Top Financial Accounting Services

financial accounting

What is the role of Financial Accounting Services?

Finance as a whole is a complex subject. The annual business plan is made by operational executives of the company & the controlling is done by the financial executives. The funds flow & sales vs. expense accountability needs to be done thoroughly.

Top three ways to build up the Best Financial Accounting Team:

Business financial accounting services provide expert staffs for handling day to day activities. This needs to be done carefully. Little mistakes can be disastrous to a growing business & can lead to credits & bad reputation in the market. A financial team is backed by management services to attain the quality jobs all year long.
financial accounting

Qualified candidates for the job

There may be difficulties found while managing the accounts & finance of a company. But tips always help in guiding through the difficult situations. Here are some ways to build the best accounting team for your business:

Proper coordination among the team members

Manpower resource is the key factor, which decides the success of the financial part of a company. Therefore, the person chosen for the job ought to be highly qualified & experienced to handle multiple types of jobs. The person ought to be an independent performer who can deliver the lead to least feasible time & without errors. The management of such team members ought to be also done effectively. In case you feel that it is becoming difficult to handle the team, then you can basically go to a professional accounting services provider agency. They are specialists in the field & can deliver better results without much of your involvement.

Utilization of intelligence of each person

There's various types of activities involved in the financial services. Every team member has own role which needs to be executed by proper coordination & timely communication. Every person on the team ought to have knowledge of another person's job in order to execute his/her duties competently. Every business ought to groom up their financial team members in this way.

financial accounting

The task of strengthening the financial team doesn't finish up after selecting the qualified team. It needs to be made fail proof by utilizing the actual potential of the person. All decisions need to be done speedy & prevent from losses.

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Financial Accounting

financial accounting

Internal financial accounting

Within the business it is important to maintain correct and up to date records for the following reasons:

It is necessary by the Revenue commissioners. Tax compliance is mandatory so maintenance of proper books and records are essential to make sure correct reporting of income and expenditure and the timely and correct return of payroll and VAT returns.

one. Tax compliance

two. Measuring performance

The prime users of financial accounting information about a business must be those who manage the business on a day to day basis. Furthermore, every business ought to have a business plan and a resultant annual budget to measure actual performance against. Information about sales revenue and gross profit, together with levels of expenditure on overhead is critical to the operation of the business. Operational decisions must be made constantly and these can be dangerously wrong if made on the basis of inaccurate or obsolete information.
financial accounting

Business designs are not for loan applications or grant claims. The business plan is of coursework an important requirement for obtaining outside support but if it is not a actual plan for a actual business then it is a recipe for catastrophe. The elderly adage states that in case you fail to plan you plan to fail. That can be updated to state that in case you fail to plan honestly, exactly and realistically you will plan to fail spectacularly, disastrously and financially. Basically put, when you prepare your preliminary plan you require feedback from your accounts technique to measure your business performance against the plan, so that early corrective action can be taken. When you subsequently prepare your annual budgets past performance measured by your accounts technique forms the basis for future projections.

three. Planning and budgeting

For outside users , financial accounting and reporting is of extreme importance:

Outside financial accounting

Your accounts give a clear picture of the financial standing of the business to existing and potential investors, helping them in deciding whether or not to invest. Financial accounting also gives you up to date information for existing investors about the future of their investment.
financial accounting

one. Existing (include yourself) and potential investors

two. Banks

Financial accounting is necessary by banks to support loan applications and existing borrowing facilities including overdrafts.

Suppliers often take decisions about extending credit to companies based on information extracted from accounts. Also customers, PLC's or huge multinationals often check the financial status of potential providers of goods and services before awarding contracts. The absence of up to date financial accounting statements to demonstrate capability to fulfil contracts can be expensive.

three. Suppliers and Customers

A current tax clearance certificate is necessary by semi-state and state companies as well as local and central government departments prior to awarding contracts. There's also an increasing number of private sector companies who are insisting on tax clearance as a prerequisite to trade. A tax clearance certificate can only be obtained from the Revenue Commissioners if all taxes are paid up to date and all returns made. Needless to say, having correct and up to date accounts is necessary to accomplish this.

four. Tax Clearance

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Financial Accounting Vs Management Accounting

financial accounting

The first difference is in its structure or formats of its presentation of information. Financial accounting has a single unified structure of presentation, which means, that the information relating to enterprise business method is introduced more or less on a uniform basis. The finish products of financial accounting are its basic financial statements, and these are:

- The balance sheet.

- The statement of changes in financial position.
financial accounting

- The profit and loss account/income statement.

The balance sheet presents the financial position of an organisation at any point of time. The profit and loss statement would contain the organisation's financial performance over a specified timeframe, which is usually year. The inflow and outflow of financial resources of an organisation in the work of a timeframe is reported in the statement of changes.

The financial statements prepared are based on an equation or model, which suggests, that all organisations present their financial statements on basis of a uniform structure. This would mean that financial accounting has a unified structure.

