Finance Accounting And Bookkeeping

Do not destroy you business: maintain good bookkeeping now

2011-10-02T18:07:00.000-07:00

Do you belief that a bookkeeping can develop or destroy a business? Well, it can. Bookkeeping could also influence your decisions based on the financial position of your business. From the information of bookkeeping you will be able to know how much money that you have and you know if it is enough to upgrade or replace some equipment in your factory, you can also decide whether it is the time to have more additional staff or to accommodate a new client.

If you financial status is nothing but dark area for you, then you might perhaps end up in business failure. You need to create some easy process and maintain a fair bookkeeping while you invest you money in the business. Do not hesitate to hire a skilled bookkeeper if you want to make sure that your financial report has reported a right amount and accurate financial position.

To some small business owners, maintaining a bookkeeping looks like an added expense, but they don’t realize that omitting the role of bookkeeper is putting the business into danger. Just like you drive your car in blind.

The role of bookkeeper in your business is not just providing financial position reports only, they can also help you in maintaining and control of the funds. Even if you are running a small business of your own, you will have to relate with money, funds, cash flows. While you are focusing on how to make your business known by your prospective customer, let the bookkeeper helps you with controlling your funds.

Cost accounting for small business: do we need cost accounting analysis in small business

2011-08-19T20:18:00.000-07:00

Cost Accounting is not usually available for the small business because cost accountant is a special area of accounting. And small business usually is enough with the service of general financial accounting. The good news for small business is that the majority do not need such specialist costing analysis as then proprietor usually has intimate detailed knowledge of all business expenses incurred. Or at least the small business believes he has that knowledge. In truth it is not until regular bookkeeping records are produced that the small business can stand back and examine the real effect of the business expenses on the profitability of the business. And by virtually taking a third party view of the costs and effect of those expenses on profitability can the financial decision be taken to improve profitability. Producing accounts on a monthly basis using accounting software suitable for the size and accounting experience of the small business owner is the first step to improving profitability.

The definition and characteristic of Cost Accounting

2011-08-19T20:05:00.000-07:00

Cost accounting can be defined as a type of accounting process which has a main purpose to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance.

Investopedia consider that cost accounting is often used within a company to aid in decision making, financial accounting is what the outside investor community typically sees. Financial accounting is a different representation of costs and financial performance that includes a company's assets and liabilities. Cost accounting can be most beneficial as a tool for management in budgeting and in setting up cost control programs, which can improve net margins for the company in the future.

Cost Accounting is such a complex subject. Cost Accounting is usually used as a tool to examine the business expenses in order to make sure financial control has run properly.
Cost Accounting also concern with the report of business expenses.
Cost Accounting includes absorption costing, marginal costing, break even analysis and variance analysis.
Cost Accounting is not usually available for the small business because cost accountant is a special area of accounting.
Cost Accounting deals with costs which occur and behave in different ways.
Cost Accounting also deals with fixed cost and variable cost.
Fixed costs means the level of expenditure does not vary with normal changes in sales volume in the short and medium term at least. But being fixed does not mean the rice of that expense cannot be reduced by examining both the value for money obtained and whether that cost is necessary in the first place. Fixed costs of a small business might include such items as rent and premises costs, insurance and indemnity premiums, capital costs of fixed assets, administrative, legal and professional fees. Another way to view what is and what is not a fixed cost is to determine which costs are incurred to provide the base operating facility of the business. If by changing the base of the business or negotiating better rates for those base expenses the fixed costs can be lowered then the pressure on generating gross profit is reduced. Fixed expenses may also contain such waste expenditure and any non essential expenditure in this area should be reviewed for potential elimination on the basis that if it can be dispensed with without affecting sales volume then chop out that expense as waste.

