The Print Shop and Anglian Digital Solutions have been trading since 1998 and prides itself on quality and reliability.
We produce both litho-printing aimed at medium to long runs, and digital printing for print runs of up to 1000 copies. Both of our printing services are backed with our in-house design studio to help give your business the edge.
We like to channel our customer's requirements correctly, producing your product in the most cost effective way so we have split the company into two different business streams. The Print Shop for all lithographic requirements and Anglian Digital Solutions for digital print. All quotations are channeled into the correct business stream to give you value for money.
Accounting is the art of recording, summarizing, reporting, and analyzing financial transactions. An accounting system can be a simple, utilitarian check register, or, as with Microsoft Office Small Business Accounting 2006, it can be a complete record of all the activities of a business, providing details of every aspect of the business, allowing the analysis of business trends, and providing insight into future prospects. When you study accounting you are essentially learning this specialized language.
Get your grade
or your money back
using our Essay Writing Service!
This is because the information required by most organizations is very similar and can be broken down into three main categories:
This is the information that is needed on a day-to-day basis in order for the organization to conduct its business. Employees need to get paid, sales need to be tracked, the amounts owed to other organizations or individuals need to be tracked, the amount of money the organization has needs to be monitored, the amounts that customers owe the organization need to be checked, any inventory needs to be accounted for: the list goes on and on.Â
Financial Accounting Information
This is the information that is used by managers, shareholders, banks, creditors, the government, the public, etcâ€¦ to make decisions involving the organization and its operations. Shareholders want information about what their investment is worth and whether they should buy or sell shares, bankers and other creditors want to know whether the organization has an ability to pay back money lent, managers want to know how the company is doing compared to other companies. This type of information would be very difficult to extract if every company used a different system for recording their financial position. Financial accounting information is subject to a set of ground rules that dictate how the information is reported and this ensures uniformity.
Managerial Accounting Information
In order for the managers of a company to make the best decisions for a company they need to have specific information prepared. They use this information for three main management functions: planning, implementation and control. Financial information is used to set budgets, analyze different options on a cost basis, and modify plans as the need arises, and control and monitor the work that is being done.Â
A Balance Sheet is a status report that shows information about the organization's resources at one given time. Examples of information found on a balance sheet are how much cash is in the bank, what is owed to creditors, and the value of the company's assets.
An Income Statement (also called a Statement of Earnings, Statement of Operations, or a Profit and Loss Statement) is a report that shows the flow of revenues (amounts earned from business activity) and expenses (amounts paid in the course of operations) over a given period of time, typically a month, quarter, or year.
Statement of Cash Flow
As the name suggests, this is also a flow statement that details the movement of cash through the organization over a specified period.
The whole purpose of accounting is to provide information that is useful and relevant for interested parities when making decisions regarding the company and its operations. In order to do that effectively, a specific language and subsequent rules have been developed for users of the information. By learning accounting you learn these rules and can then communicate financial information with others in a comprehensible and comparable manner.
Always on Time
Marked to Standard
It is an authority which is apprehensive with determining the standards and decisions making. It also function allocates resources, including the acquiring, investing, and managing of resources.
These functions are performed in all organizations, irrespective of their sizes, legal forms of organization and they contribute to the survival and growth of the firm. Finance functions are concerned with the basic business activities of a firm, in addition to external environmental factors which affect basic business activities, namely, production and marketing.
Current financial factors impacting the finance function include:
Pressures to optimize financial performance
Frequent changes in accounting standards
Increased reporting and disclosure requirements
Increased compliance requirements
Control techniques provide managers with the type and amount of information they need to measure and monitor performance. The information from various controls must be tailored to a specific management level, department, unit, or operation. To ensure complete and consistent information, organizations often use standardized documents such as financial, status, and project reports. Each area within an organization, however, uses its own specific control techniques, described in the following sections.
