Accounting Operations at Sainsbury's: Challenges & Impact

This report provides an in-depth analysis of accounting practices at Sainsbury's, focusing on the systematic recording, analyzing, and interpreting of financial transactions. It explores the aims and objectives of accounting in the retail industry, including understanding the concept of accounting, identifying challenges faced by Sainsbury's, and recommending solutions. The report covers the impact of accounting on the business, employees, environment, and society, while also addressing constraints such as finance and government approvals. Literature review supports the analysis, highlighting the importance of accounting for tracking operations, ensuring compliance, and providing financial information for decision-making. The study also examines the role of environmental accounting and its increasing importance in addressing environmental issues caused by business activities. Desklib provides similar solved assignments and past papers for students.

ACCOUNTING IN BUSINESS

Table of Contents
INTRODUCTION ..........................................................................................................................3
AIM .............................................................................................................................................3
OBJECTIVES..............................................................................................................................3
How objectives will be achieved.................................................................................................3
Time scale....................................................................................................................................4
Brief background ........................................................................................................................4
Literature review .........................................................................................................................5
Impact analysis ............................................................................................................................6
Constraints...................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business accounting refers to the systematic process of recording,analysing , interpreting
of the financial transaction of the business. Accounting is considered as the key function of any
business. Usually the accounting transactions of the business is managed by the bookkeeper or
the accountant of the firm. The financial statements include the information about company's
operations, financial position and also the cash flow transaction over the period of
time(Puspitawati, 2021). It plays a very important role for analysing and managing the financial
resources that the firm is utilising to perform the activities of the business. It helps to maintain
accurate and updated record of the day-to-day transactions of the business and and with the
accounting , helps in tracking the information abut the payments that is done and received by the
company. It helps in making bill payments and also keep the record regarding the salaries that is
given to the employees.
The chosen company for this project is Sainsbury and the report covers the aims of the
project that is related to the business accounting , methods and ways of achieving the business.
The report also covers the brief description about the accounting operations in the
company(Ritonga, 2020). The objectives to be achieved that is understanding the concept of
accounting , ascertain the ways for accounting in the retail industry , various challenges faced by
the company and ways to overcome the problems. Marketing strategy and market entry
strategy. Impact of accounting on business, employees, environment and society. Various
constraints related to the business like arranging of finance, government approval etc.
AIM
 The aim of the present study is how Sainsbury operates accounting in business.
OBJECTIVES
 To understand the concept of accounting in business
 To ascertain the ways for accounting in retail industry.
 To examine the challenges that faced by Sainsbury at the time of accounting.
 To recommend the best way that help to overcome the challenges.
How objectives will be achieved
In order to achieve the objective it is important to understand the concept of study that are
related to accounting in business with the help of systematically record transactions, preparing
the financial statements, sort and analysing the transaction in order assessing the financial

positions which help to decision-making with the help of financial data and information about
the business (Hsieh and Novoselov, 2019). The study focus on some steps that are needs for
operating the accounting such as considering end goal that help for determining the objective as
well as it directly relates to the goals that provide which help to monitor the progress that help
for keeping goal. Also, it is also necessary to planning for particular goal which help for
providing the interest of understand the concept in better way. Also, on the basis of time scale it
helps to provide the better outcome which can be work better and help to providing the better
outcome. When all the steps are followed it helps to provide better knowledge that are important
to understand for better result.
Time scale
Task Mode Task Name Duration Start Finish Predecessors
Auto
Schedule
d
Introduction 2 days Mon 4/11/22 Tue 4/12/22
Auto
Schedule
d
Selecting aim and
objectives 3 days Wed 4/13/22 Fri 4/15/22 1
Auto
Schedule
d
Determining how the
objectives can be attained 5 days Mon 4/18/22 Fri 4/22/22 1,2
Auto
Schedule
d
Selecting sources for
secondary sources 9 days Mon 4/25/22 Thu 5/5/22 3
Auto
Schedule
d
Developing brief thesis 8 days Fri 5/6/22 Tue 5/17/22 3,4
Auto
Schedule
d
Perform impact analysis 4 days Wed 5/18/22 Mon 5/23/22 5
Auto
Schedule
Determine challenges 1 day Tue 5/24/22 Tue 5/24/22 5,6

