Accountancy is the process of communication through which financial statements are prepared for use by both internal and external users says, William D King. The aim of this communication is to provide information that enables users to assess the entity’s ability to generate cash flows, fund current investments or meet future obligations. It helps stakeholders in making critical decisions about an organization’s future prospects based upon data provided in their financial statements. Following are some key points that must be kept in mind while working on producing any type of accounting report: – All information should be relevant and reliable. – Information should be present clearly so that it can be easily understood by all concern parties. – Information should not mislead the user in any way because it could result in bad decision-making by them. – The information should provide a basis for making future projections. This information can be present in the form of financial statements that consist of balance sheets, income statements,s, and cash flow statements. While preparing these statements some key aspects have been considered as their influence on value is significant: a) Currency unit – This factor influences the amounts shown as assets, liabilities and owners’ equity says, William D King. For example, if a business has to report its financial position in dollars instead of rupees it will surely… Read More »William D King: Why does money matter in accounting and finance?
Nowadays, many high school and college students are looking around for ways to prepare themselves for an accounting career explains William D King. A few of them know what they want to pursue in college; some plan to take a business administration degree as a springboard for their finance career. Others may be interested in getting into the field but just aren’t sure how they should proceed. This article will attempt to give readers insight into the different routes that can be taken towards becoming an accountant or auditor, as well as introduce those who don’t know much about the profession to its world and the opportunities it offers. Overview: Accounting can range from being very regimented and rule-based (although this is typically only found at the Big 4 level) to requiring the ability to think on the fly and solve problems that require deep analytical skills. Much of this will depend not just on the firm you work for, but also on your specialization within accounting itself. For instance, some firms may hire people who are strong in tax preparation because they anticipate an increased demand for it. This is something that hasn’t been considered much before, but with the changes in international trade law, there may be more businesses transferring their headquarters overseas or reorganizing their supply chains outside of domestic borders says,… Read More »William D King: What is the best way to prepare for an accounting career?
Have you wondered how to clean your desk at the office without getting caught? What is the best way to avoid cleaning the desk on the job? asks William D King. The answer is simple; just push all your desk mess under the table. This can be easily done by pushing all of the garbage, wrappers, and other stuff beneath the table cloth. If there are any objects that can’t be pushed below, make sure they are covered by some other object so it won’t draw attention. If someone walks past your desk while you are doing this, do not hesitate to say “Hey, what are you looking at?” Or “What’s wrong with my desk?”. Also if possible, pick up a few pencils or pens from somewhere else in order to cover these objects well. This will create a distraction and they will move along work. If you want to avoid cleaning your desk at the workplace, even more, try to put some messy stuff on your table in front of you before the person looks to see if anyone is sitting in that area explains William D King. Then when they look over, quickly clean up all your mess and say “Sorry, no one was sitting here”. If you do this right, people will think there was someone sitting there but left their garbage… Read More »William D King: What is the best way to clean my desk on the job?
A cost center is an entity in which costs are accounted for, but not managed. Cost centers typically do not have any responsibility to generate profits says, William D King. They are responsible only for the expenses they incur and this is exactly what differentiates them from profit centers. Cost centers can be defined as entities that produce no or negligible profit by themselves. All their activities are focused on what it takes to achieve the organizational goals without any regard for profit generation. Cost Centers vs Profit Centers: Both cost centers and profit centers are important elements of management accounting. The difference between them lies in their roles within various business organizations. A cost center operates with a restrictive budget (which does not allow flexibility) whereas a profit center has two budgets, one restricting (to control costs) and the other permitting a lot of latitude in financial decision making. Profit center managers are directly responsible for achieving the company’s goals. They have the authority to make business decisions that allow them to be more efficient and increase profits says, William D King. Cost center managers operate within a set budget given by their superiors, without additional powers or discretions. They can only watch over expenses, cutting wherever they see weak points in an organization’s spending habits. A cost center manager has absolutely no say… Read More »William D King: What is a cost center in business management?
An accountant is a person in the United States, who is authorized to examine and certify financial records says, William D King. He/She helps people in creating organized money management systems. But what happens after their careers are over? This article will be discussing how accountants can contribute to society after they have retired After retirement… When an accountant has retired, he/she should not just sit around the house doing nothing. An accountant might have some spare time on his hands, but it’s important for him/her to do something productive and meaningful with that time. Here are some suggestions of things an ex-accountant could do after retiring: He/she could tutor students at schools like The University of North Carolina at Chapel Hill through The Learning Center for Adults He/she could volunteer to sit at a desk in a hospital and write letters for patients who can’t fill out forms on their own explains William D King. The patient would bring the letter to his/her doctor, and the doctor could use it as necessary. He/she should contribute by doing tax-returns or giving accounting advice for free to less fortunate people taken advantage of by peoples who offer such services for money. An accountant might not know this, but they contribute to society even while they work. Accountants help doctors by doing their taxes for free. The… Read More »William D King: What can Accountants contribute to society after their careers?
