Management and Financial Accounting

Accounting is usually seen as having two distinct strands, Management and Financial accounting. Management accounting, which seeks to meet the needs of managers and Financial accounting, which seeks to meet the accounting needs of all of the other users. The differences between the two types of accounting reflect the different user groups that they address. Briefly, the major differences are as follows:

  • Nature of the reports produced. Financial accounting reports tend to be general purpose. That is, they contain financial information that will be useful for a broad range of users and decisions rather than being specifically designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, are often for a specific purpose. They are designed either with a particular decision in mind or for a particular manager.
  • Level of detail. Financial reports provide users with a broad overview of the performance and position of the business for a period. As a result, information is aggregated and detail is often lost. Management accounting reports, however, often provide managers with considerable detail to help them with a particular operational decision.
  • Regulations. Financial reports, for many businesses, are subject to accounting regulations that try to ensure they are produced with standard content and in a standard format. Law and accounting rule setters impose these regulations. Since management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports. They can be designed to meet the needs of particular managers.
  • Reporting interval. For most businesses, financial accounting reports are produced on an annual basis, though many large businesses produce half-yearly reports and a few produce quarterly ones. Management accounting reports may be produced as frequently as required by managers. In many businesses, managers are provided with certain reports on a monthly, weekly or even daily basis, which allows them to check progress frequently. In addition, special-purpose reports will be prepared when required (for example, to evaluate a proposal to purchase a piece of machinery).
  • Time horizon. Financial reports reflect the performance and position of the business for the past period. In essence, they are backward looking. Management accounting reports, on the other hand, often provide information concerning future performance as well as past performance. It is an oversimplification, however, to suggest that financial accounting reports never incorporate expectations concerning the future. Occasionally, businesses will release projected information to other users in an attempt to raise capital or to fight off unwanted takeover bids.
  • Range and quality of information. Financial accounting reports concentrate on information that can be quantified in monetary terms. Management accounting also produces such reports, but is also more likely to produce reports that contain information of a non-financial nature such as measures of physical quantities of inventories (stocks) and output. Financial accounting places greater emphasis on the use of objective, verifiable evidence when preparing reports. Management accounting reports may use information that is less objective and verifiable, but they provide managers with the information they need.

We can see from this that management accounting is less constrained than financial accounting. It may draw on a variety of sources and use information that has varying degrees of reliability. The only real test to be applied when assessing the value of the information produced for managers is whether or not it improves the quality of the decisions made.

The distinction between the two areas reflects, to some extent, the differences in access to financial information. Managers have much more control over the form and content of information they receive. Other users have to rely on what managers are prepared to provide or what the financial reporting regulations state must be provided. Though the scope of financial accounting reports has increased over time, fears concerning loss of competitive advantage and user ignorance concerning the reliability of forecast data have led businesses to resist providing other users with the detailed and wide-ranging information that is available to managers.

Do You Know Your Objectives in Networking?

Networking is Much More Than Socializing

Casual networkers view networking as a form of socializing without focus and without goals. Effective networkers view it as a process of relationship building with very clear goals and objectives.

Business networking, like any other business activity, must be a productive use of time. To maximize your networking effectiveness, you should therefore clearly define your goals and objectives.

Following are some of the most common objectives for business networkers:

Broaden your exposure in the marketplace and create a positive impression on as many people in your business community as possible.

Identify those who might be prospects for your products or services

Build relationships with those who offer products or services that might be of value to you or your clients.

Build relationships with those who might become referral or strategic partners.

Build relationships with those who are influential in your business community.

Build relationships with those who can further your career.

Build relationships with those who might provide business counsel or become advisors or mentors.

Those with whom you network are experts in their fields. They can answer questions about their area of specialization, share their business experience and knowledge, and may in some instances become mentors. No one can know all there is to know about business and the advice of others can at times be extremely valuable. Networking at trade association expos and conferences will allow you to meet executives from other companies who might some day be your employer or be able to recommend you for an opening they have heard about. Earning the respect of those in your local community can lead to offers when positions become available. We have all heard the idiom: “It is not what you know, it is who you know that counts.” Building relationships with the most influential members of your business community is a key to your success.

Referral partners are individuals who are able and willing to send you referrals in exchange for your help sending referrals to them. To find them at a networking event, you must have carefully thought through who the best referral partners for you might be. You must also have a strategy for turning a casual meeting into an opportunity to develop the relationship. As a business person you and the firm for which you work have needs for a wide variety of products and services. Networking is an effective way of meeting those who provide these products and services in your local community. Your customers also need a variety of products or services for business and personal use. If you can direct them to reputable providers of those services, you will be more valued as a resource and their loyalty will be enhanced. Keeping your client’s needs in mind as you meet others at networking events, should be a habit you develop.

