Recent Development in Accounting

FASB

The Financial Accounting Standards Board (FASB) is a seven-member independent board

consisting of accounting professionals who establish and communicate standards of financial
accounting and reporting in the United States.

BREAKING DOWN 'Financial Accounting Standards Board - FASB'

Accounting standards are crucial in an efficient market, as information must be transparent,

credible and understandable. The FASB sets out to improve corporate accounting practices by
enhancing guidelines set out for accounting reports, identifying and resolving issues in a timely
manner, and creating a uniform standard across the financial markets.

The FASB was established in 1973 as the designated organization for championing the
financial standards that govern accounting practices and the preparation of financial reports in
the private sector. In fact, it is the SEC itself that gives the FASB its governing authority. The
SEC technically has statutory authority to establish and manage financial reporting standards
under the Securities Exchange Act of 1934 but has chosen to give that power to the privately
held FASB to self-manage the private sector.

The Mission of the FASB

The stated mission of the FASB is to establish and improve financial accounting and reporting
standards and to provide useful information to investors and other people who use financial
reports. The FASB seeks to actively achieve this mission by facilitating an open and
independent reporting process that allows broad participation from company stakeholders. The
mission and activity of the FASB are overseen by the Financial Accounting Foundation’s
(FAF) Board of Trustees.

SFAS

A statement of financial accounting standards (SFAS) is a formal document issued by the

Financial Accounting Standards Board (FASB), which details accounting standards and
guidance on selected accounting policies set out by the FASB. These statements of financial
accounting standards are issued, with the expectation that all reporting companies listed on
American stock exchanges will adhere to them. The standards are created to ensure a higher
trancperency.

BREAKING DOWN 'Statement of Financial Accounting Standards - SFAS'

New SFAS releases can have a huge affect on a business' bottom line. For example, the FAS-
123(R), which refers to the expensing of share-based awards, can increase a company's
expenses dramatically, often by billions of dollars. FAS-123(R) was created to enable investors
and regulators to better evaluate the firm's true option expenses.

IASB

The International Accounting Standards Board is the independent standard-setting body of the
IFRS Foundation. The International Accounting Standards Board's mission is to develop
enforceable, globally accepted International Financial Reporting Standards (IFRS).

The International Accounting Standard Board currently consists of 14 experts with experience
in setting accounting standards, preparing/auditing financial reports and accounting education.
Members are appointed by the Trustees of the IFRS Foundation through an open process that
includes advertising vacancies and consulting financial organizations. Broad geographical
diversity among the International Accounting Standard Board members is also required,
according to the IFRS Foundation web site.

To develop IFRS, the International Accounting Standard Board works closely with
representatives from the finance sector all over the world, including investors, analysts,
regulators, business leaders, accounting standard-setters and accountants. The IFRS are
developed through an international consultation process, with input from these representatives.
There are six stages of IFRS development:

 Setting the agenda

 Planning the project
 Developing and publishing the Discussion Paper, including public consultation
 Developing and publishing the Exposure Draft, including public consultation
  Developing and publishing the Standard
 Procedures after an IFRS is issued

After an IFRS is issued, International Accounting Standard Board members hold regular
meetings with interested parties and other standard-setting bodies to discuss any issues related
to the new standard's implementation.

Key feature of IASB(IFRS)

The Conceptual Framework sets out the concepts that underlie the preparation and presentation
of financial statements for external users. The Conceptual Framework deals with:

 the objective of financial reporting (which is to provide financial information about the
reporting entity that is useful to existing and potential investors, lenders and other creditors
in making decisions about providing resources to the entity);
 the qualitative characteristics of useful financial information (relevance, faithful
representation, comparability, verifiability, timeliness and understandability); and
 the definition, recognition and measurement of the elements from which financial statements
are constructed (assets, liabilities, equity, income and expenses).

