Accounting Controller Report: Workforce, Tax and Book Analysis

This report delves into the realm of accounting controllership, examining critical aspects such as workforce reduction strategies, tax strategies, and the nuances of book versus tax accounting. The report begins by addressing the types of reports management might utilize when implementing a workforce reduction, considering the implications for human resources, compensation, and potential economic impacts. It then explores the reports necessary for reducing operational costs, specifically focusing on selling, general, and administrative expenses, and the role of projected profit and loss statements and sales budgets in decision-making. Furthermore, the report defines tax strategy and identifies common strategies, followed by an analysis of the differences between book and tax accounting, including the reasons for discrepancies in taxable and book income. The content is supported by references to relevant accounting literature, providing a comprehensive overview of the subject matter.

ACCOUNTING
CONTROLLERSHIP

Accounting
If management decides to implement a reduction in workforce, what types of reports
might they use to make the decision of where to cut? What issues might arise due to this
reduction?
The type of report needed to implement a reduction in the workforce will consist of the need
for the human resources, availability of the human resources and compensation report. When
an employer implements a workforce through the process of layoffs, reduction in force,
rightsizing, etc then it will lead to a global economic scenario that will lead to higher job
losses and widespread unemployment will be noticed (Davies & Crawford, 2012). It will
impact the staff members along with the department.
Management has told you that they want to reduce total costs of operations and SG&A
by 10%. What types of reports would you look at to make these decisions?
The selling, general and administrative expenses are projected on the income statement and
the reduction in such expenses by 10% can be properly evaluated with the help of projected
profit and loss statement and the sales budget. Moreover, the report on expenditure will
sketch a clear idea in terms of decision making. The projected expenditure statement will
indicate whether the business is operating effectively and will even provide a brief idea
whether the business will be affected by the reduction or not. Such reports will aid in better
decision making (Davies & Crawford, 2012). The SG&A expenses will be ascertained to
evaluate whether the cash flow is managed in a smooth manner.
Define the term “tax strategy." Name at least two common tax strategies.
Tax strategy can be defined as the way of reducing the income tax amount that is owned by
an individual or business by taking benefit of the different tax credit that is available. The two
common tax strategies are increasing deduction and taking benefit of the tax credits (Choi &
Meek, 2011).
What is the difference between book and tax accounting? Does taxable income always
equal book income? Why or why not?
Tax accounting deals with the method of accounting that is concerned with taxes instead of
the financial statements. The Internal Revenue code governs tax accounting and tames the
rules that companies, as well as individuals need to follow during the preparation of the
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Accounting
return. On the other hand, book accounting deals with the financial records of the company
like the journal and the ledger. It defines the financial memory of the company (Deegan,
2011).
There is a difference between taxable income and book income because the rules governing
both these differ in their nature. Some differences appear to be permanent while other is
temporary. Therefore, the governing rules lead to a difference between the two.
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Accounting
References
Choi, R.D. & Meek, G.K. (2011). International accounting. Pearson.
Davies, T. & Crawford, I. (2012). Financial accounting. Harlow, England: Pearson.
Deegan, C. M., (2011). In Financial accounting theory. North Ryde, N.S.W: McGraw-Hill
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