d
Auto
Schedule
d
Conclusion 2 days Wed 5/25/22 Thu 5/26/22 6,7
Auto
Schedule
d
Submission 3 days Fri 5/27/22 Tue 5/31/22 8
Auto
Schedule
d
Waiting for feedback 2 days Wed 6/1/22 Thu 6/2/22 9
Auto
Schedule
d
Modification and
submission 1 day Fri 6/3/22 Fri 6/3/22 10
Brief background
There are some problems based by company in order to operate accounting in business
with large number of data. For example, Accounting can be depended on analytics and
technology that need more knowledge of literacy that help for accounting also the tax laws are
changing very often that impacted by again manages the software according to new one (Brown,

Seville and Vargo, 2019). Then the challenger are also related to cyber security which need to
manage during the time of advanced accounting.
Literature review
According to Ritonga, (2020) it has been analysed that accounting is defined as the
process which is including measuring, identifying and communicating the economic information
in order permitting informed judgement and decision by users to information. The informations
is primarily defined as stated of money that can be measure ans communicate in such as way
where company can record all the activities that help for profit seeking business and it is
supplies information in order to permit for informed judgement and decision user of data. There
are two types of accounting, internal users are those people who are using accounting such as
human resource department needs to having information that are profitable for business in order
to set benefits and salaries of employees. Also, on the other hand, it has been stated that
production manager need to know about business is doing well or not in contexts to afford for
replacing the worn out machinery or pay for overtime workers. In addition to this, external users
are those people who are outside from business entity that are using accounting information.
This is including investors, internal revenue service, local taxing authorities, bank and finance
companies etc. This is valuable in order to evaluate the consequences which are necessary for
reducing uncertainty by using professional judgement to quantity of future financial impact.
On the Hsieh and Novoselov, (2018) opinion it has been analysed that financial
accounting information appears in financial statements which are intended for primarily for
external use. Stakeholder and creditors are need for financial accounting information. This is also
responsible for increasing n decreasing the investment in order to extend credit for the company.
Further, financial accounting information is related to the informations that is related with
company whole while managerial accounting focus on part's of different segment. Ritonga,
(2020) suggested that tax accounting is important for the business in order to write and present
tax code of government that are namely internal revenue code. Also, this is focusing on
compliances with tax code in order tos presenting more profit or loss story of business in order to
maximize it taxes liability. On the other hand managerial accounting is help the business by
providing long range planning data that is explanation of actual cost varied from cost estimates.
This is mainly helped for projectionist and decision that are taking in order to affect the future
organization by historical reading and compliance aspects of financial accountant. Business

accounting are help for keeping the track regarding operations ass well as it help accountants for
analysing the business finance ins order making business decisions better. The informations are
helps for organizing into reports that helps for showing financial health of the business.
Hsieh and Novoselov, (2018) Point of view it has been state that accounting is important
in orders playing vital role in orders to track and expenditure that are ensured about statutory
compliance and provide investor management, qualitative financial information that is used for
making business decision. On the basis of financial segment it has been stated that it is
important to identify the factor that are played important role in business with the help of income
statement that providing all the informations that providing profit and loss. Then balance sheet
provides clear picture on financial position of business regarding particular date and lastly cash
flow statement is working as clears picture that are based on balance sheet and income statement
in order to generate specific data. Accounting for business in retail sector help to evaluating the
performance of organizations in order to get good positions in the market it is also helps for
understanding what's going with financial business this is not only record data but also help for
keeping track of expenses, debt, gross margin that will help for compare for current data with
previous accounting result in orders allocating and record the budget properly. On the other
hand Bullen Kordecki and Capener, (2018) it has been analysed that accounting only records the
data which are belongs to terms of money as well as it can be biased some times that can be
affect the future decisions of the company. The personal judgement of the individual influence
the financial statements. The high cost of accounting affect in order to spent more on developing
the new task.
Impact analysis
Business accounting refers to the systematic recording, analysing, and presentation of the
financial transactions of the business. The main function of accounting is that it helps in keep
the track of all the operation of the business(Osadcha, et.al, 2018). The financial statements that
are recorded in the accounting are the summary statements of the financial transaction that was
carried out by the business such as record of company's operations , financial position and cash
flows.
Impact on business
Accounting plays a very important role in running the business as it helps in keeping all
the financial transactions of Sainsbury. For example, it keeps a track of the income and