On the other hand, variable costs depend heavily on the products or services being provided but are essential the cost of goods and services being sold. Often called direct costs the variable costs of a business should be reviewed for ways to reduce the unit cost either by sourcing cheaper supplies at the same quality levels or negotiating more effective prices. The volume of purchases can obviously affect the variable cost and consideration may be given to placing regular orders, higher volume orders or negotiating settlement discounts. Direct costs are perhaps one of the one most influential cost areas in that the lower the direct cost that can be achieved reduces the sales volume required to reach and exceed the beak even point and also puts less pressure on the fixed costs.

In the middle, semi variable expenses would be those items which the small business makes definite decisions to buy depending upon the requirements of the products and the level of volume required. Many semi variable costs are dependent upon the management decisions of the small business owner and are a critical area in which the success or failure of the business may depend. Semi variable costs may include the advertising and promotion costs of the business, perhaps the transport and distribution costs, direct employees and goods or services bought in to support the sales volume. Each variable cost should be reviewed and a decision made on whether value for money is being obtained. That review should also examine whether the level of support the semi variable costs provide to the achievement of financial success is adequate, improvable or could be dispensed with.
Accounting for profit is the key area in which to examine all costs. Accounting or bookkeeping software can be a useful tool to identify the volume and levels of expense. The nature and performance of each expenditure classification should be subjected to the critical review of the small business owner to generate either a higher or safer financial performance.

Do you know that accountants are also having their own niches?

2011-08-17T00:51:00.000-07:00

Do you know that accountants are also having their own niches? Just like many branches you will find in medical area such as cardiologist, urologist, gynecologist and so on, the accounting jobs also have some branches like that. The accountants have their own expertise and most of them are handling different types of clients and accounts and industry.

Some types of accountant available in business are:
Tax accountants
This kind of accountant, may be the most kind of familiar accountant to most people. Some people even only associate accountant with their taxes job and function. They are expected to be knowledgeable in financial and taxation laws. More importantly, they are able to provide sound financial advice and will be able to help you find tax deductions that you won't know about on your own.
Private accountant.
Private accountant represents accountant who works for a single company. This kind of accountant enters into an employment contract with a single company. This means that they will apply his or her skills and work only for the corporation that employed him or her. They will commonly work in corporate finance or handle payroll.
Government accountant
The accountant who works for the government simply known as government accountant. This type has similarity with private accountant. Only that this type of accountant works for bigger entity that is government. The scope of their job mostly about budgeting, auditing and managing the department’s allocated finances. Different case with private accountant, the government accountancy is not really concerned with profit.
Forensic accountant
Usually the word forensic is associated with Crime Scene Investigation, here you will know that the accountants have also the ability to become involved in forensic activities. Even though the background is basically the same, the main difference is in its goal. Unlike Crime Scene Investigation, the forensic accountants is expected to conduct investigations into paperwork, data, records and documents to identify financial patterns and potential malfeasance, with the intent to use all data found as possible evidence in a trial. Forensic accounting can be utilized in various court cases such as corporate disputes, injury claims, fraud, insurance claims and matrimonial disputes. Forensic accountants may have to increase legal knowledge and practice dispute resolution as additional skills.
Charity accountant
Non profit organizations are governed by a specific and different set of financial laws. Therefore they must understand the requirements of a charity organization. A charity organization actually can be more difficult to run. The charity organization operate from the money donated by supporters.

Which type of accountants you are looking for?

Are you looking for the right Accounting Software for Your current business? Here are some tips:

2011-07-05T18:58:00.000-07:00

To find the best accounting software is rather hard to do, because each accounting software has their own strength and weakness. What you need to look for is the right Accounting Software for your business. You need to know your necessity in your business that needs help from accounting software.

There are several things to know about accounting software which are available in the market. Many types of software in the market and mostly are flexible enough and able to offer a range of applications. Some accounting software applications are able to adapt to changes which are happen in your working flow. So whenever is necessary you can make some adjustment in your accounting software system.

