Get a brief overview of the significance of accounting in today’s business economy. Find out, how it is changing gradually as the time propels and how the different aspects of accounting affect the different business sectors like restaurant, real estate, healthcare, legal, insurance, wholesale and manufacturing industries. Learn more: https://www.cogneesol.com/financial-and-accounting

1. A ROADMAP
TO
ACCOUNTING
IN BUSINESS
INDUSTRY
(2018)
An overview on finance and accounting aspects in different business sectors

2. According to Wikipedia, Accounting is the measurement, processing, and
communication of financial information about economic entities. It is a
necessity of every business.
It is a process of recording, summarizing, analyzing and helps to prepare
financial reports of the organization. We can say accounting is a profession that
assists firms in taking informed business decisions on the basis of a reliable
financial report.
According to Wikipedia...
INTRODUCTION
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When an entrepreneur knows the
financial position of his company in the
market, he can stay one step ahead of his
competitors.
Significance of
Accounting in Today's
Economy

3. TYPES OF ACCOUNTING
o Financial accounting
o Management accounting
o Governmental accounting
o Tax accounting
o Forensic accounting
o Project accounting
o Social accounting
SPEND ON YOUR PRIORITIES
FIRST.
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4. The process of identifying, measuring, analyzing, interpreting and
communicating accounts information among the managers of an
organization to take the day-to-day decisions is called management
accounting. It helps to establish the organizational financial goals.
Tax accounting mainly focuses on taxes rather than other financial
statements. Tax accounting is governed by Internal Revenue Code
(IRC), which imposes a certain set of rules that businesses and
individuals need to follow while preparing their tax returns.
The process of recording, summarizing and reporting the countless
transactions of a business is called as financial accounting. These
transactions are summarized in the balance sheet, income statement
and cash flow statements for preparing a financial statement. This
basically gives an overview of the company’s performance over a
specific time period.
Government accounting is all about recording, summarizing,
interpreting and communicating the transactional information
involved in the government departments. These transactions may
include receipts, expenses, fund transfers or any other economic
event.
MANAGEMENT ACCOUNTING
TAX ACCOUNTING
FINANCIAL ACCOUNTING
GOVERNMENTAL ACCOUNTING
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5. Project accounting is simply done on a project-by-project basis. It
tracks all the financial stats of a project such as estimation of the
budget, costs, billings, bookings and a lot more. It gives an insight to
the entrepreneurs whether taking the project profitable for their
business or not.
It uses accounting, auditing, and investigative the skills to conduct an
inspection of financial statements of a business organization.
Forensic accounting is usually practiced in fraud cases.
Social accounting includes the fund that companies invest in various
social activities, which is considered as Corporate Social
Responsibility (CSR) of the business. It aims to measure and create
awareness among general public about the social welfare activities
undertaken by the businesses and their impact on the society.
PROJECT ACCOUNTING
FORENSIC ACCOUNTING
SOCIAL ACCOUNTING
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6. WHY BUSINESS INDUSTRIES
NEED ACCOUNTING?
BUSINESS
INDUSTRIES
o Restaurant
o Real estate
o Insurance
o Healthcare
o Wholesale
o Manufacturing
o Retail
Undoubtedly, accounting plays an important
role in every industry. It helps businesses by
interpreting the numbers into an
understandable statement about the
profitability of the firm. When a business sells
its goods, gives credit, buys assets etc.,
everything is recorded in the books of
accounts.
Business accounting helps entrepreneurs in
monitoring their company’s performance and
finding out what innovations they can bring
to their business processes to stand out of
the competition.
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7. T H E R O L E O F
ACCOUNTING
I N D I F F E R E N T
INDUSTRIES

8. REAL ESTATE
INDUSTRY
In the real estate business,
accounting information helps
to prepare financial reports
that cover a variety of
transactions such as property
sales, rentals, leases, etc.
Read more...
RESTAURANT
INDUSTRY
Accounting plays an
important role in the
restaurant businesses as they
have to manage bills, receipts,
payroll, inventory and a lot
more.
Read more...
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9. HEALTHCARE
INDUSTRY
Accountants in the healthcare
industry are responsible for
filing taxes, recording
transactions on a daily basis,
payroll processes, inventory,
accounts receivable, claims
management and much more.
Read more...
INSURANCE
INDUSTRY
Accounting in the insurance
sector includes health plans,
pension plans, sub-ledgers
and processing of journal
entries. It also helps
insurance business owners to
review their annual financial
statements. Read more...
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10. MANUFACTURING
INDUSTRY
Accounting process in the
manufacturing firms is way
too complex as it includes
managing invoices, order
management, cash collection,
tracking expenses, and much
more. Read more...
WHOLESALE
INDUSTRY
Accounting in wholesale
business is a bit different as
the wholesalers have the
dynamic overhead costs as
compared to other industries.
Wholesalers have
independent agents who buy
& sell the product. Read
more...
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11. LEGAL
INDUSTRY
Accountants in the legal
industry fulfill the accounting,
tax preparation, cash flow
management, processing
payroll and present
structured financial records
of law firms and individual
lawyers. Read more...
RETAIL
INDUSTRY
Managing stock, inventory,
expenses, bills the accountant
in the retail business are also
accountable to maintain the
relationship between a
company that manufactures
or supplies products & the
retailers that stock them.
Read more...
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12. To survive in this competitive market, businesses are
transforming their operations by outsourcing their non-core
activities to outsourcing firms. Accounting is crucial but time-
consuming, so most of the business entrepreneurs are
outsourcing their accounting tasks to virtual accountants or
third-party accounting service providers to streamline their
business processes.
This enables them to focus on their core operations and gain
more profits.
Outsourcing accounting has proven as a reliable choice among
various industries across the globe. Entrepreneurs are looking
at these services as a way to handle business processes and to
reduce costs.
There are around many companies which prefer outsourcing
their accounting tasks to streamline their business
operations.
WHY SHOULD YOU HIRE AN
ACCOUNTANT OR ACCOUNTING FIRM?
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Increasing Demand of Outsourcing Accounting Firms:

13. By selecting an expert accounting team, you can customize your
finance and accounting requirements easily. Even if you want to
change your outsourcing partner, you can do that without any
trouble, which might not be possible if you hire a full-time accountant.
FLEXIBILITY
If you hire a team of accounts, it will be a costly affair as you have to
pay them a full-time salary, other employee benefits, infrastructure,
etc. But if you outsource your accounting tasks, you have to pay on
need-per-basis and get virtual assistance.
COSTS REDUCTION
Outsourcing firms nowadays are more concerned about the quality.
They undergo many internal quality control checks before the project
is deliverd to the customer.
An outsourcing company always follows strict security standards with
regards to maintaining confidentiality and security of the client’s
financial data.
Outsourcing service providers provide services round-the-clock and
provide a time-zone advantage to the clients in US, UK, Canada,
Australia, etc. You can be confident that your finance and accounting
tasks would be completed within the scheduled deadlines.
QUALITY
SECURITY
24*7 OPERATIONS
BENEFITS OF OUTSOURCING
ACCOUNTING
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14. SPONSORED BY:
COGNEESOL MARKETING TEAM
Cogneesol is a leading business process outsourcing
company that is transforming business operations...
30 Wall Street, 8th Floor
New York City
NY - 10005-2205
Email: info@cogneesol.com
Phone: +1 (646) 688-2821
www.cogneesol.com
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