Watering Can Inc.
From: Serena Son, CPA, Director of Accounting
RE: SOLVING THE FINANCIAL ISSUES OF WATERING CAN INC. My role as a director of accounting is to help you, Melanie, with identifying the significant weakness in the company’s internal control, when to recognize the revenue, how to manage the inventory efficiently, and how to make allowance for bad debt accounts. Based on every issue that is addressed above, I will make recommendations for improvements and solutions.
USERS & OBJECTIVES There are 4 users who are using the financial statement of the Watering Can Inc.: Melanie and Jack Parkers, Sam Penn, and the Small Bank. Users are those who rely on financial statements to make decisions and their objectives are the financial reporting goal, the user strive to achieve. Melanie is the one of the sole owners of Watering Can Inc., and the primary user of the company’s financial statement. Her biggest interest is whether herself is booking the financial statement correctly, whether or not the internal control within the business is fully secured. Also, as the owner of the company, her major interest is to minimize the company’s net income, in order to pay the minimum interest to Sam and the Small Bank, under the legal constraints. Jack Parkers, the husband of Melanie, has the same interest as Melanie of minimizing the net income, as another owner of the Watering Can Inc. Sam, the Jack’s uncle, has invested $100,000 in the Watering Can Inc., and
In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial
The objective of the audit report is to inform the manager of Debonairs Magaliesview the results conducted from our meeting with her earlier this month. The possible risks that Debonairs may face will be discussed and suggestions to avoid the risks by using internal controls will be given. The report will include the different internal control systems that are used in accounting. It will then clearly outline which internal and inventory control systems that Debonairs uses. It will evaluate whether or not these systems address the risks of the business and if they are suitably applies. The audit report will have recommendations on improving stock management and control within the business.
The Account and Finance Department is committed to exceed the expectations of the company with the highest standards, service and quality work. We value the company’s goals and strive to maintain long-standing relationships with all vendors, as well as timely service.
I had a difficult time deciding on the organizational structure of Accounting and Finance without understanding the full scope of this department but I decided on three additional positions set to include: another Receivable Clerk, another Payable Clerk, and a second Financial Analyst. The Analysts will split the tasks of forecasting, budgeting, trends, data analytics, cost analysis, and organizational data requests. The analysts will assist with
Accountants should always carry out the public responsibility, meaning they have a responsibility to ensure that the accounting functions are performed to the highest possible standards and the information which an organisation provides for its stakeholders is true and accurate. To reach the goal of improving the performance of accountants, there might be several steps to undertake. There should be on-going education to keep abreast with the existing and emerging
On the other hand, the company has been growing constantly. In deed, according to the net income estimation for 2007 (see Table 7) the company increases its profits $25 thousand dollars more than the previous year. This is an evidence of how the company is been management and of its willing to grow year after year. Nevertheless, the first quarter of 2007 the working capital only has increased by $7 thousand dollars, which is the difference between the current assets and current liabilities but the importance of this is that according to the rotation on receivables and payable accounts, shown in Table 5 and 10, leads us to the conclusion that the company will have to pay its suppliers
During my time at Accounting Firm X I learned many lessons that apply not only to accounting and the principles and practices associated with that subject, but also to life as a professional in a real world work setting. The purpose of this essay is to highlight my experiences at Accounting Firm X to shed light upon key learning experiences that can contribute to a holistic educational experience. In this essay I will first describe my goals and expectations. Next, I will go in to detail about my daily routine and how these exercises contributed toward the overall experience. I will then explore the overall lessons learned from my time spent at the firm.
The auditor’s responsibilities are to audit annual financial statements and internal controls over financial reporting, and reports from the 10-Q quarterly reports. The auditor must also advice on new accounting pronouncements, and consolidating financial statements. (Intel Proxy Statement 2011, 48)
According to Will S, Ray H, & Eric E.N. (2009), management accounting is a branch of accounting that is concerned with providing information to managers who direct and control the firm’s operations. Management directing function seeks to effectively use both the human and raw material wealth of a firm to achieve organizational set objectives on routine basis. Controlling function is the art of tele-guarding the activities of the organization to consistently fall in line with set objectives. Management accounting achieves this function through effective budgeting.
* Who are the main Stakeholders of beverage companies such as Coca cola and nestle in this case? How would you prioritize their stake and how legitimate are the different stakes?