Reflection Of Financial And Accounting

Superior Essays
Upon the completion of this course I have come across topics that have interested me and increased my knowledge especially in the financial and accounting aspect. This course has introduced me to understanding the relationship between financial and accounting in making an effective strategic decision. In as much they sound alike they are different and used in different purposes, both accounts are important to the business but are used for different purposes. Financial statements are requirement for any organisation and are published at the end of a financial period for its stakeholder, shareholder and customers to see, they show reports of performance on a historic basis and what has been achieved over the years. At the time the statement is …show more content…
My understanding of cash flow statement is important to my business, as I am made aware of the benefits of having cash flow and also understanding that cash flow can be manipulated. I have been introduced to the importance of cash flow and understanding that without it organisations cannot pay debts, acquire the stock or resources needed to function effectively, pay wages to members of staff, or obtain finance from lenders as well as without access to cash, organisations cannot take advantage of business opportunities and, particularly during times of economic turbulence, a lack of cash can be a significant risk (Atrill, 2013). Having this in mind will enable me to take better decision regarding growing my business and sustaining my employees as well as exploring better business opportunities. In regards to my personal finances this course has developed my knowledge on the understanding that financial statement reports the financial activity of a business, which includes the wages (salary/investment on individual), …show more content…
There are different types of budgeting and planning that are available to a business, however organisation have to carefully decide what strategy works for them depending on their business model. After the completion of this topic in week 5, I was able to understand that there are unethical practices associated with budgeting one being the fact that managers might exploit the process for personal gain by purposely deflating their projected sales income to make it easier to achieve a bonus (Blumentritt, 2006). As well, Wolf (2015) stated that budgeting includes assumption, if this assumption is done wrong it can lead to managers making wrong decisions and take attentions away from problem area. This has led to my understanding as to what extent managers will continue to use budgeting to their personal gain and the global effect it will have in international business. The ethical issues associated with BSC is also not so much of a threat to business but it is important to draw the attention to the fact that managers view this as a quick fix, which can be easily installed in their

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