Project Report: Accounting's Role in Airbus SE's Business Operations

This project delves into the critical role of accounting within Airbus SE, a prominent aerospace corporation. It examines the systematic processes of recording, interpreting, analyzing, and demonstrating financial data to inform management decisions and enhance profitability. The report investigates the aim to generate comprehensive reports related to monetary transactions, focusing on improving cash flow and the financial position of the business. Objectives include understanding cash and fund flow, improving financial knowledge, monitoring profit-enhancing methods, and maintaining systematic transaction records. The methodology involves setting clear objectives, employing training and development, delegating tasks, arranging resources, and monitoring progress. The project addresses challenges faced by the accounting department, such as controlling operational costs, and explores the impact of accounting on the business, employees, society, and the environment. It also covers marketing strategies, accounting standards, and their influence on market entry and overall business success, emphasizing the importance of financial transparency for stakeholders and investors. The project further highlights the significance of accounting in making informed decisions, managing expenses, and contributing to the long-term sustainability of the business.

PROJECT
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Contents
INTRODUCTION...........................................................................................................................3
Background Problem..............................................................................................................5
Background Search.................................................................................................................5
Marketing Standard or Market Entry strategy........................................................................7
Impact Analysis......................................................................................................................7
Constraints..............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
The term accounting is a systematic system of recording, interpreting, analysing and
demonstrating the financial data and information. Accounting is identified as a method of
monitoring and tracking all operations for completes them in a specific budget. In simple terms,
accounting is the art of recording, classifying, measuring and summarising the financial
transactions for make appropriate management decisions. Accounting in business performs a
crucial role for providing financial information to the stakeholders of organisation. It also
measure as well as summarise all activities of the organisation for communicate the financial
results to management and other interested parties (Brandau, Hoffjan and Wömpener, 2014).
Business faces dynamic conditions and due to these accounting departments faces problems to
calculate right cost of business. This report is written from perspective of Airbus SE which is
well-known for their aerospace corporation. Also, it is a European multinational organisation that
manufactures aeroplane, Boeing and other aerospace products. The reason to select the
accounting in business is to maximise the knowledge related with financial factors for
maximising organisational profits. Moreover, this report highlights on aim, objectives and step to
accomplish the objective. Problem related with business accounting factors and their impacts on
the business, workforce, society and environment will also focused in the report (Brief, 2014).
Further, the selected organisation performs their work at global level so with learn and induce of
appropriate accounting standards management improve their work monetary transactions to
maximise profits.
AIM
The aim of this report is “To generate accumulate reports related with monetary transactions for
improving the cash flow and financial position of business.”
OBJECTIVES
 To understand and analyse the cash as well as fund flow related with business.
 To improve knowledge related with financial factors and accounting decisions.
 To monitor and learn all those actions or methods which improve company profits.
 To maintain and record all business transactions in a systematic and organised manner.
Method to achieve objectives
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Setting objectives work as an important method for organisation and it helps management
for complete their task in an organised manner. Long-term and short term both objectives are
accomplished by deciding the skills sets, learning new methods, etc. and from perspective of
Airbus SE method to achieve objectives is mention as follow:
With providing direction- Goals and Objectives are achieved by the management through
formulate and decide accurate plans steps. To achieve objective related with cash and fund flow
accounting department learn and induce formula such as cash ratio, liquid asset ratio and many
more.
To keep track all activities- All specific goals related with same project and this define it is
important to keep motivate for completion of all project activities in an organised manner
(Carenys and Moya, 2016). To achieve objective of systematic transactions training and
development perform an important role for completion of task in decided time-period.
Induce of easy steps- Objectives are difficult to achieve and it define that the current methods to
manage work is complex to understand. Therefore, with divide large projects into small steps the
financial department of the Airbus SE is able to complete their work with more efficiency.
Moreover, current market scenario demonstrates that all phase of project are considered towards
progressive factors to manage work in proper manner.