After the organization has strategies in place to reach its goals, funds are set aside for the necessary resources and labor. As money is spent, statements are updated to reflect how much was spent, how it was spent, and what it obtained. Managers use these financial statements, such as an income statement or balance sheet, to monitor the progress of programs and plans.
Financial statements provide management with information to monitor financial resources and activities. The "income statement" shows the results of the organization's operations over a period of time, such as revenues, expenses, and profit or loss. The "balance sheet" shows what the organization is worth (assets) at a single point in time, and the extent to which those assets were financed through debt (liabilities) or owner's investment (equity).
Financial audits, or formal investigations, are regularly conducted to ensure that financial management practices follow generally accepted procedures, policies, laws, and ethical guidelines. Financial ratio analysis examines the relationship between specific figures on the financial statements and helps explain the significance of those figures:
Liquidity ratios: measure an organization's ability to generate cash.
Profitability ratios: measure an organization's ability to generate profits.
Debt ratios measure an organization's ability to pay its debts.
Activity ratios: measure an organization's efficiency in operations and use of assets.
In addition, financial responsibility centers require managers to account for a unit's progress toward financial goals within the scope of their influences. A manager's goals and responsibilities may focus on unit profits, costs, revenues, or investments.
A budget depicts how much an organization expects to spend (expenses) and earn (revenues) over a time period. Amounts are categorized according to the type of business activity or account, such as telephone costs or sales of catalogs. Budgets not only help managers plan their finances, but also help them keep track of their overall spending.
Budget development processes vary among organizations according to who does the budgeting and how the financial resources are allocated. Some budget development methods are as follows:
Top-down budgeting: Managers prepare the budget and send it to subordinates.
Bottom-up budgeting: Figures come from the lower levels and are adjusted and coordinated as they move up the hierarchy.
Zero-based budgeting: Managers develop each new budget by justifying the projected allocation against its contribution to departmental or organizational goals.
Flexible budgeting: Any budget exercise can incorporate flexible budgets, which set "meet or beat" standards that can be compared to expenditures.
Marketing controls help monitor progress toward goals for customer satisfaction with products and services, prices, and delivery. The following are examples of controls used to evaluate an organization's marketing functions:
Market research gathers data to assess customer needs-information critical to an organization's success. Ongoing market research reflects how well an organization is meeting customers' expectations and helps anticipate customer needs.
Marketing statistics measure performance by compiling data and analyzing results. In most cases, competency with a computer spreadsheet program is all a manager needs. Managers look at marketing ratios, which measure profitability, activity, and market shares, as well as sales quotas, which measure progress toward sales goals and assist with inventory controls.
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
Unfortunately, scheduling a regular evaluation of an organization's marketing program is easier to recommend than to execute.
Human resource controls:
Human resource controls help managers regulate the quality of newly hired personnel, as well as monitor current employees' developments and daily performances.
On a daily basis, managers can go a long way in helping to control workers' behaviors in organizations. They can help direct workers' performances toward goals by making sure the goals are clearly set and understood. Managers can also institute policies and procedures to help guide workers' actions.
Common control types include performance appraisals, disciplinary programs, observations, and training and development assessments. Because the quality of a firm's personnel, to a large degree, determines the firm's overall effectiveness, controlling this area is very crucial.
Performance limitations: Although management information systems have the potential to increase overall performance, replacing long-time organizational employees with information systems technology may result in the loss of expert knowledge that these individuals hold. Additionally, computerized information systems are expensive and difficult to develop. After the system has been purchased, coordinating it-possibly with existing equipment-may be more difficult than expected. Consequently, a company may cut corners or install the system carelessly to the detriment of the system's performance and utility. And like other sophisticated electronic equipment, information systems do not work all the time, resulting in costly downtime.
Behavioral limitations: Information technology allows managers to access more information than ever before. But too much information can overwhelm employees, cause stress, and even slow decision making. Thus, managing the quality and amount of information available to avoid information overload is important.
