Accounting Is Important For Growth Sustainabilityâ€Free Samples

Accounting is very important for the growth and sustainability of both old as well as new businesses globally. The financial books, therefore, need to be in top shape every year in order for other activities to run smoothly and improve profitability. Moreover, proper accounting of financials of the businesses enhances the future trends of the business in terms of making decisions (Guthrie and Parker, 2014). This calls for efficient and long-term plans in terms of accounting for a business because the accounting needs are likely to increase as the business grows. In this case, the international financial reporting framework needs to be adopted because it is associated with several merits (Jorissen et al., 2017). To determine the effectiveness of financial accounting report statements in SMEs in Jaipur, India. The importance of financial accounts in the businesses cannot be underestimated. The scope of this study will be to focus on non listed private limited liability entities in the financial sector such as banks and other privately owned firms and companies. The SMEs will thus be selected from this class of businesses and their financial statements analyzed. Accurate financial reporting also gives the investors the willingness and confidence to invest in the business. Moreover, accurate finance reports lead to low costs of capital and ensure that the resources in a business are allocated wisely on the basis of economic development (Suddaby et al., 2015). This calls for the internationally recognized accounting standards to be used because they are of top quality. Another advantage of the global accounting standards in a business is that they can be shared, understood and embraced by several setters of standards globally. Although there are some domestic setters of financial standards, but they need to be in agreement with global setters. In this case, the basic theory of financial standards is not just theory but should be based on support. Since there are very many global standards which act as a financial to global accounting and auditing, the standards adopted should be able to achieve some results. Be hiring a reputable company to ta ke care of the accounting needs of a business, it could be possible to be moving in the right direction in terms of accounting. This makes it possible to fill in some gaps which exist in global accounting which could lead to enhanced business performance. There are some functions of business transactions such as payrolls and ledger books which are almost a daily part of any business (Armstrong et al., 2015). These transactions are carried out on the basis of a set routine and protocol which do not necessarily require expertise in business. In some cases, this can be very dangerous to the company because global accounting standards are very crucial in minimizing errors. In this case, a research will be carried out to determine the use of SMEs in Jaipur city in India. Lack of proper accounting in business is identified with various problems which can negatively affect the continuity and overall performance of a business. For instance, inappropriate accounting makes it difficult for a business to open operations in new markets (Guthrie and Parker, 2014). With increasing varied needs for various market segments, the financial companies face a lot of pressure in an effort to meet the clients' needs. As the shortage of labor increases, so does the companies become in need of talents for its employees. With the young generation adopting technologies, when they retire from service, it becomes important for a company to get other talented people so that they can create plans for the future business operations (Kaya and Koch, 2015). Moreover, there are challenges in creating a team of internal employees who can demonstrate leadership abilities. Such leaders are very crucial for the continuity of the business upon retirement. However, the challenges being faced by businesses in terms of financial accounting and auditing create problems. If some talented leaders would be trained, they would become experts in solving some of the problems that the business might face in the course of its operations (Van Auken and Carraher, 2013). Such motivated and talented employees who possess the best qualities for business operations can thus be an asset because they determine the way in which the customers, employees, and investors perceive the company (Leuz and Wysocki, 2016). However, if the resources are not appropriately allocated due to poor financial reporting, then it becomes difficult for the business to obtain external help in molding the team of next generation leaders who would build the reputation of the business. There are several problems which are associated with lack of proper financial accounting among the SMEs. Most of these classes of business do not adopt the international accounting standards and may mostly rely on their accountants. This could lead to improper decision making which affects the profitability of the business due to failure in meeting the requirements of the business. Another problem which emanates from improper financial reporting is that there are problems with regards to adoption of technology. Some businesses are so reluctant in coping and keeping abreast with the ever-changing trends in technology in order to meet the needs of the customers. Moreover, poor financial reporting could make it difficult to handle the expectations of the clients. This is because nearly every client expects to receive top quality services so that the problems that they are facing can be solved within a short time. It becomes wise that financial reporting companies maintain the customers who are of the same type in terms of meeting their expectations. Since there are variations and varied arguments on whether to use the qualitative or quantitative methods, this study will adopt the mixed methods. The mixed method will apply many data collection methods in terms of interviews and questionnaire surveys. This will allow the detailed investigation of financial reporting among the SMEs in India by use of several perspectives, a step which will increase the confidence of the researcher on the obtained data and results. The use of multiple sources will enhance a complete and holistic form of data collection for this research. As a result, elements of both the qualitative as well as the quantitative data collection methods will be used. This is because there is a wide range of research questions which needs to be answered to meet the requirements of this research. Some of these research questions are more of descriptive and exploratory, necessitating the use of mixed methods. More specifically, the inclusion of the qualitative aspects of data collection, will make it possible to understand the complex nature of the aspects that are being studied and hence a clear understanding. Since the accounting processes involve the human behaviors, the mixed research will help in gaining an understanding of the nature of usage of accounting information. The qualitative research will therefore use a detailed questionnaire which will have both open ended as well as closed ended questions. Therefore, the concurrent triangulation research approach will be used such that the quantitative and qualitative data collected will be analyzed separately but interpreted together. For the quantitative methodology, well structured interviews will be conducted to the same number of respondents on phone as well as face to face. This