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With the internet and other computer facilities, companies and business organizations have several options in doing the business tasks easier and faster.
Before these things, people and most company executives had been in pursuit for more productive ways of running businesses. With the use of typewriters, they were able to make things happened at a certain pace time acceptable that management could come up with their best decisions based on those consolidated reports from the staffs up to the top level management.
Looking back even the times of the dark ages, life was there, business was there. Centuries, decades, and generations had passed, so with everything and business – they go together. There are only difference and change. From manual to computerized, these things happened, even the same things happened.
So, here we are now, from bare hands to the multi-tasked gadgets of the recent technology. And businesses are the first to experience almost everything new in this world. And that especially involves the flow and processes of communications in every business organization.
Internal emails clogged-up the business communication systems.
Most company executives and leaders of business organizations are becoming lazy about talking and discussing important things thru verbal conversations in running the business because of the use of internal emails. With some instances of realizations that the system is coming short of efficient work, deterioration of the strength of interpersonal relationship in the organization, and much consumption of time in reading, processing, analyzing, and replying those emails, there was this organization which banned the use of internal emails. And there are many more which limit, if not to ban, their use of internal emails.
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Problems and benefits of the policy which banned internal emails, in an accounting setting
Accounting is a system. It can be adapted manually, in a very simple way. It can also go with technology. Being a system by itself, it has its own pace of measurement, principles, and standards. There is always a common and general accounting rule for every set of accounting system applied in a business organization. And all of these must conform to the generally Accepted Accounting Principles and Standards.
In every set of instruction done in a business organization by its management, accounting is always involved and affected since it is the primary basis of the business operations. Without accounting, it is always difficult to keep track of the records of the business transactions, especially the cash flow. And communication is also a part of the accounting system.
Problems when use of internal email is banned
In an accounting setting, the ban of the use of internal email affects the flow of instant instructions needed by the accounting staff, especially in offices where internal emails are already in regular use. Immediate information needed by other departments or sections in the organization may also be distorted by this policy. But to the accountant, or the accounting department, it is not as serious as it affects other department, like sales and marketing, and that of the operations. Considering the nature of work in accounting, much of the tasks are recording, analysis, summarizing, and reporting. In most cases, accounting area, and the accountant needs silence for them to be efficient in performing their duties, in the accounting offices.
Benefits when use of internal email is banned
Banning the use of internal emails would be more beneficial rather than being a problem in the accounting setting.
If management, in this instance, decided to ban the use of internal email, and it resulted to some benefits, such as reinforcing the interpersonal relationship of the people in the organization, making use of the time for some verbal discussions, instead of analyzing and responding to emails, then accounting, and the accountant would surely have some benefits that would result to some positive things for the business organization.
As mentioned earlier, accounting is focused on its system of recording, analyzing, summarizing, and reporting. In the preparations of these things, accounting department and the accountant do not need any instruction from somewhere else via internal email, as it works within its own system applicable in certain business organization. It could even be that internal emails would tend to disrupt or distort the working condition of the accountant and his staff in an accounting office.
Accounting in business organizations
Accounting is very important in every business organization. It is the adapted system in the proper recording and the keeping of records for every business organization. Every transaction is recorded properly thru accounting. The keeping track of records which is always the basis of the business, and its management in coming up with the rightful decisions for the operations of the business, is at all times the task and constant, continued, accurate, and consistent work and function of accounting.
In running a business, there are usually two (2) basic functions and applications of the accounting system in a particular company or business organization. They are the Financial Accounting, and the Management Accounting. Financial Accounting deals with the figures of the financial aspect of the company’s operation, and includes the works of preparing the financial documents and reports. On the other hand, Management Accounting deals mostly on the operations, projections, and decision making of the management. It may include cost accounting, as this always takes part of the proper decision making, so with projections which deals on the flows of cash (inflow and outflow). That is where the considerations of the profit and loss analysis are being deliberated by the management.
The System and Function of Financial Accounting in Business Organizations as an Assignment of the Accountant, which includes Documentations and Reporting
To ensure accuracy in the accounting system, the accountant should prepare and install accounting system for the business organization he is working with. As an accountant, he must be conversant with the system, or the accounting system that runs the entire organization. It is a system that would cover every entire flow of all the transactions entering the company or the business organization. From the very start of the transaction until its realization to either profit or loss, the accounting system has to keep track on it. And keeping track of it, documenting and periodic reporting must be prepared and done by the accountant and the accounting department, for submission to the decision makers of the organization.
Installation of the accounting system
It is always the work of the accountant to install accounting system of the company or the business organization to properly keep track all business transactions, and for the purpose of proper recording, documentations, and reporting, the business operations is in need, and the people running the business in every specific area of the organization. The installed accounting system should cover everything related and done in the organization, which includes the following:
- Recording of the daily or every transaction. This is sometimes called journalization, or journalizing using the double-entry method (debit and credit).
- Classification or classifying the recorded transactions. In classifying the recorded transactions, all records must be done on a per account basis for easy and fast classification. Every item is classified into the same category of account it falls.
- Summarizing of the classified transactions. The purpose of summarizing all of the classified transactions is to record them in lumped at the General Journal Book.
- From the General Journal Book, summarized accounts of all the recorded transactions would now be posted to the General Ledger for the final classifications into two (2), the nominal and real accounts. From this point, the accountant would now be ready to prepare for the financial Statements. These are the Profit and Loss Statements, or the Income Statement, and the Statement of Financial Position, or the Balance Sheet.
