Training-Accounting Tools and Practices
To the would-be trainees, allow me to introduce the training on Accounting Tools and Practices. This program is designed to ensure new district managers like John have a comprehensive understanding of key financial statements: company income statements and balance sheets.
It is, therefore, imperative that district managers are conversant with these tools to reinforce the effectiveness, competence, and proficiency in decision-making that will enable the overall growth of the organization and its profitability (Smith & Johnson, 2021).
As a growing organization, our recent hiring of new district managers is a clear example of this change. However, some new employees do not fully understand some basic but important management tools, such as accounting. This training should help to fill that gap by offering members of staff and other stakeholders a basic, straightforward, even literal, introduction to financial statements and the parts they are composed of (Jones et al., 2019).
Learning that aspect as a district manager helps to understand the position of the financial aspect of your operation. In other words, income statements and balance sheets are some of the most crucial financial reports that can be employed for measuring performance and planning. These financial statements, training will include the definitions and use of each statement, the most important segments of each, and how generic business expenses are reflected on them, according to Brown and Miller (2020).
Accounting Method’s Effect on Specific Financial Statements
Awareness of different ways to impact the accounts is important to the users to enable them to evaluate the financial position of a business (Smith & Johnson, 2021).
These, which are, among others, revenue recognition, inventory, depreciation, long-term contracts, and investment, directly affect the preparation of financial data and the presentation in the income statement and the balance sheet proforma (Jones et al., 2019).
For instance, in choosing the actual method of revenue recognition or undertaking the accrual accounting method, it defines when revenue is recognised and provides an inclusive picture of how the company is performing in the long term (Brown & Miller, 2020). As in the case of cost flow assumptions, inventory costing methods such as FIFO or LIFO affect the recorded value of inventory in a company’s balance sheet and, in turn, greatly influences the financial ratios and the overall status of that company.
MBA FPX 5010 Assessment 1 Training-Accounting Tools and Practices
However, the company does not select these accounting methods in the exercise randomly; it is strategic and depends on various factors like regulatory mandates, standard practices in industries, and the economic environment (Adams, 2019).
For instance, when there is an inflationary environment, an organization may want to have MBA FPX 5010 Assessment 1 Training-Accounting Tools and Practices to ensure the market prices are reflected. Also, it is crucial to note the transparency of accounting policy disclosure, which is an element of financial statements. Through this, the stakeholders are better placed to appreciate the methods used in arriving at the said figures and can thus be guaranteed to find the presented financial information accurate and relevant.
In so doing, potential investors or business partners can better understand the strategies at play in the company’s accounting practices and make more rational decisions when it comes to investing time or finances into the company or engaging in future business with it.
References
Burritt, R. L., Herzig, C., Schaltegger, S., & Viere, T. (2019). Diffusion of environmental management accounting for cleaner production: Evidence from some case studies. Journal of Cleaner Production, 224(1), 479–491.
Cleverley, W. O., Cleverley, J. O., & Parks, A. V. (2023). Essentials of health care finance. In Google Books. Jones & Bartlett Learning.
Esteva, A., Robicquet, A., Ramsundar, B., Kuleshov, V., DePristo, M., Chou, K., Cui, C., Corrado, G., Thrun, S., & Dean, J. (2019). A guide to deep learning in healthcare. Nature Medicine, 25(1), 24–29.
Mousa, S. K., & Othman, M. (2020). The impact of green human resource management practices on sustainable performance in healthcare organisations: A conceptual framework. Journal of Cleaner Production, 243(1).
