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Explaining Accounting Recording Process in 5 Simplified Steps

Most people think of accounting as the financial statements (income statement, cash flow, and balance sheet). But in realty a major part of accounting is the bookkeeping process which starts from receiving the invoice/receipt step to the reporting/presentation step. I know that there is much depth in a whole accounting process, otherwise organisations will not have stacked departments with accountants for many different roles. But generally, accounting recording process includes receiving the invoice/receipt, analysing/verifying, recording/storing, and reporting/presenting. Attribution: The icons has been designed using resources from Flaticon.com   In this post we will ...Read More

April 21, 2021|Accounting|

Is Accounting a good job for the future?

Are you a logical thinker? Do you find finance, math, and business interesting? Do you like helping people to stay organized and help businesses run efficiently and effectively? Then accounting may be the right career to pursue. But "wait," you might ask, "what about future job prospects of going through this path?" That is a valid concern with any professional pursuit, especially since the modern economy changes rapidly and considerably. In some cases, jobs, products and entire fields (film developers, anyone?) disappearing in short order. When it comes to accounting, you can rest assured that ...Read More

April 17, 2021|Accounting, Accounting Discussions|

What is the Difference Between General Ledger and Subledger?

The process of accounting usually appears intimidating to a lot of people, especially when they start reading terms like general ledger and subledger. They are just technical terms that could confuse someone who does not know accounting otherwise it should be straight forward. Let us take one step backward and look at where the term ledger and subledger come up. When the business does a financial transaction like a receipt for a purchase or an issued invoice to a customer, the accountant records that transaction in their books. The general ledger is that central repository ...Read More

January 23, 2021|Accounting, Accounting Terms|

Will Accounting Be Automated? 4 Reasons Why It Is Hard?

Since the industrial revolution, there have been numeral technological evolutions that have altered jobs. Technology has led to the systemisation and automation of jobs, which constantly threatens employees. It leads us to ask ourselves whether accounting can be automated by technology and whether your career is at risk? Will Accounting Be Automated? Different studies indicated that accounting has a high chance of being automated. In contrast, others simply show lower chances due to the complication of accounting. Optimists still hold on to the option that accounting is a pretty safe career that is not at ...Read More

January 15, 2021|Accounting, Accounting Discussions|

Understanding Revenue Recognition Methods in Accounting

While accounting methods are used for many different entities, they can be complex. It can be hard to know which one is right for you to use in your business. When it comes to revenue recognition methods there are key methods that we will address in this post. Utilising various revenue recognition method of accounting, you can customise it to fit your needs. A business changes over time, and the method you use needs to continue to be valuable when such changes are implemented. Make sure the system you rely on allows the business to ...Read More

January 7, 2021|Accounting, Accounting in Practice|

Relationship between Management and Financial Accounting

Management and financial accounting provide two approaches that are used for the purpose of monitoring, recording and explaining financial data. In a simplified language, financial accounting is defined as the process of recording the assets, liabilities, expenses and revenues that are linked to business operations. Management accounting refers to the application of accounting and numerical methods to generate and interpret information that aims to help management in its role of promoting utmost efficiency, enabling future plans and assessing their implementation.   Attribution: The icons has been designed using resources from Flaticon.com   Relationship ...Read More

December 27, 2020|Accounting, Accounting Discussions, Finance|

Is Accounting an Art or a Science?

The controversy about whether accounting is a science or an art has been a topic of debate many times, but nowadays is something perfectly defined; it's not a matter of adopting an eclectic position, but having clear concepts. Then... Is accounting an art or a science? The answer is simple: we can consider the different processes and methods used in accounting as science, and the processes of analysis and decision making as art. It has the taste of both worlds. There are a series of scientific methods that govern accounting in the way it's performed, ...Read More

December 11, 2020|Accounting, Accounting Discussions|

Operating vs Capital Leases – Lessee and Lessor Perspective

When a corporation is planning to buy a long term asset,  different acquisition ways are available, it can be by buying or leasing for example. Generally, leasing is a cheaper option because the payments will be made on instalments allowing the company to maintain its strong cash flows. There are three type of leases: 1) Operating leases, 2) Financing leases, 3) Sale-type leases. In summary, operating leases are treated as rent where the asset will return to its owner in the end of the lease period. Financing leases are treated as debt and the ownership ...Read More

November 20, 2020|Accounting|

8 Benefits of Forensic Accounting

Today, fraud is an ever-present problem that people and businesses are dealing with on a day to day basis, sometimes without even realising it. Since the development of the internet, fraud has become increasingly easier to do and, therefore, more and more common. There are laws and policies designed to stop fraud from happening, but the reality is that more needs to be done if people actually want to have any hope of getting ahead of it. One option to successfully avoid the damaging effects of fraud is utilising forensic accounting, which will help you ...Read More

November 11, 2020|Accounting, Accounting Discussions|

What are the Objectives of Accounting?

As long as there are running businesses, there will always be growing demand for professionals who can prepare and analyse financial information. As a matter of fact, according to US BLS, the projected percentage growth in employment of auditors and accountants from 2019 to 2029 is 4%, which is a stable growth rate. Accounting main objectives are to identify, record, report and plan the outcome of financial transactions of the business. In summary, accounting systems enables companies to constantly provide accurate financial data.   5 Key Objectives of Accounting Accounting features a number of objectives ...Read More

October 15, 2020|Accounting, Basics of Accounting|