Importance of Accounting in Business- Doc

How business operates

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1[Power point presentation].................................................................................................1
Different types of the organisation which comes under the public as well as private sector.....1
Types of the organisation structure in the businesses.................................................................1
Impact of the business on local, national and regional level of economic environment.............1
TASK 2............................................................................................................................................1
Importance of accounting in the business...................................................................................1
Several functions carried out by the HR department..................................................................2
Features of the employment legislation......................................................................................2
TASK 3............................................................................................................................................3
Interpretation of the profit and loss account...............................................................................3
Role of the leader in the business ..............................................................................................4
stages of team development........................................................................................................4
Three motivation theories...........................................................................................................5
Different types of leadership styles.............................................................................................5
Impact of the customer service on the business.........................................................................6
Benefits of the customer profiling...............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business is operating by performing all the activities which are necessary to perform to
run smoothly. In these Marks and Spencer is dealing with the retail's sector. This report will
discuss importance of accounting for success of the business. It will also study several functions
which are performed by the Human resource department. There will be discussion of the features
of the employment legislation. It will explain about profit and loss account. This report will
illustrate the role of the leadership and its impact on business unit.
TASK 1[Power point presentation]
Different types of the organisation which comes under the public as well as private sector
covered under ppt
Types of the organisation structure in the businesses
covered under ppt
Impact of the business on local, national and regional level of economic environment
covered under ppt
TASK 2
Importance of accounting in the business
significance of the accounting in the business are :
 Report profit - in business importance of accounting to determine profit of the year. This
is one of the motives of entity to earn profit. Accounting will tell about the financial
position of the company. For finding out the financial position statements which are
needed to prepare are income statement, balance sheet etc. from all these documents
turnover of the company is determined. It will help in knowing the total spending are
done in financial year and profits generate (Castrogiovanni and et.al.,2016).
 Recording of the transactions systematically- through accounting only organisation is
able to record its transactions in system. If transactions are recorded in that case
whenever people need information about past it will automatically find out by the entity.
 Finding performance of the business - it supports in finding out the actual position of
business. This is one of the way through which owner, investors, shareholders review it
positions. It is one of the important information which shows that company is running its
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business in effective way. In marks and Spencer is doing its business with the usage of
proper accounting.
Several functions carried out by the HR department
 Human resource department has main work of appointing the new talent in entity.
this department is responsible for many functions which are :
 Hiring of people - in this section people is appointing new employees but this is thing is
taken care of that people are hired according to that job profile. For recruiting employees
they have to pass many rounds so that their skills are analysed (Németh and Németh ,
2017). After that workers are given knowledge about the policies and procedures which
are set by the organisation.
 Training and development- after worker get selected firstly training is given to
employees so that they can work according to the prescribed manner which is prevailing
in the entity. In training session they are taught about the reduction of the waste material
while working. So that all the employees learnt about the working.
 Solving the problems of the employee- in this HR. department has a duty to listen to the
problems of the employees and try to solve them. This will make more satisfied
employees in the organisation. Resultant will be retention and loyalty of worker will
increase. In these Marks and Spencer of HR department is doing its business by
following all the functions.
Features of the employment legislation
Employment legislation are made to protect the rights of the employee. There are many more
features of this legislation which are :
 Minimum wages - in this no discrimination in the entity on basis of gender. This will
cover that employees are given wages on their performance (Miklian , 2016). This act is
preventing from the inequality which are prevailing earlier. This will help them from the
employment. For this government has introduced this Minimum Wages Act in this.
 Fixed labour hours - government has set certain hours for labours for working. Eight
hours are set for this and no company can perform more work from the workers. It can
become more tired to workers. This is one of the way to protect employees because by
doing more work chances of accidents are increased.
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 Facility of canteen - in organisation where people are working in maximum number it is
necessary to have canteen in the organisation so that people cannot remain hungry. For
doing work energy requirement is there which is fulfilled by this. This act passed by the
government which is helping the entity to maximise potential of employees.
 Health and safety - in this for employees government has introduced this law to take
care of the employees who are working in the organisation.
TASK 3
Interpretation of the profit and loss account
Particulars Amount
Net sale revenue 25000
Less: COGS -3000
Total Gross profit 22000
Operating expenses
Advertisements 400
Rent 150
Telephone 250
Salaries and wages to
staff
500
Total Operating
Expenses
1300
Total Operating
Income
20700
Less: Interest on loan
@5%
1035
Less: Corporate tax
30%
6210
Total Net profit 13455
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In this profit and loss account gross profit is 22000. In this operating expenses is 1300. in
this business has earned the net profit of 13455. Total operating income of the business is
20700.
