What are the doubt Advantages and Disadvantages of Financial Analysis? Financial analysis is a crucial process for evaluating the financial health and performance of a company. It involves examining financial statements, ratios, and other financial data to gain insights into the company’s profitability, liquidity, solvency, and overall financial position.
Doubt: 10 Advantages and Disadvantages of Financial Analysis
Financial analysis is a process that involves examining and evaluating financial statements and other related documents to determine the financial health of an organization. It involves a thorough review of a company’s financial performance and position over time, as well as in comparison to competitors. Financial analysis is a key component of financial planning and can help businesses make decisions regarding investments, budgeting, and forecasting.
10 Advantages and Disadvantages of Financial Analysis; Photo by Mikhail Nilov.
The Pros of Financial Analysis
Financial analysis can help businesses make informed decisions and develop sound financial strategies. It can be used to help a business identify opportunities and threats, assess potential investments, monitor and manage cash flow, and improve profitability. By identifying and analyzing trends, businesses can better plan for the future. Financial analysis can also help businesses understand their financial position and assess the impact of changes in the economy or markets.
The Cons of Financial Analysis
Financial analysis can be a time-consuming and expensive process. It requires a thorough understanding of financial concepts and terminology, and it can be difficult to understand the full picture without professional assistance. Additionally, financial analysis can be subjective, as it relies on assumptions and estimates that can vary from analyst to analyst. It can also be difficult to compare companies in different industries, as their financial statements may use different formats or terms.
Here are ten advantages and disadvantages of financial analysis:
Advantages of Financial Analysis:
Decision-making: Financial analysis provides valuable information for decision-making processes, such as investment decisions, mergers and acquisitions, and strategic planning.
Performance Evaluation: It helps assess a company’s performance over time, comparing actual results with targets and industry benchmarks.
Identifying Trends: Financial analysis helps identify trends and patterns in a company’s financial performance, allowing for proactive measures to be taken.
Financial Health Assessment: It enables an evaluation of a company’s financial stability, liquidity, and solvency, ensuring its ability to meet short-term and long-term obligations.
Benchmarking: Financial analysis allows for comparisons against industry peers and competitors, providing insights into relative performance and areas for improvement.
Investor Confidence: Transparent financial analysis enhances investor confidence by providing clear and reliable information on a company’s financial position.
Risk Assessment: Financial analysis helps identify and assess various financial risks, such as credit risk, market risk, and liquidity risk.
Capital Structure Optimization: It assists in determining the ideal capital structure by analyzing the balance between debt and equity financing.
Cost Control: Financial analysis helps identify cost-saving opportunities, inefficiencies, and areas where resources can be optimized.
Planning and Forecasting: It aids in financial planning and forecasting by providing historical data and trends, allowing for more accurate projections and budgeting.
Disadvantages of Financial Analysis:
Reliance on Historical Data: Financial analysis primarily relies on historical financial data, which may not capture future changes, market conditions, or unexpected events.
Subjectivity: Interpreting financial data involves subjective judgments and assumptions, leading to potential biases and variations in analysis.
Limited Scope: Financial analysis focuses mainly on quantitative data, potentially overlooking qualitative factors that can impact a company’s performance.
Time-consuming: Conducting thorough financial analysis requires significant time and effort to collect, organize, and analyze financial information.
Complexity: Financial analysis can be complex, requiring expertise in accounting, finance, and data analysis to derive meaningful insights accurately.
Limited Reliability: Financial analysis relies on the accuracy and integrity of financial statements and data, which may be subject to manipulation or errors.
Lack of Context: Financial analysis may not consider broader economic factors, industry dynamics, or specific company circumstances that can affect financial performance.
Incomplete Picture: Financial analysis focuses primarily on financial aspects and may not capture non-financial factors such as customer satisfaction, brand reputation, or employee morale.
Lack of Real-time Information: Financial analysis relies on periodic financial statements, which may not provide real-time insights into a company’s current financial position.