Health risks: Potentially serious health-related issues associated with the use of computers and other information technologies have been raised in recent years. An example is carpal tunnel syndrome, a painful disorder in the hands and wrists caused by repetitive movements (such as those made on a keyboard).
Regardless of the control processes used, an effective system determines whether employees and various parts of an organization are on target in achieving organizational objectives.
Statistical Techniques to Test a Hypothesis:
A statistical hypothesis test is a method of making statistical decisions using experimental data. In statistics, a result is called statistically significant if it is unlikely to have occurred by chance. The phrase "test of significance" was coined by Ronald Fisher: "Critical tests of this kind may be called tests of significance, and when such tests are available we may discover whether a second sample is or is not significantly different from the first.
Hypothesis testing is sometimes called confirmatory data analysis, in contrast to exploratory data analysis. In frequency probability, these decisions are almost always made using null-hypothesis tests; that is, ones that answer the question "Assuming that the null hypothesis is true, what is the probability of observing a value for the test statistic that is at least as extreme as the value that was actually observed"? One use of hypothesis testing is deciding whether experimental results contain enough information to cast doubt on conventional wisdom.
Statistical hypothesis testing is a key technique of frequents statistical inference, and is widely used, but also much criticized. The main direct alternative to statistical hypothesis testing is Bayesian inference. However, other approaches to reaching a decision based on data are available via decision theory and optimal decisions.
The critical region of a hypothesis test is the set of all outcomes which, if they occur, will lead us to decide that there is a difference. That is, cause the null hypothesis to be rejected in favor of the alternative hypothesis.
Identifying Users of Accounting Information:
So accounting exists in order to provide information for interested parties to make decisions, now we can logically ask: 'Who are these interested parties?' and 'For what kind of decisions is accounting information required?' Figure 1.1 shows the major groups of people who have an interest in an organization. The figure relates to a private sector business but minor alterations in the titles of the participants would make it equally relevant to any organization - for example, a government department, a local government unit, a charity, a nationalized industry, a school or a college.
Staying with the example of a private enterprise business, we can identify the types of decision that each of the participants might need to make with respect to the organization and the information required. These are as follows: owners, the government, management, customers, suppliers of goods and services, lenders, employers, competitors and lobby groups.
Owners are concerned with making two types of decisions:
Investment decisions; and
Investment decisions are primarily concerned with increasing the wealth of the owners. Those who own businesses normally do so with the intention of increasing their wealth. Therefore, owners will wish to assess the extent to which the business has generated financial benefits (profits etc.) and the likely future prospects of the business. They will also wish to assess the degree of risk associated with their investment in the business. Information relating to associated risks and returns will be useful when deciding whether to hold or sell their ownership interest in the business.
In larger businesses, the owners tend not to exercise day-to-day control over the activities of the business. Instead, managers will often run the business on behalf of the owners. This potential conflict creates a need among owners to receive accounting information from the managers that reveals how the resources of the business have been used. The provision of information by managers to owners for this purpose is referred to as stewardship accounting.
A government may require information from a business for a variety of reasons including taxation, regulation, economic management and government contracts.
Taxation:Â Businesses are taxed on the basis of their accounting profits (subject to certain adjustments); government (in the form of the Inland Revenue) needs information on each business in order to decide how much tax to charge.
Economic management: Governments may also use accounting information relating to businesses to help in the general management of the economy. For example, accounting information may be useful in deciding whether to give support to businesses in a particular industry.
Financial Statement Limitations:
The first limitation is that they are always in the past tense...they look back, not ahead. Second, they only reflect financial transactions. So all the important things that are happening in the company, the industry and the marketplace are not reflected...has there been a management shake-up, has the company fallen behind in product development or technology, has a competitor recently introduced a great product, are there pending regulations that will affect the company.
Many things can impact the calculation of ratios and make comparisons difficult. The limitations include:
The use of estimates in allocating costs to each period. The ratios will be as accurate as the estimates.
