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Managing Financial Resources : Report

   

Added on  2020-07-23

11 Pages2539 Words78 Views
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MANAGING FINANCIALRESOURCES
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Difference between financial and management accounting........................................................1Financial statements purpose in profit and non-profit firm........................................................2Various stakeholder group and determining different requirements of information..................3TASK 2............................................................................................................................................5Financial health of Stortford Yachts Ltd.....................................................................................5Report..........................................................................................................................................7RECOMMENDATIONS.................................................................................................................8CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
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INTRODUCTIONFinancial and management accounting reports are necessary for the firm in order tocontrol and manage various operational activities that will help to increase profitability. Thereport will cover difference between management and financial accounting. Financial reportspurpose, requirements and management of stakeholders is also covered in this report. A briefdiscussion on Strotford Yachts Ltd. Will be explained in this report associated with financialposition of the business. Cost management techniques will be discussed in this report that willhelp to develop and improve operational activities effectiveness and financial health of business. TASK 1Difference between financial and management accountingFinancial accounting: Financial accounting refers to make financial statements that helps toprovide financial information and data to take decisions appropriately and effectively. Financialstatements are made for stakeholder, suppliers, creditors and consumers. This will help takefinancial decisions in order to increase business operational activities. Financial accounting isbased on principles and assumptions such as consistency, realisation, materiality and matching aswell as costs (Ammary, 2015). These statements are made at the end of the financial year inorder to determine performance and profitability.Management accounting: Management accounting is also known as managerial accounting thathelps to provide information regarding business cost and financial activities. This will helpStrotford Yachts Ltd with effective management of policies and strategies in order to forecastdaily operational activities. Management accounting takes both quantitative and qualitativeapproach. This will help to convert information into useful data which helps to take decisionsregarding financial goals and budget management.BASISMANAGEMENT ACCOUNTINGFINANCIAL ACCOUNTINGMeaningManagement accounting reports willhelp to make strategies and policieswhich will be done by information.Financial accounting is mainly focusedon preparing financial stat forStrotford Yachts Ltd to generatefinancial data.InformationMonetary and non-monetaryinformation only.Monetary information only.ObjectivesEffective management strategies andThis will help to provide information1
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planning will help managers to takedecisions regarding businessobjectives.regarding financial activities tooutsiders.Time frameSuch reports are made as per thedemand and requirements.Financial statements are prepared atthe end of accounting period.ReportsComplete and detailed information oforganisation operations.Summarize report of financialstatements and position of StrotfordYachts Ltd.UsersInternal management.Internal and external both parties.Management and financial accounting are two various aspects that help business byproviding financial and non-financial information regarding business operational activities.Financial accounting reserves complete information about financial activities within StortfordYachts Ltd. Management accounting helps to analyse the marketing strategy, performance andpreparation of policies and plans in order to make effective decisions.Financial statements purpose in profit and non-profit firmProfit business: Profits organisation refers to the aim in which a organisation try to increase itsprofitability from regular operational activities (Bogers, Boyd and Hollensen, 2015). The profitsearned by organisation will retained in business activities for the future contingencies, in termsof distribution or reserve to the owners as a dividend effectively.Structure of the firm can be joint venture, partnership, proprietorship etc. Such tradingconcerns strive continuously for minimising expenses and maximising incomes to increase theprofitability of firm to grow and expand its operational activities. Cash flow statements, balancesheet and loss statements are calculated in profit firms including the owners equity as well.Non-profit business: A non-profit organisation, as the name suggests, is a legal organisationwhose primary purpose is to promote public good rather than making profit (Elsom, 2014).These are founded in common peoples who came together for the same purpose in order toprovide effective and quality services to people and other members. The management committeelooks after management that is consists of individual groups selected by members fromthemselves.2
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