Business accounting as the name suggest deals with the accounting related to any business. Business accounting is one of the most important fields in the world of management thus this makes it one of the most prominent and important subjects in the curriculum of every university. Business accounting is very important for management because it helps the business to know the financial position in the market outside and business accounting managers accordingly help the business to form strategies to improve the financial position of the business. Business accounting is not a very tough subject. However, students still don’t score high grades because it is an extremely time consuming subject and a university student who already has a list of things to do in the entire day with limited time finds it difficult to take out a significant amount of time for the business accounting assignment. Also, business accounting is not entirely a theory subject and does require practical knowledge and experience to deal with strategies and analysis, but high school does not give students such an opportunity to deal with such practicality and students end up finding learning the concepts instead of understanding and practically applying those concepts. Are you also one of those students who aspires to choose business accounting as a career path but fears the subject? Or are you also one of those students who has time constraints and is not able to give 100% to such an important like business accounting. If yes, then you are one step closer to your target.
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In the most lay man terms it is the accounting which deals with business. It is very important to understand both the terms in brief which are: business and accounting. Business means anything related to buying and selling. It could be buying and selling of product or buying and selling of strategies etc. any venture dealing with money will be known as business. On the other hand, accounting deals with numbers and the financial position of the business. Business + Accounting make up this very important profession. It consist of three very important functions which are- Identifying the financial & economical position of the business, recording and then communicating the analysis to the internal staff and to the external people such as the investors, lenders etc.
We have always heard that a business can be large and small according to its scale of operation. Business accounting is vital for both large and small organizations.
It is generally an assumption that when a business is small it does not require core business accounting managers due its small scale financial transactions. However, this is highly mistaken as like the large scale organizations even small scale
organizations require financial experts. Rather it is more important to them as they can showcase their financial position amongst the external market. A good financial position can talk volumes about the progress of the business.
Also, small business have less capital and these experts help them by guiding them to lower their expenditure by using their capital in the most efficient and effective way. Business account managers help the business to make a strong portfolio as these small organizations require capital regularly and investors check the profitability and the ability of the firm to give back the money on the basis of the portfolio.
The topics and sub topics related to Business accounting are vast and diverse. Each topic is inter related to each other and it is of vital importance to understand each one of them.
The experts of Makemyassignments.com have thoroughly researched on the topic of business management and given ample amount of time to this subject. They have used their prior expertise knowledge and with the help of that have jotted down a few very crucial topics related to business management which every student must have a brief knowledge about. These topics are:
Management of Cash flow: Cash flow as a topic in business accounting is very important and at the same time it is very easy also. As the name suggest cash flow deals with all the transactions related to ‘cash’ and how the business management managers manage this cash. Cash flow can be defines as the process of analyzing and keeping check on all the cash transactions which involves receipts as well as payments. Cash flow is divided into three parts:
1. Operating activities- here transactions of business such as loss/profit on sale of a product, depreciation, amortization loss etc. are recorded.
2. Investing activities: here transactions of business related to the tangible goods such as machinery and its sale and purchase are recorded.
3. Financing activities: here transactions of business such as all the dealings of finance like purchase and sale of shares, share premium, debentures, loans etc. are recorded.
The Net cash flow which is a difference between the cash outflow minus the cash inflow is a crucial concept which decided the financial position of the business.
A business it its day-to-day dealings comes across various cash flow problems, a few common ones are:
In the world of technology where every day there is a new transaction it becomes very important for the business account managers to get familiar with technologies which can help them in their workings. The experts if Makemyassignments.com have researched and jotted down a few most important software’s used in the business, these are:
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