Archive for July, 2009

The reports of earnings and sales

Friday, July 17th, 2009

profit and loss, balance, balance – what do they all?

A statement of profit and loss (P & L) is a summary of all income and expenses of an enterprise during a period of time’ After a period of loss or gain of the company is calculated by subtracting the total cost of the total revenue’ The period in question could be any time but is usually one month, a quarter of a year (3 months) or a full year’ Both income and expenditure can be demonstrated in the amounts listed for each account or summary form’ AP & L, not only information on whether a company is profitable or not, but a P & G may indicate why a certain result is reached’ The amount for each type of income and each type of expenditure can be compared to a standard’ The rule in May of a budget or a relation or comparison of the industry’ These concepts will be discussed later in the series’

A balance sheet (BS) of the assets, liabilities and net worth of a company at any given time’ Again, the point in time can be any day, but in general it was reported at the end of the month, quarter or year’ BS A sample at all times that the company owns (assets), what the company needs to others (liabilities) and the net position of the firm (capital)’ The results of the equation can be represented by:

Active? Liabilities = Capital

In other words, if the total assets is greater than the total liability then the owners are positive or positive equity ownership’

An equilibrium is a list of all accounts in the transactions (income, expenses, assets, liabilities and capital), their balances at a particular point in time and if the balances are debits (Dr) or credits (Cr)’ Balance, as its name indicates, always equal, and the balance of Dr’ Cr

Ledger, debtors ledger, creditors ledger

The general ledger (GL) is a list of all transactions, the account name entered into a period of time’ GL contains all transactions of a company and is used to discuss the details of income, expenses, assets or liabilities’

Debtors and creditors ledger are the types of sub-ledger’ They are called car, and that are subsidiaries or part of the GL’ The debtor, also called accounts receivable (AR) ledger, the details of all customers who owe money to the company’ Details include all sales, all payments received and the balance to pay for each customer at any time’

By contrast, creditors ledger, also known as accounts payable (AP) ledger, the details of all suppliers to whom the firm owes him money’ Details on all purchases, all payments and the outstanding balance of the verses to each supplier at any time’

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Difference between the Journal and Ledger

Tuesday, July 14th, 2009

Journal

1′ It is the first book of entry’

2′ Once the transaction is originating, is recorded in the register

3′ Transactions are recorded in order of appearance, ie, strictly in order of dates’

4′ Story (brief description) is prepared for each entry’

5′ Folio ledger is written

6′ The information can not be determined easily, for example, cash in hand can not be found easily’

7′ The final accounts can be obtained directly from the newspapers’

8′ Accuracy of the books can not be tested’

9′ Debit and credit are recorded in the adjacent columns’

10′ Two columns of newspapers for a total flow of credit to another quantity’

11′ Journal is not balanced’

12′ With the computerization of accounting journal can not be used for transactions such as income, purchases, sales, etc’

Ledger

1′ The final product of the input’

2′ Transactions are displayed in the same after the general ledger were recorded in the register’

3′ Transactions are classified according to the nature and fall into the accounts’

4′ The story is not necessary’

5′ Folio magazine or newspaper in the letter’

6′ As the nature of the transactions are grouped in one place relevant information can be determined’

7′ Ledger is the foundation for the preparation of final accounts’

8′ Accuracy is tested through the list of books balance’

9′ Debit and credit are recorded on both sides of two different accounts’

10′ Ledger in two parts: left side right side of credit is a debit’

11′ Any account in the book is balanced in a timely manner’

12′ The general ledger can not be avoided’ However, it may be loose or a piece of log book’ Larger one indispensable book’

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What accountants and doctors have in common

Saturday, July 11th, 2009

qualified graduates of accounting at the request of the interviewer “Are there questions you would ask?” usually respond with “What are my rights and responsibilities”

Be careful’ Some interviewers intentionally mentions nothing about the duties and responsibilities To test the response of candidates’ The less confident in the face’

Generally candidates respond: “You’re lucky, I am an investigator and an accountant training’ So I can say what the duties and responsibilities of an accountant ”’ but if I’m the boss’ I know nothing about of accounting’ A friend, I applied for an accountant on Monday that the company is growing’ Now do not you tell me what the meter is supposed to do’ Is not it a profession? not teach you things like that in school’ Imagine if our society is the recruitment of a doctor in the house and the candidate asks: “What does a doctor do?”‘

Another issue for the favorite candidates for the interviewer “Are your accounts up to date?”

I quickly replied, “No’ They are very late and very dirty’” And see the reaction on the face of the candidate’ Some show a lack and insecurity’ And then added “if our bills are so beautiful and we do not need to update an accountant with us?”