TIME-SCALE
TASK Work Description Start and End Date
Training and Development Management is focused
towards completion of task in
an organised manner by
providing training to
individual.
02-07-2021 to 06-07-2021.
Delegation of objective The current market scenario,
work towards completion of
task with divides all
objectives.
07-07-2021 to 10-07-2021
Managing Resources To arrange all resources for
completion of work in a
01-07-2021 to 31-07-2021
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systematic manner.
Managing Task Arrange and implement entire
task that match with
objectives.
05-07-2021 to 25-07-2021
Monitoring and Controlling To manage all task and then
arrange them to perform work
according to decided standard.
It is a constant process.
Background Problem
Accounting department face challenges and this is because there are different task
performed by management such as marketing of products, production activities, etc. This define
there are different problems faced by management as this is complex to record all transactions
(Ceran, Güngör and Konya, 2016). One of the major challenges which create problems for
Airbus SE is to control cost of air operations. The parts of aircraft are too expensive so this is
important for management to control business cost with accounting standards.
Background Search
Analyse of cash and fund flow
According to the Steve Thomas, 2017 the fund flow statement is identified as a financial
document. Balance sheet performs an important role to validate all results and then cash related
factors in an organised manner. In the present scenario, current market perform work with more
efficiency and this is concerned towards compare of all sources such as inflow and outflow of
funds. Accounting period perform an important role for managing the financial position of each
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year through helping management for manage working capital. Specifically, there are four
different financial statements in the accounting exists the balance sheet, the income statement,
the cash flow statement and fund flow statement.
According to the concept of Sean Ross, 2019 financial accounting refers to the
modifications which exist in the organisation because of cash change and equivalents. Fund flow
concepts are formulated with two different meanings. One of them is for accounting purpose and
other is for investment purpose (Cleary and Quinn, 2016). So this support management for
reflect the different variables in a specific period of time. Similarly, cash flow record about the
inflow and outflow of cash equivalents and it helps company to provide all information to the
investor and market to demonstrate performance on periodic basis.
Financial factors and fund flow analysis
From the perspective of Pooja Kumari, 2018 Working capital is impacted due to the
change in the transactions and this defines about all those facts which improve company
transactions. According to the current scenario, statement of working capital helps is used to
identify all those perspective that improve company positions in the market. All current asset and
liabilities are the components of the financial transactions (Hiebl and et. al., 2015). Therefore, it
is important to measure up and down related with business and the current market scenario
identify all those statements which helps to manage work according to increase and decrease in
the financial perspectives of business. In the end, total increase and decrease define with analyses
of all monetary business transactions this is easy to identify actual profits.
Accounting action and methods
With understand the viewpoint of Will Kenton, 2020 an accounting standard is explained
as a common set of principles, standards, procedures and policies which define about financial
accounting practices. Accounting standard are implemented by business for demonstrating about
the current financial pictures of the company asset, liabilities and shareholders’ equity to perform
business in an organised manner. Banks, Investor, agency, creditors, etc. engage in company
operations and due to this the accounting standards are crucial to implement. This helps to
formulate right number of profits by managing work according to accounting methods and steps.
Disclosure of accounting standard, valuation of inventories, fixed and variable expenses etc.
perform an important role and they are identified as most important accounting standards to
complete work in an organised manner. On the other side, net profit and loss is also evaluated in
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proper manner through utilising all accounting policies in a proper manner. Actions and method
related with business helps for performing work according to the generally accepted accounting
principles (Huang and et. al., 2014). IASB is responsible to establish international accounting
standards and financial laws. This helps management for formulation of financial standards and
statements which is more reliable and organised to clearly demonstrate current financial year
position of business.
