The document discusses two options for finance functions - shared services centers (SSCs) and outsourcing. Chief financial officers and controllers play an important role in deciding whether to establish an SSC or outsource functions. Their assessments help determine the scope of activities and best structural approach. For both SSCs and outsourcing, CFOs are heavily involved in setting up performance metrics and monitoring contracts to ensure service and cost commitments are met. The document provides a breakdown of potential finance and administration functions that could be included in an SSC or outsourced, such as accounting, cost accounting, and credit management.
Treasury as a business partner and strategist can add significant value to wo...CashPerform Ltd
Treasury functions can act as a business pertner to functions like accounts, sales and procurement so as to add real value to to optimising working capital.
The trick is to have a great strategy.
FTA Consulting is a business advisory firm that focuses on providing customized solutions to its clients' needs. It has an experienced team of partners and aims to execute projects through innovation, technology, and subject expertise. As a member of Abacus Worldwide, an international alliance of professional services firms, FTA has access to a network of law, consulting, and accounting professionals around the world. The document provides an overview of FTA's audit, internal controls, financial advisory, and sector experience. Contact information is also included for several partners.
Accounting and Auditing(UGC NET Commerce)UmakantAnnand
This document provides an overview of accounting and auditing classes offered by KDCommerceClasses in 2019. It discusses key accounting concepts like the definition of accounting, characteristics and attributes of accounting, objectives of accounting, functions of accounting, concepts of partnership, and requirements for accounting for partnership firms. The document defines accounting and outlines its characteristics as recording, classifying, and summarizing financial transactions. It also discusses accounting principles, concepts, conventions, and functions including historical and managerial functions. Finally, it covers the concept of partnership, requirements for accounting for partnership firms including having a partnership deed, and rules applicable in the absence of a partnership deed.
Praveen Seth is a senior financial management professional with 19 years of experience in areas such as pricing, contracting, revenue recognition, statutory compliance, accounting, internal controls, auditing, financial planning, analysis, and treasury operations. He has extensive experience managing finance functions, integrating acquired businesses, negotiating deals, and automating processes. Some of his past roles include heading the global finance and accounts department and revenue assurance department for HCL Technologies.
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It focuses on forward-looking information for decision-making, rather than historical financial reporting. Management accounting involves identifying, measuring, analyzing, and communicating financial and non-financial information about resources, risks, and performance. The goal is to help managers strategically plan, evaluate, and control operations to make efficient use of resources.
Accounting - Information and decision making - IntroductionFaHaD .H. NooR
The document provides an overview of accounting and its role in decision making. It discusses how accounting identifies, records, and communicates economic events and activities to various users. Accounting information helps users evaluate performance, make investment decisions, and assess profitability, financial position, and cash flows. The accounting process involves identifying transactions, recording them, and preparing reports that are communicated to both internal and external users.
The document discusses business processes and transaction cycles. It explains that businesses engage in processes like acquiring capital, purchasing inventory, and paying employees. Each process requires decisions and information. There are five main transaction cycles that pair business processes: the revenue cycle involves selling goods and services to customers in exchange for cash; the expenditure cycle involves buying goods from suppliers in exchange for cash; the production cycle transforms raw materials and labor into finished goods; the human resources/payroll cycle pays employees in exchange for labor; and the financing cycle raises capital in exchange for cash. All the cycles interface with each other and provide data to the general ledger and reporting system.
Treasury as a business partner and strategist can add significant value to wo...CashPerform Ltd
Treasury functions can act as a business pertner to functions like accounts, sales and procurement so as to add real value to to optimising working capital.
The trick is to have a great strategy.
FTA Consulting is a business advisory firm that focuses on providing customized solutions to its clients' needs. It has an experienced team of partners and aims to execute projects through innovation, technology, and subject expertise. As a member of Abacus Worldwide, an international alliance of professional services firms, FTA has access to a network of law, consulting, and accounting professionals around the world. The document provides an overview of FTA's audit, internal controls, financial advisory, and sector experience. Contact information is also included for several partners.
Accounting and Auditing(UGC NET Commerce)UmakantAnnand
This document provides an overview of accounting and auditing classes offered by KDCommerceClasses in 2019. It discusses key accounting concepts like the definition of accounting, characteristics and attributes of accounting, objectives of accounting, functions of accounting, concepts of partnership, and requirements for accounting for partnership firms. The document defines accounting and outlines its characteristics as recording, classifying, and summarizing financial transactions. It also discusses accounting principles, concepts, conventions, and functions including historical and managerial functions. Finally, it covers the concept of partnership, requirements for accounting for partnership firms including having a partnership deed, and rules applicable in the absence of a partnership deed.
Praveen Seth is a senior financial management professional with 19 years of experience in areas such as pricing, contracting, revenue recognition, statutory compliance, accounting, internal controls, auditing, financial planning, analysis, and treasury operations. He has extensive experience managing finance functions, integrating acquired businesses, negotiating deals, and automating processes. Some of his past roles include heading the global finance and accounts department and revenue assurance department for HCL Technologies.
Management accounting provides accounting information to managers within organizations to help them make informed business decisions. It focuses on forward-looking information for decision-making, rather than historical financial reporting. Management accounting involves identifying, measuring, analyzing, and communicating financial and non-financial information about resources, risks, and performance. The goal is to help managers strategically plan, evaluate, and control operations to make efficient use of resources.
Accounting - Information and decision making - IntroductionFaHaD .H. NooR
The document provides an overview of accounting and its role in decision making. It discusses how accounting identifies, records, and communicates economic events and activities to various users. Accounting information helps users evaluate performance, make investment decisions, and assess profitability, financial position, and cash flows. The accounting process involves identifying transactions, recording them, and preparing reports that are communicated to both internal and external users.
The document discusses business processes and transaction cycles. It explains that businesses engage in processes like acquiring capital, purchasing inventory, and paying employees. Each process requires decisions and information. There are five main transaction cycles that pair business processes: the revenue cycle involves selling goods and services to customers in exchange for cash; the expenditure cycle involves buying goods from suppliers in exchange for cash; the production cycle transforms raw materials and labor into finished goods; the human resources/payroll cycle pays employees in exchange for labor; and the financing cycle raises capital in exchange for cash. All the cycles interface with each other and provide data to the general ledger and reporting system.