You have to be an excellent mathematician, but you do not need a Ph.D. in psychology or advanced science explains William D King. You may even think that it is enough to be good in the English language-but not exactly. The reality is much more difficult because there are skills needed beyond the ability to write reports and excel in numbers. There are plenty of sources about how to find jobs at accounting firms, where they look for new people, what are the salaries, etc.; but far less information is offered about key features that will help the young graduate succeed in this job market. Knowledge required: The accounting profession requires huge abilities when it comes to mathematics and understanding financial reports; so if your knowledge of these topics does not cover all the topics covered by Accounting A-Level, you will need more than a few months to work as an accountant. In addition to the above, knowledge of how companies work is needed. This means having at least some understanding of taxes and finance regulations. However, this is not enough as well: dealing with clients requires good communication skills and good manners. In particular, if you would like to work in a big company or a corporation your behavior must be exemplary in these terms says, William D King. Although the previous items are… Read More »William D King: What are the skills needed to excel in an accounting career?
It is important to understand the basic differences between a corporation and a sole proprietorship, partnership or limited liability company says, William D King. Corporation vs Business Many people use the words “business” and “corporation” interchangeably when in fact they are very different legal entities. One of the main differences is that an entity operating as a corporation has perpetual existence regardless of changes in ownership. This means that if one owner dies or sells his/her shares in the company, the company still continues to exist under state law. A business can be owned by either natural persons or corporations who exist on a set timeline regardless of changes in ownership. Even though it may have been incorporated, a business can dissolve itself by returning its articles of incorporation signed by the owners of the business is a corporation. Partnerships can also dissolve according to the number of partners and provisions in their partnership agreement says, William D King. The main difference between a limited liability company and a business is that an LLC has members while a business has owners (shareholders). A member-managed LLC means that all of its members must agree on who will manage and enter into contracts on behalf of the LLC, while with a board-managed LLC, shareholders elect directors to make these decisions for them. An LLC may only have… Read More »William D King: What are some differences between a corporation and a business?
Expenses for business trips are reimbursed to consultants in two ways: one is by using cash; another is by using credit card. Which method should be used when on a trip? Answer: Using cash will allow you to easily track what you spend and how much for expenses for your business trip says, William D King. However, if the amount of money you carry with you is large, there’s also a risk to lose it or have it stolen. Most people use credit cards because their company has Mastercard or visa, so if the card number gets compromised, they can inform the bank at once and get another card. Using credit cards could lead to problems when trying to reconcile them after arriving home from the trip if receipts are not well kept. The company should have a policy about how to deal with these kinds of issues. Using cash on business trips may be cumbersome, but it’s still manageable if you keep receipts carefully. Credit card is also can be an option but companies should have a clear procedure for misuse of credit cards. 1. Expenses for business trips are reimbursed to consultants in two ways: one is by using cash; another is by using credit card. Which method should be used when on a trip? Answer: Using credit cards could lead to problems… Read More »William D King: Should I use cash or credit on a business trip?
The IRS, like any other government body, is doing its part to make America great. This includes ensuring that US citizens are paying their fair share of taxes says, William D King. The ways in which the IRS chooses to check people’s income can be strange and confusing (for both people filing tax returns and tax accountants). The main goal of this article is to understand an audit report during tax season. Summary: An audit report isn’t always bad news; it depends on the scale of the audit. A very small-scale audit might end up resulting in a refund or no adjustment as long as there aren’t any errant errors on your return (this is why it’s important for you to double-check your work throughout the year). But if there’s a significant misplacement of funds on your return, then the auditor is probably going to want to talk things over with you. Reflection: One thing that can be challenging about tax season is trying to make sense of an audit report. Sometimes it’s difficult because people don’t understand the scale of an audit and how this will change their tax refund. Other times it can be due to a lack of understanding on what exactly the breakdown of their numbers means for them (and how they should proceed). Luckily, if there are no huge financial… Read More »William D King: How do you make sense of an audit report during tax season?
Accounts receivable are money that is owed to a company. Accounts payable are the monies due to suppliers, contractors, or other businesses for goods and services already received by an organization says, William D King. Some people believe that knowledge about what accounts receivables and payables are will give you the basics of how they work in general then you can learn how to manage them properly. Learning about what accounts receivables and payables are will help because once people understand that there are two different types of processes dealing with money being exchanged between companies, they can begin learning how these two concepts work. After understanding accounts receivables which is something owed to the business after providing a good or service, people should learn how accounts payable work when it comes to when the company is owed money. Once people understand the basics of accounts receivable and payables, they can learn about how to manage them both properly. When it comes to management, there are different things that should be into consideration depending on what an organization needs to improve its financial status. There are many ways people can improve their ability to manage accounts receivables and payables better which will help an organization succeed financially if executed properly explains William D King. The two concepts are very important for any business owner or… Read More »William D King: How do you learn how to manage accounts receivables and payables?