An Investigation Report on Accounting and Financial Control

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Association of Tourism and Hospitality Executive (ATHE)

ATHE level 5 Extended Diploma in Management

Unit name: Finance for Managers
Unit no: 4.9

Assignment title:
An investigation report on accounting and financial control

Submission date:
21st September 2012
Submitted by: Ahmed Shahir

ATHE registration number:

Table of contents

Introduction2
Purpose and requirements for keeping financial records3
Techniques for recording financial information 3 Legal and organisational requirements of financial purpose4 Usefulness of financial statements to stakeholders5

Difference between management and financial accounting6
Budgetary control process 8
Use of different costing methods used for pricing purpose 9 Conclusion 10
Bibliography 10

Introduction

The purpose of this report is to identify the financial and accounting control, which I’m going to explain about some purposes and requirements of financial record and how should be recorded, in this topic I have written some techniques and some ways of recording the financial document and which documents should be recorded, also I have written some information about stakeholders, and what document should be present to stakeholders. In this topic you can also find some differences between management and financial accounting, that the reader can easily compare management accounting with financial accounting.

Purpose and requirements for keeping financial record:
Financial records are track records on use of credit and how well did in paying that credit back on time.or a record is an accounting and financial document which generally supported by and summarized the information contained in source documents i.e. receipts, purchased receipt, bank deposit slips, income taxes, contracts, staff salaries etc. Here are some purposes for keeping accounting and financial records, * keeping accounting and financial record helps a company to have the track of its expenses, * helps to see that how a company is owed by others and how much owed them * assists to satisfy stakeholders

* it helps to pay the correct amount of tax (how much tax you have to pay) and to receive the correct benefits or credits and also to ovoid a company of paying extra tax or penalties * save a lot of time and efforts

* provides management information to base business decision on * provides valuable details and information for the future sales of your business where that is required

Techniques for recording financial information:
Let’s have look that what record should be kept? The law does not say how you must keep your records. We must keep some original documents which show that tax has been deducted and it is recommended that all original documents that we receive should be kept. There are two different ways to record financial information, it can be recorded by pen in paper or if we want to use new technology then we can record in CDs, floppy disks or computers and many more. Pen and paper: recording using pen and paper what has been sold and for how much, now days there is no using this type of sorting date. Using pen and paper are very old techniques for recording financial information and saving different types of information, and minority of people use this. Electronically: Most records can be kept electronically (on a computer or any storage device such as disk, CD, memory stick or microfilm) as long as the method you use: * captures all the information on the document (front and back) and * allows the information to be presented to us in a readable format, if we need to see it

Legal and organisational requirements of financial purpose:
The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is...
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