Accounting Principles and Cash Budgeting for Organisations

Accounting Principles

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Purpose of the Accounting Functions Within an Organisation :-...............................................4
Assessment of the Accounting Functions in Context of Regulatory and Ethical Constraints :-.4
Cash Budget................................................................................................................................6
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
This report is mainly discuss the concepts of accounting. Accounting is basically related
to activities like identifying the events or transactions which affect the business entity in any way
,sorting, storing, consolidating, reporting those to the owners of the business entity in such
manner that is understandable as well as assist them in qualitative decision making (Almagtome,
2021). Accounting principles are rules and principles which are followed by the organisations
while presenting financial data to stakeholders. This report contains two part. In first part of this
report, various purposes and functions of accounting are considered in details in the context of
the regulatory and ethical constraints. Further in this report, benefits and limitations of the budget
and budgetary planning, and control for an organisation are discussed along-with preparation of a
cash budget. In the second part of report, financial statements for a sole proprietary business, a
partnership and a non-for-profit organisation and interpret them as well. Afterwards, important
financial ratios are calculated and a comparison of the organisation's performance over the time
using financial ratios are done.
MAIN BODY
Accounting is a process of identifying, recording, analysing and reporting the financial
information to the owners and other users of it. It is a wider term. Accounting function plays a
vital role in an organisation. Accounting functions helps the organisation to track their financial
data which will help it in keeping financial records. Through which it will be easy for the
organisation to analyse their financial data in such manner that assist the management of the
organisation to decision-making (Dănescu and Prozan, 2018). There are several functions of the
accounting which are as follows:-
 Payroll
 Legal compliance
 Account receivables & payables
 Budgeting
 Inventory management
 Record-keeping
 Performance review.