Accountancy

Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers.[1]The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in selecting the information that is relevant to the user and is reliable.[2] The principles of accountancy are applied to business entities in three divisions of practical art, named accounting, bookkeeping, and auditing.[3] Accountancy is defined by the Oxford English Dictionary (OED) as "the profession or duties of an accountant". Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof."[4] Accounting is thousands of years old; the earliest accounting records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accounting methods to record the growth of crops and herds. Accounting evolved, improving over the years and advancing as business advanced.[5] Early accounts served mainly to assist the memory of the businessperson and the audience for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a business entity involving multiple investors, sodouble-entry bookkeeping first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest. The development of joint stock companies created wider audiences for accounts, as investors without firsthand knowledge of their operations relied on accounts to provide the requisite information.[6] This development resulted in a split of accounting systems for internal (i.e. management accounting) and external (i.e. financial accounting) purposes, and subsequently also in accounting and disclosure regulations and a growing need for independent attestation of external accounts by auditors.[7]

Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors. Management accounting is concerned primarily with providing a basis for making management or operating decisions. Accounting that provides information to people outside the business entity is called financial accounting and provides information to present and potential shareholders, creditors such as banks or vendors, financial analysts, economists, and government agencies. Because these users have different needs, the presentation of financial accounts is very structured and subject to many more rules than management accounting. The body of rules that governs financial accounting in a given jurisdiction is called Generally Accepted Accounting Principles, or GAAP. Other rules include International Financial Reporting Standards, or IFRS[8], or US GAAP COST DATA

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EMPLOYEE MOTIVATION AND SATISFACTION

Despite the best efforts of 1/0 psychologists to design recruitment, selection, and training programs to reduce the inherent conflict between the needs of people and those of organizations, problems still arise. Just because people can do the job and know how to do the job does not mean they will do it as required. At this point it becomes necessary to motivate employees not merely to do management's bidding, but, in many cases, to take responsibility themselves for improving the way the work is done and creating satisfying work experiences. 1/0 psychologists influence this process by identifying to what degree employees are satisfied and motivated, what factors contribute most to this status, and what the company might to do improve the situation.

There are four major approaches I/O psychologists employ to assist organizations in creating conditions conducive to high effort and effective performance:
1. Motivation. Creating organizational conditions conducive to bringing out the best in employees requires making assumptions about what motivates employees or why people work. One of the 1/0 psychologist's tasks, therefore, is to apply theories of work motivation in the development of working conditions and a reward structure that will motivate good performance. A number of such theories have been found useful for these purposes which can be classified as psychodynamic theories (which emphasize common human attributes), job content theories, and job context theories. 2. Job satisfaction. Related to motivation is the matter of employee job satisfaction. Since there is no necessary relationship between job satisfaction and productivity, and since job satisfaction is only weakly related to employee turnover and absenteeism, assessing satisfaction reflects a general assumption that since so many people spend a third or more of their waking hours at work, it ought to be satisfying rather than a noxious experience. Studies may consider overall satisfaction or, increasingly, task satisfaction. Satisfaction levels can provide a rich picture of the mood of employees which management can use as a guide to improving reward, benefit, and motivational conditions. 3. Leadership. The task of creating working conditions through administration and policymaking rests with management and supervisors. As a consequence, the study of leadership and leader behavior is of keen concern to 1/0 psychologists. Discovering what leaders do, how people come to be leaders, and how to prepare employees for leadership positions are all topics addressed by 1/0 psychologists. 4. Organization development. Finally, many I/O psychologists work in the area known as organization development, which is defined as the various activities, including job design, to help employees work better together as a group. This includes team building, leadership exercises, socio-technical approaches, quality of work life, self-managing work groups, survey feedback, and related techniques for enhancing group cohesiveness and effectiveness.

Personnel-Recruitment

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.