The document discusses key concepts in management accounting including accounts, debits and credits, classification of accounts, rules of debit and credit, financial statements, and the differences between financial accounting, cost accounting, and management accounting. It provides details on the components and purpose of key financial statements like the balance sheet, profit and loss statement, and cash flow statements. It also explains concepts like assets, liabilities, equity/capital, revenues, and expenses as they relate to accounting.
This document provides an overview of accounting concepts, principles, and the accounting cycle. It discusses key topics such as [1] the purpose of accounting and accounting information systems, [2] the basic accounting model involving journal entries, ledgers, and trial balances, and [3] financial statements including the income statement, balance sheet, and statement of cash flows. It also covers [4] adjusting entries, worksheets, and closing entries to prepare the adjusted trial balance and financial statements at the end of each accounting period.
Management accounting provides information to internal managers to help them plan, direct operations, and control the organization. It involves tasks like modifying accounting data, analyzing and interpreting financial information, and facilitating management control through tools like standard costing and budgeting. Management accounting focuses on both financial and qualitative information to satisfy the needs of different management levels for decision making.
Bba ii cost and management accounting u 5 management accountingRai University
Management accounting provides internal accounting information to assist management in planning, decision-making, and controlling operations. It identifies, measures, analyzes, interprets, and communicates financial and non-financial information to help the organization achieve its goals. Management accounting focuses on the future and is aimed at helping managers make decisions, while financial accounting provides external reporting focused on the past to parties outside the organization like shareholders and regulators.
Transforming Finance and Accounting to Optimize Financial CloseCognizant
Many firms are working to accelerate and improve the daily financial close, but are far from ready. By formalizing the F&A value chain, modernizing and strengthening their F&A platform, assessing and optimizing existing service models and heightening overall F&A governance, companies can achieve this goal, supported by a set of success factors for measuring progress and aligning transformation activities.
This document summarizes key aspects of corporate financial reporting including its definition, importance, common report types (balance sheet, income statement, cash flow statement, equity statement), SEC requirements, and how to write a corporate report. Corporate financial reporting allows companies to record operating data and accurately report accounting statements. It is important as it provides transparency and conforms to standards. The main report types provide information on a company's financial condition, economic health, cash flows, and ownership. The SEC requires various disclosures from public companies.
EY Investment bank transformation: from ideas to actionRoy Choudhury
An investment bank is transforming its operations to improve regulatory compliance and reduce costs. The Chief Operating Officer plays a key role in overseeing changes across business lines, legal entities, and locations. These include optimizing collateral management, legal entity structure, and outsourcing functions. Successfully implementing structural reforms requires balancing regulatory expectations with business priorities, and increasing coordination across the bank.
This document provides an overview of accounting and financial management concepts. It discusses how accounting identifies, records, and communicates financial information. Key topics covered include the accounting equation, assets, liabilities, equity, revenues and expenses. Transaction analysis examples are provided to illustrate adjusting accounting entries for purchases and payments. The purpose of accounting is to provide relevant and reliable financial information to both internal and external stakeholders of a business.
Corporate reporting and finance lecture 1moduledesign
This document provides an overview of external financial reporting and key concepts. It discusses the objective of external financial reporting which is to provide useful financial information to users for decision making. It also outlines the primary financial statements and key accounting concepts like the accounting equation. Examples are provided to demonstrate accounting entries for a sole trader business and how the statement of financial position is constructed.
Financial Accounting and Management accounting are the two branches of accounting.
Financial accounting stresses on giving true and a fair view of the financial position of the company to various parties.
On the contrary, management accounting aims at providing both qualitative and quantitative information to the managers, so as to assist them in decision making and thus maximizing the profit.
Financial Accounting is the branch of accounting which keeps track of all the financial information of the entity. Management Accounting is that branch of accounting which records and reports both the financial and nonfinancial information of an entity.
The document discusses Sanjay's services for improving underperforming companies. He offers a "temporary COO" approach to address issues like vanishing revenue, poor collections, and inefficiency. His services include analyzing finances, reviewing operations and management, creating strategies, and communicating with investors/lenders. Past clients included companies in radio, retail, wireless, and film. Sanjay has investment banking experience from firms like Ramius, Dresdner Kleinwort Wasserstein, and Lazard Freres.
Intoduction to management accounting (MAF251)Ismail Noordin
- Management accounting and financial accounting both involve decision making, record keeping and performance evaluation functions. They are both based on the principle of stewardship to be responsible and accountable for financial and operating performance.
- They use the same general accounting system to collect data and develop information. However, management accounting focuses more on internal reporting to help managers with decision making, while financial accounting focuses on external reporting for stakeholders.
- Some key similarities include using the same data collection system and providing information to fulfill accountability of financial and operating performance. However, management accounting reports are more flexible and focus on segments useful for decision making.
Hi I am Samyak Veera from US. I believe in creating financial plan to achieve financial goals as it helps businessman in controlling their budget and save tax too.
Accounting for Managers - Brief Overview'Nipun Jain'
The presentation discusses about the basics of accounting required for commerce and management students.
Contents:
Introduction to Accounting
Basic Accounting Terminologies
Generally Accepted Principles (G.A.A.P.)
Approaches to Accounting
Primary Book – Journal
Secondary Book – Ledger
Trial Balance
Sample Question
The presentation includes animations and can be used for display in seminars or lectures as well.
For further details, write to TheNipunJain@gmail.com
This document provides an introduction to accounting, including definitions, key concepts, and the different branches. It defines accounting as the process of recording, classifying, summarizing and communicating financial information. The main functions of accounting are to record transactions, classify data, summarize, interpret results and communicate them. There are three main branches - financial accounting focuses on external reporting, cost accounting provides cost data, and management accounting assists with decision making.
Bca i fma u 1.1 basic concept of accountingRai University
Accounting is required wherever money is involved to account for economic resources. It serves as a means of communication by identifying, measuring, classifying, and communicating the financial information of an organization. The accounting process involves recording transactions and events, and reporting the results in financial statements. The objectives of accounting are to keep systematic financial records, ascertain results and financial position, and provide information for decision making. The main branches of accounting are financial accounting, cost accounting, and management accounting.
