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cash flow statementthe cash flow statement summarises the flow of cash into and out of the business over a certain period of timethe cash flow
balance sheetthe balance sheet measures the financial position of the business at a particular point in time it is also called statement of
profit and loss statement the profit and loss statement is the primary measure of business performance as the name suggests this particular
financial reportseach person has their own perception on what a particular financial report should contain and invariably in what they consider to be
cash vs accrual accountingwhile it is beyond the scope of this module to assess accounting systems against all types of accounting styles it is
trial balancesif the trial balance does not result in a 0 the various records will need to be reviewed to pinpoint the spot where the unbalance
ledgersledgers record all the entries into the cash books they use the concept of double entry bookkeeping where every ledger entry must be
cash books cash payments and receipts journalscash books are the names given to the cash receipts journal and the cash payments journal they are used
source documents of an accounting systemsource documents are those documents that identify the particular transaction that is being recorded they
corrective actiononce budget figures are compared with those actually achieved and a variance analysis carried out management can then take steps to
variance analysisin its commonest form variance analysis is the process of comparing budgeted financial performance or financial goals against actual
project budgets and reporting systemsin many cases where a project is initiated and a budget allocated a separate account is created to ensure costs
accounting to budgetaccounting to budget is a commonly used term to describe how an organisation controls its accounting processtypically an
monitoring and controlling budgetsthe preparation of budgets is only part of the budget cycle once set an organisation should actively monitor
planning to achieve budget goalsit is insufficient for an organisation or a project team to simply set budget goals and expect management and
setting budget goals and objectiveshaving collected and analysed all relevant information and made general forecasts as to the key areas of concern
collecting information and forecastingall budgets must be based on accurate and reasonable information a budget derived from information which is
group activityan example of a budget can be seen below after viewing the budget identify the possible reasons for the variationsbudget - jul dec
budgetingall business owners should recognise and understand the importance of preparing and maintaining a financial budget for their businessbudgets
implementing systems effectivelymuch of the accounting process has been taken over by office automation systems whereas once the vast majority of
contingency planning once the events are evaluated and categorised and the levels of risk attaching to them have established the organisation
categorization of management riskonce each event has been evaluated and been classified as to its probability and impact the next step is to
assessing impactas with the assessment of likelihood a valuable way of assessing impact would be the creation of categories of impact as
evaluationonce all the possible events are identified the next step in the risk management process is to evaluate the events as stated previously the
identification the management riskthe first and most essential aspect of risk management is recognising what events may occur within a business