Overemphasis on Ratios: Relying solely on financial ratios for analysis may oversimplify the complexities of a company’s financial performance and may not provide a comprehensive understanding.
It is important to consider these advantages and disadvantages when conducting financial analysis to ensure a balanced and informed assessment of a company’s financial situation. Additionally, using financial analysis in conjunction with other analytical methods can help provide a more holistic view of a company’s overall performance.
Summary
Financial analysis is a crucial tool used by businesses to evaluate their financial health and make informed decisions. One of the main advantages of financial analysis is that it provides valuable insights into the company’s performance, profitability, and cash flow. This allows businesses to identify areas of improvement, make strategic decisions, and allocate resources effectively.
Furthermore, financial analysis helps in assessing the financial risks and opportunities associated with different business activities, enabling businesses to mitigate risks and capitalize on opportunities. However, financial analysis also has its disadvantages. It can be time-consuming and requires expertise in interpreting financial statements and data.
Additionally, the analysis may be limited by the availability and accuracy of financial information. Despite the drawbacks, the advantages of financial analysis far outweigh the disadvantages, making it an essential tool for businesses looking to stay competitive and achieve financial success.
On-the-job post practice of accounting major in vocational schools is the key to personnel training. Through on-the-job internships, students can improve their skills, improve their professional quality, and strengthen their post capabilities. The on-the-job internship of accounting majors should be based on financial accounting and cost accounting. However, due to the exclusiveness of accounting posts, accounting students in vocational schools face many difficulties in their on-job internships. It is necessary to find solutions to these difficulties.
Exploration of On-the-job Post Practice of Accounting Major in Vocational Schools
Vocational education refers to the education that enables the educated to acquire the professional knowledge, skills, and professional ethics needed for a certain occupation or productive labor. According to the country’s definition of practice for vocational education students, practice can be divided into cognitive practice, follow-up practice, and on-the-job practice.
Cognitive practice refers to activities such as visits before learning major professional courses, aiming to enable students to understand the future work situation, gain perceptual knowledge, enhance the connection between theory and practice, and prepare for learning professional courses. The on-the-job internship is to follow the master of the company or the specific job personnel provided by the school-enterprise cooperation.
It adopts the method of transmission and transmission so that students can experience the operation and production process of the company. On-the-job internship, as the name suggests, is to allow students to work directly on the job. At this time, students should have the knowledge and skills related to their majors, and be able to gradually meet the requirements of corporate jobs through on-the-job internships.
Through on-the-job internships, it is helpful for students to recognize the living environment of society in advance and cultivate their competitiveness in job hunting in the future. At the same time, through practice, the theoretical knowledge learned in the classroom can be applied to practice, which will help students improve their overall quality. This article is based on the post-practice of accounting majors in vocational schools.
The goal of on-the-job internships for accounting majors in vocational schools
On-the-job practice is an important part of vocational school personnel training, a part of deepening classroom teaching, and an important way for students to understand society and master relevant knowledge on the production site. It plays an important role in cultivating students’ practical ability, and innovative spirit, and establishing professionalism. effect. On-the-job practice is also an important part of practical teaching in vocational schools.
Through on-the-job practice before graduation, students’ knowledge can be expanded, and the knowledge they have learned in school can be strengthened. Strengthening post-employment ability can lay a solid foundation for subsequent work.
Through the on-the-job internship, students can keep abreast of the operation of the industry they are engaged in, expand their horizons, and simultaneously apply the various knowledge and skills they have learned in school to the on-job internship. At the same time, through on-the-job internships, students can gain practical skills in various aspects, and these skills are often not accessible to them in school.
It can enable students to further consolidate and master the professional knowledge and skills they have learned, and test the learning effect of students.
Cultivate and improve students’ practical ability, let students apply what they have learned, encourage students to obtain various relevant qualification certificates, and enhance graduates’ employment competitiveness.
