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Accounting can be described as the process of consolidating financial information to make it understandable and clear to shareholders and stakeholders. The main purpose of accounting is to report the company’s financial transactions, cash flows, and financial performance. There are different financial statements in accounting, which are all used to analyze the company's financial performance. Some of the most common financial statements include;
- Income statement
- Balance sheet
- Statement of retained earnings
- Cash flow statements
Types of accounting
Accounting is divided into two main categories;
| Financial accounting | Financial accounting focuses on the measure of the performance of a specific business. Financial statements are majorly for external use but can also be used internally. Financial accounting adopts financial principles and standards such as;
The above-stated financial standards are very important because they help shareholders and stakeholders to understand and easily interpret financial statements. |
| Managerial accounting | Management accounting is used to analyze the information collected from financial accounting. It is basically the process of preparing reports on business operations. It is used by management in making key decisions. |
Importance of accounting
- It helps you keep records of business transactions: Accounting is important because it helps businesses keep records of their financial information.
- Helps in decision making: It ensures that businesses operate within budgets and that all decisions are based on the company’s financial status.
- Meeting of legal requirements: Accounting helps firms in reporting accurate financial liabilities and assets. Tax authorities also use this information while checking whether a firm has been paying the correct taxes figures.
- Communicating results: Accounting helps in communicating the results of the performance of the firm to investors, creditors, shareholders, lenders, etc. Before investors decide to buy shares in a particular company, they need to know how it performs, which can only be communicated through financial statements.
Our online accounting tutor covers all aspects of Auditing.
Auditing is an objective evaluation and examination of a firm’s financial statements. Most of the time, this exercise is done by an external party. Auditing is a major topic in accounting. If you find yourself struggling with your auditing assignment, contact us. We have experienced online accounting tutors who have specialized in Auditing. Our tutors offer 100% original work to all students at an affordable price.
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Auditing describes the verification and examination of financial records. The main financial statements used in Auditing include the balance sheet, income statement, and cash flow statements. Through Auditing, companies can show the correct position of the financial status. Auditing is divided into three main types, these include;
- Internal Audits: An internal audit is performed by employees of an organization, firm, or company. Internal audits are purely for internal purposes and are not shared with external parties. They are majorly done for decision-making. The management of a company can undertake an internal audit to identify inefficiencies in the company. In most cases, it is done before an external audit.
- External audit: An external audit is done by external organizations, mainly third parties. An external audit aims to provide an unbiased opinion that internal auditors may give. External audits are important because they give stakeholders the confidence to make decisions. There are many well-established firms globally that undertake the work of external audits.
- Government audits: Government audits are done to ensure that accurate financial statements are presented. Companies can easily manipulate their statements to avoid the payment of taxes. However, through government audits, they are kept in check, and therefore, the right amount of taxes are paid. The purpose of a government audit is to ensure that there is no change in the tax return.
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Accounting is generally challenging, so many students prefer to look for someone to complete their assignments. There are many reasons why students are unable to do their accounting assignments on time. Some of them include hard and challenging assignments, lack of time to finish the assignment, and too many assignments at the same time.
If you are unable to finish your assignment, hire an experienced accounting assignment doer here. We have worked with thousands of accounting students, ensuring that they get good grades. Accounting is one of the most demanded courses globally. However, it is very competitive, and that is why many students fail in it. However, hiring us will always get the best grades because you are working with the best team in this field. We are committed to fulfilling our obligations and promises, and that is why we have a money-back guarantee. You can activate it should we fail to honor our contract with you. Reach out to us today and relax as we work on your accounting assignment. We cover all topics in accounting, including but not limited to;
| FASB financial accounting and reporting | Accounting information systems |
| Non-financial reporting | Business planning |
| Mergers and acquisitions | Enterprise risk management |
| Management financial accounting and reporting | Tax strategy and compliance |
| Advisory and consulting services | Audit |
| Emerging technologies in accounting | Information and data management |
| Business evaluation | Breach of contract |
| Tax fraud | Insolvency |
| Bankruptcy | Cost accounting |
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Cost accounting is the classification, recording, and allocating expenditure. It helps in determining what is necessary and where funds can be channeled more. Cost accounting has many features such as;
- It is used to record income and expenditure that relates to production.
- It helps in the provision of statistical data that can be used during estimations.
- It is concerned with cost reduction and cost control.
- Through costs accounting, one establishes budgets and standards so that there can be comparisons between the actual costs and the involved budgets.
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