logo

Finance for Managers: Objectives and needs of financial records

   

Added on  2020-06-06

14 Pages3403 Words193 Views
Finance for Managers
Finance for Managers: Objectives and needs of financial records_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: Objectives and needs of financial records............................................................................11.2: Methods of recording financial data....................................................................................11.3: Evaluation of legal and business needs of financial reporting.............................................21.4: Analyse effectiveness of stakeholders.................................................................................23.1: Comparison..........................................................................................................................33.2: Budgetary control process....................................................................................................33.4: Various costing techniques..................................................................................................4TASK 2............................................................................................................................................53.3: Computation of variances....................................................................................................5TASK 3............................................................................................................................................84.1: Computation ........................................................................................................................84.2: Importance of values............................................................................................................94.3: Value require to examine viability in a project....................................................................92.1: Working capital components.............................................................................................102.2: Management of working capital .......................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Finance for Managers: Objectives and needs of financial records_2
INTRODUCTIONFinance is the utmost important aspect for every business enterprise in order to manageits everyday transactions. It can be arising from various sources such as internal as well asexternal. It is the primary role of managers to arrange sources in respect to meet certainoperational activities of an organisation (Malkiel, 2013). This project report provides necessarypurpose of record keeping or tools those are collected from daily operations. Use of budgetarycontrol steps to analyse recording of financial data in the company. Further, few calculation isbeing done to determine stability and performance during the time. The overall analysis isproviding crucial recommendation to make business more profitability in future time.TASK 11.1: Objectives and needs of financial recordsFinancial records are one for the formal ways of recording financial transaction those areincur by the company during their daily activities. It would be applicable for all types of businessentity such as sole trader, company or any other enterprises. It will be consisting of a statementof retained profits, cash flow, profit and loss statements and balance sheet. They require this formaintain tax benefits for the company (Moffett, Stonehill and Eiteman, 2014).Purpose and requirements: Legal requirements: Companies act entity financial statements used to prepare inaccordance with applicable accounting standards under section 291.Tax requirements: Tax appear in some form in every three financial statements.Deferred tax liability can be considered in the long-term liabilities section of the balancesheet. It would specify, whether companies are paying taxes as per the decided policies ofthe country.Internal control requirements: By the help of this, company can easily be able todecided total amount of expenses and incomes company is paying within an accountingperiod. 1.2: Methods of recording financial dataThere are various tools and techniques which can be use by the managers in order tomaintain their financial information. From the use of those techniques in more systematic and1
Finance for Managers: Objectives and needs of financial records_3
quick manner chances of getting positive results would be increased. Some of them are mentionunderneath:Double entry bookkeeping: It is an effective system that is used for the purpose ofposting all types of financial entries (Renz, 2016). It provides valuable information thatevery accounts would have double impacts on the statements.Day book and ledger: A purchases day book is an accounting ledger in which buyingtransaction are recorded effectively. All the financial transaction is recorded intoledgerbooks.The trail balance: A statements of all the debts and credit in a double account book withany disagreement indicating an errors are analysing through this trail balance. Afterrecording all the transaction into the ledger then posted into the trail balance. 1.3: Evaluation of legal and business needs of financial reportingIt has been observed that several nations have determine their own accounting techniquesand tools over the period of time. In order to maintain and regulate balance in regularity amongrespective statements such kind of decision is been made. There are forced toward standardizingrules and regulation those are made by IASB. Financial reporting requirements for sole traders: A personal finance are more closelylinked business operations than with any other types of business structure. The financial accountof sole trader companies of trading accounting. Self-employed sole traders and most partnershipsdo not need to create a formal profit and loss statements. Public limited companies: It is utmost important for the public limited company toprepared financial statements so that to issues shares as well as bring IPO. It will assist inarranging all the essential options those are helpful in generating maximum profitability.Private limited companies; It is mandatory for every private limited company to hold anAGM in every year for the data for closing the financial year. they are required to maintainproper records of data which will be helpful in presenting it in front of various investors. 1.4: Analyse effectiveness of stakeholdersIn every business organisation, stakeholder is playing an important role in order tomaintain proper balance between their business growth and performances. They make hugeimpacts over business operation either directly or indirectly. The most crucial parties those areconsists under this are managers, employee's, owners and board members. All of them are2
Finance for Managers: Objectives and needs of financial records_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Accounting INTRODUCTION 1
|21
|5682
|262

Financial Accounting
|20
|4294
|65

Financial Accounting: Concepts and Techniques
|21
|4301
|64

Reflective Journal on Accounting Topics - Desklib
|3
|1186
|236

Financial Decision Making in Business Organizations
|10
|3157
|97

Financial Accounting and Its Importance | Mark & Spencer
|10
|2138
|359