To find the right accounting software can really give you benefit by increasing your staff productivity. You can also reduce errors and enhance your compliance. If your productivity increase and your errors are decreasing then the end result will come up in higher revenue and higher profit.

There are various accounting software packages available in the market. We can categorize those packages into three main category:
- Low End Accounting Software; which mostly comprises of personal use software
- Mid Range Accounting Software; which mostly used by small business accounting software
- High End Accounting Software; which mostly used by big business accounting software

Low End Accounting Software which mostly adapted for home or personal use. For your household financing and budgeting purposes, these kind of accounting software can be downloaded into your laptop or PC from the internet. These kind of accounting software are designed to meet some simple basic accounting needs such as bookkeeping, budgeting and accounting spreadsheets. Some examples of low end accounting software are: ACCPAC Pro Series, MAS 90 and MAS 200, ePeachtree, Simply Accounting, Quick Books for the Web, Oracle Small Business Suit, Small Business Manager, Business Vision 32, Business Works, M.Y.O.B. Plus for Windows, Peachtree Complete Accounting 2004, QuickBooks Pro 2002, Vision Point 2000.

Mid Range Accounting Software can be used in some business communities just like the low end software. These kinds of accounting software are easy enough to use ranging from simple mom at home to multi level organizations. Mostly used for small businesses, mid range accounting software are able to provide many time saving advantages. Mid Range accounting software can do most major financial reporting. The accounting software can generate invoices, e-commerce and manage payrolls. The mid range accounting software can convert and be adjusted to your specific need and at the same time flexible to use. Some examples of Mid Range Accounting Software are: Great Plains, Traverse, SouthWare Excellent Series, Solomon, Navision, SYSPRO, Accountmate, ACCPAC Advantage Series Corporate Edition

High End Accounting Software mostly being used in large corporations and can help businessmen in doing their job in multiple states or countries. One significant advantages of High End Accounting Software that is different than those other accounting software is that high end accounting software able to cover networking job, as they have a number of applications which can be accessed from elsewhere. Most of these high end accounting software are really expensive but they are more flexible for broader use. Some examples of high end accounting software are: SAP R/3, People Soft, Oracle Financials, One World, Lawson Enterprise, MAS 500, e-Business Suite, Epicor, Axapta.
Find your right Accounting Software for you business needs on the internet now.

Why is the income statement so important?

2011-07-04T17:30:00.000-07:00

The major reason is that it provides investors and creditors with information that helps them predict the amount, timing and uncertainty of future cash flows. Accurate predictions of future cash flows enable investors to assess better the economic value of the enterprise and creditors to determine the probability of repayment of their claims against the enterprise.

The income statement helps users of the financial statements predict future cash flows in a number of different ways. First, investors and creditors can use the information on the income statement to evaluate the past performance of the enterprise. Although success in the past does not necessarily mean success in the future some important trends may be determined. It follows that if a reasonable correlation between past and future performance can be assumed, then reasonable predictions of future cash flows can be made.

Second, the income statement helps users of the financial statements to determine the risk (level of uncertainty) of achieving particular cash flows. Information on the various components of income, revenues, expenses, gains and losses, highlights the relationship among these various components. These component allow one, for example, to assess better the effect of a change in demand for a company product on revenues and expenses. Similarly, segregating operating performance from other aspects of enterprise performance can provide useful insights. As operations are usually the major means by which revenues and ultimately cash I generated, results from central continuing operations usually have greater significance than results from non recurring activities and events. The income statement is used by parties other than investors and creditors.

The function and role of income statement in accounting cycle

2011-07-03T07:51:00.000-07:00

The statement of income is also frequently called as statement of earnings. The nature of the statement of income is the report that measures the success of enterprise operations for a given period of time. The business and investment community uses this report to determine investment value, credit worthiness and income success. Whether existing confidence in the income statement is well founded is a matter of conjecture. Because the derived income is at best a rough estimate, the reader of the statement should take care not to give it more significance than it deserves. The measurement of income in accounting is a reflection of the many assumptions and principles or many standards established over the years by accountants, such as the periodicity assumption, the revenue recognition principle and the matching principle. If for any reason the assumptions and principles are ill founded, weaknesses will appear in the income statement.

