping 4 2.2 Cost Information 8 2.3 Personal Exposure 12 3 Conclusions 15 4 Recommendations 16 Appendix - Reference and Bibliography 17 Introduction On 29 October 2001, I was appointed by you, Mr. Godfrey Boycott, in carrying a brief review of your business operations and to recommend any improvements if found. It is noted that you are running a special engineering business which consists of 5 employees and operated as a sole trader's business. You are concerned about the preparatory works within your business in matching the possible expansion of your business you foresee in the near future. You are also interested in the benefits of turning
Write a concise report detailing the purpose and value of keeping accurate financial records.
VCE Business Assignment - Task 1A Write a concise report detailing the purpose and value of keeping accurate financial records. ac-count-ing. The principles and methods involved in keeping a financial record of business transactions and in preparing statements concerning the assets, liabilities and operating results of a business. The purposes of accounts are there not just for the organisations benefit but for the stakeholders as well. Legal requirements also play a major part in the maintenance of companies financial records. The government and its subsidiaries are the main people who have an interest in the preservation of the company's accounts. Most 'Taxes' are checked up on annually. Customs and Excise are responsible for the V.A.T. (Value Added Tax - Set at 17.5% in the U.K) collecting. ALL companies MUST keep V.A.T. records and accounts. It is extremely illegitimate if a company does not pay its V.A.T. Corporation Tax (took from a companies profits) must also be paid to the Inland Revenue as well as National Insurance Contributions and Income Tax. (Source - http://www.inlandrevenue.gov.uk/) " The Inland Revenue's Core Purpose is to ensure that everyone understands and receives what they are entitled to and understands and pays what they owe, so that everyone contributes to the UK's needs. In delivering our core purpose, the Inland Revenue is responsible,
How a trial balance is extracted from a set of accounting records
How a trial balance is extracted from a set of accounting records A trial balance is a list of the names and balances of all the accounts showing in the ledger including cash and bank balances from the cash book. A trial balance checks to see if the debit equals the credit. If debit total is not same as the credit total then the records don't balance and there must be a mistake. Debit accounts include asset, expense accounts and credit accounts include liability, equity, revenue accounts. Assets are listed first followed by liabilities and then owner's equity. The Trial Balance can be taken at any point in time. It lists all ledger accounts and their balances and is used to see if debit and credit balance. Assets are listed first followed by liabilities and then owner's equity. Debit balances are listed in the left side and credit balances in the right side. The Trial Balance is a list of all the ledger accounts. You have to list all your total debits and credits from each general ledger account. There should be three columns and they should be account name, debit and credit. For each account you have to total your debit and credit for the accounting day for which you are doing the trial balance. You have to record the total for each account in the right column. It is listed on one day and this is usually the final day of the financial year and the heading tells us this
In this report, I will outline key accounting policies and records for Harrington Books. As Harrington Books is a new company, I am going to try and keep my comments and recommendations as straightforward as possible.
Harrington Books Sample Solution by Elizabeth LaRegina Report to: Peter Harrington Subject: Accounting Policies and Records for Harrington Books. Introduction In this report, I will outline key accounting policies and records for Harrington Books. As Harrington Books is a new company, I am going to try and keep my comments and recommendations as straightforward as possible. From my perspective, the following are the key users of the financial statements, and their objectives: Peter Harrington - as the owner your concerns centre around tax minimization, internal control and of course, maximizing profit. Bank - since the bank has provided a line of credit to Harrington books, and has taken business assets as collateral, they will also be interested in financial information Manager - since the newly hired manager is on a variable compensation plan with a bonus based on year end profits, he or she will be concerned with how those profits are derived CCRA - the tax authorities will also be interested in the financial information as the basis of fair tax payments by the business. They will likely not support aggressive accounting methods. Since the bank has provided assets as collateral, I are going to presume them to be the most important user. It is essential that the information is useful for their purposes. As sole proprietor, Peter Harrington will be
