ACCOUNTING

Accounting

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Why is accounting important to business?

A company needs to earn a profit to thrive, and basic accounting is important for determining whether its revenue is greater than its expenses. While basic accounting is fairly simple, finding all areas where a company is spending and earning money is potentially challenging.

Investments tend to make the process more complicated. Companies need to invest to grow, but the cost of an investment changes over time. In addition, companies have the ability to change how they deal with investments in order to pay less in taxes. Accountants are able to analyze this data and determine better ways of reporting revenue, spending and investment.

Noticing changes over time is also difficult, and companies rely on accurate accounting to determine if their tactics are working well. Tracking changes in customer interest after an advertising campaign, for example, requires tracking sales before and after the campaign has begun. Accountants are able to collect this information and factor out other variables that can cause changes. Most accountants now use computer tools to help them deliver more informative analytical reports.

The role of accounting in business is to help internal 

and  external stakeholders make better business 

decisions by providing them with information.

AUDITING ACCOUNTING

ACCOUNTING AUDIT

Auditing

Auditing is the process of reviewing and investigating any aspect of a business, whether financial or nonfinancial. Auditors are fully trained to spot areas of needed improvement, potential dangers and incidents of unethical conduct in their area of expertise. Audits can disrupt the normal flow of business in a company, but the ability to spot and address potential weaknesses can outweigh any temporary losses of productivity. Among the range of issues audits can review are human resources policies, operational procedures, quality or safety policies and, of course, accounting audits.

Accounting Audits

Accounting audits bring these two distinct concepts together and can convey significant benefits to small and large businesses alike. An accounting audit by definition is a systematic review and investigation of the policies, procedures and systems put in place to record, store and present financial data within a company. Accounting audits cover the full range of the accounting cycle, looking for inconsistencies, inefficiencies, errors and incidents of unethical conduct at all steps in the process. Audits begin by analyzing the systems put in place to ensure that the accounting department receives all transaction documents in a timely manner. Audits review the accounting system in depth to ensure that all necessary accounts are present and maintained accurately. Accounting audits also review financial statements and the processes used to prepare financial statements.

ACCOUNTING SOFTWARE

Real-time accounting software and business intelligence

The demands and challenges facing businesses change every day. Whether you’re trying to reduce costs or manage compliance mandates, you must respond quickly to changes in your industry while meeting the demands of your customers. Open Systems offers you complete ERP software with a fully-integrated accounting software to accomplish all of those tasks.

• Powerful and customizable reporting
• Insight to capitalize on new opportunities
• Adaptable applications customized to your specific needs
• Maximized efficiency and productivity
• Interactive dashboards for easier decision making
• An affordable solution to deploy, to adapt to changes, and to maintain your accounting systems

INTRODUCTION TO ACCOUNTING

Introduction To Accounting Information Systems

An accounting information system is a way of tracking all accounting activity in a business. There are six included elements: people, procedures and instructions, data, hardware, software and internal controls.

The system users are people, such as accountants and business analysts. An AIS provides different departments with easy access to the same information. For example, when sales are made, sales people enter customer orders, accounting invoices customers, the warehouse assembles the order, shipping sends it, and accounting gets a new receivable.

The procedures and instructions are the methods an AIS uses to collect, store, retrieve and process data. The data can come from internal sources, like employees, or external, such as online orders.

The data is all pertinent financial information to an organization’s business practices. That includes sale orders, billing statements and sales analysis. Having it all in one AIS facilitates recordkeeping and other important functions.

Information technology infrastructure is a fancy term for the hardware an AIS uses.

Before computers, AISs were manual, paper-based systems. Today, most companies use software such as Intuit’s Quickbooks or Sage Peachtree. Software can be customized to meet unique needs, but quality and security are crucial.

And internal controls are the security measures that protect sensitive data. These can be as simple as passwords, or as complex as biometric identification.