Candidates must learn to listen carefully and place of all the problems by the investigator during the interview’ If there is a phrase your question carefully and ask the question mark at the session open’

Do not think about the problems you may have heard, read or whatever from somewhere and ask the interviewer’ Remember, after two or three years can have a reunion at the other end’ Think about what you like in a candidate during an interview’

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Enjoy your event – Definition of rules for their payment

Wednesday, July 8th, 2009

Frank Richards is a management consultant specializing in business service level agreements’ Last month, four seminars were held in major Australian cities, but found that the ticket money does not cover their costs’

In these days of instant payment that you believe that the problem of arrears of rates is a major problem’ Unfortunately, the days of instant payment does not coincide with the days of red tape, without the purchase ledger accounting’ Companies have their own internal rules on the collection of claims and May to take over 90 days to remove all obstacles’ Although this is probably one of the best reasons for the issuing of invitations to delegates from companies with more than three months before the event, which leaves you with the dilemma of what to do with the failure of the delegates’

The answer, like all financial matters, is to have a set of standards that the contracts are sent to the production of documents, the confirmation of registration, assembly instructions and other communications that you share their delegates in May’ There is nothing complicated about the wording, you all been? If payment is not received 21 days before the event, will not be a place reserved for the delegation?’ Choose your time realistically, if you alienate potential participants in May, knowing that his department can not meet the criteria’

Appoint an administrator of your computer as a credit analyst to keep an eye on late payments and do their job to make calls more often to ask how to delegate the payment is in progress’ This pressure is usually only expedite payment to the delegate does not want to lose their place in the event and its use to the payment terms coax money from the accounts’
What to do about late payment

In extreme cases, delegates will make their powerlessness against the moneyman who are against any party with the child in turn’ This is your opportunity to be magnanimous and allow delegates to attend the event and bring a check or cash with them, even deliver to the door’

Note that the bad debt in Australia can be measured in trillions of dollars each year and the main reason is poor management of debt, which means that people often are not sufficient to allay buyers offenders’

Therefore, be tough and strong, an event is an instant product, consumed as it is done’ If you receive your payment, a comment that you can afford, perhaps, of all players who are providing goods and services to make this event a success? You can not ask for the product will be refunded’

Be polite and understanding, he has a place on one side of an event or one-on-one counseling as an alternative’ Be as flexible as possible, but soon non-compliance by the relaxation of the rules of your organization who can not get their act together’

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Basic accounting concepts – Knowledge of Accounting

Sunday, July 5th, 2009

The book contains an entry for every transaction ever made by a company’ The great book of first entry should be the business transaction and should be updated as often as necessary to ensure that each transaction is recorded’ Since the book has all the information about each transaction in the field of history, is at the heart of all business activities, accounting activities’ Balance sheets and income statements are derived from the information contained in the ledger’ Each entry has the following information:

* The date of the transaction,
* The balance of the operation, and
* A description of the operation

Entering this information is called “mission” of a transaction and the entry itself is considered a “post”‘

May, the book largely consists of sub-records or accounts’ Examples used are sub-books of accounts receivable records and sub-sub-accounts payable records’ Every transaction that posts in the general ledger or the two sub-book and ledger’

When a book is created for the first time, the value being placed on the balance and balance of all sub-entries must be carefully determined’ The value of the assets of a company, such as money and equipment, for example, should be included in the balance from the underlying asset book’

A company ledger should be updated to include new transactions as often as necessary to prevent the process of being cumbersome’ Sometimes a sub-register should be updated more frequently than any other sub-book’

When using a method of double counting, a method based on the equation of the accounts, the book is targeted by two positions for each transaction in two sub-registers or books’ This method is beneficial because it ensures that the accounts are kept in balance, and errors in accounting are quickly identified’

If maintained, the general ledger can be a great resource for searching, verification and identification, even if the transactions were relatively long’ For example, if the accounting and reporting verification of a company, or external or internal, a care book can be a source of detailed history of transactions’

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Ledger Software

Thursday, July 2nd, 2009

The general ledger software may generate a balance sheet and income statement, it is the status of each account and provide a good balance’ Thus, the software helps to maintain the integration between the application of these accounts, while maintaining control and balance’

Therefore, if income or capital expenditures, account balances are maintained on a daily or even chosen for the child also has the account name where it should be changed with the child head to the account’

Similarly, the general ledger module is a module and give an advantage to be integrated with other modules’ It also provides a facility for the production of all entries through the entries made in the newspaper’ Therefore, they can be transferred directly to the general ledger module’ This, in turn, can also be updated for other modules’ Similarly, comparative analysis is based on data records of the previous year, the comparison is easy through software’

Additionally, this software contains the account of the head and column followed by the transaction debit and credit entries from the same’

The amount of the transaction to the overall balance that is in the child’

Additionally, this software provides security based on work by users of the results, account number and using the same survey only access’ Therefore, there are three main aspects of security in the form of access to employment, the account number based on the use and access survey’

The general ledger software for the display in various modules, such as:

- Accounts receivable (debtors)
- Accounts payable (creditors)
- Capital
- Cost of employment
- Payroll
- Extension of accounts, etc’

Besides, the state bank collects, verifies and posts general ledger data in the reconciliation process’
Some features ledger software are:

- Verification
- The ease of reversal of entries
- Statistics changes
- Interface spreadsheet
- Integration with other applications,
- States defined by the user and the benefits
- Module enough to accommodate up to a thousand companies’

RTS – Advantage General Ledger module is an example of the programs easier to use’ In this sense, the user can have many ads and an unlimited number of accounts that result in a large number of digits that follow-up message in the book’ At the same time, multiple entries can be placed in the same period, while net profit could also be referred to the hand or automated system, when calculated by the book’ This result opens the way for automating the generation of different departments and account’

Before the tickets are tracked and credited to accounts of the historic and ongoing updates to keep all the financial data as possible’

Thus, the general ledger software keeps track of all entries made into account and the net income generated accordingly’

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