Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few.
A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very good thing when large amounts of cash are not tied up in too much inventory or high supply stocks and over staffed departments. Cash will now be available for other purposes such as navigating economic waves, expansions needs or equipment maintenance and repairs.
Quality control system helps to keep financial statements legal and error free. Unintentional mistakes, misrepresentations and intentional mistakes are reduced. This will help business executives and investors to see the financial health of a ...view middle of the document...
Hard decisions have to be made when the work is not there for the associates and the company is not going to pay for associates to just sit there with nothing to do. At this point decisions must be made of what must have to be done to not pay for associates that are not needed. In most cases they are laid off and told that they may be called back in the future when the company is again in need of more associates.
Computers in my opinion do not think. They are only as smart as the person using them. It all starts in the programming area. The computer system is programmed to meet the needs of the company and the area that it is to be used in. The accounting programs will not be assessable to other areas in the company such as the data specialist area. If the accounting information is entered incorrectly and the system is programmed correctly it should be able to have a pop up window of some type to let the user know that a mistake has been made. The same mistake can be made over and over by the accounting associate and the computer will only be able to advise the user of the mistake, it will not learn anything from the mistake. A computer can’t manipulate any of the functions that are done in the accounting department. The associate who is hired to do the accounting for the company is the only one who can do the manipulating.
When data is entered wrong the financial statements will also be wrong. They will not balance and they are providing the wrong information to the business and investors. If an audit is done there may be penalties that will be brought against the company and associates may lose their jobs. When you take on the position of working in the accounting department that is one of the most important things to remember that accuracy is the number one thing that has to be taken seriously. There is no margin for error and could cost a company a lot of money unnecessarily if associates do not do their job to their upmost ability.
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