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Rapid growth rates can stress resources, and outsourcing can provide the board
and management with greater confidence that finances are being adequately
maintained. Outsourced accounting individuals can help the organization catch up
on the backlog of work as well as develop enhanced reporting capabilities.
In addition, owners can be relieved of the burden of managing the accounting
function, and focus on increasing the business and managing the growing
operations.
Meaningful financial statements
The key to good financial statements is allowing the reader to easily interpret and
identify key business issues and problems before they become irreparable.
Having accurate and timely financial statements is a critical component of any
organization. An outsourced accounting teams new perspective on the current
process allows them to provide logical and useful information to the users in an
improved format.
In addition, an outsourced accountants experience working with a range of financial
statements can benefit an employer by, for instance, transforming fragmented
monthly financial statements into a simpler and more understandable format that
eliminates many cumbersome and unnecessary processes.
cheap and quick, cruder and less sensitive than individual level studies, can
be useful for studying the impact of health policy
d) Descriptive studies
The choice of qualitative versus quantitative data collection will influence the timing
of such collection, as will the choice of the evaluation being carried out
prospectively or retrospectively. The amount of data that needs to be collected will
also impact on timing, and sample-size calculations at the beginning of the
evaluation will be an important part of planning.
For qualitative studies, the sample must be big enough that enlargement is unlikely
to yield additional insights eg undertaking another interview with a member of staff
is unlikely to identify any new themes. Most qualitative approaches, in real life,
would ensure that all relevant staff groups were sampled.
For quantitative studies the following must be considered (using statistical software
packages such as Stata):
variable cost because, as the manufacturer produces more toys, its packaging costs
increase. However, if the toy manufacturer's production level is decreasing, the
variable cost associated with the packaging decreases.
An operating cost is an expense associated with day-to-day business activities and
may be variable or fixed. An example of an operating cost is a company's inventory.
Suppose a company produces and sells microchips. The microchips must be stored
and maintained, which is an operational cost to the company.
Q.6 What is financial reporting? Explain the need for financial reporting.
Answer : Definition of financial reporting :
Financial reports are the documents and records you put together to track and
review how much money your business is making (or not). The purpose of financial
reporting is to deliver this information to the lenders and shareowners (the
stakeholders) of your business. If someone else is supporting part of your business,
financial reporting must be part of the essential contract between you and them.
Financial reporting involves the disclosure of financial information to management
and the public (if the company is publicly traded) about how the company is
performing over a specific period of time. Financial reports are usually issued on a
quarterly and annual basis. This is different from management reporting, which is
financial information that is disclosed to those inside the company to be used to
make decisions within the company. Financial reports are included in a public
company's annual report.
Purpose
Financial reporting serves two primary purposes. First, it helps management to
engage in effective decision-making concerning the company's objectives and
overall strategies. The data disclosed in the reports can help management discern
the strengths and weaknesses of the company as well as its overall financial health.
Second, financial reporting provides vital information about the financial health and
activities of the company to its stakeholders including its shareholders, potential
investors, consumers, and government regulators. It's a means of ensuring that the
company is being run appropriately. You should note that if a company is publicly
traded, it is subject to some very strict reporting regulations enforced by the
Securities and Exchange Commission (SEC).