This document provides an overview of financial reporting, statements, and analysis. It discusses key topics such as:
- The purpose of financial statement analysis is to review company accounting reports to allow for better economic decision making and forecast future profitability.
- Accounting standards have evolved over time, with modern accounting tracing its origins to Luca Pacioli in the 15th century.
- The main functions of accounting are recording, classifying, summarizing, analyzing, and communicating financial information.
- Various groups rely on accounting information including internal management as well as external stakeholders like investors, creditors, and the government.
This technical paper discusses the importance of considering non-financial information in addition to financial information for decision making. Two models are presented: [1] The Profit Tree model identifies non-financial "volume drivers" behind financial statement line items. [2] The Balanced Scorecard model captures additional value factors like customer satisfaction, internal processes, and learning/growth. Adopting these models can help companies gain competitive advantages and make better informed decisions. The paper also addresses limitations of non-financial data and how organizations can effectively implement and report on relevant non-financial metrics.
- SSCs began developing in Europe in the late 1990s as American and English companies asked their European entities to consolidate support functions based on experiences in the US. Today major European companies are involved in monitoring support process consolidation or assessing advantages of optimization through SSCs versus outsourcing.
- Managers establish SSCs to rationalize support functions by reducing costs 20-30% while maintaining service levels or improving quality. SSCs professionalize administrative processes by establishing customer-supplier relationships between business units.
- Key success factors for SSCs include support from corporate offices, a clear strategic vision, managing costs and services to generate ongoing efficiencies, and controlling high personnel turnover rates that are common in new SSC locations.
1. Accounting is the process of recording, analyzing, and communicating the financial transactions of a business. It involves recording transactions, classifying them, summarizing them into financial statements, analyzing the statements, and communicating the information.
2. The key accounting concepts and principles include entity, money measurement, periodicity, matching, accrual, cost, going concern, consistency, and conservatism. These concepts form the foundation for establishing accounting policies and preparing financial statements.
3. The main objectives of accounting are to systematically record transactions, ascertain the results of recorded transactions, determine the financial position of the business, and provide information to users for rational decision making.
The document discusses key concepts in management accounting including accounts, debits and credits, classification of accounts, rules of debit and credit, financial statements, and the differences between financial accounting, cost accounting, and management accounting. It provides details on the components and purpose of key financial statements like the balance sheet, profit and loss statement, and cash flow statements. It also explains concepts like assets, liabilities, equity/capital, revenues, and expenses as they relate to accounting.
This document provides an overview of accounting concepts, principles, and the accounting cycle. It discusses key topics such as [1] the purpose of accounting and accounting information systems, [2] the basic accounting model involving journal entries, ledgers, and trial balances, and [3] financial statements including the income statement, balance sheet, and statement of cash flows. It also covers [4] adjusting entries, worksheets, and closing entries to prepare the adjusted trial balance and financial statements at the end of each accounting period.
Management accounting provides information to internal managers to help them plan, direct operations, and control the organization. It involves tasks like modifying accounting data, analyzing and interpreting financial information, and facilitating management control through tools like standard costing and budgeting. Management accounting focuses on both financial and qualitative information to satisfy the needs of different management levels for decision making.
Bba ii cost and management accounting u 5 management accountingRai University
Management accounting provides internal accounting information to assist management in planning, decision-making, and controlling operations. It identifies, measures, analyzes, interprets, and communicates financial and non-financial information to help the organization achieve its goals. Management accounting focuses on the future and is aimed at helping managers make decisions, while financial accounting provides external reporting focused on the past to parties outside the organization like shareholders and regulators.
Transforming Finance and Accounting to Optimize Financial CloseCognizant
Many firms are working to accelerate and improve the daily financial close, but are far from ready. By formalizing the F&A value chain, modernizing and strengthening their F&A platform, assessing and optimizing existing service models and heightening overall F&A governance, companies can achieve this goal, supported by a set of success factors for measuring progress and aligning transformation activities.
This document summarizes key aspects of corporate financial reporting including its definition, importance, common report types (balance sheet, income statement, cash flow statement, equity statement), SEC requirements, and how to write a corporate report. Corporate financial reporting allows companies to record operating data and accurately report accounting statements. It is important as it provides transparency and conforms to standards. The main report types provide information on a company's financial condition, economic health, cash flows, and ownership. The SEC requires various disclosures from public companies.
EY Investment bank transformation: from ideas to actionRoy Choudhury
An investment bank is transforming its operations to improve regulatory compliance and reduce costs. The Chief Operating Officer plays a key role in overseeing changes across business lines, legal entities, and locations. These include optimizing collateral management, legal entity structure, and outsourcing functions. Successfully implementing structural reforms requires balancing regulatory expectations with business priorities, and increasing coordination across the bank.
This document provides an overview of accounting and financial management concepts. It discusses how accounting identifies, records, and communicates financial information. Key topics covered include the accounting equation, assets, liabilities, equity, revenues and expenses. Transaction analysis examples are provided to illustrate adjusting accounting entries for purchases and payments. The purpose of accounting is to provide relevant and reliable financial information to both internal and external stakeholders of a business.
Corporate reporting and finance lecture 1moduledesign
This document provides an overview of external financial reporting and key concepts. It discusses the objective of external financial reporting which is to provide useful financial information to users for decision making. It also outlines the primary financial statements and key accounting concepts like the accounting equation. Examples are provided to demonstrate accounting entries for a sole trader business and how the statement of financial position is constructed.
Financial Accounting and Management accounting are the two branches of accounting.
Financial accounting stresses on giving true and a fair view of the financial position of the company to various parties.
On the contrary, management accounting aims at providing both qualitative and quantitative information to the managers, so as to assist them in decision making and thus maximizing the profit.
Financial Accounting is the branch of accounting which keeps track of all the financial information of the entity. Management Accounting is that branch of accounting which records and reports both the financial and nonfinancial information of an entity.
The document discusses Sanjay's services for improving underperforming companies. He offers a "temporary COO" approach to address issues like vanishing revenue, poor collections, and inefficiency. His services include analyzing finances, reviewing operations and management, creating strategies, and communicating with investors/lenders. Past clients included companies in radio, retail, wireless, and film. Sanjay has investment banking experience from firms like Ramius, Dresdner Kleinwort Wasserstein, and Lazard Freres.
