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the process of creating an organizational financial plan for a defined period.
The financial plan is known as the budget. It incorporates all the expected
expenses and operational revenue. It also indicates the available assets, liabilities
and sales volume. There are two types of approaches in budgeting; bottom-up and
up-down approach. The up-down is whereby the administration prepares the budget.
Bottom-up is a type of approach where various departments prepare the budget
and pass the information to the managers. Budgeting not only helps track
financial transactions but also brings about growth in an organization.
an independent examination that is done to establish whether organizational
processes and financial records conform to the required standards. The law
requires a company to have an external audit firm that undertakes the audit
process and establishes whether the company’s financial statements adheres to
the required standards and requirements. There are different types of auditing;
product audit, management, and process audit. Product audits focus on examining
products and services, management looks at management systems and process
audits look at the methods and processes an organization is applying and
whether they conform to the required standards.
Accounting information system
information systems are computer-based systems that collect, stores and process
financial and accounting information for use by decision-makers. Decision-makers
include both the management and external sources such as tax authorities,
investors and creditors. The system allows data input and interface
interdependence in various department, for instance, the sales department may
update the sales volume and the data reflects on the inventory department, the
inventory department uses the information to make a new order and the invoice
is sent to all other departments including customer care. Accounting information
systems play an integral part in enabling tracking of financial transactions
and enhances the security of data through login requirements, division of
duties and authorizations.
accounting is a branch of accounting that concentrates on the preparation,
analysis, and provision of tax returns and payments. These are processes and
methods applied in matters related to tax. In the United States of America. The
internal revenue code dictates the rules that should be followed in filing tax
returns. Individuals, businesses, corporates, and all tax-exempt organizations
should participate in filing annual tax returns. Unlike individual annual tax
returns whereby less information about the person is required such as income,
deductions, and investment gains and deductions. Filling business tax returns
is more complex and at times the business is forced to hire an accountant who
specifically deals with tax returns. Tax accounting tracks funds that the
business is required to deduct tax from.
accounting is a branch of accounts that deals with processes of identifying,
interpreting, analyzing and communicating information to internal managers. The
managers use the information in decision making to achieve company goals. Managerial
accounting also checks the strengths and weaknesses of the business to aid in
improving its processes and strategies. Unlike financial accounting managerial
accounting does not follow any generally accepted accounting principles.
is a branch of accounting that deals with preparation, analysis, interpretation,
and presentation of financial transactions in the form of financial statements
or reports. The reports are mostly prepared for stakeholders, lenders,
investors, creditors or any other external entity that is interested in either
investing or providing resources to the company. Financial accounting is
governed by several rules and generally accepted accounting principles from
both the local and the international settings. Financial accounting aims at
identifying the financial transactions, providing important information that
will guide in decision making to the users and showing the financial position
of an organization. Financial statements comprise of a balance sheet, cash
flow, stakeholder’s equity, and income statement. The statements should be
relevant to the users and adhere to the rules that dictate how they should be
prepared and presented.
accounting is a branch of accounts that deals with examination and
investigation of financial information to be used in dispute resolution. It is
mainly done to gather evidence to be presented in court. Forensic accounting is
engaged where there are issues such as breach of contract, money laundering,
computer forensic and tax evasion. It is mainly used to investigate the embezzlement
of funds. The process involved in forensic accounting includes data collection,
preparation, analysis, and reporting.