The cost principle is used to prepare financial statements. Financial data is not adjusted for price changes or inflation/deflation.
Companies have a choice of accounting methods. These differences impact ratios and make it difficult to compare companies using different methods.
Companies may have different fiscal year ends making comparison difficult if the industry is cyclical.
Diversified companies are difficult to classify for comparison purposes.
Financial statement analysis does not provide answers to all the users' questions. In fact, it usually generates more questions.
Non Financial Key Performance Indicators:
Non-financial key performance indicators, or KPIs, enable companies to measure the results of theirÂ "corporate responsibility and sustainability" Â initiatives. By incorporating the appropriate KPIs into their process, companies can gain a more comprehensive understanding of how well they are meeting their corporate responsibility objectives. As organizations embark on environmental, social and governance initiatives, they are discovering that financial measures alone do not provide an accurate assessment of their corporate responsibility progress. For example, traditional financial indicators do not fully capture all aspects of a company's relationships with its customers, employees and suppliers, or represent its efforts with respect to sustainability.
Budgets and Budgetary Role:
A budget is a plan expressed in quantitative, usually monetary term, covering a specific period of time, usually one year. In other words a budget is a systematic plan for the utilization of manpower and material resources.
In a business organization, a budget represents an estimate of future costs and revenues. Budgets may be divided into two basic classes: Capital Budgets and Operating Budgets.
Capital budgets are directed towards proposed expenditures for new projects and often require special financing. The operating budgets are directed towards achieving short-term operational goals of the organization, for instance, production or profit goals in a business firm. Operating budgets may be sub-divided into various departmental of functional budgets.
The main characteristics of a budget are:
1. It is prepared in advance and is derived from the long-term strategy of the organization.
2. It relates to future period for which objectives or goals have already been laid down.
It is expressed in quantitative form, physical or monetary units, or both.
Different types of budgets are prepared for different purposed e.g. Sales Budget, Production Budget, Administrative Expense Budget, Raw-material Budget etc. All these sectional budgets are afterwards integrated into a master budget, which represents an overall plan of the organization.
No system of planning can be successful without having an effective and efficient system of control. Budgeting is closely connected with control. The exercise of control in the organization with the help of budgets is known as budgetary control. The process of budgetary control includes:
1. Preparation of various budgets.
2. Continuous comparison of actual performance with budgetary performance.
3. Revision of budgets in the light of changed circumstances.
A system of budgetary control should not become rigid. There should be enough scope of flexibility to provide for individual initiative and drive. Budgetary control is an important device for making the organization. More efficient on all fronts. It is an important tool for controlling costs and achieving the overall objectives.
Alternative Methods for Cost Analysis:
There is a variety of approaches to cost analysis, the suitability of any of which depends upon the purpose of an assessment and the availability of data and other resources. It is rarely possible or necessary to identify and quantify all costs and all benefits (or outcomes), and the units used to quantify these may differ.
Main types of cost analysis include the following.
Cost-of-illness analysis: a determination of the economic impact of an illness or condition (typically on a given population, region, or country) e.g., of smoking, arthritis or bedsores, including associated treatment costs
Cost-minimization analysis: a determination of the least costly among alternative interventions that are assumed to produce equivalent outcomes
Cost-effectiveness analysis (CEA): a comparison of costs in monetary units with outcomes in quantitative non-monetary units, e.g., reduced mortality or morbidity
Cost-utility analysis (CUA): a form of cost-effectiveness analysis that compares costs in monetary units with outcomes in terms of their utility, usually to the patient, measured, e.g., in QALYs
Cost-consequence analysis: a form of cost-effectiveness analysis that presents costs and outcomes in discrete categories, without aggregating or weighting them
Cost-benefit analysis (CBA): compares costs and benefits, both of which are quantified in common monetary units.