Intoduction to management accounting (MAF251)Ismail Noordin
- Management accounting and financial accounting both involve decision making, record keeping and performance evaluation functions. They are both based on the principle of stewardship to be responsible and accountable for financial and operating performance.
- They use the same general accounting system to collect data and develop information. However, management accounting focuses more on internal reporting to help managers with decision making, while financial accounting focuses on external reporting for stakeholders.
- Some key similarities include using the same data collection system and providing information to fulfill accountability of financial and operating performance. However, management accounting reports are more flexible and focus on segments useful for decision making.
Hi I am Samyak Veera from US. I believe in creating financial plan to achieve financial goals as it helps businessman in controlling their budget and save tax too.
Accounting for Managers - Brief Overview'Nipun Jain'
The presentation discusses about the basics of accounting required for commerce and management students.
Contents:
Introduction to Accounting
Basic Accounting Terminologies
Generally Accepted Principles (G.A.A.P.)
Approaches to Accounting
Primary Book – Journal
Secondary Book – Ledger
Trial Balance
Sample Question
The presentation includes animations and can be used for display in seminars or lectures as well.
For further details, write to TheNipunJain@gmail.com
This document provides an introduction to accounting, including definitions, key concepts, and the different branches. It defines accounting as the process of recording, classifying, summarizing and communicating financial information. The main functions of accounting are to record transactions, classify data, summarize, interpret results and communicate them. There are three main branches - financial accounting focuses on external reporting, cost accounting provides cost data, and management accounting assists with decision making.
Bca i fma u 1.1 basic concept of accountingRai University
Accounting is required wherever money is involved to account for economic resources. It serves as a means of communication by identifying, measuring, classifying, and communicating the financial information of an organization. The accounting process involves recording transactions and events, and reporting the results in financial statements. The objectives of accounting are to keep systematic financial records, ascertain results and financial position, and provide information for decision making. The main branches of accounting are financial accounting, cost accounting, and management accounting.
This document provides an overview of financial reporting, statements, and analysis. It discusses key topics such as:
- The purpose of financial statement analysis is to review company accounting reports to allow for better economic decision making and forecast future profitability.
- Accounting standards have evolved over time, with modern accounting tracing its origins to Luca Pacioli in the 15th century.
- The main functions of accounting are recording, classifying, summarizing, analyzing, and communicating financial information.
- Various groups rely on accounting information including internal management as well as external stakeholders like investors, creditors, and the government.
This technical paper discusses the importance of considering non-financial information in addition to financial information for decision making. Two models are presented: [1] The Profit Tree model identifies non-financial "volume drivers" behind financial statement line items. [2] The Balanced Scorecard model captures additional value factors like customer satisfaction, internal processes, and learning/growth. Adopting these models can help companies gain competitive advantages and make better informed decisions. The paper also addresses limitations of non-financial data and how organizations can effectively implement and report on relevant non-financial metrics.
- SSCs began developing in Europe in the late 1990s as American and English companies asked their European entities to consolidate support functions based on experiences in the US. Today major European companies are involved in monitoring support process consolidation or assessing advantages of optimization through SSCs versus outsourcing.
- Managers establish SSCs to rationalize support functions by reducing costs 20-30% while maintaining service levels or improving quality. SSCs professionalize administrative processes by establishing customer-supplier relationships between business units.
- Key success factors for SSCs include support from corporate offices, a clear strategic vision, managing costs and services to generate ongoing efficiencies, and controlling high personnel turnover rates that are common in new SSC locations.
1. Accounting is the process of recording, analyzing, and communicating the financial transactions of a business. It involves recording transactions, classifying them, summarizing them into financial statements, analyzing the statements, and communicating the information.
2. The key accounting concepts and principles include entity, money measurement, periodicity, matching, accrual, cost, going concern, consistency, and conservatism. These concepts form the foundation for establishing accounting policies and preparing financial statements.
3. The main objectives of accounting are to systematically record transactions, ascertain the results of recorded transactions, determine the financial position of the business, and provide information to users for rational decision making.
This document defines accounting information systems and discusses their importance for future accountants. It also covers the conceptual framework for financial reporting, the basic elements and assumptions of financial statements, and the qualities of effective information. Finally, it outlines what will be covered in the remainder of the course, including AIS technology, recording and sharing information, systems development, and applications of information systems.
The document discusses Accenture's Finance and Accounting Business Process Outsourcing (BPO) services. It outlines the challenges many CFOs face in creating a world-class finance organization, and how Accenture's end-to-end BPO services can help companies achieve greater effectiveness, efficiency, and performance. Accenture provides core finance services across the value chain as well as services to support the retained finance organization, with the goal of delivering measurable improvements in business performance and a long-term strategic partnership.
In many modern major enterprises, financial controllership functions have been just that – functional. Generally focused on managing risk, they have included technical accounting and financial reporting support, the implementation and maintenance of accounting standards, the management, simplification and improvement of processes and the guardianship of internal controls. Insightful controllership provides an entirely new way of looking at financial controllership.
Finance for non finance for employee, business man and corporatete Bibek Prajapati
This document provides an overview of key concepts in accounting and finance. It begins with definitions of financial planning and outlining the typical steps in the financial planning process. It then discusses the three principles of corporate finance, differences between management and financial accounting, the accounting cycle process, and users of accounting information. The document also defines common accounting terms and concepts such as transactions, assets, liabilities, income, expenses, and financial statements. It provides classifications of accounts and expenditures. In summary, the document covers fundamental accounting and finance concepts.
MBA 5004 Fundamentals of Accounting -2.pptxSameeraGamage1
This document provides an overview of the fundamentals of accounting concepts for an MBA program. It defines key elements of financial statements such as assets, liabilities, equities, income and expenses. It also defines accounting concepts like the cost concept, entity concept, matching concept, and materiality concept. Additionally, it discusses management accounting, cost classification, and the differences between financial and management accounting.
Difference Between Managerial And Financial AccountingDiana Turner
Here are the answers to the quiz questions for Chapter 1 of your Managerial Accounting textbook:
1. d) decrease one asset account and increase an equity account.