- The Profit and Loss Statement shows the current results of the operations of the company or the business operations. This usually prepared and reported on a monthly basis. So that, every end of the month, management and all concerned are provided with the data on the results of the business operations, whether for a net income or for a net loss. This would now be a major basis for management to forecast its operations in the next period, a month, a quarter, a semi-annual, and a yearly forecast.
- The Statement of the Financial Position of the company is also prepared and reported on a monthly basis, so as for management to check the status of its assets, especially on the availability of its funds for the continuance of its operations.
Aside from these basic financial documents prepared and reported by the accountant, there are still important documents or schedules in accounting that the accountant is also responsible for their production and preparation for the proper monitoring on some of the specific transactions of the company with its clients or customers, and contractors or suppliers. These are usually the schedules of receivables and payables.
- Accounts Receivable – this is a schedule of list of various customers with pending collectibles. This is the result of credit sales of goods or credit services offered to customers in terms, intended for future collections. This schedule must be prepared for the proper monitoring of collectibles or receivables. – out of this schedule, the accounting department or the accountant has to set up an Allowance for Bad Debts for those with some which could no longer be collected. In effect, this account will be an item for an adjustment entry for every periodic write-off of uncollected collectibles which are already expected to be written-off.
- Accounts Payable – this is the schedule of list of all payables or indebtedness of the company to all of its contractor and suppliers. This schedule must be prepared for the proper monitoring and scheduling of payments.
There are still other schedules that the accountant may prepare, as he deems it necessary to prepare and report these schedules.
The Books of Accounts that the Accountant should maintain
These Books of Accounts that the accountant should maintain as required by the government agencies, especially for the monitoring of the payments of taxes, include the following:
- Cash Receipts Book – this is the record book for all the receipts, of either type, from every transaction involving entry or coming in of cash.
- Cash Disbursements Book – this is the record book for all cash disbursements, of either an expense or any other form of cash releases.
- General Journal Book – this the record book of all entries of all types of transactions entering the company or business organization. Content of this book includes all summaries of the cash receipts and disbursements books, and all other entries of journal vouchers from other transactions not entered in the receipt and disbursements books, such as those of the adjustment entries.
- General Ledger Book – this is the record book of all summarized and classified entries of all transactions from different areas of operations of the entire company or business organization. From this book are generated the financial statements, The Profit and Loss Statement; and The Current Financial Position of the Business Organization.
The Cash Receipts and the Cash Disbursements Books are also reported daily through the preparation of the Daily Cash Position Report (DCPR), which the accountant has also to prepare, or any of his staff, especially the cashier, for the proper daily monitoring of the cash flow of the business operations. This report even reaches to top management or the owners of the company, as they wanted to monitor the most important item of the daily business operations – the cash flow.
As discussed, above are the most important documents and reports from the accounting department an accountant is at all times responsible on their preparations and reporting to top management. They are the vital tolls for management to conduct their meetings, plans, forecast future operations, so as to, prepare ahead, and be able to compete in tough market situations.
The system and Function of Management Accounting in Planning, Forecasting, and Decision-Making
Accounting also functions as an accurate and effective tool for management to properly run the business organization. All of the submitted accounting documents and reports would now become the management papers for the effective and efficient management the company should have. Company executives are equipped with all the accounting information supplied by the accountant for them to keep track on how the company is doing in its operations. The results of the operations are digested into sets of accounting documents and reports as a recycled picture of the entire organization’s position for a certain completed period, handed down to the hands of the company executives for them to continue and make some improvement in the next periodic set of operation.
The work of an Accountant, or an Accountant in Business Assignment
In various and several business organizations, the work assignments of an accountant vary depending on the employer and the organization he is in. But based on the above-mentioned discussions, anyone can have the idea of what an accountant really is, and what the work of an accountant really is. As it varies, the main idea or the main focus of the work of an accountant is for the production and supply of the proper financial information of the company or any business organization for the management to keep track and do the right decision for an effective, efficient operation of the organization, especially for those organizations which are for profit.
If to contemplate further and deeper as to the coverage and scope of the works and functions of an accountant in business, his assignments cover and include everything, from the simplest to the most complicated; from the most ordinary employee to the top executive of the company, the accountant deals with them all. Of course, some of these functions are delegated to his staffs, but he should primarily be responsible in all aspects and in all areas.
In the usual course of the top management meetings, after he submits his financial documents and reports, the accountant is always in front of the top management executives to deliver his reports, explains to the top executives, directors, and stockholders of the corporations, everything incorporated in the financial reports, as to how they transpired during the operations, especially when losses are experienced by the company, the accountant is the most responsible person to explain the outcome of the operations. Most of the time, the work of an accountant is involved in the activity of the top management. The person who triggers the decision making, the forecasting, still is the same person, the accountant. Actually, speaking of forecasting, projections, and most of the future preparations, the accountant is still the primary responsible performer in the preparations of the projections and budget documents. It is the accountant who prepares the budget for the management, and even the entire company to observe and follow to track the entire operations.
Relating the accounting setting of a company or business organization to some changes of company policies done by its management, such as in this instance where the management stop from using internal emails, the company’s accounting and its accountant would even be benefited by not being o disturbed, distorted, or disrupted, and that they can even concentrate more on their functions in preparing the appropriate financial information the company and its management need, for which, the accountant is responsible in doing all these things – documents and reports on a periodic basis. And it does not need any of those internal emails to do all of these. In accounting, everything is done within its system.
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