Accounting report as a tool to assess and to address the risks on outsourcing service

2011-06-30T03:07:00.001-07:00

To make sure accounting report is fairly stated, a service organization has provided the internal control reports which is called Service Organizations Control or SOC. These reports produced by Service Organizations Control give some valuable accounting information which can be used by the users to assess and to address the risks which appeared on the outsourced service. The American Institute of Certified Public Accountants (AICPA) has helped to provide some tools and useful resources to CPAs in the operational. AICPA also provides the tools to service organizations and users in order to build trust and confidence toward outsourcing services.

AICPA latest Economic Outlook Survey on the role of CPA

2011-06-29T17:57:00.000-07:00

Economic Outlook Survey has released a finding about CPA and according to their latest outlook, the roles of CPA either in executive or senior management in a company are far less optimistic toward the direction of the US economy. This condition is different from that in the first quarter of 2011 which were more optimistic.

There are three levels in the House of General Accepted Accounting Principal:

2011-06-28T07:07:00.001-07:00

As we can see here, there are three levels in the House of General Accepted Accounting Principal. At the first level in the House of GAAP, we find FASB which concern with Standards and Interpretation of economic events and transactions into accounting record. FASB is the short form for Financial Accounting Standard Board. This is the body of Financial Accounting which deals much with Standard of reporting.

Still in the first level of the House of GAAP, we find APB which concerns with Opinions and Interpretation of accounting events and transactions. And the other Board we find is CAP which concerns with Accounting Research Bulletins. CAP is something more like scientific journals of accounting which discuss much about accounting practice in daily business life and new finding in accounting research.

At the second level, we see AICPA which is American Institute of Certified Public Accountants. This is a body of CPA which organize the life, practice and activities in the world of Certified Public Accountants. At this level, AICPA concerns with guidance especially Accounting and Auditing Guides. Besides this role, AICPA at this level also concerns with Statements of position. We will also find FASB here for its role in providing Technical Bulletins.

At the third level, there are AICPA, FASB and Other Parties. In this level AICPA deals with Issues Papers. FASB concern with Concepts Statements and Other Parties which concerns with Authoritative Pronouncements.

There are four steps in financial accounting production order procedure

2011-06-27T11:33:00.001-07:00

First. Planning and purchase clerk write purchase order and production order. Send original purchase order to supplier. Copy to receiving. Send production order to factory.

Second. Retained copy of purchase order and production order for follow up.

Third. Receiving clerk received copy of purchase order, writes receiving reports when materials are received, send original to planning department, copy to factory office.

Fourth. Factory office files copy of production order in Load file. When it receive copy of receiving report releases production order to department.

Cost Accounting: cost calculation and cost evaluation of the assets

2011-06-26T00:03:00.000-07:00

Cost Accounting is a specific subject in accounting which usually concerns about cost calculation and cost evaluation of the assets. Traditional historical accounting mostly acknowledge acquisition cost to value the assets. But then accountants raise other question like: Is this the only way to determine the value of an assets for financial reporting purposes? What if there is a significant change in market price? Based on this kind of condition and question, cost accounting develop a different point of view regarding asset cost valuation. The inflation factor is now put into consideration. Actually this idea is economically good and fair. Even though the computation method still need further development.

Current cost accounting: its approach and its difficulties

2011-06-24T22:12:00.000-07:00

Cost accounting corcerns with the process of providing the realistic book value of assets. In order to provide the realistic book value of assets, cost accounting will value the assets at its current replacement cost instead of its actual amount paid when the assets were acquired. The cost accounting has a different approach with the usual historical cost approach which uses the actual amount paid for the assets.