Limitations of Budgetary Controls:
The objective of management accounting is to help managers achieve the missions and strategies established for their enterprise. It is a branch of accounting that provides financial and other information to managers. A key role for management accountants is to establish the control systems used to achieve organizational goals and minimize risks. One of the most important of these is budgetary control, a powerful tool that encourages planning, sets milestones, evaluates performance and suggests paths for improvement. Management accountants also develop information systems that communicate strategic and operational priorities to managerial decision makers.
The objective of this course is to help participants better understand the role and functioning of the budget control and to situate it within the larger context of management control.
Using knowledge already acquired in earlier levels of the MBA program, this course will permit students to acquire knowledge on :
- the utility and functioning of a budget control process;
- the design of the budgetary control system as a function of the organizational strategy;
- the determination of cost behavior;
- the use of budgets to manage revenues, costs and profits;
- the relationship between management control and organizational structure;
- the organization of financial information in a comprehensible, flexible, accessible and useful form to empower decision making;
- the evaluation of performance for different administrative units within the organizational structure;
- the development and use of non financial performance measures.
It is a process and a set of procedures used to estimate the economic value of an owner's interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to consummate a sale of a business. In addition to estimating the selling price of a business, the same valuation tools are often used by business appraisers to resolve disputes related to estate and gift taxation, divorce litigation, allocate business purchase price among business assets, establish a formula for estimating the value of partners' ownership interest for buy-sell agreements, and many other business and legal purposes.
Methods for Valuating a Business:
The Asset Approach is based on the premise that it is generally possible to liquidate the property, plant and equipment (PP&E) assets of a company and after paying off the company's liabilities the net proceeds would accrue to the equity of the company.
Discounted cash flow method
This valuation method based on free cash flow is considered a strong tool because it concentrates on cash generation potential of a business. Since risks are not always easy to determine precisely, Beta uses historic data to measure the sensitivity of the company's cash flow, for example, through business cycles.
This valuation method is applicable for quoted companies only. The market value is determined by multiplying the quoted share price of the company by the number of issued shares. This valuation reflects the price that the market at a point in time is prepared to pay for the shares. This valuation method broadly takes into account the investors' perceptions about the performance of the company and the management's capabilities to deliver a return on their investments.
It is a global, full-service business intelligence and risk management firm. We offer clients a full suite of services to reduce exposures to global risks,Â seize upon business opportunities, andÂ protect employees and assets. Our clients operate or seek to operate in many of the world's emerging markets,Â and our services are designed to mitigate the risks of prospecting and operating in these difficult regions. We provide the insight necessary for clients to make important business decisions in a timely, efficient and comprehensive manner.
Cost of Capital:
The cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view "the expected return on a portfolio of all the company's existing securities." It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet.
Debt vs. Equity:
There are two types of financing: equity and debt financing. When looking for money, you must consider your company's financial strength. The more money owners have invested in their business, the easier it is to attract financing. If your firm has a high ratio of equity to debt, you should probably seek debt financing. However, if your company has a high proportion of debt to equity, experts advise that you should increase your ownership capital (equity investment) for additional funds. That way you won't be over-leveraged to the point of jeopardizing your company's survival.
Factors Effecting Capital Cost Structures:
Risk associated with the nature of the industry the business operates and if the business risk is higher the optimal capital structure is required.
Debt capital is regarded as cheaper because interest payable is deductible for tax purposes. Advantage not much for businesses with unrelieved tax losses, depreciation tax shield as they already have an existing lower tax burden.
Depends on how easy a business can arrange finance on reasonable terms under adverse conditions. Flexibility in raising finance will be influenced by the economic environment (availability of savers and interest rates) and the financial position of the business.
How much to borrow also depend on managers approach to finance risk. Conservative managers will usual try to keep the debt equity ratio low.
The business analysis performed by analyst reduces waste, creates solutions, completes projects on time, Improves efficiency, Document the right requirements and it also reduces the risk and helps in the growth of the company.