Accounting Development

Financial accounting and reporting in the sphere of business entities developed under the
umbrella of fund accounting techniques emphasizing the stewardship of funds. As interest in
business entities expanded, dissatisfaction with information provided by fund accounting
emerged. When attempts to remedy this problem developed, questions emerged as to whether
separate conceptual frameworks of accounting for business organizations should be developed.
The FASB's current position is that separate conceptual frameworks for business entities are
neither necessary nor desirable. However, the FASB does support a separate Governmental
Accounting Standards Board, which is now in operation, responsible for standard-setting in the
government sector. Nevertheless, the FASB seems to believe that several sets of objectives for
business and governmental organizations can exist and be served by a single integrated
conceptual framework. This appears to remain true even though the GASB has accepted the
initial conceptual framework standards of the NCGA.
 Latest User Friendly Software for Accounting

What is Xero?

Xero is one of the market’s favorite financial collaboration apps (or the beautiful accounting
software as its developers like to call it) listed high on our list of leaders in the accounting
category. It won our Expert’s Choice Award for 2017.

This system is designed to meet the requirements of small businesses regardless of their
industry, and is often qualified by accountants as the ‘handiest asset for managing financial
activities’. As far as our experts are concerned, Xero is friendly and usable, and collates only
top rank features that help close important accounting gaps.

Many interesting comments can be read about Xero’s business value, including such that target
it as ‘the system which wrote the best chapter in digital accounting history’. Companies, the
same as sole proprietors, like how Xero branches out the exact functions they need, developed
with user experience in the first plan.

Even users with no accounting knowledge find it easy to manage, as it transforms some of most
standardized and complex financial concepts into an enjoyable journey. Double bookkeeping,
for instance, can be traced back to the origins of business as a whole, but Xero managed to
break the stigma of it not being conductible by non-expert users. The logic and the terminology
remain the same, but operations get just as complex as your business niche needs them to be.
Being completely frank about it, it is usability that attached most of the top star rankings the
company praises with, in parallel with the fact that Xero does a better accounting job than most
prominent names in this industry. If you fear not having an experienced bookkeeper to move
the wheel, feel free to rely on Xero’s certified advisors’ guidance.

Overview of Xero Benefits

Painless setup:

Sounds like a romantic fairytale when translated to accounting terms, but launching Xero won’t
require overtimes and complex trainings. From data entry to deep accounting, Xero is designed
to facilitate the already cumbersome financial operations, and reduce the time spent scrambling
voluminous records. Once pulled inside the system, all transactions and contacts are governed
from the same page, and that’s exactly where Xero’s charm becomes most visible.
 Simplified transactions

Xero is quite generous in the configuration sense, and transaction forms allow users to
experience how that really feels. All purchase files can be edited within seconds, in particular
the ready templates offered by the system for those who prefer to skip drafting individual ones.
If you’re not that much of a creative person, open the template, and check/uncheck just as many
data fields as necessary to make the documents feel personal.

An overview on your business’s current financial health

How about an app that will genuinely provide feedback for your financial operations? Financial
reporting is among Xero’s strongest advantages, as it can summarize the effects of all your
activities, by simply filling the filters you’d like to see included. Basically, even when pulling
a standard report out of this system, that report can be tailored to your specific needs

Overview of Xero Feature

 Bank reconciliation
 Contacts – Keep track of suppliers and customers
 Dashboard
 Expense claims
 Files – Attach documents to your financial data
 Financial reporting
 Free, unlimited email support
 Inventory
 Invoicing – Create and send invoices automatically
 Log in from anywhere
 Mobile apps (Android, iPhone/iPad)
 Multi-currency
 Online accounting – Access Xero anytime, anywhere
 Payroll
 Purchase orders
 Quick and easy 1099s
 Receive bills electronically
 Smart lists – Segment contacts based on purchase history
 Fixed assets
 GST returns

What is Scoro?

A cloud-based business management software, Scoro is targeted at small to medium enterprises

specifically those in the advertising, consulting, information technology and other sectors. The
solution offers such companies features which include collaboration, work scheduling and
tracking, project management, customer relations management, quoting and billing and
advanced reporting and dashboards. Its user-friendly interface is complemented by its
elimination of the need to switch between solutions and email clients.

