Data Handling and Business Intelligence Assessment 2 Coursework Written Report

This report covers the role of accounting function, functions in accounting with relation to ethical and regulatory constraints, financial statements and records, financial ratios, comparison of company performance, and cash budget development.

Data Handling and
Business Intelligence
Assessment 2
Coursework Written
Report

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
P1. Explain the role of accounting function...........................................................................3
P2. Assess the functions in accounting which are expected in a company with relation to the
ethical and regulatory constraints...........................................................................................5
P3. Financial statements and records for meeting accounting standards and principles........6
P4. Calculation of financial ratios with the help of financial accounts..................................7
P5. Carry out comparison related to performance of a company with the help of financial
ratios.......................................................................................................................................8
P6. Develop a cash budget from given information for a company with the help of
spreadsheet.............................................................................................................................9
P7. Discuss the advantages and drawbacks of budgets, budgetary planning and control of a
company.................................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Executive bookkeeping may be described as the most common way of recording,
summarizing, and investigating monetary transactions for the benefit of an organization. The
financial summary is described as a sign that justifies the current position of the organization. It
helps to examine and compare monetary figures and past information to understand the
performance of the organization. Memorable business for every transaction and keeping and
keeping up with records becomes challenging, which subsequently facilitates progress in
bookkeeping. It helps to keep up with the currency records for the current currency year to find
out the benefits. This mission report will cover the reasons for bookkeeping and bookkeeping
capabilities within the association. It will also incorporate the preparation of the preliminary
balanced fiscal summary. What's more, it calculates the currency ratio while censoring. Finally, a
money spending plan will be prepared and a brief discussion of the advantages and barriers to
financial planning and the association's spending planning arrangements and controls will be
made (Abiodun and et.al., 2021).
TASK
P1. Explain the role of accounting function.
A strong choice is the foundation for the development of the association. This is a business
method by which owners can investigate the productivity of an organization by evaluating
monetary figures. It plays an important role in the supportability of the business. Board
bookkeeping standards are useful in setting goals and developing compelling key game plans to
achieve those goals. It takes full advantage of their ongoing plans while giving expectations that
it can play a role in the general execution of the organization. Every business association has a
way of giving consumer loyalty, and providing this management guide helps achieve those goals.
It helps to investigate organizational performance that should be seen in transaction, profit and
misfortune records and accounting reports. The ability to know and understand the ability to do it
easily is crucial. Here are the motivations behind currency bookkeeping (Altenried, 2020).
 Make accessible records for inspection: In anticipation of having legal monetary records
when reviewing reviews, companies can identify bookkeeping inconsistencies to make
restorative arrangements.

 Update of accounts: Bookkeeping competencies can be used to investigate weaknesses
and strengths of an organisation and to agree on weaknesses and enhance strengths by
providing workable procedures and arrangements. It helps keep up with the cutting edge
monetary records as this can be used to determine an organization's business, stock and
net income. Currency conversion requests are sequentially tied to the organization's daily
wages and costs.
 Monitoring financial transactions: It helps to observe every exchange related to
account holder instalments and instalments to banks or providers. Screening exchanges is
critical and helps management estimate and make fundamental choices that will drive the
organization toward its goals. Organizations can deal with non-essential consumption that
reduces the benefits of the organization. Every business needs to increase productivity
while limiting costs (Anandarajan, Hill and Nolan, 2019).
 Facilitates in bill payment: It is critical to actually look at each of the organization's
tenders to investigate the authenticity of bills due and the settlement of tenders.
Organizations record communications, which naturally go into the organization's record
book. It enables troughs to spot costs associated with revenue decay.
 Payment of salaries: The organization is using a bookkeeping framework to calculate
the financial position of its representatives. If the organization gets more benefits, it may
distribute the reward to its representatives so that they can get a push and work at their
maximum capacity. This action is done by the organization on a monthly basis.
 Keeping digital records: As innovation is being progressively reformed, organizations
must keep their records in an advanced structure as it allows their information to be
recovered in a simple manner (Lee, 2019). The framework can hold millions of
information records on its cloud space, which can be used to obtain information.
Organizations are opting for this innovation because it is much less expensive than
traditional methods. The customary tactics of executive bookkeeping come with huge
expenses and cumbersome interactions, but innovations allow information to remain on
the frame and be restored from anywhere at any time.