Marketing Standard or Market Entry strategy
Expansion of a business leads towards completion of work with more efficiency through
allowing management for reach or approach new and potential prospects so they are converted
into leads in minimum time-period. From the perspective of Airbus SE, marketing strategy helps
the management to gain success in new market. ACCOUTING IN BUSINESS performs an
essential role for the authorities of the respective organisation because this helps them to
complete work with minimum cost. On the other side, accounting and marketing are two
different pillars of a same organisation and they work together for the same project (Iandolo and
et. al., 2020). So with compiling financial statements accounting department assist the business
to determine business profitability by evaluating and calculating the expenses or prices which is
induced by them for marketing and promoting the products.
Impact Analysis
Impact on the business- Accounting performs an important role for run a business and
this helps the management for track about the expenditures and income related factors. It also
provides information to the investor for make investment related decisions by demonstrating
financial pictures of company. So this is important for management to make crucial decisions for
minimising the challenges related with business. The current market is exists at global level and
this define financial records reflects about organisation operations and financial positions as it is
related with the management decisions making. This governs if the top authorities of the Airbus
SE make irrelevant decision than this is complex for management to complete work in a proper
manner. With generate proper records related with expenses the current departments show the
debt or credit related factors to the management of respective organisation. This refers if there is
no accounting exists in business than this is possible that management will not able to cover their
operational cost. So accounting team and manager generate right and accurate budget by
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compare them with overall expenses that take place in the organisation for complete of previous
projects.
Accounting is more important for the organisation and this helps the owners or managers
for attract investors and all other stakeholders who perform an important role for an organisation
(Hsu, Jung and Pourjalali, 2015). Similarly, accounting factors provides vital information related
with the cost and earnings. One of the most important objectives related with business is to earn
more amounts of profits. Therefore, other impact is the change within controlling and monitoring
process so it define that this is important to manage proper records of financial transactions in
order to manage income and expenditures of business.
Impact on employees- Accounting in business is one of the most appropriate and effective
method for communicating about the financial information to all user in order to make right
decisions. The current market scenario is related with different factors and all of them use
different methods such as compare of past year profits with last year transactions, record all
factors of accounting system, managing business task, etc. It helps in completing of work
according to the right task and decision-maker also gets supports through keeping all transactions
in a proper record (Carenys and Moya, 2016). With RECORDING TRANSACTIONS,
employees performance is used for maintain the systematic and accurate record of their
performance evaluation. Employees are considered as backbone of organisation because they are
one of the most important of Airbus SE who is imitable. Also, Airbus SE deal in expensive parts
and it governs cost of manufacturing a plane is too high. So this is important to trained workforce
because effective employees help to earn more profits by minimising the operational cost of
business. Budgeting and planning is a key factor for any organisation to gain high success and
this process is completed only through engage of human in the company project.
Impact on society and environment
An entrepreneur is responsible for making profits from the company operations and functions.
They are used for managing the company task and operations in society. So this also refers that
society also get benefits from entrepreneur in order to minimise the negative impact related with
business. It also helps in completion of work with arrange of all asset that work positively for the
Airbus SE and the society individuals. This aids in the coordination of various fragments of
associations (Machado and Gomes, 2018). So this is important for authorities of Airbus SE to
keep their asset safe from uncertain circumstances related with business. Bookkeeping is
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identified as one of the important task and this helps proprietors to generate arrangements for
building and inducing the proficiency in business measures. Some example demonstrate the
society impact to perform work in a more efficient manner as this helps in completion of task
according to requirements of business. In the context of current market conditions this is
identified that to minimise the impact of society organisation focus on all those factors that helps
to manage work according to society and personal goals (Mastracchio, Jiménez-Angueira and
Toth, 2015). BUSINESS PERFORMANCE is identified as a process to utilizing the
bookkeeping reports. It impacts on business as this helps to understand for the company
performance. The monetary reports are a solid wellspring of estimating the key exhibition
pointers, so entrepreneurs or management of Airbus SE can analyse themselves against their past
presentation just as against the contenders. Position of business helps the management to
understand all the impacts which are used in managing work with more efficiency through
reducing negative impact such as by terminate the demotivated workforce. Company efficiency
is improved and it also leads to complete work in a more accurate manner through engage
workforce. LIQUIDITY is also an impact of the environment typical justification private
company disappointment is the bungle of money. Bookkeeping helps in deciding the liquidity of
a business which alludes to the money and other fluid assets available to take care of monetary
responsibilities (Mishra and Ramesh, 2020). The data diminishes the danger of society and
environment through recognition of bottlenecks. FINANCING Bookkeeping helps entrepreneurs
plan notable monetary records and this helps to minimise the impact of business through record
and secure all business transactions. CONTROL By putting different checks across the
association, bookkeeping helps in staying away from misfortunes brought about by robbery,
extortion, blunders, harm, oldness and botch. The interior controls shield the business resources
and keep away from long haul misfortunes. So negative impacts are reduced through proper and
effective accounting standard with their implementation in company operations.
