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An Analysis on Accounting

An Analysis on Accounting
An Analysis to Understand the Art of Accounting Objectives of an Accountant: The pure objective of an accountant would be to record all business transactions that are monetary in nature, in order to ascertain if the company has earned profit or suffered loss during a financial year. The financial position of the company as on a particular date can thus be understood from the accounting journals and ledgers. We are talking about the conventional purpose of accounting. But with the lapse of time, more and more is being expected from accounting, in that, it has to meet the demands and requirements of tax authorities for the purpose of income tax and sales tax returns, government regulations, investors, owners and the management. Thus it can be aptly defined as the art of recording, classifying and summarizing events in a significant manner, that involve money transactions and/ or events that are of financial character, for interpretation. Systematic records for future reference: Book keeping is an accounting practice that tells us how to keep a record of financial transactions. A firm deals with its customers and suppliers, where numerous business transactions take place every day. It is not possible for us to remember every transaction, which we might need it for our reference at a future date. Especially, if it happens to be a credit sale, definitely the necessity of systematic book keeping arises. The owner would like to know, what amount is due from whom, from time to time. To know the financial position of the firm: Every merchant is in business to earn profits. So systematic recording of factual and financial information will facilitate the owner to understand where he stands financially at the end of a financial year, what is his net profit and to pull the ropes tight if credit margin is wide. Further more, he can also understand the nature of his business growth by comparing the accounting records of two consecutive years. Taxation purposes: Some people evade tax, but no one can avoid tax. The main source of revenue generation for government is tax payments from business merchants and corporate companies. You need to pay a percentage as tax, in accordance with profit arising from sales. The accounting records that you maintain contain facts that are taken into account by the taxation authorities as a basis for assessment. Good evidence in the court of law: To prove your genuinity, in case of some disputes between yourself and the customer or supplier, your records and vouchers, if authentic and valid, are going to speak for you in the court of law as solid evidence. Accounting also answers some of these questions: How well the different departments of business have performed all along? What is the most profitable product line? What are the products whose production has to be increase and what is to be stopped in order to avoid losses? Is the cost of production reasonable or excessive? Is there a need to revise policy decisions to improve the profitability? What will be the future plans of business in the wake of existing results presented to the management? Overall, is the firm proceeding towards the right direction in terms of productivity, profitability and growth? Accounting is not only about recording and classifying, the interesting features being analysis and interpretation, which are the key factors for the development of the organization as a whole. Note: The Comptroller and Auditor General of India (CAG),is the head of the Supreme Audit Institution of India (SAI) CAG is the sole auditor of the accounts of the Central (Union) Government and the State Governments. CAG is also responsible for the audit of...
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Smart Objectives for Success

Smart Objectives for Success
SMART OBJCTIVES FOR SUCCESS An objective describes something which has to be accomplished and defines what organizations, functions, departments, teams and individuals are expected to achieve. Objectives may be operational or developmental. When the contribution is oriented towards the accomplishment of corporate objectives, in the light of the organization’s mission, core values and strategic plans, it is termed as operational; personal or learning objectives that involve the improvement of knowledge, skills and performance of individuals is termed as developmental. Objectives must be SMART: S-scientific M-motivating A-achievable R-realistic T-time bound Objectives that are mostly confined to the near future may be termed-short term objectives, which are accomplished in the stipulated time duration. Say, for example, 1000 units of pet bottles have to be produced in a week’s time. If the firm is focused on the overall production plan for the forthcoming year, then it is termed as long term objective. In a production environment, a firm has to initially go for an aggregate plan, where the production capacity of the plant is determined to make the project feasible. The firm has to make doubly sure, whether it is resourceful in terms of physical, financial and human aspects. The work centers are allotted with jobs in a mock trial to check man versus machine co-ordination and compatibility. Proper Planning: Objectives are achieved only when there is proper planning. The top management must take the pains to clearly explain the objectives to all the employees across different levels of organization to facilitate smooth functioning. When the employees understand what is expected of them, the performance gets oriented towards accomplishing the objectives; the employees get proper direction and focus. Think of this, what will happen to the sales volume, if the marketing manager does not properly educate his team about the targets to be achieved for that quarter? Definitely there will be a dip in the sales owing to the lethargic and irresponsible attitude of the manager. Ultimately, the organization stands to suffer a loss in terms of time and cost of recruiting a new person to head the marketing department. Right Person for the Right Job: Organizations have to be meticulous while choosing people for the post of managers. The chosen persons must be able to identify themselves with the organization and its objectives, so that they could be a source of inspiration for people down the line. Right people for the right job, at the right place and right time is the success mantra. Objectives have to be periodically revised in the light of changing economic, political and technological developments. If not the objectives might become obsolete and in due course you will get stranded amidst the roaring competition.  The process of business management aims at managing people and other resources to make a modest profit. How to achieve success in an open market? By clearly setting objectives that serve as tools of motivation and persuasion, a firm can evolve and contribute strategic inputs that make the objectives realistic and...
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On The Job Training Methods