P2. Assess the functions in accounting which are expected in a company with relation to the
ethical and regulatory constraints.
Morality may be described as criteria such as legitimacy, respectability, and moral
character. These standards contribute to the development of a set of rules set by the state
administration. These standards are unique across countries, but the basics are the same across all
countries. Every organization needs to follow a different code of ethics. There are some ethical
arrangements that are important to the bookkeeping department that must be followed, and the
administration may impose penalties in the event of any treasonous behaviour. This is a major
step forward by public authorities to limit atrocities. Ethical Help Society set up budget reports in
an accurate manner (Chen and et.al., 2018).
Every organization should recruit talented bookkeepers with significant experience in
planning bookkeeping interpretations in an ethical manner. They are the rules that guide
organizations to keep up with their financial reporting in an ethical manner. Their bookkeepers
should regularly sift through bookkeeping announcements and ensure that no untrustworthy
activity is taking place in the organization. Different organisations include exploitative
bookkeeping, for example, they overestimate the cost of resources and enter erroneous data to
defraud financial backers. Below are some ethics and guidelines related questions to play an
organization's bookkeeping.
 Manipulating the figures pressure: Things are not going well due to the coronavirus, with
many organizations suffering misfortune from the pandemic. In this way, managing the
bookkeeping group to roll out important improvements in its currency reporting puts
pressure on the executive branch. The organization needs to revise the financial reporting
numbers that don't reflect the unfortunate and can attract possible financial backers.
 Conflict of Interest: Every worker has their own views and considerations, and their
differences spark struggles between them. They can debate and make their own point of
view on certain issues based on their insight and abilities. Full agreement among
employees is required. This could lead to the destruction of the culture (Kounoudes and
Kapitsaki, 2020).
 Access to confidential and information issue: Another ethical and administrative issue is
that organizations are looking for critical data they need to manage categorization. This
issue is a major hurdle for organizations because secret data can be misused by anyone
and can be used for personal gain. Therefore, an organization should protect the data so it
can avoid gambling money (Cheng and et.al., 2021).

 Company reputation: It is essential to complete the tasks created by the public authorities
in an organized and ethical manner. All statuses are vested in the funding office and have
the responsibility to attract funding supporters. The organization can welcome potential
financial backers by providing accurate financial summaries. This may help the
organization to elevate the status of the organization, and it can promote altruism.
 Penalties: Organizations can be penalized for providing incorrect data and control budget
summaries. Therefore, organizations need to provide correct information and accurate
numbers to prevent penalties.
 Misappropriation of assets: Different organizations need to build organizational value by
overestimating their own resources and misleading the organization's external customers.
Under this interaction, monetary regulators increase or decrease resource costs based on
organizational strengths (Irannezhad, Prato and Hickman, 2020).
P3. Financial statements and records for meeting accounting standards and principles.
Income Statement of Alpha plc
Particulars Amount
Sales 40000
Less: Opening Inventory 3200
Less: Purchases 15800
Add: Closing Inventory 2800
Gross Profit 18800
Rent & Rates 100
Energy 60
Wages & Salaries 340
Bad debt 80
Provision for doubtful debts 50
Net Profit 18170
Balance Sheet of Alpha plc
Liabilities Amount Assets Amount
Capital 180000 Premises 160000
Less: Drawings -12000 Equipment 150000
Shareholder's Capital 168000 Trade Receivables 45000

Net Profit 183000 Inventory 28000
Trade Payables 46000 Cash at Bank 14000
397000 397000
P4. Calculation of financial ratios with the help of financial accounts.
Current ratio –This proportion is utilized to compute the momentary commitment of the
organization in monetary year. It has been expressed that 2:1 is the positive proportion.
Current Ratio: Current assets / Current Liabilities
= Stock + debtor + BR + Cash at bank / creditors + bills payables
= 200,000 + 100,000 + 10,000 + 40,000 / 100,000 + 50,000
= 350,000 / 150,000
Current ratio = 2.3: 1
Interpretation – The ongoing proportion of xyz restricted is 2.3:1 which mirrors that organization
is working proficiently and have adequate liquidity to pay its transient commitments.
Debt equity ratio – This proportion is utilized to break down the organization's effectiveness to
meet the forthcoming monetary gamble. In basic words, one might say that this proportion shows
the capital design of the organization to meet the unexpected possibilities.
Debt equity ratio: Debt / equity
= Debenture / Share Capital
=500000/220000
=2.7:1
Interpretation – The obligation value proportion of xyz restricted is extremely high that shows
the organization is wasteful in gathering its future vulnerabilities the organization is having more
obligation than its own capital.
Proprietary ratio – This proportion characterizes the stake of its partners. In the event that an
organization is having high restrictive proportion, it is solid in its monetary position.
Proprietary Ratio: Proprietors Fund or Shareholders Fund / Total Assets

= (Share Capital + Reserve & Surplus + profit & loss / Total Assets) * 100
=(2000+4000+40000/84000)*100
=54.76%
The organization's position is sufficient as its restrictive proportion is 54.76% and can help
organization in drawing in financial backers.
Quick ratio – This proportion helps in estimating the transient liquidity of a firm. It is very like
current proportion yet the main key contrast is that it does exclude stock. The ideal figure of
speedy proportion is 1:1.
Quick Ratio: Quick assets / Current liability
= Debtor + BR + Cash at bank / creditors +BP
=15000+20000+35000/50000+20000
=Quick ratio – 1:1.
Interpretation - The speedy proportion of xyz restricted in 1:1 that show that the
organization is having ideal condition to meet its ongoing liabilities.
P5. Carry out comparison related to performance of a company with the help of financial ratios.
The organization's general presentation is effective because it has enough assets to show
that it can pay for instantaneous commitments made in the current currency year. Proportion is a
device and method to help break down and figure out what an organization is doing. It helps
organizations predict unexpected vulnerabilities that could adversely affect their interests. An
organization's ongoing resources exceed its ongoing liabilities because it means that the
organization has sufficient liquidity that it can use to pay temporary debts. The organization has
enough balance to settle its loan boss (Choi and et.al., 2019). The organization's quick ratio is
also good, which means it has plenty of fluidity. Ongoing working capital is the same as
inventory, which means that the organization has put the entire working capital into its inventory.
An unusually high debt ratio θ indicates that the organization relies more on debt than its own
capital. Companies should raise funds in order to deal with interests that undermine the interests
of the organization. Exclusivity is not a big deal because it gives greater money to partners and
reduces the impact of choice. The organization can also go bankrupt if it takes on high

