One of the first questions I ask our Warehouse Management students is, “Do you know your operating costs?”, and our Production Planning Management students, “Do you know the cost to produce one of your items?” After five years of training, I can count on one hand how many students were able to answer these questions, which immediately tells me their company does not utilize cost accounting. The reason students are unable to answer the question is their company only has what is called management and financial accounting in place. Management accounting focuses on historical and estimated data management needs to conduct ongoing operations and do long-range planning. The purpose of…

The term ‘Global Financial Crisis’ means economic scarcity where there exists a continuous drawback against strategic stable economic growth in the world. The underlying backgrounds with regard to the crisis had been reported in business journals for many months before September 2008, with the emphasis about the financial stringency of U.SA and world investment banks, insurance firms and mortgage Securities Companies consequent to the sub prime business crisis. Introducing with some evil critics against the business failures predominated by misapplication of risk controls for bad debts, col-lateralization of debt insurance and fraud, large financial institutions predominating in the United States and other regions in the world had confronted a credit…

Forensic accounting is the practice of utilizing accounting auditing and investigative skills to assist in legal matters. Its objective is to obtain an accurate result to establish the accountability for administrative proceedings. There are two ways of looking at this field as it has its own share of pros and cons. The upside of pursuing a forensic accounting career is that: Forensic accountants with accredited degrees are at high demand due to the increasing rates of frauds that take place these days. Hence, forensic work can be a good source of a solid income and high respect which can double up an individual’s success of a job application. Accounting careers…

Accounting is the recording, interpretation and reporting of financial transactions. Each and every business must keep proper record of all such transactions. There are several branches of accounting such as financial accounting, managerial accounting and tax accounting. Whether your business is a sole proprietorship, partnership or corporation, business men must file an income tax return and pay income taxes. Proper recording and accurate tax return will be beneficial in maintaining proper reputation of business and on the other side, poor records may result in underpaying or overpaying of taxes. It means recordkeeping will directly affect the tax return policy. In simple we can say that Tax Accounting is important for…