The two main reasons why it is vital for a business to keep accurate accounting records
Jocelyn Hunt - AVCE Business Studies Financial Accounting - Assignment One Question One: The two main reasons why it is vital for a business to keep accurate accounting records is 1. For legal reasons to do with acts enforced by parliament and 2. To record the performance of the business. Every year companies are by law required to produce a set of accounting records that show a true and fair view of its financial position. Copies of these records then have to be filed with the Registrar of Companies at Companies' House and sent to every shareholder and debenture holder. The Companies Act 1985 states the minimum amount of information that has to be included, although many companies see it as a public relations opportunity and produce information on staff, products and other areas of the business. This is done in an attempt to make other parties such as shareholders aware of the company and of future developments. No matter the size of a business they must all comply with the legal requirements of the Companies' Act 1989. From a practical point of view, if a company did not make any records of transactions carried out, it would prove to be impossible for them to evaluate the performance of the business or even compare it with another companies' performance. Good record keeping can show whether the business is improving, which items are selling and what changes are
Accounting report managment accounting
MANAGEMENT ACCOUNTING REPORT 3 INTRODUCTION 3 . BREAK-EVEN 4 INTRODUCTION (BREAK-EVEN) 4 METHOD OF INVESTIGATION (BREAK-EVEN) 4 FINDINGS (BREAK-EVEN) 4 SUMMARY (BREAK-EVEN) 8 RECOMMENDATION (BREAK-EVEN) 8 2. MARGINAL COSTING 8 INTRODUCTION (MARGINAL COSTING) 8 METHOD OF INVESTIGATION (MARGINAL COSTING) 9 DESCRIPTION 9 FINDINGS (MARGINAL COSTING) 9 SUMMARY (MARGINAL COSTING) 11 RECOMMENDATION (MARGINAL COSTING) 11 2.1. PART TWO OF MARGINAL COSTING 12 INTRODUCTION (PART TWO OF MARGINAL COSTING) 12 METHOD OF INVESTIGATION (PART TWO OF MARGINAL COSTING) 12 FINDINGS (PART TWO OF MARGINAL COSTING) 12 GROSS PROFIT 12 NET PROFIT 12 CONCLUSION (PART TWO OF MARGINAL COSTING) 13 RECOMMENDATION (PART TWO OF MARGINAL COSTING) 13 3. INVESTMENT APPRAISAL 14 INTRODUCTION (INVESTMENT APPRAISAL) 14 METHOD OF INVESTIGATION (INVESTMENT APPRAISAL) 15 FINDINGS (INVESTMENT APPRAISAL) 15 CONCLUSION (INVESTMENT APPRAISAL) 17 RECOMMENDATION (INVESTMENT APPRAISAL) 18 4. BUDGETARY CONTROL 19 INTRODUCTION (BUDGETARY CONTROL) 19 METHOD (BUDGETARY CONTROL) 19 FINDING (BUDGETARY CONTROL) 19 CONCLUSION (BUDGETARY CONTROL) 25 RECOMMENDATION (BUDGETARY CONTROL) 26 4.1 BUDGETARY CONTROL PART B 27 INTRODUCTION (BUDGETARY CONTROL PART B) 27 METHOD (BUDGETARY CONTROL PART B) 27 FINDINGS (BUDGETARY CONTROL PART B) 27 CONCLUSION (BUDGETARY CONTROL PART B) 30 RECOMMENDATION
Reflective report - Introduction to Financial Accounting
Reflective Report During the last term, i have had learned some knowledge from the subject called introduction to finical accounting. For me, this is the first time I had chance to learn this subject, before that I just heard some information about IFA by reading the FT newspaper and watching the news. When I start learning that, this subject gives me the impression that it is difficult to understand. During the past few months, I can say I already mastered some of the skills in IFA. I can still remember the first lecture I had learned was the definition of the “Accounting Equation”, I can conclude that the most important thing you must master is you should try to distinguish the meaning of the capital, assets and liability. Assets are economic resources of the business that are expected to bring benefits for the business in the future, the Important point is it can bring you benefits in the future instead of consuming at the end of the year. Capital, we can also called owners’ equity is the economic resources that was contributed by the owners of the business to the business. The last component is liability which is the name given to the amounts owing to these people or organizations for these assets. The format of the accounting equation is capital + liabilities = assets. When I learn this subject, I think the interesting part is the double entry which is the basic
Management Accounting Report.