obligations. According to investors, it is not very good for organizations to use their capabilities
by taking on obligations.
P6. Develop a cash budget from given information for a company with the help of spreadsheet.
Particulars January February March April May June July August
Receipts
Opening Balance 8000 10400 -39600 -79900 -134400 -167400 -161000 -208400
Sales 60000 40000 45000 40000 50000 60000 40000 45000
Issue of Shares 2000 2000
Issue of Debentures
Total (A) 68000 50400 7400 -39900 -84400 -105400 -121000 -163400
Less: Payments
Purchases 48000 80000 81000 90000 75000 48000 80000 81000
Selling & Administration Expenses 2800 3400 1800 1000 2000 2400 2500 2400
Marketing Expenses 5000 4200 3000 2500 4000 2800 2400 4200
Property / Rental Expenses 1800 2400 1500 1000 2000 2400 2500 2400
Total (B) 57600 90000 87300 94500 83000 55600 87400 90000
Closing Cash 10400 -39600 -79900 -134400 -167400 -161000 -208400 -253400
P7. Discuss the advantages and drawbacks of budgets, budgetary planning and control of a
company
Budget is an evaluation of revenue and expenses over a period of time. Predominantly it is
a financial plan utilized by businesses, government and individuals. Budget is that
microeconomic term that depicts the exchange of one product for another. A personal budget is
very useful in managing personal finances in the short and long term. Business budgets are
essential for high efficiency. Budget planning is the process of creating a budget and using it to
control business operations (Colli and et.al., 2019). Planning and Budgeting is an analysis
program that helps you set goals from the ground up and produce a low-level budget, which is
fundamental to the activities of your organization. It helps managers to evaluate alternative
business processes and set financial goals, and enables the organization to work more efficiently
and effectively through the budget process — reviewing costs and revenue estimates; changing
the first and last days; and transformation goals. Once the budget model has been finalized, it is

then used to control the operation of the business. A person can only approve expenses if there is
a budget left to do so.
Benefits of Budgeting
 The process of developing a budget pushes management to think beyond the short-term,
day-to-day operations of the organization. This is the primary purpose of budgeting; even
if management does not attain its predetermined objectives, it is thinking about the
company's economic and competitive situation as well as how to improve it.
 The budgeting process compels management to contemplate why the business stands, as
well as its fundamental precepts about the business environment. A frequent re-
evaluation of these factors may yield different assumptions, which may influence how
management gets the nomination the firm (Currie and et.al., 2019).
 The quantity of cash that will be spun off or needed to fund operations should be
determined by a properly established budget. The treasurer uses this data to forecast the
company's financial requirements. This data may also be utilized for investment planning,
allowing the treasurer to choose whether to invest excess funds in short- or longer
storage.
 The amount of cash affords to invest in fixed assets and working capital is limited, and
the budgeting process drives management to choose which assets are most worth
investing in. In some scenarios, management may opt to sell certain assets in order to
raise funds for the procurement of other assets.
Limitations of Budgeting
 Supervisors might become concerned with building and revising budgets, losing sight of
the absolutely vital concerns of gaining subscribers.
 Budgets can limit decision-making freedom (Ghasemaghaei, 2020).
 Budgets are almost as effective as the data flowing into their formulation. Budgets can
rapidly become unrealistic due to inaccurate or irrational assumptions.
 Budgeting is a time consuming process – in large businesses, whole departments are
sometimes dedicated to budget setting and control.
 Budgets might lead to rash short-term judgments in order to stay within the budget rather
than the best long-term option that surpasses it.
 As conditions change, budgets must be adjusted.

 When goals are established too low, budgetary slack occurs (Hacker, 2018).

CONCLUSION
As can be inferred from the above report, the definition of spending plans plays an important
role in describing the achievements of any business. By determining future benefits based on
past information, it helps reduce expenses and amplify the benefits of the organization. In this
way, it is critical for organizations to select gifted and educated representatives who can help
predict future interests. Every organization must keep up with its monetary records when it is
checked, and records should not be controlled to attract potential financial backers. An
organization should abide by every ethical system and rule that protects it from enforced
punishment. By developing the right spending plan, organizations can increase wages while
reducing costs. This enables optimal use of organizational assets to achieve optimal results.

REFERENCES
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