What a manager has to know about accounting nothing more / nothing less
Anyone who’s worked in an office at some point or another has had to go to accounting. They’re the people who pay and send out the bills that keep the business running. They do a lot more than that, though. Sometimes referred to as “bean counters” they also keep their eye on profits, costs and losses. Unless you’re running your own business and acting as your own accountant, you’d have no way of knowing just how profitable – or not – your business is without some form of accounting.
No matter what business you’re in, even if all you do is balance a checkbook, that’s still accounting. It’s part of even a kid’s life. Saving an allowance, spending it all at once – these are accounting principles.
What are some other businesses where accounting is critical? Well, farmers need to follow careful accounting procedures. Many of them run their farms year to year by taking loans to plant the crops. If it’s a good year, a profitable one, then they can pay off their loan; if not, they might have to carry the loan over, and accrue more interest charges.
Every business and every individual needs to have some kind of accounting system in their lives. Otherwise, the finances can get away from them, they don’t know what they’ve spent, or whether they can expect a profit or a loss from their business. Staying on top of accounting, whether it’s for a multi-billion dollar business or for a personal checking account is a necessary activity on a daily basis if you’re smart. Not doing so can mean anything from a bounced check or posting a loss to a company’s shareholders. Both scenarios can be equally devastating.
Accounting is basically information, and this information is published periodically in business as a profit and loss statement, or an income statement.
But there is a lot more to know about accounting, especially if you are a manager in a department, or an entrepreneur.
If you are not an accountant, but has to know more about finance and accounting, this book is for you, written in short easy to understand chapters, like What Is Accounting Anyway?, Basic Accounting Principles , Bookkeeping, Profit and Loss, Bookkeeping Basics, Personal Accounting,
Making a Profit, Assets and Liabilities, Gains and Losses, Balance sheet, Revenue and receivables, Inventory and expenses, Depreciation, Investing and financing, Building Cash Reserves, Online accounting software, What is the FASB?, What are auditors?, What is forensic accounting?, What is the Sarbanes-Oxley Act?, What happened at Enron?, Disclosure, What is financial window dressing?, What is a corporation?, What are partnerships and limited liability companies?, What is a sole proprietorship?, Budgeting, About GAAP, Types of Costs, Measuring Costs, Parts of an Income Statement, How to analyze a financial statement, What is earnings per share, What is price/earnings ratio, What’s the difference between private and public company reporting, What are other ratios used in financial reporting, What is acid test ratio and ROA ratio?,
What are independent auditors?, What is accounting fraud?, What does an audit do?, What does an audit report contain?, How is accounting used in business? And a lot more……………..