Improve students’ language and writing skills by writing internship reports and graduation theses.
Since on-the-job internships are often arranged before graduation, through on-the-job internships, graduates can be psychologically prepared for employment in advance, and their excellent qualities of love and dedication can be exercised, which will help students integrate quickly after leaving the campus. society.
Contents of on-the-job internship for accounting majors in vocational schools
The internship positions provided by the school for students should be consistent with their majors. As accounting majors, the internship content can refer to basic accounting, cost accounting, financial management, and other courses, mainly involving the following aspects:
Basic skills. In the cashier position, you can master the skills of counting money. In the accounting position, it is necessary to be able to correctly review the original vouchers, fill in the accounting vouchers based on the verified original vouchers, and at the same time successfully register the accounting books.
In the face of wrong vouchers, correct correction methods can be used to correct them. In terms of voucher binding, binding specifications can be achieved, and all items can be filled in. In terms of file management, it is possible to distinguish the storage period of different files, organize and bind the files into volumes according to the requirements of the accounting agency for filing, and correctly compile the inventory of accounting files.
Through the on-the-job internship, you can understand the division of accounting positions in the company, know the accounting management system structure of the internship unit, and the implementation of the internal containment system. At the same time, you can put yourself in a position to understand the basic qualities that accountants should possess.
In the process of an on-the-job internship, when encountering various economic businesses, be able to choose the correct account, clarify the corresponding relationship between the accounts and the meaning of the corresponding account, prepare the correct accounting entries, and skillfully fill in and review the accounting vouchers.
Understand the operation steps of UFIDA, Kingdee, and other financial accounting software, and be able to use this financial software for accounting processing.
Be able to tell the basic content of account reconciliation and the method of closing accounts, and be able to establish various account book systems according to the opening rules of account books, and register various account books correctly.
Preliminarily master the composition of the total profit, and be able to correctly calculate the total profit, clarify the basic composition of the material purchase cost and product manufacturing cost, correctly allocate the main expenses, and be familiar with the calculation method of the manufacturing cost.
During the on-the-job internship, students should do a good job of accumulating materials, filling in the internship log every day, and submitting an independent internship report in time after the internship is over.
Through on-the-job internships, students should cultivate the ability to work independently, strive to improve professional skills, perform job responsibilities conscientiously, and at the same time develop good accounting professional ethics and maintain an excellent work style of dedication and dedication.
Difficulties Faced by vocational school post practice of accounting professional internships
(1) The post of the on-the-job internship is not related to the major
Compared with other majors, accounting has always been more popular, and it is a major with more enrollment every year. However, the accounting industry has its special characteristics, such as exclusivity. Some positions involve company secrets, and many positions are not suitable for interns. As a result, many companies are unwilling to accept accounting students as interns.
For vocational school students, the situation is even more embarrassing. However, internships are necessary, so the school can only arrange for some students to do internships in positions that have nothing to do with accounting. After the entire internship period, students cannot learn professional-related business knowledge, and it is difficult to achieve the expected effect of internships.
(2) Lack of teacher help during the on-the-job internship
At present, many vocational schools have arranged intern teachers in the process of on-job internships, but these teachers often have normal teaching tasks in their schools, and it is difficult to spend time understanding the situation of students’ on-job internships.
At the same time, because teachers mainly focus on theoretical teaching and lack practical experience, they often fail to give practical solutions to the problems raised by students in their work. Based on this, students, teachers, and schools lack connection during the on-the-job internship stage, which is not conducive to improving the quality of the on-job internship for students and is just a mere formality.
(3) Employment problems faced by students after the on-the-job internship
The on-the-job internship usually lasts for 6 months, and after the internship period is over, you need to return to school to continue your studies. Some students may have been approved by the internship unit during the internship, but they must return to school based on the school’s requirements. For an enterprise, it is impossible to wait until the students graduate before vacating their positions. Lost a great job opportunity.