will ensure that each of the interviews will have the same set of questions. As such, comparisons between various types of SMEs will be easily made based on the aggregation of the obtained answers. In this case, all people of 18 years and above will be included in this study. This will be done in order to ensure that the perceptions of social media marketing in financial institutions were covered throughout all ages. More so, the various SMEs in Jaipur city will be interviewed in order to get their reactions and views concerning financial accounting and auditing in decision-making processes (Vander Bauwhede et al., 2015). Having identified the population, it is important for the researcher to draw a sample from the population. This sample is representative of the population being studied and hence the findings of the sample population can be interpreted on to represent the study population (Charan & Biswas, 2013). In this research, the sample size will be 150,000 SMEs in Jaipur city of India. In this study, simple random sampling technique will be used to interview respondents, answer the research questions and test the hypothesis. A pilot study will be carried out before the main study in order to determine the effectiveness of the data collection tool before the main survey. The variables in this research will be classified as dependent (that the researcher is interested in) and independent (affects the dependent variables). The dependent variables will include age, gender of the respondents. The independent variables will include the nature of the business, whether they use the standard financial accounting standards, level of effectiveness of the financial statements, nature of the business and whether they file the tax returns. Having chosen the sample for this study, forms of informed consent will be sent to the study participants electronically and by hand delivery. The purpose of the study will be explained to the participants and responses will be promised to be confidential and only compiled together with the views of other participants to make a general conclusion and recommendation. The questionnaires will be sent to the respondents via their email addresses while others will be delivered by hand by the research assistants. The participants will be asked to submit the filled questionnaires back to the researcher after three days. The responses received from the questionnaires and interviews will be entered in Microsoft excel, edited and coded as appropriate. The data will be exported into SPSS version 17 data analysis software, analyzed and data presented using descriptive statistics such as means, mode percentages, 5-likert scale and standard deviations. The summaries of the results will be visually presented in forms of tables, charts, and graphs. Moreover, multilinear regression model will be used to find out the use of financial accounting in SMEs. The responses received from the questionnaires will be entered in Microsoft excel, edited and coded as appropriate. The data will then be exported into SPSS version 17 data analysis software, analyzed and data presented using descriptive statistics such as means, mode percentages, 5-likert scale and standard deviations. The summaries of the results will be visually presented in forms of tables, charts, and graphs. Moreover, multilinear regression model will be used to find out the effectiveness of financial reporting for SMEs. While the multi-linear regression controls the effects on independent variables, it will also offer information concerning the effects of independent variables. It is expected that most of the SMEs that uses financial reporting are banks, tax authorities and some management entities. For the case of large SMEs, the financiers are the biggest users of accounting (Brouwer and Hoogendoorn, 2017). Since the directors form the majority of the shareholders of the SMEs, several sources of information are used for the purposes of decision making. In this case, the SMEs statements are expected to be the biggest source of information for the purpose of decision making. There is a likelihood of using both internal as well as external sources of financial accounting reporting standards (Valentinetti et al., 2016). Most of the tax liability by the directors of the SMEs can be estimated using financial statement. The use of mixed methods in research is associated with threats to the validity and reliability of the results obtained. For the primary data a test for validity and reliability will be conducted to find out whether the same results can be reproducible. However, for secondary data, there will be no need of carrying out the test because the data will have already been published and signed as passed in the financial statements of various SMEs. Some of the limitations of the methodology in this research will be in terms of the long time and effort required. Moreover, the research will require more resources in order to collect enough information to answer the set-out research questions. While many sources of information will be used in order to be confident with the research findings, most likely some of the information obtained might not be collaborative and hence there could be a possibility of the discrepancy of results. Most of the respondents who will be considered in this research are those who have sound business enterprises. Since some of the respondents who will be out of reach will be sent the questionnaires, there might be a possibility of bias in terms of ability to read, write or use internet services. Armstrong, C., Guay, W.R., Mehran, H. and Weber, J., 2015. The role of information and financial reporting in corporate governance: A review of the evidence and the implications for banking firms and the financial services industry. Brouwer, A. and Hoogendoorn, M., 2017. The role and current status of IFRS in the completion of national accounting rules–Evidence from the Netherlands. Accounting in Europe, pp.1-13. Charan, J., & Biswas, T. (2013). How to calculate sample size for different study designs in medical research?. Indian journal of psychological medicine, 35(2), 121. Guthrie, J. and D. Parker, L., 2014. The global accounting academic: what counts!.  Accounting, Auditing & Accountability Journal,  27(1), pp.2-14. Jorissen, A., Britton, A., van Mourik, C., Hoogendoorn, M. and Alexander, D., 2017. International Financial Reporting and Analysis. Kaya, D. and Koch, M., 2015. Countries’ adoption of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)–early empirical evidence. Accounting and Business Research, 45(1), pp.93-120. Leuz, C. and Wysocki, P.D., 2016. The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2), pp.525-622. Mulvey, G. J. (2015). Ethics in research. Bulletin of the American Meteorological Society, 96(3), 477-479. Suddaby, R., Saxton, G.D. and Gunz, S., 2015. Twittering change: The institutional work of domain change in accounting expertise.  Accounting, Organizations and Society,  45, pp.52-68. Valentinetti, D., Rea, M.A. and Basile, C., 2016. Differences between national reporting practices and IFRS for SMEs presentation and disclosure requirements: Evidence from Italy. International Journal of Accounting and Financial Reporting, 6(2), pp.146-174. Van Auken, H. and Carraher, S., 2013. Influences on frequency of preparation of financial statements among SMEs. Journal of Innovation Management , 1(1), pp.143-157. Vander Bauwhede, H., De Meyere, M. and Van Cauwenberge, P., 2015. Financial reporting quality and the cost of debt of SMEs. Small Business Economics, 45(1), pp.149-164.

