Finance for Business Assignment

Added on - 28 May 2020

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Running head: FINANCE FOR BUSINESSFinance for BusinessName of the universityName of the studentAuthors note
1FINANCE FOR BUSINESSAnswer to question 1:Spreadsheet is one of the key tools in the operational and financial reporting process forany business. It is regarded as an integral part of decision making and information framework forcompanies. Use of applications of spreadsheets has become sophisticated. The application ofspreadsheet is incorporated in the innumerable number of business functions such as trackingprocess of workflow, estimating accounting and key financial reporting. Organization is able tocritical decisions by the benefits offered by spreadsheets. Spreadsheet management comes withthe risk intelligent approach that helps in substantial mitigation of application and systematicflaws. Organization can have direct impact on compliance and financial reporting by theinstallation of audible and effective controls. Every business day accounting of organizations arerevolutionized by electronic spreadsheets. Spreadsheets help in supporting simple functions suchas tracking, logging and totaling information (Lopez-Valeiras et al., 2015). On other hand,spreadsheets with enhanced formulas help in supporting complex business functions such asvaluation models as it comes with more advanced features.Accounting business and accountantstogether as a whole receives many benefits from spreadsheet such as better linking of data, easytracking of payment and they provide useful format for the formatting purpose. Most oforganizations use spreadsheet as a tool for planning business and budgeting purpose. Spreadsheetis developed as a tool for aiding productivity (Laudon & Laudon, 2016).Disadvantages of spreadsheets are associated with its complexities and its associatedissues and potential risks. It is certainly possible that spreadsheets will make some errors such aslogic errors, input errors and some other errors. One of the greatest risk posed by spreadsheetsare modifying the files, ostensible simplicity and the ability to share. When there is lack ofcontrol over spreadsheets, then it has the likelihood of becoming contributing factor in making
2FINANCE FOR BUSINESSfinancial reporting errors. An accurate representation of real scenario of business might not beprovided by the spreadsheet applications. Using spreadsheet as models requires installation ofexpensive software. Sometimes, the control environment of organization does not supportcomplex spreadsheets that are employed by organization. Most of organizations have staffs usingspreadsheets that are not trained in system development life cycles, structuring programmes,testing and version controls (Turner & Weickgenannt, 2016).Budgeting approach of organization using spreadsheet comes with several issues such aserror prone and inflexibility, consolidation and linking of spreadsheets comes with variousdifficulties. In a multi user environment, spreadsheet is regarded as single user tool. Massiveduplication of efforts and lack of consistency in structure give rise to risks concerning dataintegrity loss. Furthermore, spreadsheet lacks functionality and it is required by users to haveready access for drawing information and inputting data. Calculations using spreadsheets arecomplex and hey are prone to mistakes. It becomes difficult for organization to carry out analysissuch as what ifs across cross-centers. System based on spreadsheet is regarded as notorious andthey are easy to use. For carrying out simple and small operations, budgeting system based onspreadsheet can be considered as perfectly adequate. As the spreadsheets are used for handlingcomplex and larger operations, drawbacks of using such tool will become apparent (Turner &Weickgenannt, 2016).Calculation of Gross Profit:-ParticularsAmountSales Revenue$64200Less: Cost of Goods Sold$3200
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