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.

The Role of Technology in Education

In the current age we live in, technology has become an important component. Every day there is some new gadget or software that makes lives easier and improves on the technology and software that already exists. Making lives easier is not, however, the only role technology plays in our lives.

Technology is playing an increasing role in education. As technology advances, it is used to benefit students of all ages in the learning process.

Technology used in the classroom helps students adsorb the material. For example, since some people are visual learners, projection screens linked to computers can allow students to see their notes instead of simply listening to a teacher deliver a lecture.

Software can be used to supplement class curriculum. The programs provide study questions, activities, and even tests and quizzes for a class that can help students continue learning outside the classroom.

Technology has also become part of many curriculums, even outside of computer and technology classes. Students use computers to create presentations and use the Internet to research topics for papers and essays.

Students also learn to use the technology available to them in computer and tech classes. This ensures that after graduation they will be able to use the technology in a work setting, which may put them ahead of someone who didn’t have access to a particular technology or software in their own school setting.

As technology advances, students have better access to educational opportunities like these. When something new and “better” is revealed, the “older” technology becomes more affordable, allowing it to be used in educational settings, even when schools are on a tight budget.

Technology has also advanced to help children even before they’ve started school. Educational video games and systems for young children helps them prepare for school and in some cases get a head start on their education.

There are people who may say children are “spoiled” by technology. Instead of being able to add a long column of numbers in their heads, for example, they turn to a calculator. Regardless of these arguments, technology is an important part of today’s society. By incorporating it into the classroom, students will be better equipped to transition from the classroom to the work place.

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.

Online Forums – How to Use an Online Forum

Online forums (also known as online discussion sites, message boards, newsgroups and internet forums) are powerful tools for sharing information. Their use has become omnipresent and wide reaching. Many people use discussion sites on a daily basis, whether it’s to gain knowledge, share ideas or simply to feel as part of a community.

Why use Online Forums?

* communicate with other like-minded people who have the same or similar interests

* exchange intellectual ideas and thoughts

* offer your opinion or advice

* submit materials for others to consider and provide feedback on such as your website, business ideas or questions

* find out new opinions and ideas

* be up to date with latest news and trends

* meet new friends and leads

Participating in forums is another way to stay in contact with persons belonging to the same community and to keep abreast of recent events. It’s a place to voice your opinions, be heard and discover other’s thoughts.

This social media outlet can become addictive. For some, Online Forums provide a haven; a place to escape the daily grind and indulge in the community aura. Forum usage is certainly a concern for employers, due to reduced productivity and procrastination on behalf of the users involved. However, most of us are thankful for their existence.

How to Use Online Forums:

The appearance of an online forum may seem daunting at first. There’s information, posts and threads flowing all over the home page in what appears to be an ad hoc manner. Occasionally, the initial reaction of first time users is to put discussion sites in the too hard basket. Here’s an easy step by step guide to using Online Discussions:

* Registration. Most discussion boards require you to become a member by registering or signing up in order to post. Invariably, you will need to provide a Username (your alias), password and an email address. The forum will also require your agreement to its terms and conditions.

* Validation. After registering to an internet forum, you will need to validate your email by following the validation link emailed to you by the site.

* Rules. Familiarize yourself with the rules and netiquette required by the forum. Generally, spamming, double posting and registering multiple user accounts is prohibited. Try to adhere in order to avoid being called a troll for unintentionally breaking the rules.

* Posting. A forum has predefined topics (called threads). Members may submit messages or comments (called posts) within these topics. The message will be enclosed in a box with the username, time and date notified either on the left hand side or appearing at the top of the post. Usually members are allowed to edit or delete their own posts. Many online forums limit posts to a certain number of characters.

* Threads. A thread (topic) is started by a post. Other members may then follow in the conversation started by the original post (sometimes called the thread starter). At times the responses and comments can become derailed. The tread generally displays posts in opposite chronological order (from first to current). The abbreviation OP often refers to the original poster. Some message boards enable you to customize the view to commence with the starting post. They may also have a thread view which shows the branching of replies in priority to chronological order.

* Moderating. Moderators monitor and enforce the message board rules. They may have access to all posts and threads or just those within their area of responsibility. Mods have the power to delete a post and to ban and suspend members who violate the discussion site’s policy. The moderator is usually the site owner’s friend. Among other responsibilities, they also help members in need and respond to complaints.

If you’re a first timer to online forums, try some smaller message boards to start with. Smaller sites still have that community feel and are more than happy to accommodate beginners. Once you become accustomed to the way discussion websites work, you can then join some larger expert message boards if you wish. Above all, don’t be shy to voice your opinion; that’s what forums are for.