On The Job Training Methods
On The Job Training Methods The method by which training is delivered often varies based on the needs of the company, the trainee, and on the task being performed. The method should suit the audience, the content, the business environment, and the learning objective. Ideally, the method chosen will motivate employees to learn, help employees prepare themselves for learning, enable the trainees to apply and practice what they’ve been taught, help trainees retain and transfer what they have learned, and integrate performance with other skills and knowledge.  The basic objective of training is learning which brings about a radical change in the perspective of an individual preparing him for the task. On the Job Training: This is the most common method of  training. The trainee is placed on the job and the manager or mentor demonstrates the trainee how to do the job. To be successful, the training  should be done according to a structured programme that uses task lists, job breakdowns, and performance standards as a lesson plan. Common on the Job training methods include:- Demonstration: Demonstration is very effective for basic skills training. The trainer shows trainees how to do something. The trainer may provide an opportunity for trainees to perform the task being demonstrated. Panel: A panel provides several points of view on a topic to look for alternatives to a situation. Panel members may have differing views but they must also have objective concerns for the purpose of the training. This is an excellent method for using outside experts. Projects: Projects require the trainees to do something on the job, which improves the business as well as helps them learn about the topic of training. It might involve participation on a team, the creation of a database, or the forming of a new process. Employees can voluntarily under-take some small projects that would better the performance of a system. This would help the employee to become noticed and others ease of doing a particular thing and a source of inspiration. Say, Simplifying a database application by introducing a new software. Mentoring: A mentor can tutor others in their learning. Mentors help employees solve problems both through training them in skills and through modeling effective attitudes and behaviors. This system is sometimes known as a buddy system. Visit our GUMROAD Ebook Store for all your MBA guide...
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Corporate Culture

Corporate Culture
The Ideology of Corporate Culture What is Corporate Culture: the collective beliefs, value systems, and processes that provide a company with its own unique flavor and attitude. Management Attitude: Globalization has necessitated organizations existing in the corporate business world to respond in a unique way in an attempt to enjoy a competitive edge in the market. Corporate culture is a value that keeps an organization intact and helps in building team spirit amongst the members. It is not possible to specifically describe or delineate the concept of culture, yet, people are aware of its fine and striking presence. Let us say that each corporate firm has a dissimilar but unique culture which embraces the values, norms, beliefs and assumptions of the members of the organization and their behavior. It is also greatly induced by the leadership style and management attitude. Role of Culture: Why do organizations need culture as a milieu? Has culture any role in improving the output? Management uses culture as a means to reach out to the employees in an informal manner, to signify what is expected of them plus what is to be expected from the management. Culture cuts through all the levels of an organization and unites the members or employees, to work towards enterprise objectives in a remarkable manner. It is a sort of identity label on the organization and its interest to promote or espouse the value systems through out the organization. Corporate culture encompasses the following qualities enlisted: Quality driven Presence of an informal atmosphere Open communication Customer centric business model Proper and likable dress code Trust and confidence amid employees Value based management CEOs’ as strategic drivers in setting a candid corporate culture CEO’s naturalness and spontaneity with the employees Gratifying employee welfare and security measures Value systems indicated by the vision and mission statements Codified employee behavior Well devised operating strategies Greater autonomy tomanagers at different levels Rewards and recognitions and so on… Corporate culture is considered to be a dogma, which many organizations utilize as a meansto develop and amalgamate prospective employee groups. An employee learns all about the firm, its activities, the role he is supposed to play, information regarding his superiors, training, career advancements or promotions, pay, employee leave procedures and the long range goals of the organization during the time of induction. The firms should capitalize on this incubation period to spruce up the minds of the employees to act in accordance with the desired values expected by the management. Value Systems: It is inevitable for each and every organization to develop a value system over a period of time based on the founder’s outlook towards business and people working for him. This creates a strong or a weak culture which has an effect on the output or performance of the employees. This also serves as a clear indication whether the organization is proceeding in the right direction. We should never forget that a sound culture eventually aims at achieving the end goals of an organization. The cultural framework of an organization facilitates this process to materialize in a smooth manner. Though intangible in nature, it wields its negative power, when not nurtured appropriately. Flourishing organizations always have pride in their robust cultural back ground, which is a mark of distinction. It definitely shapes up an organization to deliver performance that matches and often surpasses the industry standards. The head of an organization has an important role as a leader as well as a change agent in taking his organization to the next level. The mutual faith and trust between the superior and his subordinates is the anchor point of an organization. Culture – An Intervention Technique: The culture of an organization also serves as...
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How Women Entrepreneurs are Viewed by the Society