expenditure, ensures that the company is complying with the necessary laws and regulations ,
management and all the necessary financial information that helps in taking the decision
regarding business matters(Kariyawasam, 2019). The accounting records maintained by the
business such as income statements provides with the information about the profits and loss of
the company, balance sheet that is maintained by the accountant of the company gives a clear
picture about the financial position of the business of that accounting year. It helps in evaluating
the performance of the business as the financial records clearly states the results of the operations
and also the financial position of the company. The accounting records maintained by Sainsbury
provides with the clear picture of the present position of the company and how much profit is
generated form it(Nizam, 2018). It is observed that the rules and regulation differs form country
to country. With proper accounting it helps to ensure that the company has complied with the
laws and regulations. The accounting plays a very major role also impact the business and with
the proper maintenance of the accounting helps in effective operation of the business.
Impact on employees
Employees are considered as the valuable assets of the company so it is very important fo
the company to understand the preferences of the employees and motivate in order to increase
employees engagement in the company. It is observed that mistakes in the accounting can have
negative impact of the employees as well on the business(Trabulsi, 2018). Salary related
transaction are also recorded in the accounting records and records the salary of all the
employees which can avoid confusion regarding the payment to the employees.
Impact of Environment
The importance of environmental accounting has increased due to the increase in the
environment problems that is caused due to the company. The environmental system of
accounting deals with the national and business accounting which includes both financial and
non- financial accounting. Environment accounting refers to the field that identifies the resources
that is utilized by the company and evaluates the impact of such resources used on the
environment. The environmental accounting is defined as the process of environment related
business activities. It involves collecting , analysing and then monitoring all the environment
related activities and combine and record all the information in the balance sheet that helps
Sainsbury to make relevant decisions regarding which can have positive impact on the business
and protects the nature(Yao, and Gao, 2020). The management of the Sainsbury has taken

various measures which will helps in reducing the negative impact on the environment and
introduce new and effective methods that helps in contributing effectively in protection and
preservation of the environment.
It is observed that accounting plays a very major role in the functions of the business as it
records the business transactions which helps in identifying the cost that is incurred by the
company in conducting their business activities. With the proper accounting system , Sainsbury
can analyse its current market position. It helps the company to keep a track of their expenses ,
gross margin which helps the company to compare their progress with the previous accounting
records which help to allocate the budget appropriately(Ameen, et.al, 2018). The company
maintains the record of the financial transaction as ensures that the management has complied
with the necessary accounting standards and also to provide the investors the detailed
information about the company's profits which states the position of the company in the
respective accounting year. The accounting statements presented by the company helps the
company to take the decisions regarding the allocation of the budget and future related expenses.
It is mandatory for every company to keep the record of their financial transaction in order to
analyse the profits and also to monitor its position in the market which helps the company to plan
their strategies accordingly.
Constraints
Arranging of finance- Sainsbury ah huge market to cover also it is necessary to manage
the accounts of the company in such way that can be help for future decision-making. Also, there
are change in accounting standard are affects the business by arranging more finance (Aryanti
and Adhariani, 2020.). It is also affected by adopting new analytical tools which can be high in
price as well as it can be become constraint that effect arranging finance. In the retail sector there
are number of stores which are need to managing accordingly also it is typical to provide training
to employees regarding the finance. The high tax rate also affect in order to enhance more
knowledges for accounting in business.
Government approval- Sometimes it can be typical tos adopt new analytical data that
need for government approval also government charges taxes for particular standard. The
classification of expenditure and incomes are affect in order to pay increasing tax. Sainsbury has
faced the problem of not enter in China because it has charges more taxes (Cockcroft and
Russell, 2018). The accounting standard followed by them are different from UK standards.

