Accounting in Business: Impact and Constraints

BMM3103 – Project

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Topic: Accounting in business.........................................................................................................1
Aim..................................................................................................................................................1
Objectives........................................................................................................................................1
Strategies to achieve these objectives..........................................................................................2
Time Scale...................................................................................................................................2
Literature review..........................................................................................................................2
Impact analysis of accounting in business...................................................................................4
Constraints face by business........................................................................................................6
CONCUSION..................................................................................................................................7
REFERENCES................................................................................................................................9
Books and Journal........................................................................................................................9

INTRODUCTION
Accounting in business refers to a process which include recording of financial transaction
relation of activities of business (Channuntapipat, Samsonova-Taddei and Turley, 2020). The
accounting process in business include analysation, summarisation and reporting of transaction
for purpose of regulatory agencies, tax collecting agencies. Business need to do accounting for
purpose of keeping record for transaction of business. It also helps them in taking business
decision which is based on past data and comparison of different statements. This project report
is work as a record of activities conducted in an enterprise. It helps to communicate with other
members of organisation and provide information of business to their stakeholder who have
interest in business. These stakeholders include shareholder who has invested their money in
organisation, employees who work for company, government as well as costumers. This project
report includes study of Unilever Plc which is a UK based company providing consumer goods
to their customers. It is established in the year 1929 by William Lever and provide product like
food, toothpaste, cheese, tea, beauty products, pharmaceuticals etc. Organisation is conducting
their operation at global level and provide their product as well as service in countries like
Africa, Egypt, America, UK, Brazil, Canada and many more (Wynn-Williams, Beatson and
Anderson, 2016). They are also adopting fair practices to compete with their competitors in
market. This project report include accounting in business and their impact on business. It also
includes constraints faces by business in conducting accounting in their organisation.
Topic: Accounting in business
Aim
To identify the importance and role of accounting in improving financial performance of an
organization. A study on Unilever Plc
Objectives
 To develop basic understanding regarding the accounting in business.
 To determine the role of accounting in improving financial performance of Unilever Plc.
 To ascertain the challenges faced by Unilever Plc due to ineffective accounting practices.
1

Strategies to achieve these objectives
Accounting is a process which record financial transaction of business that helps in taking
important decisions relation to business. Unilever Plc is an organisation which is conducting
accounting in their business. Organisation is conducting accounting for various reason which
helps in evaluates performance of organisation to analyse whether organisation is performing
well or not in terms of performance of previous year. It also helps business in preparing budget
to control over their cost and increase profit of operation of business (Clermont and Dirksen,
2016). Accounting play various important role in business of Unilever Plc and work as
performance indicator. There are various challenges faced by Unilever Plc while conducting
accounting function in their enterprise. To overcome these challenges, company need to prepare
certain strategies as well as policies to attain desired result from business. These strategies
include adoption of standard measure to conduct their accounting practice which create
competition in market. It also helps to avoid resistance from government. Following all norms
and adoption of fair practices helps organisation to make their stakeholders satisfied and these
stakeholders include shareholders, employees, supplier and customers. These accounting provide
information to their stakeholder which is easily understand by them. Unilever Plc is not hiding
information from their business stakeholders and maintain trust with them.
Time Scale
Gantt cart is a type of chart which helps to schedule every task of business and is easy to
understand for any member of business.
Literature review
According to Abdusalomova (2017), Accounting refers to process which include measurement
and communication of information of business. This accounting activities assist managers of
Unilever Plc to measure result of conducting economic activity in market. It provides this
information related to organisation to various users which include shareholders, investors,
creditors, regulatory bodies as well as management of enterprise. The person who prepares
accounting information in reports are usually called accountant. There are various types of
accounting used by business to conduct their operation in market including financial accounting,
managerial accounting, cost accounting and many more. These accounting are used for various
function of business as financial accounting assist managers to prepare financial reports
including financial statements which is important for external user of business like investors,
2