Importance of Business Accounting Techniques for Growth Strategies
In the current scenario of business, it is very important to have certain efficient business accounting techniques so that the different areas of financing operations can be done in a precise manner.
The standard recommends the bookkeeping treatment for money charges (Engel, 2016, p.21)). The standard spreads:
- the bookkeeping treatment of current and conceded charge costs;
- acknowledgment and estimation of current expense resources and liabilities;
- acknowledgment and estimation of conceded impose resources and liabilities;
- the bookkeeping treatment of the expense outcomes of different exchanges and occasions, including resource revaluations; (Cokins and Shepherd,2017, p.34)
- the bookkeeping strategies material for when an element has charge misfortunes; furthermore,
- the revelation prerequisites in connection to impose things.
According to Sudibyo and Basuki (2017, p.86), if the consumer is satisfied as well as the precession of tax returns don’t come under the category of cheating or illegitimate transactions, it is always good for any particular organization to perform activities to save taxes. The company has an argument among its prime members that whether Deferred Tax Liabilities and Assets or DTLs and DTAs can be kept unaccounted or not. There were a significant number of board members that supported the fact that the DTAs and DTLs must be kept unaccounted so that the company can save a huge amount of man hours and monetary assets can be saved. As per Robson et al. (2017, p.36), it has been mentioned in Income Tax Assessment Acts that were enacted in 1936 as well as 1997 that the income of every major and minor operations that happens in any business organization needs to be shown to Government.
The company has decided to initiate a long-term business along with many business retailers that are located in different parts of Australia. This can be considered as a significant step towards business expansion. However, these retail shops need to be verified very precisely in order to choose the right most one. Bishop et al. (2016, p.39) have mentioned that the previous sales and number of customers that visit these stores can give a very clear idea of what the possible amount of sales can be through these retail shops. Moreover, it needs to be kept in mind that the prices are going to vary as per ratings and net worth of retail business shops and stores.
Hence, it is very important to ensure that stores are chosen very carefully. There should be some stores that are located at very densely populated area and can catapult the sales quantity. At the same time, there should be some stores that are located in some not so dense areas so that the cost of advertising can be controlled in a desirable manner. According to Millo et al. (2016, p.20), to cover up the losses caused due to less investment in less populated areas, advertising through various means can be implemented so that the people consider their opinion about visiting those places and buy the items.
Choosing the Right Retail Stores to Showcase Products
The cost that is to be paid by company to advertise their products on windows is 600AUD per month for one square meter area in one shop. Hence, it is extremely important that the area must be decorated in a very beautiful manner along with a tag with some attractive thoughts written on it. The advertising needs to be done through internet and television in order to reach as many customers as possible. According to Leuz and Wysocki (2016, p.613), the advertising needs to be done at places with maximum number of people that include metro stations, railway stations, bus stands and other similar locations.
The inclination of customers towards items due to effective advertisements and significant efforts by sales people and managers is likely to enhance the profit margin gained by the organization (Mullinova, 2016, p.61).
Under AASB 112, the present expense of an element is required to be perceived (Schaltegger et al. 2017, p.118). A present expense resource or obligation is characterized as the measure of pay charges payable or recoverable in regard of the assessable benefit or duty misfortune for a period i.e.: (Current tax liability = assessable benefit * tax rate)
As stated by Johnston and Petacchi (2017, p.1138), the records of all different entities like inbound shipping, period of display, number of items displayed, sold items and outbound shipping needs to be done in different sheets. This helps the administrative departments to ensure that records are entered correctly as well as can be fetched easily whenever necessary.
Conclusion
After completing the study related to accounting and taxation modules in a particular business, it can be said that the best way to minimize unnecessary expenses on is to remove the Business accounting for future tax impact and do the prediction for making the business grow and impact of different growth strategies.
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McKenzie and Associates From: Ms. Maria McKenzie Sent: 25 July 2017 To: Mr. Con Pewter (Pewter Ltd.) Reference: Identifying and resolving accounting issues (Year ended 30 June 2018) Dear, Con Pewter |
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McKenzie and Associates Thank You for writing to us for discussing the concerns you are facing in your organization due to various reasons. We look forward to assist you in order to resolve all your concerns that are obstructing the desired pace of growth to your company. We have gone through all the details related to the operations of your organization and found that certain things were not in places in the way they are supposed to be. Hence, we have carried out a very careful analysis and formulated some strategies as well as recommendation some of the prime areas of operations in your company. Following are some of the key points that have been recommended in the analysis. 1. We have found that there were some operations that were happening unnecessarily in your firm and were resulting into some extra burden on company funds and expenses from economic point of view. Hence, we have recommended some of the best and most suitable alternatives to reduce the surplus expenses in your company to enhance the profitable areas. We have also mentioned the activities that can carry out the accounting and taxation related operations in an economic manner. The legitimate factors related to these activities and their authenticities as per certain legislations have also been mentioned. 2. We have also suggested you some very important operations and techniques that can catapult the sales of your items and commodities in almost every different showroom. The precise calculations along with the factors that are to be kept in mind while choosing showrooms for display of your products have been stated explicitly. Moreover, the best accounting practices in order to ensure the credibility of your operations have been also described. The description also includes different scopes of profit and significance of advertisements to attract customers followed by the role of sales people in making the business successful. We hope to see your business grow exponentially while following these strategies. However, any concerns related to the described strategies and techniques will be welcomed at any point of time. We expect that your business-related operations to fetch you a high margin of monetary profit as well as enhancement in the corporate social image possessed by your organization. Thanking you in high regards for doing business with us. |
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Regards: Ms. Maria McKenzie Manager, McKenzie and Associates Contact Reference: 668 George Street, Melbourne, VIC 3000 |
Reference List
Bishop, C. C., DeZoort, F. T., & Hermanson, D. R. (2016). The Effect of CEO Social Influence Pressure and CFO Accounting Experience on CFO Financial Reporting Decisions. Auditing: A Journal of Practice & Theory, 36(1), 21-41.
Cokins, G., and Shepherd, N. (2017). The power of intangibles: we need to move beyond the narrow breadth of current financial accounting and reporting and shift to value creation. Strategic Finance, 98(11), 32-40.
Engel, C. J. (2016). A Primer on the Accounting and Reporting Requirements for Not-for-Profit Organizations. Journal of Public Management Research, 2(1), 14-24.
Johnston, R., and Petacchi, R. (2017). Regulatory oversight of financial reporting: Securities and Exchange Commission comment letters. Contemporary Accounting Research, 34(2), 1128-1155.
Leuz, C., and Wysocki, P. D. (2016). The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2), 525-622.
Millo, Y., Barman, E., and Hall, M. (2016). Accounting measurement tools and their impact on managerial decision making. economic sociology_the european electronic newsletter, 17(2), 17-23.
Mullinova, S. (2016). Use of the principles of IFRS (IAS) 39 “Financial instruments: recognitionand assessment” for bank financial accounting. Modern European Researches, 27(1), 60-64.
Robson, K., Young, J., and Power, M. (2017). Themed Section on Financial Accounting as Social and Organizational Practice: Exploring the work of financial reporting. Accounting, Organizations and Society, 56(3), 35-37.
Schaltegger, S., Etxeberria, I. Á., and Ortas, E. (2017). Innovating Corporate Accounting and Reporting for Sustainability–Attributes and Challenges. Sustainable Development, 25(2), 113-122.
Sudibyo, A. A., and Basuki, B. (2017). Financial Accounting and Reporting. In SHS Web of Conferences (Vol. 34). Greensborough: EDP Sciences.
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