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.

Pros and Cons of Managed Services

Today, there are lots of business companies which prefer to tie up with any third party company to get support on IT related chores. You can rely on the managed services for technological outsourcing as this is regarded as one of the best model for the vendors and also for the outsourcing organizations if you have a business and want to expand it overnight. Use of technology is increasing at every sector. Earlier, the organizations used calendars and various physical components to carry on their job. Now-a-days, the competition is becoming very serious. You can’t afford to miss any chance to progress. Therefore, the third party companies are coming ahead to provide help on maintaining proper infrastructure of the organization. Before relying on such company you must know the pros and cons of such services.

Pros of Managed Services

Every business organization has huge burden of expanding the business now and then. They have to make strategies and proper game plans and execute those effectively. Therefore, it becomes difficult to do all necessary services by themselves or contact manage services providers to take up the responsibilities on behalf of them.

The advantages of these services are-

1. Favorable Maintenance Infrastructure- Primarily, managed hosting companies put a number of best choices and effective performances in a nutshell. It becomes challenging for the companies to choose from their myriad set of applications. But one thing is sure that if a company hires such services, it will get well-integrated result within time. They always keep you updated, mange without any dispute and offer different level of agreements which entrust you with efficient availability.

2. Cost Effective- Have you ever thought how much do you need to invest for buying new server or organizing interview sessions to appoint recruits to host a single set of work? It is always more than contacting managed service providers. Why to spend unnecessarily while you can have the benefits of these services?

3. Easy Installation- In the competitive market of business, time is money. If you can’t run faster you’ll be lagged behind. Managed services providers always keep you in the run. They can be deployed very fast and take less time to function immediately and meet new demands.

4. Expert Monitoring- The administrative department has other assignments to complete. So, it is not possible to watch over the network hardware and servers. If the IT department of a company utilize MSP, it will be easier to monitor technological performances on the basis of 24*7.

Cons of Managed Services

1. Instability- There are certain disadvantages of MSP. Actually, when an organization depends upon these services, they assume that the business will hike a lot. If the Managed Service Provider fails to meet the need of the organization, they are the one to be blamed. Such incidents can hamper their reputation.

2. Huge Pressure- It is natural that an organization may not get positive result from a MSP. When they switch to another, they have huge expectations from the new third party organization.

Overall, it can be said that managed services providers are full of benefits for any type of business organizations. If you are expanding your business, take help from them and do your chores without any tension.

Health Benefits Of Truffles

Although truffles are very costly, there are now many more reasons to eat it apart from the truth that it is very exciting to eat a delicacy. One of these reasons is you are consuming truffles because these may bring you health benefits.

Through the years, contentions have been hounding the health benefits and nutritional value of truffles and mushrooms, generally. People say that edible mushrooms like truffles have no nutritional value at all and these are used just to add flavor to a selection of staple dishes.

Yet, more recent reports show that truffles and various sorts of mushrooms can bring a great deal of health benefits especially to vegetarians, individuals who don’t eat meat and only consume vegetables.

Technically, truffles are mushrooms that don’t have stems and are usually discovered under the ground-usually under oak, pine, beech, and pecan trees mostly in Europe including various parts of Italy, France, Slovenia and Croatia. In Asia, some varieties are located in China along with in Middle East while there are also some types native to North Africa.

So far, truffles are used only in the culinary field-as main ingredient to various dishes or as flavoring and garnishes to different specialties. The most frequent gourmet edible truffles that are being employed in various restaurants include the French Black Truffles, the Italian White Truffles, the Chinese Truffles, and the Summer Truffles.

If you are fond of eating truffles and mushrooms generally, here are the some of the health benefits that you are able to expect:

1. It is a good source of high protein. Truffles have high protein content ranging from 20 to 30 percent for each serving. Experts say that truffles are excellent sources of high protein content which it very ideal because these contain all the amino acids necessary to good nutrition for humans. For people who don’t consume fats and carbohydrates- specially to people who are having Western diets-truffles are very ideal since it is a fantastic source of protein.

2. It is in addition a moderate source of carbs. The main element of truffles and mushrooms in the main is carbohydrates derived from glycogen and chitin or also called the fungus cellulose which is a functional proponents of the fungal cell wall. All the same, compared to other vegetables, truffles have lower proportions of carbohydrates. This is in addition very good for people suffering from diabetes because truffles have low value of energy.

3. It is low-fat. As it is vegetable, truffles are ideal for individuals who cannot and do not want to consume too much fat. When dried, it has only about two to eight percent of fat which are mostly crude fat and lipid compounds such as fatty acids, sterols, phospholipids, glycerides and linoleic acid.

4. It is cholesterol free. This is probably the largest benefit to health of truffles. Through the years, cholesterol has been thought to be of the risk aspects of coronary heart conditions and other associated diseases. If you are inclined to stroke or heart attack or you have a family history any heart complaint, it would be great to consume cholesterol free food such as truffles to help you decrease your total cholesterol levels.

The Significance of Computers in Our Lives

2010; mankind has come a long way since the first discovery of fire a few hundred thousand years ago. Fire used to be a necessity then, now the computer is a necessity for us as we use it in our daily lives.

One way computers help us is in our lives. We use the computer to communicate with people such as web conferencing with friends who are overseas, to look up on information about a particular topic, socialize on social networks such as Facebook or even to do something as simple as sending an email or digital cards to friends and loved ones.

The computer has also managed to change us from reading hard copies of books, magazines and newspapers, to reading online digital documents such as online newspaper articles and e-books.

In education, lecturers are now using PowerPoint to make their lecture slides which are used during their lectures and students are now able to download the lecture slides into their computers and store it as reading documents.

In the working place, paperwork is now slowly converting from manual printing and keeping documents to storing documents in the computer. The problem with paperwork is that it takes up a lot of space and an office has limited space. Moreover, going digital will help the environment as there will be less demand for paper which results in lesser trees being cut down to be made into paper.

However, there have been some issues raised about digital documents. A digital document can be created and edited by anyone, thus this leads to the owner verification problem. It is dangerous in the working environment, because anyone can edit a contract or agreement after it has been signed and used it against the other party. Another problem would be if one accidentally deletes the document, it will be hard to trace the perpetrator and also very hard to retrace the document.