Found 105 Articles for Accounting

What is Accounting Services? Accounting services are needed to run a business successfully. Accounting is a daily process in a business as transactions have to be recorded and tax paperwork has to be prepared. Accountants have to do a lot of work to maintain accounts. Accounting services include a lot of things and some of them are − Accounting Bookkeeping Payroll processing Entity formation Why Accounting Services alternatives? Accountants have to do a lot of work Mistakes in entering a transaction can create big problems Information is prepared on the basis of money Accounting reports may not ... Read More

Introduction An interim audit is one type of review done by the auditors before the final audit takes place. The decision to examine the books of accounts in between the financial year is taken by the higher management to ensure the veracity of the financial records. But why this audit is done? Auditing the books of any company can be both cumbersome and time consuming. The auditor has to verify and cross-check financial records before finalizing the values. Fig 1: Interim Audit Though auditors are professionals, there’s a chance of making inadvertent mistakes while examining the books. ... Read More

Introduction Financial audits ensure accuracy and complete transparency of the company's financial records. This examination and evaluation paints the fair picture of the company to the stakeholders and investors, making it easy for taking informed investing decisions. Fig 1: Audit Documentation Besides, these audits also help companies get a better understanding of their outlays, errors, and other financial aspects. Auditors document all the checks and record them in physical mode for future reference purpose. But what exactly is audit documentation? Meaning of Audit Documentation Audit documentation refers to written records created during the time of auditing, including working ... Read More

Introduction It is undeniable that the global market has been rapidly shifting over the last many years. Companies are increasingly motivated to enter the global business environment as a result of remarkable advancements in innovation, capital ejection, the desire to create new revenue streams, and the removal of inter-country exchange barriers. For venture development to occur, there is a desire for fiscal summary equivalence and, more specifically, for consistency in the presentation of budget reports. Harmonization is a method of increasing the similarity of bookkeeping practices by limiting their amount of variation.What are Accounting Sources? A proper accounting source ... Read More

Introduction Organizations must guarantee that their operations are efficient and effective to achieve their goals and objectives. A Propriety and Efficiency Audit is a financial assessment that aid firms in achieving these objectives by evaluating their books, operational, and compliance processes. This tutorial will examine what a Propriety and Efficiency Audit is, why it's essential, and how it may help your company. Define Propriety and Efficiency Audit A Propriety and Efficiency Audit assesses an organization's financial, operational, and compliance processes to ensure they are carried out correctly and efficiently. The audit assesses whether an organization's activities comply ... Read More

Introduction Are you tired of feeling overwhelmed by the endless information that comes your way as an auditor? Do essential details slip through the cracks, leaving you scrambling to catch up? If so, then it's high time to introduce an audit notebook to your business routine. This tutorial will examine why every business needs an audit notebook and provide tips for using one effectively. What is an Audit Notebook? An audit notebook is a tool auditors use to track and document their audit findings. The audit notebook contains a detailed record of all the information gathered during the audit, ... Read More

According to International Financial Reporting standards (IFRS), Liabilities are present obligations of the enterprises arising from past events, the settlement of which is expected to result in an outflow from the enterprises of resources embodying economic benefits.In simple words, it is amount owned by the company to the creditors.Classification of liabilities is as follows −Current liabilities − Payment period is less than one year. It is also called as short term liability.Examples − Accounts payable, interest payable, income tax payables, bills payable, bank account overdrafts, accrued expenses, short term loans.Non – current liabilities − Payment period is more than one ... Read More

An asset is a resource which has an economic value which can generate future cash flows. It is owned or controlled by individuals, corporation or a government. Asset can be a property, inventory, trademarks or patents.Based on its liquidity, assets are recorded in the balance sheet in descending order. More the asset is liquid takes more time to convert into cash.Classification of assetsThe assets are classified as follows −ExamplesThe examples of assets as per convertibility are as follows −Currents assets − Cash, cash equivalents, short term deposits, stock, office supplies, marketable securities etc.Non- current assets − Land, building, equipment, machinery, ... Read More

The main difference between accrual base accounting and cash base accounting is as follows −Cash based accountingAccrual based accountingIt is a single entry accounting.Only cash transactions are recognised.Doesn’t recognise account receivables or accounts payable.Useful for small companies.Easy to understand.Focus on liquidity.Not recognised by companies act.Not a holistic approach.Not more accurate.Matching concept can’t be applicable.Low degree of accuracy.Shows lower income in income statement.Doesn’t meet GAAP requirements.Can mislead financial status.It is double entry accounting.Revenue and expenses are recorded irrespective of cash.Commonly used method.Complex and difficult to understand.Recognised by companies act.Focus on revenue, expenses, profit and loss.It has holistic approach.More accurate method.Match concept ... Read More

Cash based accounting means, it records only those transactions relates to cash. That means transactions of revenue and expenses are recorded when payments are made or received through cash only. It is a single entry accounting.It is useful for simple accounting system.It is used, if inventory is to be valued.It is useful, when audit is not necessary.It is useful in services business.Reasons why companies prefer cash based accounting are given below −Single entry accounting.Few financial transactions.Very few employees.Few valuable physical assets.Very few inventory, supplies and cash in bank.Sole proprietorship.Privately held.Legal reporting includes −Supports company’s income tax reporting.Paid government taxes.Forecast future ... Read More