Accounting & Auditing

Accounting is process of identifying, measuring, and communicating economic information to various users.

The main goal of accounting is to provide a company with clear, comprehensive, and reliable information about its economic activities and status of its assets and liabilities. This information is presented in the form of accounting reports like the balance sheet, income statement, statement of changes in equity (also called shareholders’ equity statement), and statement of cash flows (also called cash flow statement). By means of accounting reports it is possible to perform the following (list non-inclusive):

Manufacturing Account

accountingexplained

So far, all previous posts deal with businesses that either sell goods (or products) to customers or services to customers. We have not been dealing with manufacturing company. A manufacturing company not only manufactures products but also sells them to other company. So, the existing preparation of accounts are not enough to record everything (the trading and profit and loss account and the balance sheet statement.) In this case, you will need to have another account drawn up; the manufacturing account.

In manufacturing account, you will need to be aware of new terms;

1) Direct costs – Costs that can be directly traced to making the products. Direct costs are categorised into direct materials, direct labour and direct expenses.

2) Indirect costs – Costs that cannot be directly traced to making the products.

3) Prime costs – All direct costs.

4) Factory overhead – Costs which occur in the factory…

View original post 304 more words

ERP Accounting

Enterprise resource planning (ERP) is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. ERP gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management, tied together by ERP applications software and a common database maintained by a database management system. ERP systems track business resources (such as cash, raw materials, and production capacity) and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll), no matter which department (manufacturing, purchasing, sales, accounting, and so on) has entered the data into the system. ERP facilitates information flow between all business functions inside the organization, and manages connections to outside stakeholders.

What’s so important and interesting about accounting

This is your brain on economics

In January, I took a very short intensive introductory course to financial accounting. When I first signed up for it, I cringed to think what my old Nietzsche-thesis advisor would think of such a practical and putatively boring endeavor. But I actually – I really mean this and I’m not just writing this to impress some future employer – found it very intrinsically interesting. So this will just be a brief post in which I’ll expend what I learned, by telling you what’s so interesting and important about accounting. After that, I want to give a brief intro to some of the basic ideas and concepts of accounting, partly because I had been frustrated, when I first started the course, that they are not usually explained well to people who are not already familiar with the field.

So first, what is financial accounting? I would define it as the set…

View original post 4,644 more words

The Financial Controller

What I am going to discuss with you today will be the roles of the financial controller and his importance, and he is a designation capable of setting financial policies and directions of the organization. Further financial control is required to manage all the financial affairs of the organization.

The financial controller is responsible for the business accounting activities. he plans the finance, prepares financial statements, budget for the organization, and does the presentation of statements to the members of the organisation. He may also be involved in negotiations with the insurance companies on behalf of the organisation. The financial controller oversees the daily activities of the finance team and ensures the companies finance function is organised and efficient and produces accurate financial and management accounts.

Finding your Career path in the Accounting Profession

Think Numbers Trading Experiences

Finding your Career path in the Accounting Profession

Whether you chose to study accounting at University because you absolutely loved numbers or you somehow fell into this area, like a lot of people, wouldn’t you be interested to know where it can actually take you in the future.

I was in the second category of falling into accounting, after starting out with a business/computing degree at Uni.  After one semester of studying computing I realised this wasn’t for me and continued to complete a commerce (accounting) / business administration degree at Macquarie Unversity.  I’ll be honest that after studying accounting for 4 years and then finally working in this field, they were two completely different sides of the coin and it took me some time to adapt to working life and the real world challenges in the accounting profession.

It wasn’t until I studied the CA program through the Institute…

View original post 883 more words

Basic Accounting Concepts

Basic Accounting Concepts 2 – Debits and Credits

A tutorial to help you understand the bookkeeping/accounting concepts of Debits and Credits

Most people don’t find the math of Accounting as difficult as understanding the concepts of accounting, and for many there is no more difficult concept to grasp than that of Debits and Credits. Now the concept of Debits and Credits is actually more than 500 years old, being used extensively by the Venetian merchants of Italy in the 15th century Renaissance period. The concepts were first documented in Latin in the 1400’s and were later translated into English in the 16th century.

Accountants Challenges

During the recent years, being an accountant had become an ambition for all students, today I want to set the light on the challenges that are facing accountants all the time, and understanding these challenges will help you to work harder for becoming a good one

What do you consider to be the biggest challenge facing the accounting profession today?

One of the challenges that are facing the accounting profession is keeping up to date on the daily challenges of accounting and auditing such as IFRS and ISA.

As being an accountant, you have do accounting of complex transactions like fair values and valuations, and you can’t be a good accountant unless you have a technical knowledge of the advance technological applications for accounting goals, as in SAP, Oracle and Spreadsheets.

Accounting is one of the professions that are facing a lot of challenges.