Managing Business Finances in Accounting Decisions : 1 Managing Business Finances in Accounting Decisions Presented by
Dr. Paul S. Mahajan, DM, CPP
SBDC, Riverside, CA
© Procurement Solutions, LLC, Ontario, CA
Managing Finances: Accounting Decisions : 2 Managing Finances: Accounting Decisions Major components to remember
Planning Operations
Making decisions in business accounting
Making financial decisions in manufacturing
Controlling various activities
Accounting Decisions: Know your business : 3 Accounting Decisions: Know your business Types of Business Assets
Real Assets
Financial Assets
Types of Business Ownerships
Corporate-
Management-
Accounting Decisions: Business basics : 4 Accounting Decisions: Business basics Types of components to remember
Company Revenue (Credits)
Company expenditure (Debit)
Allocations (see page 10)
Accounting Decisions: Planning operations : 5 Accounting Decisions: Planning operations Decision-making Areas
Purchasing
Marketing
Administration (Financial Statement)
Manufacturing
Accounting Decisions: Controlling activities : 6 Accounting Decisions: Controlling activities Areas to control
Equipments
Production (Manufacturing)
Forecasting (Research)
Inventory
Process (Documentation/Implementation)
Accounting Decisions: Business financing : 7 Accounting Decisions: Business financing Economic Risks
Inflation: = Higher interest rates
Recession: = Lower stock prices,
Lower market values,
Crippling economy,
International markets,
Investment uncertainties
Accounting Decisions: Accounting Concepts : 8 Accounting Decisions: Accounting Concepts Business Entity Concept-
Separation of personal accounting from personal business involvement is business entity concept.
The cost concept-
The cost concept is the historical value (actually paid value) of something rather than the asset value.
Accounting Decisions: Manufacturing environment : 9 Accounting Decisions: Manufacturing environment Know your operational costs
Marketing
Administration
Design/Development/Testing
Inventory/Stock
Purchasing
Shipping/Receiving
Processing/Costs
Accounting
Accounting Decisions: Manufacturing Costs and Allocations : 10 Accounting Decisions: Manufacturing Costs and Allocations MFG. : Cost Details
Overhead-
Direct Labor-
Direct Material-
Design and Development-
Equipment/Operations-
Indirect Labor (Administration)-
Shipping/Receiving-
Subcontracts-
Transportation-
Summary: Accounting Decisions : 11 Summary: Accounting Decisions Knowing your business
Business components
Planning operations
Controlling activities
Business financing (economic risks)
Accounting concepts
Manufacturing environment
Manufacturing costs and allocations
Managing Business Finances: Accounting Decisions : 12 Managing Business Finances: Accounting Decisions Reading Sources
Brown, S. A., Chervany, N. L., & Reinicke, B. A. (2007). What matters when introducing new information technology. Communications of the ACM, 50(9), 91-96.
Harrison, B. (2007). Treasurer’s report. ASHRAE Journal, 22(12), 7.
McPhail, C. E. (2006). Respond, restore, resolve: Achieving 7-nines availability telecommunications systems in the field. Bell Lab Technical Journal, 11(3), 173-189.
Savcuk, O. (2007). Internal audit efficiency evaluation principles. Journal of Business Economics & Management, 8(4), 275-284.
Valdivia, V. (2007). Getting handle on loan fees. Journal of Accountancy, 204(2), 1-8.
Slide 13 : 13 Any Questions?
Thank you ?
NOTES : 14 NOTES ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________