Managing Financial Resources Assignment: Stortford Yachts Ltd
Added on -2020-06-06
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MANAGING FINANCIALRESOURCES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1a) Difference between financial accounts and management accounts...................................1b) The purpose of financial statements in a profit and non- profit organizations.................2c) Evaluation of stake holders and their different information needs. ..................................4TASK 2............................................................................................................................................5a). Stortford Yachts Ltd financial performance for two years................................................5b) Preparation of report analyzing profitability and liquidity................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONTo identify the requirements of the firm the role of a financial analyst in determining thecurrent state of the business which is needed to be improved and managed by strategic changesin the operations. The report incorporates information of Stortford Yachts Ltd. last two yearprofits and balance sheet details. Paul Marriot director of company needs to evaluate the pastperformance of the company so as to determine the downturn by introducing tighter managementcontrol and in-depth checking of standards. Moreover, the report will be useful in presenting theappropriate suggestion to have the increment in the operational performance of entity.TASK 1a) Difference between financial accounts and management accounts.Accounting is a process of maintaining records and classifying them in money terms soas interpret the position of the organization (Bryce and Herrington, 2017).. The two type ofaccounting mainly financial and management accounts play a crucial role in determining thevalue of business. Financial Accounts:These are the accounts which were made for external users such as investors,governmental bodies, suppliers, banks and employees in organization (Bryce and Herrington,2017).. It is helpful process which aids in decision making as well as interpreting profitabilityand liquidity of the organization (Omeje, 2017). It incorporates various statements such as income statement, determining cash flow andbalance sheet prepared at the end of the year. Management Accounts:Another accounting statement is known as management accounting which involvesidentifying and recording of daily activities of the organization. This technique helps is makingorganizational decisions which affect daily working of business units. It helps in managing the funds for the operations in better cost control that will makeeffective execution over work and workforce. It includes preparation of budget statement whichwill help in taking cost related decisions for the organization. Financial and Management AccountingBasisManagementFinancial1
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