Financial Management: Accounting Information for Travel Agencies

This report provides an overview of management accounting information essential for running a travel agency. It emphasizes the importance of maintaining accurate accounting records, including cash flow statements, general ledgers, and income statements. The report details key accounting procedures such as cash flow management, revenue recognition, and the maintenance of an income statement for calculating net profit. Additionally, it explores various decision-making tools like financial planning, financial statement analysis, cost accounting, fund flow analysis, income analysis, standard costing, and negligible costing. The report concludes by highlighting the role of budgetary control techniques in assessing future financial needs and directing business operations.

MANAGEMENT
ACCOUNTING
INFORMATION

INTRODUCTION
If you start a travel agency, you need to keep accurate
accounting records for your business. These records
help you keep track of your agency's performance and
are necessary for preparing your tax return. The most
important accounting procedures for a travel agency are
the cash flow statement, the general ledger and the
income statement.

Cash Flow Management
One of the most basic goals of your accounting procedures is to
keep track of your agency's cash flow. While running a travel
agency with multiple daily transactions, it can be easy to lose
track of your sales and your incoming payments.

General Ledger
One of the most basic goals of your accounting procedures is to
keep track of your agency's cash flow. While running a travel
agency with multiple daily transactions, it can be easy to lose
track of your sales and your incoming payments.

Recognizing Revenue
An important accounting procedure for any business is the
process of revenue recognition. This principle establishes when a
business has officially earned revenue and can declare the
earnings on its accounting statements and for taxes.

Income Statement
The last accounting procedure for running a travel agency is the
maintenance of an income statement. The income statement
records your total income and expenses to calculate your net
profit over a period of time. The income statement serves a
similar purpose as the cash flow statement. While the cash flow
statement only keeps track of cash, the income statement
measures the profits of your business.

Decision-making tool
• Financial Planning: The primary goal of any business
association is boost of benefits.
• Financial Statement Analysis: Benefit and Loss record
and Balance Sheet are critical financial explanations.
These announcements are investigated for various
period.
• Cost Accounting: Cost accounting presents cost
information in item savvy, prepare astute, office
insightful, branch shrewd and so forth.

CONTINUE...
• Fund Flow Analysis: This analysis discover the
development of fund starting with one period then onto
the next.
• Income Analysis: The development of money starting
with one period then onto the next can be discover
through this analysis.
• Standard Costing: Standard costing is foreordained cost.
It gives a measuring stick to measuring genuine
execution.

CONTINUE...
• Negligible Costing: Negligible costing procedure is
utilized to settle the offering value, determination of best
deals blend, best utilization of rare crude materials or
assets, to take settle on or purchase choice,
acknowledgment or dismissal of mass request and
remote request and so forth. This depends on the settled
cost, variable cost and commitment.
• Budgetary Control: Under Budgetary control techniques,
future financial needs are assessed and organized by
methodical premise. It is utilized to control the financial
exhibitions of business concern. Business operations are
coordinated in a craved heading.