Paying cash for wages decreases the asset account Cash and increases the equity account Wages Payable.
2. a) The total manufacturing costs are $9,000. Since 10,000 units were completed, the cost per unit is $0.90.
The $9,000 total manufacturing costs were debited to the Work in Process inventory account. Since 10,000 units were completed, the total costs were transferred out of Work in Process and into the Finished Goods inventory account.
3. c) Contribution margin per unit is
Running head MANAGERIAL ACCOUNTING 1MANAGERIAL ACCOUNTING.docxwlynn1
Running head: MANAGERIAL ACCOUNTING
1
MANAGERIAL ACCOUNTING
2
Managerial Accounting
Accounting can be defined as the procedure of keeping monetary financial records. Accounting can be group as financial and managerial accounting. For businesses to be successful, they need to be having both managerial and financial accounting experts. Impeccable managerial and financial bookkeeping are important to the progress and constant survival of any corporate. Structurally, economically, and lawfully, bookkeeping is an essential section in any institute, and the necessity for an extremely skilled accounting squad is unconditionally crucial. Despite the similarities between financial and managerial accounting, there are also differences between them.
The managerial accounting works through measuring, analyzing and reporting monetary and non-monetary information that aids directors to make judgements to accomplish the objectives of an organization. Managerial accounting emphasizes on the internal broadcasting and is not regulated by generally accepted accounting principles (GAAP). Management accounting is known for its much efforts to focus on the future rather than paying much attention to what happened in the past (Kinicki & Fugate, 2016). This type of accounting is so influential to the performance of directors and other workers as opposed to principally reporting financial events. There are no principles which guide the operations of management accounting.
Management accounting permits executives to charge attention on owners’ principal to aid judge a division’s presentation, although this may not be allowed by generally accepted accounting principles. Managerial accounting comprises assets or liabilities which may not be recognized by generally accepted accounting principles and it makes use of asset or liability quantifying rules like present values or resale prices which is not acceptable under GAAP.
Financial accounting on the other hand emphasizes on commentary to exterior events like shareholders, government interventions, and banks. It evaluates and registers business dealings and provides fiscal reports that are grounded on generally accepted accounting principles (GAAP). Financial bookkeeping is controlled by commonly accepted accounting principles (Weygandt, Kimmel & Kieso, 2015). Financial accounting comprises of sending monetary reports like income reports or balance sheets, to outside bodies like creditors, tax specialists, shareholders, and the Interior Revenue Service.
The managerial accounting positions out profit and loss accounts, job costing accounts, and operating resources, financial accounting conveys facts only for those on the external who want to decide the company's marketplace assessment. Managerial accounting emphases on issues and answers within an institute while financial accounting is worried with productivity from without. Managerial accountants make internal working reports, while financial accountants generat.
This document outlines principles for investment reporting developed by CFA Institute. It aims to provide guidance for complete, consistent and transparent reporting to clients by financial institutions. The principles are intended to address gaps and lack of transparency in current industry practices. They seek to improve understanding between report preparers and users by facilitating dialogue on report content and format. The five key principles stress the importance of communication between preparers and users to ensure reports meet user needs and expectations. Adopting these principles could help rebuild trust between clients and financial firms and help harmonize reporting standards globally.
Discuss in detail the importance of either ageneral standardstan.pdfarchiesgallery
Discuss in detail the importance of either a
general standard
standard of fieldwork or
standard of reporting
Solution
Standards of reporting are also known as Accounting standards.
Accounting Standards are employed as one of the main compulsory regulatory mechanisms for
preparation of general-purpose financial reports and subsequent audit of the same, in almost all
states of the globe.Accounting standards are concerned with the scheme of measurement and
disclosure principles for the provision and demonstration of financial statements.They come out
with a set of important statements of how particular types of proceedings, events and other costs
should be known and reported in the financial statements.Accounting standards are devised to
supply useful information to different users of the financial statements, to such as shareholders,
creditors, lenders, management, investors, suppliers, competitors, researchers, regulatory bodies
and social club at large and so alone.In fact, such assertions are planned and prescribed so as to
improve & benchmark the quality of financial coverage.
The speedy development of international trade and internationalization of firms, the
developments of new communication technologies, the issue of international competitive forces
is perturbing the financial environment to a large extent.Under this global business scenario, the
residents of the business community are badly in need of a common accounting language that
should be uttered by all of them across the world.A financial reporting system of worldwide
standard is a requirement for attracting foreign as well as present and prospective investors at
home alike that should be achieved through harmonization of accounting standards
Operating a line of work is not simply to make profits, deposit money in the money box, paying
employees, and lure more customers and clients. It is whether the commercial enterprise is
booming or if the owner is simply investing in something that will not win them all. Accounting
standards in the United States appear in the conformation of the generally accepted accounting
principles, a set of measures, guidelines and operations that are used when accounting for the
affairs of most governmental and non- governmental bodies.The reading of numbers and the
wherewithal to put them in the proper context are at the essence of accountability.Measures exist
to assure that accounting decisions are reached in a unified and reasonable manner..
The document discusses key challenges and solutions for effective financial management. It outlines that financial management functions face challenges in providing timely, reliable financial information to decision-makers while balancing professional skills with practical accounting and cost control. It also describes solutions such as establishing robust financial frameworks, communication, and developing financial talent. Looking forward, it emphasizes the need for informed decisions, effective governance, and measuring progress through clear performance measures.
Management accounting assists management in decision making and day-to-day operations by presenting accounting information. It has evolved from a traditional focus on financial markets and securities to incorporate modern techniques like mathematical models and computer technology. Management accounting aims to help with planning, controlling operations, decision making, and reporting financial performance to management. It covers areas like cost accounting, budgets, investments, and management information systems.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
The document discusses cooperative management and planning. It begins by emphasizing the importance of setting shared objectives and goals for the cooperative. This includes determining the cooperative's main occupation and targets through tools like SWOT analysis and logical framework analysis. The document then outlines steps for setting operational targets and identifying required inputs, activities, and outputs. It stresses the importance of feasibility studies and developing business and management plans with timelines, responsibilities, budgets, forecasts and reporting. The document emphasizes clearly defining roles and relationships through tools like assigning responsibilities matrices. Regular monitoring and evaluation of results against plans is highlighted as crucial for cooperative success.