Constraints
Arrange of Finance- Laws and legislations are different for each sector and it define that there
are various methods for appropriate finance analysis exists. With analyse of all perspectives
related with finance this is easy for management to select and arrange funds from those which
are more appropriate to work. Accounting information such as sales tax, VAT, income tax, etc.
for manage work in an appropriate manner. Budgets and future projections analyse about all
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those perspectives which create budget to address financial problems related with business. So
the selected source of finance is Bank loan and funds from public. It consider that management is
more appropriate towards completion of work with decide of business factors.
Identify of location- Accounting is considered as a key for the improved business and according
to the management of Airbus SE, the organisation is performing their work at global level. So the
current market scenario, identify location factor as a crucial aspect (Pindado and Requejo, 2015
Sampaio, 2020). So to pass the bill, manage income and expense, formulation of budgets, etc. are
done from the headquarters of Airbus SE and this is situated in Leiden, Netherlands. From the
perspective Airbus authorities the location for accounting in business is more appropriate
because this helps to manage accounts and expenses from the same place. Production and
manufacturing facilities are high in cost so the current location is headquarters and it also helps
to serve management at world-wide level in a controlled manner.
Government Approval- Doing business in the air industry especially, manufacturing and
production of aerospace products require different type of government approvals. Not only for
starting the business but for routine activities this is important to manage business cycle.
Business registration is the first step and it is always required for completion of work in an
accurate manner (Schaltegger, Hörisch and Freeman, 2019). Approvals from the public listed
organisation help to protect investor interest for promote and regulate the securities in market.
Supervision and inspection are conducted to deal with corporate structure. This helps to relate
the basic functions for managing work in a stable manner as this assure about ownership of
business in an ethical manner.
Resistance from local business- No competitor exist among the aerospace industry which
generate resistance for the Airbus se to perform work. Moreover, various functions and
operations performed and all most each of them is highly expensive and this is because they are
highly operative to work in completion of task with in a complete power.
Resistance from local people- The perspective of local individuals define about the entire task
that is important to manage work but Airbus is performing work at the international level (Ali
and Ahmed, 2017). This considered management focus for identify of all those areas which have
same skill as compare to local people. To overcome from the challenges training is provided by
organisation to match skills of overall workforce.
CONCLUSION
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With the analyses of above report, it is concluded that accounting is one of the most
important factor for a business to sustain in market for longer period. Globalisation is impacting
on overall business operations and functions of a business and one of the major problems faced
by management in accounting is to calculate right cost. To enhance and maximise the knowledge
of accounting all perspective related with business is used for completion of work with more
efficiency. Objective of the accounting help to manage work according to decided steps.
Moreover, different methods for achieve the accounting objectives such as to generate easy
action for completion of large project, keep monitor all activities, etc. This helps in achievement
of objectives with more efficiency. On the other side, by time-scale of all activities all projects
are completed in decided time-period. Market entry strategy and match them with accounting
standard helps to achieve company goals and objectives with decided approach. In the last,
impact of the accounting in business on employee’s, environment and society is also understood
to perform work in a proper manner. In the last, method to arrange finance, identify of location
and many more is understand for completion of work in a more organised manner.
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