Importance of Accounting in the Business Organization

Added on - Dec 2020

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HOW BUSINESSOPERATES
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Covered in PPT.......................................................................................................................3TASK 2............................................................................................................................................32.1 Importance of accounting for business success................................................................3TASK 3............................................................................................................................................43.1 Profit and loss accounts....................................................................................................4TASK 4............................................................................................................................................54.1 Stages of team development............................................................................................54.2 Self goal and other roles within a team...........................................................................74.3 Motivation theories...........................................................................................................94.4 Different types of leadership style..................................................................................10TASK 5..........................................................................................................................................11Covered in PPT.....................................................................................................................11TASK 6..........................................................................................................................................116.1 Impact of customer service on business success............................................................116.2 Benefits of customer profiling to a business..................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................12
INTRODUCTIONBusinesses runs with the help of effective key elements such as, progressing businessplans, company vision, mission, objectives and goals. All these factors associatively workstogether to achieve business goals effectively (Ward, 2016). There are different types of businesssectors and they have various functions to follow in order to achieve their target remarkably, it isessential for them to adopt effective measures, theories, concepts and strategies to perform attheir level best. It is very important for company management to build a step-by-step proceduresto guide all their subordinates and employees.Present study has been conducted on, How Business Operates. Different types oforganisation which are mainly found in public and private sector and their structures are coveredin this assignment. Furthermore, PESTLE analyses, importance of accounting and key featuresof employment legislation are included in this project. Lastly, stages of team development withthe help of different theories, leadership styles and impact or benefit of customer services onbusiness are also mentioned in this project. This project has been based on following factorsthrough which a business can operate their functions smoothly without getting involved in anylegal matters.TASK 1Covered in PPTTASK 22.1 Importance of accounting for business successAccounting is most important aspect for any business success. It is extremely crucial forrecording financial transactions, profit and loss, credits and debts (Reim and Örtqvist, 2015).With help of this any business organisation can evaluate their past errors and take their businesstowards utmost growth. It is essential for company managers to understanding basic principles ofaccounting which benefits them to grow their business and generate efficient profit. Accountingnot only helps big business firms but it also provide lot more advantages to small business unitsand entrepreneur in order to grow their business. Company can identify their strength andweakness in effective manner and make necessary requirements related to accounting methodsand concept. Organisation can effectively maintain their balance sheet, income statement andcash flow statement and make right decisions by evaluating them and enhance their company
wealth and profit. It is said that accounting is language of business. So it is very essential forbusiness organisation to learn each and every concept of accounting as it will magnificently taketheir business into growth path.TASK 33.1 Profit and loss accountsRevenue2017-18 (£)2016-17 (£)Total revenue1069820010622000Cost of revenue67456006629300Gross profit39526003992700Selling general andadministrative33247003348600Non-recurring--Others-49500-63200Total operatingexpenses100208009914700Operating incomeor loss677400707300Earnings beforeinterest and taxes677400707300Interest expense-95400-100200Income before tax66800176400Income tax expense3770060700Minority interest-2500-5900Net income fromcontinuing ops29100115700As per the above mentioned Profit and loss statements of Marks and Spencer of twoconsecutive years 2016-17 and 2017-18,. it has been evaluated that, it is global leader in Retailsector in UK and have several outlets in Europe. There is a slight decrease in their gross profit asit decrease from 3992700 to 3952600£. Company by providing effective products and services totheir consumer generates remarkable results in total operating expense as it raised form 9914700to 10020800 £. Total amount of company income before tax is decreased from 176400 to
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