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It depends on the type of company that you operate and your intentions for the future. If the company is small and run by a sole owner or a family, then accounting policies and procedures may not be that important as long as you record all income and expenses as they are incurred.
If it is the company's desire to one day expand by issuing stock to outside investors or by borrowing money from banks or investors, then accounting policies and procedures become very important. Investors and banks will want to see financial records where accounting policies and procedures are routinely followed by management and staff. They will want to see financial statements that are based upon generally accepted accounting principles. They may even request that an independent accountant (auditor) review the company's records to ensure they are correct and reliable before loaning money to the company or investing in the company.
It really depends upon what the owners of the company wish to do now and for the future. However, established accounting policies and procedures are always recommended as a sound business policy especially if the company has hired staff to perform accounting functions.
What else can I help you with?
How much money does a tax attorney make?
It depends on the size of the firm one works at.
How much money does a chartered accountant in Australia earn?
It depends on what industry you work in. If you stay in chartered accounting working in a chartered accounting firm and eventually become partner you can expect to earn around 300K (junior partner - aground 30-34 years of age) and then when you become a full equity partner you can expect to earn around 700K (age 40+) but you have to work at a mid size firm. At the big 4 partners have been hear of to have salaries in the millions. The most important thing about accounting is the opportunity it gives you. You have an incredible grounding in finance and business so you will most like be on the board of directors of a few companies which is more cash. Either way its a great deal of money if you get to the top but it still does not compare to the top end of other finance jobs like investment bankers or funds managers.
What is recievable turnover?
What Does Receivables Turnover Ratio Mean?An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.Investopedia explains Receivables Turnover RatioBy maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient.A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.From Riem Samnang
Is it hard to do your own accounting?
It's quite possible that you'll be able to do your accounting for an office of that size. The best way to go about it is to begin working off your previous accountants system, since he's already don the initial footwork of the design process.
What plans offer two distinct advantages they do not require elaborate cost-accounting systems to calculate awards and they are easily implemented by companies of any size?
Profit sharing
What is the limitations of common-size financial statement analysis?
As with financial statements in general, the interpretation of common size statements is subject to many of the limitations in the accounting data used to construct them. For example: - Different accounting policies may be used by different firms or within the same firm at different points in time. Adjustments should be made for such differences. - Different firms may use different accounting calendars, so the accounting periods may not be directly comparable.
The size and the importance of the finance function in a business firm depends primarily on what?
size of the firm
What business opportunities are available for someone with an accounting degree?
Many people use their accounting degree to simply allow them to run their own small business from home and understand their finances. One can also choose to use their accounting degree as a Certified Public Accountant [CPA] for a large to medium size firm. During tax time every year, there is no shortage of need for someone with an accounting degree. Decide if you want to be self employed or work for a company. Detailed information can be found at http://www.onlinecareers.com/programs/business/accounting/
what is the duite of hotel manager?
A hotel manager's duties can vary depending on the size of the motel. Generally, managers set room rates and policies, hire and fire staff, oversee financial accounting, and are responsible for motel safety.
What were the impacts of the industrial revolution with the size of cities?
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Is a partner an agent of his firm?
Yes, always. Responsibility varies drastically by size of said firm but they will always be active agents of the firm, in a case or in the press
Requires that accounting standards be followed for all significant items?
Requires that accounting standards be followed for all items of significant size
Difference between running a firm in a short run and in a long run?
The short run is a firm's technology and the size of its factory, store, or office are fixed. In the long run, a firm is able to adopt new technology and to increase or decrease the size of its physical plant.
Length of an NBA Court?
Many people use their accounting degree to simply allow them to run their own small business from home and understand their finances. One can also choose to use their accounting degree as a Certified Public Accountant [CPA] for a large to medium size firm. During tax time every year, there is no shortage of need for someone with an accounting degree. Decide if you want to be self employed or work for a company. Detailed information can be found at http://www.onlinecareers.com/programs/business/accounting/
What are the Factors that determine the size of a firm?
The size of a firm is typically determined by factors such as market demand for its products or services, available resources (capital, labor, technology), economies of scale, competition in the industry, and strategic decisions made by management. Additionally, government regulations, access to financing, and industry trends can also influence the size of a firm.
What is Substantiality?
Substantiality refers to the size of the segment in terms of profitability for the firm
What is the average cash cycle of a retail firm?
The average cash cycle of a retail firm varies depending with the size of the firm. It also varies according to the geographical location and the type of goods being retailed.