The current cost of the assets includes the inflation of the historical cost of asset and also includes the adjustments of the assets like depreciation. According to some accountants, the approach of current cost accounting is more complex than that in the historical cost accounting. In this current cost accounting, the implementation of adjustments is sometimes difficult in order to determine the appropriate adjustment. The adjustment not just come from depreciation of the book value of the assets but also come from the inflation factor. The depreciation is predictable and accountant can determine what depreciation method is going to be implemented in the financial statement. But the inflation tends to be fluctuated. Sometimes the interest rate of inflation is high but sometimes is low. There usually some disagreement among accountants about the interest rate used.

The fundamental concepts of accounting system

2011-06-03T01:03:00.000-07:00

The accounting systems vary widely from one business to another, depending on the nature of the business and the transactions in which it engages, the size of the firm, the volume of data to be handled, and the information demands that management and others place on the system. The established system of recording transactions and other events as they occur is referred to as double entry accounting. The basic steps in the accounting cycle are (1) identification and measurement of transactions and other events, (2) journalization (3) posting (4) unadjusted trial balance, (5) adjustments (6) adjusted trial balance and (7) statement presentation and closing. Optional procedures are use of a work sheet, a post closing trial balance, and reversing entries. There are two types of events: (1) external events and (2) internal events. Accountants record as many events as possible that affect the financial position of the enterprise; however, measurement limitations result in some events being omitted. Journalization is the initial recording of essential facts and figures in connection with all transactions and selected events in chronological order. Posting is the mechanical (electronic) process of transferring the essential facts and figures from the journal to the accounts in the ledger. A trial balance is a listing of all open accounts in the ledger and their balances. A trial balance taken immediately after all adjustments have been posted is called an adjusted trial balance. A trial balance taken immediately after closing entries have been posted is called an after closing or post closing trial balance. Adjustments are necessary to achieve a proper matching of revenues and expenses in the determination of net income for the current period and to achieve an accurate statement of the assets and equities existing at the end of the period. The closing process reduces the balances of nominal (temporary) accounts to zero in order to prepare the accounts for measuring the next period transactions. The adjustment of inventories under the periodic method is considered an adjusting or closing entry. Reversing entries can be used to simplify the accounting process. Accrued items and prepaid items debited or credited to a nominal account can be reversed. Reversing entries, however, are optional. A work sheet is often prepared to facilitate the preparation of financial statements. He work sheet does not in any way replace the financial statements; instead it is the accountants’ informal device of accumulating and sorting the information needed for preparation of the financial statements.

Is it necessary to make a reversing entries for prepaid items?

2011-06-02T03:28:00.000-07:00

Here a reversing entry was made to return to the expense account the cost of unexpired insurance at the beginning of the second year of the policy. The business continues to debit Insurance Expense for purchases of other insurance during the second year. Reversing entries are also made for unearned revenue transactions if the initial entry is made to the revenue account. With respect to prepaid items, why are all such items not entered originally into real accounts, thus making reversing entries unnecessary? It is particularly advantageous for items that need to be apportioned over several periods. However, items that do not follow this regular pattern and that may or may not involve two or more periods are ordinarily entered initially in revenue or expense accounts. The revenue and expense accounts may not require adjusting and are systematically closed to Income summary. Using the nominal accounts adds consistency to number of such transactions occur during the year. The bookkeeper knows that when an invoice is received for other than a capital asset acquisition, the amount is expensed. The bookkeeper need not worry at the time the invoice is received whether or not the item will result in a prepaid expenses at the end of the period, because adjustments will be made at the end of the period.

Accounting Standard Organizational Structure: the accounting diagram you are looking for

2011-04-27T02:20:00.001-07:00

Accounting Standard Organizational Structure is develop to make sure the financial condition can be recorded properly and fairly. In order to do that, the structure must be made and maintained. The structure of Accounting Standard Organization can be described as follows:

At the top of the structure, there is FAF or Financial Accounting Foundation.