How Women Entrepreneurs are Viewed by the Society
How Women Entrepreneurs are Viewed by the Society An entrepreneur is one person who has the ability to think out of the box, to cash in on the opportunities, to think big and different, to go for innovative ideas, to take warranted risks and to make a difference amongst the ordinary lot. Modern business world and the society as a whole have understood the importance of women emerging as successful and powerful entrepreneurs which has proven good for the growth of a country’s economy. Challenges of being a woman: The challenges start at the grass root level: being a woman is sufficient enough to create a gender bias and to be looked down. Physically the differences are obvious and the strength that a man is empowered with cannot be overruled, but the inner strength and the power to conquer that a woman is empowered with can never be equaled. Running a household is even more difficult than running a corporate business. All your management principles come under the household umbrella. No tactics or strategy is left unturned for the smooth running of the household. A woman needs no training in areas of strategic planning decision making(comes naturally) developing interpersonal relationship delegating authority decentralization managing leadership motivating others and self motivation crisis management impression management quality of work Women CEO’s add Value to their Companies: Nature has blessed her with all these and many more managerial qualities that are needed to manage an organization effectively and efficiently. Gone are the days when they were treated a step down, now most of the corporates have very efficient women CEO’s and their ability is reflected in terms of productivity and profitability. Moreover a woman adds value to the company as responsibility is her second name and this works out in favor of the organization to gain the trust and confidence of its consumers, suppliers and stake holders. A woman can occupy any post of its highest kind including the presidential or prime ministerial positions. The enthusiasm that a woman entrepreneur exuberates is infectious and induces positive vibes in the organization. Be it negotiations, tackling the union leaders and workers, business travels or bargaining, nothing is a problem. She is more efficient in clinching deals and proves adventurous in concluding new business ventures. Work – Life Balance: A woman has to have a balance between her family, relationships, children and work. That is the biggest ever challenge which she handles with ease. The financial pinch that the recent economy has created has served as an eye opener for men in realizing the fact that a house needs two financial paymasters for running the show. Success Ratio of Women Entrepreneurs: Many few women entrepreneurs emerge out as victors as most of them lack support from their counterparts and lack of financial support from banks, financial institutions may also slacken the pace and hinder their progress. The success ratio has considerably increased when compared to olden days but still many of them lack the nerve to start their own business. Ignorance and lack of self reliance are the major factors hindering the development of female entrepreneurs. I have seen many women who are born in business families with natural business instinct and their added advantage would be the already available infrastructure, platform and guidance to grow and make it to the top. Even circumstances force certain women to go in for self owned business and once they taste the essence of success they never want to look back. The society has a bigger role to play in developing more women entrepreneurs by giving positive support. Women have a better judgement on role analysis and perception which turn them into better role models in any field or...
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