Government affects due to fiscal policy which can be influence other factors such ass inflation,
tax rate, regulations, customer laws.
Resistance From local business- The constraint is related to business executive that
faced employee resistance in order to change. The technical analysis are related to the key tool
that indicates asset which has reached a price level in the market that are unwilling surpass.
Sainsbury has faced the problem regarding local business for accounting because every company
has their own area of knowledge, and they are work accordingly but application for accounting
mights be different and can be difficult to adopt. Also, it can be stated that this is difficult to
explain the change that performs by company in orders to manage the employee resistance. This
is also difficult to manage accounting pattern due to local business (Tarca, 2021).
Resistance From local people- In the organizations the group level resistance affected in
order to manage when it raises the common voice in an organized manner This can be threats for
other employees because it affected due to different patterns of adopting the technology. Also, it
has been analysed that there are system which is related to divide the rule by approach and group
level resistance. To provide training to local people is difficult fort some times because it cans be
typical to understand the same concept and for updates the technology it needs regulars session
regarding employees resistance, and they can comfortable for learning new things. From the
passive resistance employees are not able to accept the changes which can be difficult to manage
also it can be affected by change the perception regarding the change. Further, there are
employees who are not shows for potential regarding accepting the change at that time it can be
affected the culture of the organization because it affects perception of people by delaying the
tactics and other convert means to express their resistance.
High cost- When accounting standard changing it is importance to adopt as early as
possible by involving the process of creating accounting standard (Nguyen, Nguyen and Ziyi,
2021). According to international financial reporting standard program that are started in 2001 on
the basis of first standard related to IFRS. The process is costly in order tos adopt and this is
effect not focusing on financial statements.
CONCLUSION
The report concluded about business accounting refers to the systematic process of
recording,analysing , interpreting of the financial transaction of the business. Accounting is
considered as the key function of any business. Usually the accounting transactions of the

business is managed by the bookkeeper or the accountant of the firm. In order to achieve the
objective it is important to understand the concept of study that are related to accounting in
business with the help of systematically record transactions, preparing the financial statements,
sort and analysing the transaction in order assessing the financial positions which help to
decision-making with the help of financial data and information about the business. t has been
analysed that financial accounting information appears in financial statements which are
intended for primarily for external use. Stakeholder and creditors are need for financial
accounting information. This is also responsible for increasing n decreasing the investment in
order to extend credit for the company. Further, financial accounting information is related to the
informations that is related with company whole while managerial accounting focus on part's of
different segment.
On the basis of accounting plays a very important role in running the business as it helps
in keeping all the financial transactions of Sainsbury. For example, it keeps a track of the income
and expenditure, ensures that the company is complying with the necessary laws and regulations
management. Employees are considered as the valuable assets of the company so it is very
important for the company to understand the preferences of the employees and motivate in order
to increase employees engagement in the company. Further, Environment accounting refers to
the field that identifies the resources that is utilized by the company and evaluates the impact of
such resources used on the environment. Also, discussed the environmental accounting is defined
as the process of environment related business activities. Sainsbury has huge market to cover
also it is necessary to manage the accounts of the company in such way that can be help for
future decision-making. Also, there are change in accounting standard are affects the business by
arranging more finance constraint is related to business executive that faced employee
resistance in order to change. The technical analysis are related to the key tool that indicates
asset which has reached a price level in the market that are unwilling surpass.

REFERENCES
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Yao, Q. and Gao, Y., 2020, October. Analysis of Environment Accounting in the Context of Big
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