Role of the leader in the business
Leader is a person who guides and shows the path to employees. In enterprise leader is
much needed. He is one who does all his activities to influence employees. He is always
motivated workers. In organisation employees feel that he is one who resolves issues which are
face by him. He is medium from which senior authority and workers. He always tries to solve
problems of the employees and show them the correct path. If any of employee feel that working
environment is not good in that case leader is one who build the morale of labour
(Castrogiovanni and et.al.,2016). He is available for solving any type of issue which supports in
achieving the objectives of company. He is one who motivates them and make their personal
goal link with company objectives. He is one who try to encourage employees and his impact is
good for sake of the organisation. He is one who cheers in stressful situation which help them in
making relief from tension for a while and helps in making the employees full of hopes for the
job. If labour has any type of difficulty in doing work in that case leader who take them out of
that situation. This is helpful in order to achieve the goals of the organisation.
Stages of team development
Team is that part of the organisation which helps in obtaining the goals. This is one of the
way through people can learn many things. For making of team is very difficult task. People are
from different backgrounds and culture so handling them is bit complex. There are five stages of
team development :
 Forming stage - this is first stage in these people are welcomed in the team. In this
observe of the members like their skills, roles in the entity, project goals and many more.
In this focus on the people not on the work.
 Storming stage - in this stage work load of people are more which creates the chances
of conflicts between them. Senior members of the team concentrate on the resolving the
issues which helps in growth of organisation.
 Norming stage- in this stage team members start noticing about the team and
encourages them on their good work.
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 Performing stage- in this stage members of ream are trained enough and don't need
supervision all knew their roles about the job and helps in achieving the goals of the
objectives (Bennett , 2017).
 Adjourning stage- in this stage now the project is over and team members has gone to
their place and other members of the team are missing them.
Three motivation theories
in this there are three motivation theories which are :
Mes low- in this theory people first want to fulfil their basic needs and after that self
esteem, self actualisation, safety and belongingness. This was developed by the Abraham Ma
slow in (1943) in the 1940 and 1950. In these persons basic needs must be fulfilled and then any
other.
Alder fer- in this only three needs are discussed:existence, relatedness and growth. This
author has agreed to mas low that people needs whose requirements are not satisfied can work in
far better way than other. This focus on the needs not on the hierarchy.
Herzberg's- in this some factors are there due to which employees satisfied with job. In
this focus on the salary, working conditions, work environment and security.
Different types of leadership styles
There are several types of the leadership styles which are :
Autocratic- in this type of leadership rules are very strict. In these people are doing
business without taking suggestions of any. Employees who are working under them only has to
follow the orders given by them.
Democratic- in this all the decision are taken with consulting employees and after that
decision are taken. In these people has to do work in flexible environment (Barefoot and et.al.,
2018).
Transformational - in this style focus on the encouraging change in the entity, groups,
oneself and others.
TASK 5[PowerPoint Presentation]
Impact of the customer service on the business
covered under ppt
Benefits of the customer profiling
covered under ppt
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CONCLUSION
From this report it is concluded that topics cover under this different types of leadership
styles in the business. It has also discussed the developing of team in enterprise. This has also
discussed three motivation theories which can be implemented on entity. In this report role of
leader is discussed.
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REFERENCES
Books and Journals
Barefoot, K and et.al., 2018. Defining and Measuring the Digital Economy. Working
Paper. Washington DC: Bureau of Economic Analysis.
Bennett, T., 2017. Marketing Strategies: How Small Restaurant Businesses use Social
Media.
Castrogiovanni, G and et.al.,2016. Where to acquire knowledge: Adapting knowledge
management to financial institutions. Journal of Business Research. 69(5).pp.1812-1816.
Mamic, I., 2017. Implementing Codes of Conduct: How Businesses Manage Social
Performance in Global Supply Chains. Routledge.
Miklian, J., 2016. Mapping business-peace interactions: Five assertions for how businesses
create peace.
Németh, K. and Németh, S., 2017. The Application and Role of Management Accounting
and Controlling Methods in Family Businesses–Experiences of an Empirical Survey.
InManagement Challenges in a Network Economy: Proceedings of the MakeLearn and TIIM
International Conference 2017(pp. 259-269). ToKnowPress.
Parsons, R., Lacey, J. and Moffat, K., 2014. Maintaining legitimacy of a contested practice:
How the minerals industry understands its ‘social licence to operate’. Resources Policy.41.
pp.83-90.
Turner, L., 2015. US stem cell clinics, patient safety, and the FDA. Trends in molecular
medicine. 21(5).pp.271-273.
Vaiman, V. and Brewster, C., 2015. How far do cultural differences explain the differences
between nations? Implications for HRM. The International Journal of Human Resource
Management. 26(2). pp.151-164.
Verger, A and et.al., 2016. The emergence and structuring of the global education industry:
Towards an analytical framework. In World Yearbook of Education 2016 (pp. 23-44). Routledge.
Waddock, S., 2017. The difference makers: How social and institutional entrepreneurs
created the corporate responsibility movement. Routledge.
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Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Online
How Business Operate. 2018. [Online] Available
through:<http://www.businessdictionary.com/definition/business-operation.html>.
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