ACC 101 : Introduction To Financial Accounting | KING’S OWN INSTITUTE
Added on 2019-10-30
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INTRODUCTIONTO FINANCIALACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................3Critical analysis of trends and issues in financial accounting.....................................................3Solving standard accounting problems arising in the modern accounting environment.............7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONFinancial accounting is basically a specialized branch of accounting which works forkeeping a track over financial transaction of a company. With the use of standardized guidelines,recording and summarizing of financial transaction is done, and then presentation of financialreports such as income statement and balance sheet is done (Deegan, 2013). Moreover, financialaccounting plays an essential role in keeping a track over all the financial transaction occurs inan organization. This helps the organization in identifying the revenues and expenses and howmuch profit or loss company is experiencing. Further, this report mainly focuses upon the role offinancial accounting in World Vision Company. Furthermore, this report describes the trends andissues in financial accounting and also it describes the solutions for standard accountingproblems which arise in the modern accounting environment. Moreover, the report analysesthese trends and issues in a critical way (Choi and Meek, 2011). TASKCritical analysis of trends and issues in financial accountingAs it is known that financial accounting in a firm is used for recording, summarizing andmaintaining financial transaction carried out in a company throughout the year (Weil, Schipperand Francis, 2013). By using this technique a firm can find out the expenses it has done and howmuch income it has gained. By presenting an income statement and balance sheet anorganization could come to know about its financial position. However, with change in time,new trends in this accounting got added and the way of handling this accounting has changedcompletely. Thus, latest trends have been added to this accounting according to the modernaccounting environment, whereas, this change has also brought issues along with it. Thus, thissection defines the analysis of trends and issues in financial accounting:TrendsThere are multiple trends came into accounting which has changed its face completelyand has changed the way of doing business. In the very beginning, accounting was donemanually. Then accounting was done half on computers and half manually. Later, the trend came
of doing accounting work entirely using computers and then internet got introduced which gavenew way to accounting as well. In a similar manner, latest trend have been introduced in themarket which must be adopted by the companies in order to carry out the financial work in amore effective manner (Horngren and et.al., 2012). However, it must be analyzed that whetherthe latest trend is effective for the company or not. For that aspect, critical analyses of the latesttrends have been done as follows:1.Cloud Accounting: As it is known that cloud computing has become the basic necessityof the company for carrying out any operations ranging from data storage to connectivityand even for reducing business costs. Similarly, accounting is also a part of company’soperation and thus, it is also lined up for getting into cloud. Therefore, a new trend hasbeen added in accounting is cloud accounting (Beatty and Liao, 2014). This isincreasingly used for working and enabling easy access to world-class infrastructurewithout spending huge amount on it. However, heavy cost is involved in providingtraining to the executives. As it required high end professionals who can carry out thisaccounting work in an efficient manner. Moreover, this is the biggest trend which isgoing around and every company has to follow this trend in order to stay ahead in themarket. Moreover, this is user-friendly software which can be cited as reason for itssurging popularity. 2.Automation: Automation in accounting is a trend which can save a great amount of timeto businesses when it comes to accounting. This trend is slowly eliminating the need ofmanual data entry and helps in saving a large amount of time in production. The majorrole of automation is to reduce the burden of manual bookkeeping and utilize that time indealing with real time accosting issues (Weygandt and et.al., 2010). However, such kindof trends cut offs the job which is not appropriate. Moreover, automation would require aperson who would be observing it all the time and this would add extra cost to thecompany. 3.Social Media Strategy: These days social media is widely used for creating a presence ofthe business online. It is also used to reach a large number of people around the world.Similarly, social media strategy is also used for accounting and is gaining popularity thisyear and business owners are becoming active on social media. This trend in accountingis very beneficial for accounting firms and also for clients who can gather information
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