• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Accounting can be defined diversely. It can be seen a complcated and difficult simple calculation, while it is the dynamic and never-ending art of finance. Namely, it depends on how relevant people find it out.

Extracts from this document...

Introduction

Accounting and Accountants in Business Module : M0 7100 Financial Accounting Student Number : 01280297 & 01247376 Name : Kyu-Min, Lee(AF) & Qian Xu( AC/FT ) Tutor : Graham Digge Table of Contents Introduction....................................................................................4 Results of Investigation.......................................................................4 1, Nat West Bank..............................................................................4 2, Oriental Supermarket.......................................................................5 Conclusion.......................................................................................6 Recommendation..............................................................................6 Appendix........................................................................................7 Bibliography....................................................................................7 Executive Summary Accounting can be defined diversely. It can be seen a complcated and difficult simple calculation, while it is the dynamic and never-ending art of finance. Namely, it depends on how relevant people find it out. Nat West Bank plc has internal accountant and produces full final accounting reports such as profit & loss account, balance sheet and cash flow statement as well as director's report ( ceo's report) and auditor's report. So, they perceive the needs and importance of accountant, and place on contribution of accountant as essential element for business. Accountants also analyse the reports and forecast for the future. While, Oriental Supermarket produces basic accounts such as profit & loss account, balance sheet, but not cash flow statement. Even though they has external accountant, because their main concern is taxation, they do not see the full benefit of accouting. In addition, they have no stakeholders apart from government ( Inland Revenue) and themselve. So, they find that accounting is the necessity evil unlike Nat West Bank. ...read more.

Middle

Every month, they produce basically profit & loss account, balance sheet, cash flow statement and consolidated account to send them to their main headquarter. Also, headquarter collects all data from their branches and produces annual final financial accounts, in order to file a copy of their accounts with Registrar of Company and a director's report and an auditors' report which are required by statute according to the Companies Acts 1985 and 1989 (Business Law by Sunderland University, 2001) Through these accounting information and records, the business can be assessed current financial status and be forecasted future policies of their business. Moreover, it is essential to attract stakeholders (we are going to consider it later on) All procedure is carried out by internal accountant of the bank who are employed by bank and external accountant from outside of the bank for annual report. Those reports are kept by each stages, namely, the Headington branch keep their accounts and headquarter keep their accounts. Those are the main role of accountants in Nat West Bank. As far as other role of accountant is concerned, in order to produce accurate and reliable accounts, accountants were described like audit by respondent. Because they should be able to see what their business is strong or weak, in other words, they assess the status of business in terms of finance. ...read more.

Conclusion

However, there are basically no difference between the accouts of small business and the one of large business. All the principle of accounts are applied exactly the same. RECOMMENDATION At this stage, we are going to focus on Oriental Supermarket rather than Nat West Bank. As far as the proedure and the method in producing are concerned, the Oriental Supermarket adapt the best way as much as they can. Because they produce monthly and annual accounts. Also, computerised package from Nat West Bank is used to produce monthly accounts. These are the strength of Oriental Business. However, as far as the weakness is concerned, they do not use full benefits of accounting information despite of hige costs because of lack of the perception of the needs of accounting. Even though they are adviced annually by accountants, if they do not find it useful, it is more spending than the cost for accountant. Therefore, it is recommended that one of them specialise the accounting. So, they may be able to use full advantages of accounting. Futhermore, they need to see the accounts of competitors. For example, even if they are the only one chinese supermarket, in order to compete with 'hong kong' chinese take away, they need to regard them as competitor and cooperator. Finallly, collecting final accounts every year should be useful to see the trends of their fianancial status. It may affect their marketing strategy. Apendix Figure 1. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Accounting & Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Accounting & Finance essays

  1. Marked by a teacher

    Business Finance. There are a number of sources of finance, which businesses will need ...

    3 star(s)

    Government grants often come out with a set of rules for the person who is eligible to apply which can be so specific that it prohibits many businesses. And there may be an increase in the businesses expenses because they tend to demand certain activities which have to be included in any project to be funded.

  2. In this assignment I am opening a tuck shop in the school grounds and ...

    Business Documents In this section I will talk to you about Business Documents and what do they mean, and I will also produce my own Business Documents. * Purchase order: A Purchase order is completed by a customer and sent to a supplier to request the supply of goods of services.

  1. Investigating Richer Sounds PLC.

    areas work together to achieve the aims and objectives of Richer Sounds, the objective is: Open between four and six stores in the current year. 4 5Richer Sounds have a suggestion scheme. Every member of staff has a suggestion pad and their Chairman, Julian Richer, reads every single suggestion.

  2. Complete Report on Askari Commercial Bank

    Respect for customers' confidential matters, merits the same care as does the protection of the Bank's own affairs or other interests. * Employees must ensure that know your customer principals are adhered by obtaining sufficient information about the customers to reasonably satisfy ourselves as to their reputation, standing and the nature of their business activities.

  1. Financial Analysis of Matalan PLC

    that Matalan' return on assets employed is significantly greater than the Return on Capital Employed by Marks and Spencers. A provider of finance for Matalan will be very pleased with this result when compared to M&S's. While such a ratio is particularly helpful for the above companies whose areas are

  2. International Accounting Standarts

    changes in financial position - performance The reader shall get a true and fair view about the real situation of earning cash and cash equivalents within the company.3 Moreover, these figures should be a criterion for shareholders to evaluate the performance of management and to change management if needed, or to sell the companies shares at all.

  1. Harmonisation of accounting standards in Europe

    There is no doubt, however, that the seventh Directive was a major step towards the production by European companies not only of more consolidated statements but also of more comparable ones. It also had the effect of bringing continental European practice more into line with that of Anglo-Saxon countries.

  2. The Purpose of Keeping Accurate Accounts

    Keep stakeholders informed - can improve investor's confidence and can make more contributions by investing in more money into the business if they are regularly informed about the success of the business. Paying high dividends to shareholders and informing them on future dividends can make shareholders invest more money.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work