The purpose of this foundation is to select members of FASB (Financial Accounting Standard Board) and GASB (Governmental Accounting Standard Board) and their advisory councils. Beside selecting members of FASB and GASB, the Financial Accounting Foundation has also to fund their activities and to give them and exercise them (FASB and GASB) a general oversight.

Right under Financial Accounting Foundation, there are Financial Accounting Standard Board (FASB) and Governmental Accounting Standard Board (GASB).

The purpose of Financial Accounting Standard Board (FASB) is establish and to improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors and users of financial accounting information.

The purpose of Governmental Accounting Standard Board is to establish and improve standards of financial accounting for state and local government.

To help Financial Accounting Standard Board and Governmental Accounting Standard Board, there are also staffs and task forces. Their role is to assists respective Board on reporting issues by performing research, analysis and writing functions.

Right below the FASB (Financial Accounting Standard Board), there is FASAC (Financial Accounting Standard Advisory Council). The purpose of FASAC is to consult on major policy issues, technical issues, project priorities and selection and organization of task forces.

The same thing with FASB, right below the GASB (Governmental Accounting Standard Board) there is GASAC (Governmental Accounting Standard Advisory Council) which has the same purpose with FASAC that is to to consult on major policy issues, technical issues, project priorities and selection and organization of task forces.

The diagram of Accounting Standard Organizational Structure can be seen above.

Reversing entries: the role and benefit of reversing entry in accounting cycle

2011-04-24T19:17:00.000-07:00

After the financial statements have been prepared and the books closed, it is frequently helpful to reverse some of the adjusting entries before entering the regular transactions of the next period. Such entries are called reversing entries.

A reversing entry is the exact reverse, both in amount and in account titles, of an adjusting entry. Any adjusting entries that create an asset or a liability account can be reversed (all accruals and some prepaid items). Reversing entries are generally recorded at the beginning of the nest accounting period. Such entries are optional. They are made only to simplify the recording of a subsequent transaction related to and adjusting entry. When an adjusting entry is reversed, the related subsequent transaction can be recorded as if the adjusting entry had never been recorded.

Reversing entries for prepaid items
Here a reversing entry was made to return to the expense account the cost of unexpired insurance at the beginning of the second year of the policy. The business continues to debit insurance expense for purchases of other insurance during the second year. Reversing entries are also made for unearned revenue transactions if the initial entry is made to the revenue account.

With respect to prepaid items, why are all such items not entered originally into real accounts (assets and liabilities), thus making reversing entries unnecessary? Sometimes this practice is followed. It is particularly advantageous for items that need to be apportioned over several periods. However, items that do not follow this regular pattern and that may or may not involve two or more periods are ordinarily entered initially in revenue or expense accounts. The revenue and expense accounts may not require adjusting and are systematically closed to Income Summary.

Using the nominal accounts adds consistency to the accounting system and makes the recording more efficient. The bookkeeper need not worry at the time the invoice is received whether or not the item will result in a prepaid expense at the end of the period, because adjustment will be made at the end of the period.

Unadjusted trial balance on accounting cycle

2011-04-11T20:31:00.000-07:00

At the end of a given period after the entries have been recorded in the journal and posted to the ledger, it is consumer and desirable to prepare an unadjusted trial balance. A trial balance is a list of all open accounts in the general ledger and their balances. The trial balance accomplishes two principal purposes: First, it proves that debits and credits of an equal amount are in the ledger. Second, it supplies a listing of open accounts and their balances that is the basis for any adjustments and is used in preparing the financial statements and in supplying financial data about the concern.

Posting to the ledger activity in accounting cycle

2011-04-07T17:24:00.000-07:00

The items entered in a general journal must be transferred to the general ledger. This procedure, posting, is considered part of the summarizing and classifying activity of the accounting process. Because the debit and credit analysis of the transaction takes place as the entry is recorded in the general journal, posting consists of transferring to the proper ledger accounts the amounts entered in the general journal. The various ledger accounts affected by the journal entries in the preceding illustration appear below after the posting process is completed.