The software’s key feature is its control hub, from which tasks, account information, key
performance data and calendar events, among other aspects of businesses are displayed. This,
along with the solution’s user-friendly interface makes working with the platform a breeze even
for first time users. The application also provides localized solutions, offering country specific
integrations for the European market

Overview of Scoro Benefit

Cloud-based business management software Scoro is currently the most comprehensive work
management solution in the market today. It is the only platform from which users can control
their business from a single place. With Scoro, users always stay abreast of business performance
as the software allows them to see all task changes in real time. Tasks are scheduled by day, week
or month and are automatically compiled in a list, which a user can sort as needed. The platform
likewise provides security as it can allow users by different levels, ensuring that only relevant
staff are working on a specific project

Overview of Scoro Features

 Business dashboard
 Calendar management
 Task management
 Project management
 Quote management
  Customer management
 Invoices & expense management
 Financial reporting
 Work-time billing
 Scheduled invoicing
 Late invoice reminders
 Comparative reports
 Commission calculator
 Budgets & forecasts
 Resource planning
 File management & sharing
 Company news feed
 Custom fields
 Custom tags
 Multi-currency
 Multi-language
 Automated alerts
 Configurable statuses
 Lead

What is FreshBooks?

FreshBooks is an award-winning finance & accounting software and one of the best cloud
solutions for small business owners. It is the current holder of FinancesOnline’s Best
Accounting Software Award for 2016 as well as the Supreme Software Award for 2016,
and has the highest customer satisfaction rates of all similar apps in this category. As you will
find out in this review, there is a long list of reasons why our experts considered FreshBooks
for these prestigious acknowledgements.

Overview benefits
A complete makeover:

FreshBooks’ developers understand the struggle of small teams to handle complex accounting
projects and deliver efficient results, which is why they’re constantly reinventing the wheel of
how midmarket accounting should be done, and eliminating even the slightest possibility of
human errors that lead to harmful inconsistencies. The proof of this dedicated approach is their
new FreshBooks version, which simplifies the function of the current system, and adds long-
awaited, advanced features. The new version lets you enjoy a beautified and modernized
interface, natural collaboration with your team companions and partners, and improved quality
of work. Managing your business is much simpler than it used to be, having in mind their
automated task prioritization, the redesigned dashboard with outstanding customization
possibilities and late payment tracking features.

Just as easy as you know it to be :

Back in the days, a team of developers decided to design an easy, intuitive, and non-accountant
friendly finance management app, and promised their users that this approach will never
change. That’s how FreshBooks came to be a preferred straightforward accounting app, where
maintenance and upgrades are automated, and accounting is really fast. Thanks to this approach
FreshBooks is now a permanent asset of more than 5 millions of users around the globe.

Mobile-friendly and accessible:

FreshBooks is considerably good at following trends, and the best proof of it are the mobile
platform add-ons for iOS and Android devices, allowing you to access data and do accounting
regardless of your location. Both mobile platform function impeccably, and feature secure
backups to keep your data safe. With the new version of the product, they are even empowered
with a comprehensive Projects suite which empowers streamlined and seamless
communication.

Saves billing time like no other app:

FreshBooks redesigned its time tracking for billing purposes by allowing companies to accept
payment online, and to do so via various payment gateways. What is really facilitated in the
system now is capturing expenses, as all tasks are prioritized by the system, and displayed in a
way which helps you depict the most important assignments for your team.

Preserved simplicity:
Features are and, as designers promise, will continue being customizable, and allow you to
attach all the files you want, trigger notifications and set alerts for delayed payments, assign
expenses and different rates for each project, track billing, and brand invoices in an easy
manner. This is one of the many fields in which FreshBooks is completely unsurpassed.