On the other hand, management accounting is chiefly concerned with the in-house management. Since the accounting statements are used internally, it varies in structure from organisation to organisation, depending on the circumstances and requirements of individual use. Therefore, management accounting is tailored to meet the needs of the management of the particular organisation.
financial accounting

Primarily, financial statements are usually meant for people outside the organisation, such as, shareholders, creditors, government, the general public, and like others. These people also get such reports from other organisations, and to maintain uniformity in these statements, financial accounting method makes use of a unified structure method.

On the other hand, management accounting is an in-house requirement, and is for the exclusive use of the management of the organisation. These management accounting statements are never made available to the outsiders, and hence could be formulated in the manner as wanted by the in-house management.

The next difference is in the usually accepted accounting principles. Financial accounting is prepared in accordance with the Usually Accepted Accounting Principles, which in short is named GAAP. Preparation of financial statements following GAAP ensures that the account presentations have been prepared on basis of a norm, as per the general guidelines issued by law.

financial accounting

The third difference between financial accounting and management accounting is the statutory requirement of preparation of accounts. As discussed above, financial statements are prepared solely for the people outside the organisation, who have interests in the business operation of the organisation. There's shareholders, who would use the information contained in the financial statements, to choose whether or not to invest in the organisation. By law it is mandatory to prepare such statements, and it is a statutory obligation. In fact, the company law not only makes it mandatory to prepare such accounts, it also has laid down the structures, based on which such financial statements require to be prepared.

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Managerial Accounting and Financial Accounting

financial accounting

The first topic that I would like to speak about is the difference between managerial and financial accounting through GAAP (Usually Accepted Accounting Principles). A firm must follow GAAP down to the tee, however with managerial accounting there's methods around it, because managerial accounting doesn't must worry about following GAAP standards. of the main points in managerial accounting is cost accounting, and the point of cost accounting is to help decision-making, budgeting, and also cost analysis. In order to effectively cost a product there's plenty of different formulas that must be followed which need not follow GAAP standards, however when the information is then transferred to the financial side of the firm, then all the GAAP principles must be followed. The number aim of financial accounting is to have correct financial statements so that the public, or the shareholders can continue or walk away from their investments. Also, in order to meet the SEC requirements a firm must follow all of GAAP principles.
financial accounting

Not only does managerial and financial accounting follow different principles, but they also have different ways of reporting their information. Managerial accounting focuses more on reporting the information to an organization in the company that will help with planning and organizing for the future. Also, each month's information is saved, and then they will use that information to foretell what will happen in the future, so all of the information collected is useful. However, financial accounting reports information to a different group of people. The information is gathered for the month or the quarter, and then sent to the CEO, or the CFO. The next step would be for the CEO or CFO to document the information to share holders or any that makes investments in the company. Although there's major differences between the each are equally as important.
financial accounting

Next, there is a major difference in the general focus of the different types of accounting. The managerial side of the firm will focus on projections for the future, because all of the information that is collected throughout the months and years will be useful in predicting what will happen in the future. However, financial accounting's only focus is to make sure that the financial statements are correct at the finish of the period. Also, financial accounting is necessary to make sure the ledger and the journal accounts are correct and up to date.

Not only is there a difference in the general focus of managerial and financial accounting, but the way in which each side expresses dollars in units. Managerial accounting focuses on unit costs, which are associated with Direct Material, Direct Labor, and Overhead. These are the parts, which make up costing a product. In order to successfully cost a product, it is important to include these parts in to your overall product cost. So, managerial accounting focuses on chiefly how much money are each unit worth than the general cost that the product sells for. However, on the other side of the spectrum in financial accounting the focus is on financial units. Financial accounting is not worried about how much each unit costs, but care more about the sales cost of each object being sold.

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Computerized Financial Accounting

financial accounting

Financial Accounting with Double Entry Bookkeeping

  Principles of Accounting
  Basic Book of Accounting - Journal
  Accounting Ledger
  Accounting Sub Journals - Funds Cook
  Subsidiary Accounting Books
  Accounting Verification by Trial Balance
  Banking Transactions Bank Reconciliation Statement
  Depreciation
  Rectification Of Accounting Errors
  Balance Sheet and Profit and Loss Account
  Single Entry Bookkeeping Accounting Method
  Non Profit Organization Accounting
  Capital and Revenue
  Reserves and Provisions

Complete financial accounting coursework or tutorial covers a range of following topics. It is being evaluated that how computers have affected traditional accounting methods and practices.

The human mind can handle only a limited number of things at a time. The digital computer, on the other hand, can be programmed to compare, measure, calculate and evaluate thousands of readings in an very short time period.

In a short span of time, computer has grown from a scientific curiosity to an indispensable tool of modem society. There is not very any scientific/technical or business activity which is not in way or the other, affected by modern information processing techniques.

The computer industry has become the quickest growing industry these days. The sale of mainframe computers is increasing day by day. The computer industry has been further pushed up by the introduction of mini computer and micro computers which are tiny, cheap, reliable and light. These are being routinely used for method control, production testing, scientific device recording, in store check out systems, in automobile check and evaluating systems, and medical monitoring etc.
financial accounting

Computers are now being used extensively in office administration to perform the method clerical work. Today, most sizable and medium sized organizations are  dependent on their computers. Method makes use of of computers are given below:

(i) Accounting, Billing, Stock Control Program with MIS, CRM

Computers are extensively used in accounting and there's multitude of computer program for Accounting, MIS, CRM. HiTech Financial Accounting is such program which has been custom-made for users in plenty of segments in business and services.