Most view this as the primary objective of networking. To identify prospects and create sales opportunities, you must be prepared to describe your business and its benefits clearly and succinctly. You must also be ready to qualify “suspects” and, if necessary, present your Unique Selling Proposition. The goal of an initial networking contact is not to close a deal, it is to create a follow up opportunity. Networking is an extremely effective way of creating awareness in your business community. For many start up companies, it is the only form of marketing that can be afforded. Fortunately, networking can also be the most effective form of marketing available.

Most business professionals view networking as a means of marketing their business, but overlook some of the other objectives that may be equally or even more important. Too much emphasis on selling at networking events can leave a negative impression. If you want to make a positive impression, make sure the discussion centers on them, not you.

What goals and objectives have you set for your networking activities? Which are most important? How will you measure your success? Like any other business activity, you must approach your networking with goals and a plan to achieve them.

Benefits of Shopping Malls

The earliest malls were Paris Arcades in the 19th century. They became very popular with shoppers instantly. Since then shopping malls have evolved to suit people’s tastes. Shopping malls are the most preferred shopping areas in our times among shoppers across the globe.

Earlier shops in shopping centres catered to the elite. But it is no longer the case. Now, there are shops in shopping malls which cater to different budgets.

Shoppers prefer shopping centres/malls to stand-alone shops for various reasons:

1. They have their own parking facility.

2. There is a wide variety of products available.

3. There are products from competing producers available under one roof. So, they can compare and make purchases.

4. They have facilities such as restrooms.

5. They have gaming zones.

6. There are food courts with a wide variety of cuisine.

7. There are movie theatres in shopping centres.

All these features making shopping a fun-filled and satisfying experience.

Since shopping centres are the most sought-after shopping destinations, it is beneficial for a businessman to set up a store in a shopping mall. Generally, retail store owners rent shop space in a mall. Renting store space benefits the businessman in many ways.

• Shopping malls are usually located in prime locations which are easily accessible. If a retailer sets up a store in a mall, he can have the shop in a prime location with a minimal investment. On the other hand, if he attempts purchasing a shop in such a location, he may not be able to afford it. A rented property implies low initial investment. This enables the businessman to utilize the saved amount on his business.

• He can attract clients of competitors who have shops in the mall. This enables him to build a clientele easily.

• He does not have to direct his time and efforts towards the maintenance of the shop. This helps him to focus on his business.

• Generally, the charges for utilities are included in the rent. Hence, he does not have to involve himself in these matters.

• Many a time, businessmen set up pop-up stores in shopping centres in order to attract customers for new products. This is a popular location for a pop-up store as it is a high traffic area.

With so many benefits of shopping malls to shoppers as well as businessmen we can conclude that shopping centres will only rise in popularity with time.

Importance of Using Wooden Furniture and Wooden Products

Furniture is the only thing which increases the beauties of your home a lot. It pulls towards the guests to your home. So if you have a beautiful home then you should have good furniture in your home. If you are not sure what kind of furniture is suitable for your home then here is a perfect solution for you. These days, wooden furniture and wooden products are most popular than any other. Those days are passed when people used iron furniture or iron products. These are strong than wooden products but odd in looks. However there are lots of advantages of wooden furniture.

It is not true that wooden furniture and wooden products are not durable at all. If the products are made up of good quality of woods then there is no doubt about its durability. These have lighter weight than iron products. So it becomes easier to shift those from one area to another area. Therefore, if you are residing in a rental apartment then you need to use. Not only that, you can separate the parts of wooden furniture but in case of iron or steel you can not do that as those are fixed. This feature makes the wooden furniture more outstanding one.

Wooden household products are safer than iron products as wood does not conduct electricity. So it is safe for everyone in your home, especially for the children. As these are not heavy so it will not damage your sophisticated floor even after a great crash or collision. Like this you can maintain your home-floor by using the wooden furniture. You can renovate the furniture whenever you need or wish as these are not fixed like the material substances. This easy renovation feature adds another finest quality to these wooden products.

The wooden furniture and wooden products are cheaper than the iron or steel products. If you are planning for decorating your home but you do not have so much money then you can choose these wooden products. Even if you have sufficient money but you want to make your home more beautiful then you must go for the wooden furniture. At present, these are used not only in residential houses but even in commercial areas as well. You can see the wooden furniture instead of iron or steel furniture in hotels or restaurants, offices as this increase the beauty a lot.

Overall it can be said that wooden products or furniture will be the best choice. These days, the use of iron or steel products is even called old fashion. So why should not you use the wooden products or furniture while you are getting so much advantages.