CAN SOMEONE PLEASE EXPLAIN CARBON ACCOUNTING AND DEFINE WHAT A CARBON LEDGER ...Workiva
Many jurisdictions have experienced considerable progress relating to the disclosure of climate-related information, however internationally aligned (or consistent) disclosure standards and requirements have not been mandated on a global basis. The result is an environment within which we have limited discoverability, consistency, comparability, and quality across the climate data available.
11/2/2019 Print
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LearningObjectives
After studying Chapter 1, you will be able to:
Distinguish between �inancial accounting and managerial accounting.
Recognize the primary roles and ethical responsibilities of the management accountant.
De�ine, distinguish, and illustrate key cost concepts.
Understand the differences in cost �lows among service, merchandising, and
manufacturing enterprises.
Distinguish between the behavior of variable and �ixed costs and formulate cost
functions.
Understand cost terms relating to planning and control.
1 Managerial Accounting and Cost Concepts
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Introduce the concept of contribution margin and its variations.
TheController’sWorkDay:WhereDidtheTimeGo?
It’s early October. Mary Rosen, Controller of Herschel Software Products, has just arrived at her
of�ice at about 7:30 a.m. She scans her email messages, checks her electronic calendar, and looks
through her in-basket. She says, “Wow, another ‘normal’ day!” She wonders if she’ll make her
tennis date with her husband at 6 p.m. Her calendar shows:
9:00 Meet with division head of Customer Support to discuss next year’s budget numbers.
Review preliminary budget numbers before meeting.
10:00 Meet with accounting systems analysts to discuss status of a project to improve the �irm’s
monthly management “plan versus actual” reporting system.
11:30 Hold a quick session with Marketing Vice-President, Gary Martin, to discuss pricing
negotiations with new customer.
12:15 Have working lunch with corporate attorney to discuss customer contract wording for a
new product being introduced early next year.
2:00 With budget manager, review September’s actual results and budget comparisons and
identify problem areas. Also, review third quarter results before her presentation to the
President at Friday’s staff meeting.
4:00 Review a special cost-volume-pro�it study of Herschel Software Products, relative to the
�irm’s strategic plan’s pro�itability goals.
Mary also knows that she needs to:
Respond to four email questions about product costs and operating expenses.
Talk to Steve Simcha, New Product Development Vice-President, about a serious cost-
overrun problem with a new product project.
Prepare a presentation on cash �lows for the �irm’s strategic planning meeting next
month.
Write a memo supporting the spending of $100,000 by the Marketing Vice-President on
media contracts.
Every meeting, discussion, and decision that Mary has today, and every day, uses accounting
information. She must generate relevant data in the right form and at the right time. She and her
fellow managers must understand cost behavior, cost/b ...
The document discusses various aspects of finance effectiveness and efficiency. It defines efficiency in finance as leveraging technology and streamlined processes to improve turnaround time and reduce costs. It then summarizes key aspects of corporate reporting, accounts payable, accounts receivable, and general accounting. Good practices outlined for each include standardized processes, automation, consolidated shared services, and focus on value-added tasks. A case study example shows how Intuit Consultancy helped a client in the wind turbine industry design and implement a finance shared services center to standardize processes and realize cost savings.
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Outsourcing GIA Accounting whitepaper 2016Rich Lawrence
This document discusses the considerations for insurance companies in outsourcing their general investment account (GIA) accounting functions. It explores the unique requirements of GIA accounting, including complex assets, multi-basis accounting, statutory reporting, and SOX compliance. When making the outsourcing decision, all current processes must be well-documented and understood. The potential benefits of outsourcing include cost savings and efficiency gains, but it also brings new risks that require oversight. The document analyzes the pros and cons of outsourcing GIA accounting functions.
Similar to 200411_DFCG Shared Services and Outsourcing 2 winning options for Finance (20)
200411_DFCG Shared Services and Outsourcing 2 winning options for Finance
1. Special Report Do
OUTSOURCING
Shared Services or Outsourcing:
Two Winning Options for
Finance functions
Chief Financial Officers and Controllers are directly involved in the way they
operate their own finance and administration responsibilities. In light of the
experiences of managing multinational companies, the author presents
some solutions with an overview of the potential functional scope of Shared
Services Centers (SSCs) and of Outsourcing, featuring an interview with
Valérie Raoul-Desprez, Financial Controller of Rhodia group.
M
anagers are facing an environment that is
more and more competitive in terms of
productsandservicesofferedtocustomers
andintermsofthefinancialandhumanresourcesthey
would like to attract and retain to generate sustainable
growth and profitability for their firms. To
succeedtheymustcomparetheperformanceand
attractivenessofthecompanywithotherecono-
mic actors beyond their own business sector.
Theymustimplementthebesttechnologicaland
organizational practices in order to create value
forthecompany'sstakeholders:customers,share-
holders and employees.
Theprocessesmanagedbythesupportfunctions
create value when the benefits they bestow on
thecompanyaregreaterthanthetotalcostofthe
resourcesused(operatingcostandassetholding
costs).Intheabsenceofbenefitevaluation,value
creation will be considered as positive so long
as there is no better option on the market (no
destruction of value based on the best commer-
cialized practices).
As indicated in the DFCG-HEC study conducted in
2002 , the major stakes are:
• Reduction of 20% to over 30% of fully loaded costs
obtained at a comparable level of service.
• “Refocusing" of energy and resources on the core
business (allocation of manager's time and resources
to more strategic upstream functions that contribute
to growth)
•Flexibilityandadaptabilityofresourcesbasedonbusi-
nessvolumesandqualityofservice(e.g.serviceconti-
nuity,cycletimereduction,dataconsistencyandrelia-
bility, etc.)
• Access to external skills (e.g. technology or exper-
tise, etc.)
• Optimization of the capital employed by operations
and functional offices
It would be appropriate to add to this list the general
managementexpectationtoupgradesupportfunctions
contribution, transforming each functional manager
into a more proactive “business partner”.