MANAGEMENT ACCOUNTING REPORT 3 INTRODUCTION 3 . BREAK-EVEN 4 INTRODUCTION (BREAK-EVEN) 4 METHOD OF INVESTIGATION (BREAK-EVEN) 4 FINDINGS (BREAK-EVEN) 4 SUMMARY (BREAK-EVEN) 8 RECOMMENDATION (BREAK-EVEN) 8 2. MARGINAL COSTING 8 INTRODUCTION (MARGINAL COSTING) 8 METHOD OF INVESTIGATION (MARGINAL COSTING) 9 DESCRIPTION 9 FINDINGS (MARGINAL COSTING) 9 SUMMARY (MARGINAL COSTING) 11 RECOMMENDATION (MARGINAL COSTING) 11 2.1. PART TWO OF MARGINAL COSTING 12 INTRODUCTION (PART TWO OF MARGINAL COSTING) 12 METHOD OF INVESTIGATION (PART TWO OF MARGINAL COSTING) 12 FINDINGS (PART TWO OF MARGINAL COSTING) 12 GROSS PROFIT 12 NET PROFIT 12 CONCLUSION (PART TWO OF MARGINAL COSTING) 13 RECOMMENDATION (PART TWO OF MARGINAL COSTING) 13 3. INVESTMENT APPRAISAL 14 INTRODUCTION (INVESTMENT APPRAISAL) 14 METHOD OF INVESTIGATION (INVESTMENT APPRAISAL) 15 FINDINGS (INVESTMENT APPRAISAL) 15 CONCLUSION (INVESTMENT APPRAISAL) 17 RECOMMENDATION (INVESTMENT APPRAISAL) 18 4. BUDGETARY CONTROL 19 INTRODUCTION (BUDGETARY CONTROL) 19 METHOD (BUDGETARY CONTROL) 19 FINDING (BUDGETARY CONTROL) 19 CONCLUSION (BUDGETARY CONTROL) 25 RECOMMENDATION (BUDGETARY CONTROL) 26 4.1 BUDGETARY CONTROL PART B 27 INTRODUCTION (BUDGETARY CONTROL PART B) 27 METHOD (BUDGETARY CONTROL PART B) 27 FINDINGS (BUDGETARY CONTROL PART B) 27 CONCLUSION (BUDGETARY CONTROL PART B) 30 RECOMMENDATION
Required: Write a report your response to Mr. Alfonso.
QUESTION 1 Mr. Alfonso, a client who has traded as a hardware merchant for the last five years, has told you that he finds difficulty in understanding the draft profit and loss account for the year ended 31 December 2000 which has been prepared by your assistant. Mr Alfonso's main concern is that, although the accounts show a profit, the bank overdraft at 31 December 2000 was significantly higher than it was a year earlier. Required: Write a report your response to Mr. Alfonso ANSWER 1 3 August 2001 Mr Alfonso Director Alfonso Hardware Trading No. 19 Enterprise Road Singapore 080019 Dear Mr Alfonso RE: EXPLANATION FOR THE DRAFT PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2000 Upon hearing your concern and difficulty in understanding for the draft profit & loss account for the year 31 December 2000, I am please to attach the following information to assist you in understanding the draft. Firstly, as a director you must be able to identify & classify the differences in income and expenses. Income is classified into two types and they are Capital Income and Revenue Income. Capital income is not from business activity, it's gain and extra value is automatic as no direct effort is involve. Examples will be increase in property prices. On the other hand, revenue income is income made by the company from business activities with human efforts. Examples will
Managerial and Financial Accounting Report
Operations Management and Ethics Assignment Shivanand R. Koppalkar University of Phoenix MGT 554: Operations Management Steven Williams August 8, 2006 Operation Management Operations Management can be summed up as the strategies employed by an organization to provide a competitive advantage to optimize all decisions and processes encountered in business practices. A solid operation management team ensures that company's day-to-day activities run smoothly and will assist in maximizing revenues. A key consideration of an effective OM manager Operations Management can be summed up as the strategies employed by an organization to provide a competitive advantage to optimize all decisions and processes encountered in business practices. A solid operation management team ensures that company's day-to-day activities run smoothly and will assist in maximizing revenues. A key consideration of an effective OM manager is one that makes ethical decisions during the planning, review and implementation stages of any new process to be introduced. This paper will briefly examine the purpose of operations management as well as analyze an ethics decision made with respect to OM within the organization (Aquilano, Chase & Jacobs, 2004). Operational management (OM) consists of many facets, but in general examines the best methods to produce and deliver products and/or services into the