Introduction to macroeconomics Essay Example | Topics and Well Written Essays - 1500 words

Introduction to macroeconomics - Essay Example A single estimate is then derived and published as the official estimate of GDP. There are two ways to measure the GDP, Real and the Nominal. Every country uses estimates of GDP in real terms as the international standard to measure growth in an economy. It is essential to follow a common standard so as to allow meaningful comparisons between different economies. United Kingdom follows the international conventions and European Union guidelines. This paper examines the GDP as a metric for measuring the health of an economy. It begins by analysing the distinction between the real and the nominal GDP and then goes on to elucidate the voids in using GDP as a sole quantifier of national economy. It then suggests other alternatives and gives the relative merits of using other systems to access the state of national economy of any country. The GDP of every economy tends to rise over a period of time. ... The real GDP is the value of the GDP at constant prices using a given base year value. It excludes any inflation and reflects the changes purely in volume terms; thus giving the actual level of economic activity. It is estimated using chained volume measures. The nominal GDP gives the value of GDP at current prices, prices for which year the GDP is taken. Growth in nominal GDP reflects the effects of inflation, as well as real GDP growth .It reflects change in value terms. For example to calculate the value of 1999 nominal GDP, we will sum the value of all expenditures in 1999, using the prices that prevailed then. The real GDP would be calculated by taking the sum of the values of all the expenditures in 1999, but using the prices that prevailed in the base year (2003). When the economists need to quantify inflation they take the ratio of nominal to real GDP, and take its percentage. This then is called the GDP deflator. A Time Series data of nominal and real GDP. Year GDP at current market prices (millions of pounds) GDP at constant (2003) market prices (millions of pounds) GDP Deflator (index 2003=100) Population (in millions) 1990 558,160 814,956 68.49 57.237 1991 587,080 803,892 73.03 57.439 1992 611,974 805,699 75.96 57.585 1993 642,656 824,085 77.98 57.714 1994 680,978 859,566 79.22 57.862 1995 719,747 884,748 81.35 58.025 1996 765,152 909,102 84.17 58.164 1997 811,194 936,717 86.60 58.314 1998 860,796 968,040 88.92 58.475 1999 906,567 997,295 90.90 58.684 2000 953,227 1,035,295 92.07 58.886 2001 996,987 1,059,648 94.09 59.113 2002 1,048,767 1,081,469 96.98 59.322 2003 1,110,296 1,110,296 100.00 59.554 2004 1,176,527 1,146,523 102.62 59.834 2005 1,224,715 1,167,792 104.87 60.209 Source : http://eh.net/hmit/ukgdp/ Efficacy of GDP as a

Shell Oil Company and the Technology Management Issues That It Faces Research Proposal

Shell Oil Company and the Technology Management Issues That It Faces - Research Proposal Example This report stresses that Shell uses a wide variety of technologies to deliver hydrocarbon fuels that are essential for all types of transport systems on which humanity has come to depend upon so heavily. The unquenchable thirst for hydrocarbon fuels has today forced oil firms to produce in deep oceans, but it makes sense to try to develop radically new systems, especially for transport. After all, hydrocarbon fuels are responsible for climate change and environmental degradation that cannot be sustained. Thus, radical new ideas are needed for new transport systems. However, the array of technology on which Shell depends is so vast that it is impossible for this company to assist in developing everything. Immediate benefits are possible from technology improvements in areas that are of interest to Shell production and operation, but being an energy company with a transport focus Shell is likely to benefit from anything that can reshape energy systems for transport. This paper makes a conclusion that Shell can continue to identify and develop the best and most promising, but it should also try to invest in the long-term future of humankind. Energy, the environment and climate are the long-term future because with the best of the previously mentioned, it will be difficult to continue to have a secure future. Multinationals must now try to look beyond the immediate future and their short-term profits. Attempts have to be made to try to develop solutions for the long term and efforts cannot remain confined to government or the public sector only.