Excellent invoice to payment features:

FreshBooks offers top rate invoice to payment features that can be used by all small businesses.
For instance, you can track exactly when your customer opened your invoice email. This can
help you deal with customers who claim they didn’t get the invoice. FreshBooks effectively
gives you the certainty that your invoices have been properly delivered to clients. In the latest
version, you will also be able to set invoice due dates, charge late fees, and turn on new online
payment options.

Overview of FreshBooks Features

Online Invoicing:

 Customizing your invoice

 Tracking Invoice Views
 Puting Business on Auto-Pilot
 Getting paid with deposits
 Getting paid with credit cards
 Customizing due dates
 Quick discounts
 Estimates
 Online Payments
 Late Payment Fees
 Recurring Invoices & Auto Payment
 Multi Currency & Multi Language
 Client Portal
 Late Payment Reminders
 Sales Taxes
 Client Credit
 Track Offline Payments
 Send Emails or Snail Mail
  Automated Tax Circulations
 Invoice Previews
 Knowing when the customer has seen the invoice

Expense Tracking:

 Automatic expense import

 Snaps
 Tracking spending per project
 Remember vendors
 Tax friendly categories
 Easy-to-read categorization
 Attach receipts (PDF or Image)
 Expense Report Filters
 File import
 Recurring Expenses
 Assign & Rebill Expenses

Time Tracking:

 Timer
 Team timesheets
 Clear breakdown of the day
 Tracking against clients and projects
 Detailed Time entry notes
 Automated bills for tracked hours per project
 Project Managers
 Track Unbilled Time
 Different Rates for each Project
 Generate Invoices

Projects:

 Sharing images and files

 Collaborating with clients, contractors, and employees
  Project due dates
 Centralized conversations
 Current Project overviews

Payments:

 MasterCard, Visa, and American Express

 Quick bank deposits
 Automatically recorded payments
 Fees recorded as expenses
 Single-click setup
 Safe & secure
 Simple payment experience

Accounting Reports & Taxes:

 Accounts Aging
 Profit & Loss
 Balance Sheet
 Expense Reports
 Item Sales
 Sales Tax
 Export to CSV or Excel
 Invoice Details Reports
 Accounts Aging Reports
 Filters for report customization
 Summary of outstanding revenue
 Clear spending breakdowns

Ease of use
All five accounting software are easy to use. They have clean interface that’s easy to navigate.
Furthermore, even non-accountants can figure out at once the workflows and tools. All have
quick onboarding process aided by intuitive tutorials.

Likewise, all solutions are accessible via Android, iOS, and web. Among the mobile apps, we
find the most responsive Softwear

Another important aspect of ease of use is, when the software is familiar to many users. This
means new accounting hires or external users are likely familiar with the software.

How Far accounting assists in managing a business

Accounting provides management with data needed to determine whether a business is at a loss
or a profit, how much debtors owe, how much a business owes others, and other financial
information. Accounting measures business transactions and as such can help steer managers
in the right direction with solid information, not gut-feelings. Basically accounting is a tool for
management to employ to help make sound business decisions on a timely manner. For
example if by using accounting information, managers notice that the trend is for sales to
decrease, then they can take measures to stop this trend. Maybe they need to change prices or
decrease expenses to handle the down-trend. The key is that accounting gave them the clue that
something may not be going according to plan, playing an important role in business
management.

Business owners often use management accounting to track, record and report financial
information for managerial review. These advantages usually correspond with the ability for
companies to improve operations and overall profitability. Business owners can also create a
competitive advantage by developing cost allocation processes in their management accounting
function. Through Accounting manager can improve cash flows, business decision and increase
financial returns.
References:
THE EVOLUTION AND CURRENT STATE OF FINANCIAL ACCOUNTING CONCEPTS AND STANDARDS IN THE
NONBUSINESS SECTOR Author(s): Raymond E. Figlewicz, Donald T. Anderson and C. David Strupeck Source:
The Accounting Historians Journal, Vol. 12, No. 1 (Spring 1985), pp. 73-98 Published by: The Academy of
Accounting Historians Stable

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