Accounting journals in accounting cycle

2011-04-02T18:16:00.000-07:00

Accounts are the means by which differing effects on the basic business elements (assets, liabilities and equities) are categorized and collected. The general ledger is a collection of all the asset, liability, owners’ equity, revenue, and expense accounts. A T-account is a convenient method of illustrating the effect of transactions on particular asset, liability, equity, revenue and expense items. Transaction and selected other events are not recorded originally in the ledger because a transaction affects two or more different accounts, each of which is on a different page in the ledger. To circumvent this problem and to have a complete record of each transaction or other event in one place, a journal (the book of original entry) is employed. The simplest form of a journal is a chronological listing of transactions and selected other events expressed in terms of debits and credits to particular accounts. This type of journal is called a general journal. Most businesses use special journals in addition to the general journal. Special journals permit greater division of labor, reduce the time necessary to accomplish the various book keeping tasks, and summarize transactions possessing a common characteristic.

There are several groups or entities which have interest on Financial Accounting Standard:

2011-03-30T18:45:00.001-07:00

Accounting Standard group of user

Investing Public
When a company go to the public, they attract people to invest in that company. People who are having first interest on the company will firstly check the accounting report. They want to know about the company performance and one way (among the other ways) to value a company is by looking at the financial statement.

Academicians
Academicians who want to master accounting subject, must also refer to Financial Accounting Standard to get the actual information about rules and conducts in the real financial accounting fields.

Accounting firms
Accounting firms do they business by giving accounting service to companies. In order to deliver their services well, they must also refer their service to the actual Financial Accounting Standard.

Business entity
Business entity is dealing with business decisions every day. And to make the right decision, the businessmen should have the right information. One way (among the other ways) to get information about financial position of a company is by checking it out from the Financial Report. And the businessman only want to see a financial report which has been prepared under Financial Accounting Standard.

Financial community
Financial community represents bankers, analyst and many more. Like businessmen, the financial community also have the same interest on Financial Report which has been prepared under fair Financial Accounting Standard whenever they need to make a financial decision.

The other parties like professional organizations, government and industry associations have the same interest of Financial Accounting Standard Board for the same reason with Business entity and financial community.

Accounting cycle sales summarize

2011-03-24T17:35:00.001-07:00

The accounting cycle of Sales, Account Receivables and its relation to cash

The accounting cycle of sales can be summarized as shown in the table above. The accounting cycle of sales deal with sales, cash received and account receivables. But in the table above, the accounting cycle of sales are also related to the cash received and cash paid out accounting cycle.

The diagram are made quite detail that will help you to learn more easily. Nowadays, the diagram like this is replaced by the automatic characters of computer program. The accounting computer program has cut off the long diagram or long procedures into a simple input and output activities. If we only depend on accounting computer program like that, we may not remember anymore the big picture of accounting cycle like can be seen in the diagram above.

Hope the diagram and tips about accounting cycle here can be helpful for you.

Accounting cycle from invoice account receivable sales: the flow of papers

2011-03-16T03:56:00.000-07:00

The accounting cycle of invoice - account receivable - sales

The accounting cycle from invoice to account receivable and sales can be seen in chart above.

Accounting cycle hierarchy

2011-03-13T16:55:00.000-07:00

Accounting cycle hierarcy represents the chain of commando that will affect the process of accounting cycle. The hierarcy itself will never appear in the accounting report, however the work of the hierarcy is surely has an impact on the financial report.

Accounting cycle: a conceptual of reporting

2011-03-12T20:51:00.000-08:00

There is a conceptual framework of reporting in accounting cycle.
The tabel or figure of conceptual of financial reporting in an accounting cycle can be seen above.