SHARED SERVICES CENTERS (SSC) AND
OUTSOURCING
Theseinitiativesconsistofconsolidatingthefunctions
orprocessesofseveralunitswithinagroup(mainoffices
and/or operational units) internally for SSCs or exter-
nallywithothercompaniesthroughaspecializedservice
provider . They are most commonly organized after
comparing level of service and costs of a process to
bestpracticesandreflectgeneralmanagement'sdesire
todevelopthecontributionofsupportfunctionsbyopti-
mizing resources to favor business activities that are
furtherupinthechainofvaluevis-à-viscustomersand
shareholders.
Jean-Claude DE VÉRA
President,BIPORIS,
CoordinatoroftheDFCG
(French Association for
Financial Officiers and
Controlers) “SSC and
Outsourcing” group
BY
1
Quélin B. and Duhamel F. :
“Outsourcing : Finance and
Skills drivers are linked”, in
Échanges, n° 194, décember
2002.
SPECIAL REPORT
OUTSOURCING
THE MONTHLY MAGAZINE
FOR MANAGEMENT
AND FINANCE
EXECUTIVES
Novemberr 2004 - N° 215
Excerpt from Echanges N° 215
November 2004
Business Information & Process Optimisation
for Results & Innovative Services
2. ÉchangesNOVEMBER 2004 • N°215 2
They result in a function being contracted to an inter-
nalorexternalserviceprovideroveraperiodofseveral
years,whichrequiresthatareferencedatabasebeesta-
blished to set forth the full cost, quality of service and
thevolumeshandledbythisfunction.Indeed,itisimpor-
tant to carefully assess from the start the business
workload and complexity which will be used to esta-
blishthecontractualobjectivesbecausetheservicewill
be provided in compliance with the specified levels
of service, performance and responsibility.
This transformation of support functions into profes-
sionalservicesprovidedtoclientoperationalBusiness
Units is far from natural, particularly when determi-
ning the range of services provided and the terms and
conditions of billing them or in the implementation of
an ongoing progress initiative.
ROLEOFTHEFINANCIALOFFICERINSSCAND
OUTSOURCINGPROJECTS
Thefinancialofficerandhisteamsmustbeheavilyinvol-
ved, from preparing decisions to implementing SSC
projects or outsourcing contracts and monitoring the
operational functioning of the client-service provider
partnership.Theymakeamajorcontributiontodefining
theperformanceindicatorstheninmeasuringadherence
totheserviceandpricecommitments,whichwillmake
it possible to assess the progress made and to activate
any bonus or malus contractual incentives.
Decision-Making Process
The financial officer has a fundamental role to play in
determiningthescopeofactivitiesconcernedandover-
seeing the company's projects. Moreover, he sets an
example when it comes to analyzing his own opera-
tions and deciding whether to integrate them into a
sharedservicecenteroroutsourcethem;hemaychoose
activitieswithlowvalueadded,suchasrecordingmone-
tary transactions, as well as those that are closer to his
core business, such as managing client receivables or
reporting.
Hisassessmentsofprojectsandsitesforlocatingthese
operations will affect the structural architecture selec-
ted in the business case.
Project Implementation
At this stage, the financial officer and the controller
must, at a minimum, be involved in the following
processes:
•Approval of the reference data base establishing the
levels of service, costs and volumes of activity
•Assessmentofassetsandanypotentialtermsoftrans-
fer (including information systems)
• Legal and economic structure of the service contract
and relations between internal entities (SSC-BU rela-
tions) or between the company and the service provi-
der (capitalistic and/or contractual)
• Formalization of the methods of performing fully
loaded costs (i.e. the allocation of support activities)
and determining the price of services (flat fees or unit
prices invoiced depending on consumption)
Operational Functioning
The financial officer must help develop the manage-
mentofperformanceandremunerationsystemsadapted
to professional service business.
InthecaseofanSSC,hewill,inparticular,defineobjec-
tives adapted to the financial and human needs, which
willbeintensifiedbytheregroupingoffunctions(e.g.:
integration of indicators specific to staff management,
employee satisfaction studies, etc.).
As part of an outsourcing contract, he will also have to
overseetheimplementationofongoingprogressproces-
ses on the client side and on the service provider side.
Inbothcases,goodpracticespointtothecreationofan
oversightcommitteeresponsibleforcontractualmoni-
toring, including modifications to the scope of the
contract,andassesstheperformanceandlevelofservice.
The choice of a project owner and a project manager is
essential to developing a sustainable partner relations-
hip between the client and the service provider: they
mustestablishbenchmarks,analyzetheoperatingmetho-
dology and jointly define the communication and trai-
ning plans of their reciprocal structures.
POTENTIALSCOPEOFTHESSCAND
OUTSOURCINGFINANCEFUNCTIONS
As an example, here is a non-exhaustive breakdown
of the functional processes between the core business
ofafinancialofficer(e.g.contributiontothecompany's
strategyandplanning,managementofthefinancedepart-
ment, internal control and decisions support, etc.) and
recurring activities that may be shared or outsourced
(e.g.transactionmanagementlikeaccountspayableand
receivable, general accounting, etc.).
The target objectives (optimization of cost-services or
the development of added value) and a diagnosis of
theexisting(controlofprocesses,managementculture,
etc.) will determine the architecture of the solution
adapted to the company: a national SSC or regional
SSCswithorwithoutrecoursetolocalorremoteexter-
nal service providers.
ossier
2
Cf. De Véra J.C. : “Value
creation through Shared
Services and Outsourcing”, in
Échanges n°196, february
and n° 198, april 2003.
3. Potential Scope of SSC or Outsourcing for Finance and Administration Functions
Échanges NOVEMBER 2004 • N°2153
Processes/Activities (status quo)
Finance and Administration
Department
Financial strategy, financing
and management of the function ✔
Decisions regarding
management and internal control ✔
Management Control
Plans and budgets
Forecasts versus objectives ✔
Status report and other reports to
management ✔ ✔
Performance related action plans on
P&L / BS ✔ ✔
Accounting
Legal consolidation and reporting
✔ ✔
General accounting
✔ ✔
Accounts payable and
receivable/banking ✔ ✔
Cost accounting
(inventory and production costs, ✔ ✔
assets, etc.)