Hiring It means appointing the right individual i.e Finding the right people for the job.
So, who are the right people anyway? Well clearly they are the ones whose skill-sets, experience and potential are ideally matched to the role they will perform, but theres something more than that. The right people are the ones who believe in your company, its products and what it is trying to do in both the short and long term. They are the people who will approach their job with dedication and passion through good times and bad times; the people who have respect for the structures and established practices of the business but arent afraid to think for themselves and innovate where possible.

Training is a process in order to change human a being's attitude, knowledge, skills and
behavior. The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. It forms the core of apprenticeships and provides the backbone of content at institutes of technology (also known as technical colleges or polytechnics). In addition to the basic training required for a trade, occupation or profession, observers of the labor-market
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recognize as of

2008 the need to continue training beyond initial qualifications: to maintain, upgrade and update skills throughoutworking life. People within many professions and occupations may refer to this sort of training as professional development.

Finance is the study of funds management.[1] The general areas of finance are business
finance, personal finance (private finance), and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, risk and how they are interrelated. It also deals with how money is spent and budgeted.
[2]

Operating Budget
The operating budget provides an overview of the costs of running your business. In other words, the operating budget gives you an overview of the companys day-to-day expenses and income.

It gives you a chance to calculate an estimated profit. Structure of the operation budget All operating budgets for a commercial company follow this structure: Sale / Turnover - Variable costs / used goods = Gross profit - Fixed costs - Depreciation - Interests = Profit Sale / Turnover Sale / turnover means the the money you receive from the customers when they have purchased a product or service from you.

If you sell 10 pairs of shoes at 100 $ your sale / turnover will be 1.000 $

If you sell 5 hours of consultancy service at 75 $ per hour your sale /turnover will be 375 $.

Any sales tax will not be a part of the operating budget. Sales tax will be accounted for separately. - Calculate your turn over and sale Variable costs / used goods In the second line of the operating budget deduct all expenses directly connected with the sale. The more you sell the higher variable costs.

If you expect to sell 10 pair of shoes you have to buy 10 pair of shoes. If you expect to sell 7.000 pair of shoes you have to buy 7.000 pair of shoes.

The buying of shoes is directly connected with the selling of shoes (used goods).

If you produce leather shoes you have to buy leather (raw material). The purchase of leather will show as variabl goods in the budget.

Consultants rarely have expenses concerning the "variable costs / used goods". E.g. an accountant has few direct producing the yearly accounts for a client. Maybe 20 sheets of paper. They use "hours of work". This expense wi under Fixed costs in the operating budget. Gross profit The difference between Sale and Variable cost is called Gross profit. It shows how much money you have got left to pay your rent, telephone, internet access, marketing and your own pay. It is important to have focus on that figure. If you do not have a sufficiently high Gross profit you have a bad business. Always try to optimise your Gross profit. Gross profit is also called the contribution margin. - Read more about Gross Profit Fixed costs in operating budget Fixed costs will usually not be bigger if you sell more. And not smaller when you sell less. The rent of the shoe shop will be the same whether you sell 10 pairs of shoos or 150 pair of shoes. The staff can sell 150 shoes. But they only sell 10 pairs. It takes time to lay off staff so it is considered as a Fixed cost. Fixed costs can be variable - like a telephone bill. It is because it does not vary with sales volume. The variation circumstances than the sales volume. Below you find examples of fixed costs in the operating budget.

Write of / depreciation You invest in a new building for your business. Or you purchase a 10 thousand dollar machine. These big investm not deduct in the accounts the first year. The investment must be spread out over several years. One way to do it is to deduct (write of) 30 % of the value every year.

E.g. A machine cost 10.000 $. - Year 1 you can deduct 3.000 $ in the operating budget (30 % of 10.000). - Year 2 you can deduct 2.100 $ (10.000 - 3.000 = 7.000. 30 % of 7.000 = 2.100)

For specific rules in your country contact an accountant or the relevant authorities. Interest If you borrow money in a bank you can deduct the interest in the operating budget. Also the different charges the bank charges for their work can be deducted. Interest for money borrowed from family or other sources can usually not be deducted.