(ii) Payroll and personnel records.

Payroll accounting was the first commercial area to become widely computerized. The calculation of wages or salaries involves various variables which relate to the personal details of each worker, such as gross pay or rate for the job, individual deductions, tax liabilities of the workers and so on. These facts can be retained in the computers and processed every month of produce pay slips for the workers.

(iii) Stock control

The computer helps to exercise the type of stock control needed by the organization. It upto dates the sales and purchases records, determines optimum re-order levels for different items and prints out the stock lists when desired. The method can be so designed that it triggers orders when stock level reaches order point for various material items; tests those item which are slow moving or gives list for over stock items.

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Finance and Management Accounting

financial accounting

Accountancy is a large field, which keeps on evolving. Over the past few years, accounting has expanded manifold, catering to the varied requirements of the businesses and has branched out in different types-

What are the different types of Accounting?

Financial

Management

Tax
 
Forensic

Social
 
Project

What is Financial Accounting?

In the following paragraphs, they will take a closer look what is financial and management accountancy and how do they differ from each other.

It is a method of determining, summarizing and reporting a variety of transactions from a business to bring forth the correct financial situation and performance of an organization. This field primarily deals in preparation of financial statements in the type of balance sheets, income statements, expenses and record of money flow. Financial accounting is carried out to present the financial health of an organization to its outside stakeholders, Board of Directors, creditors and other investors. The reports are time specific in order to depict how the company has performed. In a nutshell, financial accounting caters to an audience which is outside an organization.

What is Management Accounting?

What is the difference between financial and managerial accounting-

Managerial or management accounting is a field of accounting, which aims at providing financial knowledge within the company in order to assist the managers or management in planning, controlling and decision-making. It does not use the past data; in fact it is based on the present performance, future trends and challenges. The information/report produced is usually more particularized compared to outside usage. This is done so as to enhance and optimize matters related to finance thus aiding in the accomplishment of the company's goals and objectives.
financial accounting

The differences can be listed through the following categories -

The primary difference between both the kinds of accounting is evident, that management accounting is introduced internally whereas financial accounting caters to outside stakeholders. Both have significant importance of their own position. Financial is vital for existing and potential investors, while management is crucial for managers to make current and future decisions.

Optional-Financial reports are legally necessary, whereas managerial are optional.

Format- The document in financial accounting specifically follows a specific format, whereas managerial formats are casual which varies company to company.

Proven Information-Financial reports are kept with utmost precision which is necessary to support that the financial statements are correct. Managerial accounting is more about estimates and research information than proven records.

Focus-Financial accounting is primarily based on past information, oriented towards creation of financial statements which is to be distributed within and outside the company. Managerial accounting is chiefly concerned with operational reports focussing on the present and future requirements.

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Branches of Accounting

financial accounting

Cost Accounting

The object of cost accounting is to find out the cost of goods produced or services rendered by a business. It also helps the business in controlling the costs by indicating avoidable losses and wastes.Management AccountingThe object of management accounting is to supply relevant knowledge at appropriate time to the management to enable it to take decision and effect control.In this web primer, they are concerned only with financial accounting. The objects of financial accounting as said above can be achieved only by recording the financial transactions in a systematic manner according to a set of principles. The recorded knowledge has to be classified, analyzed and introduced in a manner in which business results and financial position can be ascertained.

Makes use of of Accounting

Accounting plays important and useful role by developing the knowledge for providing answers to plenty of questions faced by the users of accounting knowledge.

(two) Has the business activity resulted in a profit or loss?

(one) How lovely or bad is the financial condition of the business?

(three) How well the different departments of the business have performed historically?
financial accounting

(four) Which activities or products have been profitable?

(five) Out of the existing products which ought to be discontinued and the production of which commodities ought to be increased.

(6) Whether to buy a part from the market or to manufacture the same?

(7) Whether the cost of production is reasonable or excessive?

(8) What has been the impact of existing policies on the profitability of the business?

(9) What are the likely results of new owner decisions on future earning capacity of the business?

(ten) In the light of past performance of the business the way it ought to plan for future to make definite desired results ?

Above mentioned are few examples of the categories of questions faced by the users of accounting knowledge. These can be satisfactorily answered with the help of suitable and necessary knowledge provided by accounting.
financial accounting

Besides, accounting is also useful in the following respects :-

(two) Accounting record, prepared on the basis of uniform practices, will enable a business to compare results of period with another period.

(one) Increased volume of business ends in large number of transactions and no businessman can keep in mind everything. Accounting records obviate the necessity of recalling various transactions.

(four) Cocooning records, backed up by proper and authenticated vouchers are lovely facts in a court of law.

(three) Taxation authorities (both income tax and sales tax) are likely to think the facts contained in the set of accounting books if maintained according to usually accepted accounting principles.

financial accounting

(five) If a business is to be sold as a going concern then the values of different assets as shown by the balance sheet helps in bargaining proper cost for the business.

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