Tax returns (VAT, Income tax,
other taxes) ✔ ✔
Credit and cash flow
Credit and Cash collection
✔ ✔
Banking reconciliation and cash ✔ ✔
management
Placement of liquid assets
✔ ✔
Functions/ F&A SSC Outsourcing Comments
Special Report Dossier
OUTSOURCING
Contribution to the company's strategy and organization .
Monitoring of financial resources for the company current
operations and developments (incl. the financing plan,
engineering, acquisitions-divestments, risks, etc.).
Responsibilities of the director that cannot, by their nature,
be delegated (arbitration, allocation of resources, monitoring
to ensure compliance with procedures and regulations, etc.).
Overall responsibility of performance monitoring vis-à-vis
shareholders and of business developments.
The existence of integrated information systems and
software suites may limit possible options: the choice of
performance indicators and company oversight are the
responsibility of the senior management committee;
measurement can be delegated to local SSCs.
Definition of objectives and leadership of internal actions
whose execution can be delegated (e.g. logistical management
of inventory or optimization of non-critical purchases, etc.).
In theory, the preparation of consolidated financial
statements can be delegated, but, in practice, the financial
officer is ultimately responsible for approving the financial
statements vis-à-vis outside parties.
Enforcing applicable rules within the firm is the responsibility
of the financial officer. Accounting transactions can be
delegated to an SSC or a service provider.
Maintaining the accounts of outside parties can be
delegated, but the resolution of contractual litigations is the
responsibility of the operational structures.
The management of costs accounting can be integrated into
an SSC, but it is difficult to outsource them because they
assume proximity with physical flows and assets.
Tax filing and documentations are the results of accounting
transactions: they can be prepared by an SSC or a service
provider, but are signed by the financial officer.
The decision to enter into a contract with a client and the
level of risk taken are management's responsibility. However,
transactional activities related to the management of
receivables can be assigned to SSCs or outsourced according
to the principle of the best service at the best cost.
Transactional activities that can be assigned to SSCs or
outsourced.
Transactional activities that can be assigned to SSCs or
outsourced.
4. ÉchangesNOVEMBER 2004 • N°215 4
SSCs and outsourcing are means at the service of a
company's strategy. The general management decide,
with the support of the financial officer (forecast cash
flows) and the human resources department, on the
scope of these projects after reviewing the portfolio
offunctionalandoperationalactivities,distinguishing
strategicactivities(decisions)fromnon-"critical"acti-
vities (executions) and after comparing the respective
contributions of the projects and the related risks.
These two options amount to an excellent opportu-
nity to develop the expertise and the professionalism
of the support functions with respect to best practices.
By using contracts to define its relationships, these
optionsmakeitpossibletorefocusmanagement'senergy
on its essential growth and profitability missions.
Sharedservicecentersconstituteanoptimalmodelfor
value creation, whose limits reside, on the one hand,
in the ability to rapidly deploy the target to the entire
perimeterbecauseofinternalcompromisesand,onthe
otherhand,inthequestforeconomiesofscalebeyond
the volumes managed by the company.
For businesses aiming for additional cost reduction,
they represent an excellent platform for negotiating
future outsourcing contracts with the current global
playersinthemarketorwithnewentrantsthatarespecia-
lized by business sector or functional process. ■
Échanges: Under
what circumstances
was the decision
made to outsource
and create shared
service centers for
some financial
functions of the
Rhodia group?
Valérie Raoul-
Desprez : The
Rhodia group
launched an
ambitious plan to
improve profitability, which led us to assess
the various aspects of productivity and
rationalization for each function compared
to the best practices measured in the
benchmark reference.
The contributions of the finance, human
resources, information systems and
communications departments translated
into the pursuit of specific actions such as
sharing resources via an SSC or outsourcing.
Could you specify the scope of the finance
functions developed in-house and the range
of services contracted to a service provider?
Transactional activities were outsourced to a
provider based in Central Europe: accounts
payable and receivable and inflows-outflows.
General accounting services were integrated
into shared service centers by country.
Management control, which contributes to
performance oversight, is conducted close to
managers of "business units", who are closer
to the field.
How do you measure respect for contractual
commitments and the contribution of
support functions to the company's perfor-
mance and projects?
An oversight committee sets objectives and
monitors performance in terms of both the
level of service and the cost of outsourced
activities. This process is currently being
implemented for the SSCs. Moreover, all the
productivity plans are consolidated and
audited by the company.
You mentioned the relationships between
the business units and the service providers
(in-house or outside); did you define the
overall objectives of the project in terms of
the personnel on the customer and supplier
sides? Did this lead to changes in the
individual performance review systems?
The performance indicators and objectives
were in large part deployed at the service
providers' businesses and the non-
compliance analyses resulted in the
generation of specific objectives and actions
at the customer level (e.g. : purchasing
process, provisioning, acceptance of
deliveries and approval of supplier invoices
in factories). Furthermore, the overall
assessment of function performance was
integrated into the variable remuneration
system for the company's executives.
What key factors for success did you select
in order to implement the SSC and
outsourcing projects?
The main key factors to the success of these
projects are:
- The involvement of general management
and the alignment of the various structures
to be compatible with the target objectives in
order to strengthen the change management
process (e.g. hierarchical management of
the group's functions)
- Mastery and standardization of processes
before the transfer to SSCs or to outside
service providers
- The decisions made and solutions chosen
for the transition of organizations and infor-
mation systems toward the target (e.g. archi-
tecture by country or region, projects that are
sequential or conducted simultaneously, etc.)
Comments recorded by Jean-Claude de Véra
Rhodia: SSCs and Outsourcing Combine to Help Improve Profitability
Valérie RAOUL-
DESPREZ
FinancialController,
RhodiaGroup
CONVERSATIONWITH
BIPORIS
23, rue de Balzac - 75008 Paris - France
Tel. : +33 1 53 53 69 77
jean-claude.devera@biporis.com
www.biporis.com
➜ Benchmarking processes & Service provider Information
➜ Diagnosis & Optimization of processes: Finance and IS,
Customer-Suppliers Administration, Human Resources and
Facilities Management
➜ Assistance & Management of Shared Services Centers and
Outsourcing Contracts