Solutions to the Difficulties Faced by Post Practice ofAccounting Majors in Vocational Schools
(1) Strengthen school-enterprise cooperation
School-enterprise cooperation in running schools is an important direction of school education and teaching reform. The school will adhere to the road of integration of production and education and school-enterprise cooperation. Taking this opportunity for cooperation, the two sides can innovate more forms of cooperation, expand the effectiveness of cooperation, achieve a win-win situation for schools and enterprises, and better serve local economic development.
The school can cooperate with the government and enterprises to further deepen the multi-party cooperation between the government, the school, and the enterprise by building a platform for cooperation between the government, the school, and the enterprise, realize the deep integration of production, learning, teaching, and research, and truly provide high-quality skilled talents for the leapfrog development of the industry.
For example, we can cooperate with some government-supported enterprises and let accounting students go to relevant positions for internships. Participating in the actual account operations of enterprises will help students internalize book knowledge into their abilities. Some outstanding students You can even go to the tax bureau for an internship to learn tax registration, account book and voucher management, tax declaration, tax collection management, etc.
(2) Strengthen the construction of the practice instructor team
At present, most vocational school teachers are recruited from fresh graduates, which faces the problem that although the recruited teachers have high theoretical knowledge, they lack practical experience. In the accounting internship stage, teachers with rich practical experience are often required to provide guidance. Otherwise, the guidance will only stay in theory, and it will be difficult to help students grow truly.
Based on this, schools should encourage teachers to go to enterprises to strengthen their perceptual knowledge of professional knowledge and improve their practical skills through practice in enterprises. At the same time, they can also understand the gap between the school’s talent training mode and enterprise needs, to lay a solid foundation for subsequent professional construction. , personnel training and post-practice, and other work to lay the foundation.
Instructors for student internships must be selected from teachers with practical experience, to ensure the quality of internships. At the same time, teachers can understand the gap between students’ knowledge, skills, and professional quality and the requirements of enterprises through visiting enterprises, which can clarify the teaching goals.
(3) Strengthen the management work during the internship stage
Since the students are scattered into various internship units for internships, this increases the difficulty of student management. As for the school, it is necessary to clarify the safety responsibility during the internship, solve the problem of difficult management of students scattered, and the dual management of the instructor and the class teacher for the internship students.
To solve these problems, efforts should be made in the following aspects: the school should formulate a scientific and reasonable on-the-job internship system, stipulate the daily work responsibilities and the work content of the interns in the unit, and let the interns do a good job of summarizing the on-job internship work. Negotiate with the enterprise on the content and requirements of the assessment, and stipulate the job responsibilities, guidance content, and requirements of the internship instructor.
Move classrooms into enterprises and strengthen school-enterprise cooperation. Accounting positions have high requirements for professional knowledge, and the students who take the post as interns are facing the real economic business of the enterprise for the first time, so they will encounter various problems during the internship. However, the corporate accountants themselves are burdened with heavy work, and it is difficult to spare extra time to guide the students who are on on-the-job internships.
It is difficult for students to solve problems encountered during the internship process, which is not conducive to the growth of students, and the on-the-job internship loses its meaning. Therefore, the school can arrange for teachers who have experience in enterprises to give intensive lectures to the intern students in enterprises, and students can ask the instructors about various professional problems encountered in the work. Internships get twice the result with half the effort.
Exploration of On-the-job Post Practice of Accounting Major in Vocational Schools; Photo by Pavel Danilyuk.
Accounting professional simulated practice is one of the key channels to enhance the accounting application aptitude and comprehensive practice aptitude of higher vocational students which is widely acknowledged by all walks of life.
How to 3 Implement Simulated Practice in Accounting
Accounting is a management subject that requires high application aptitude and practical aptitude of the students. It needs to focus on the cultivation of high-quality compound aptitude.
Faced with the complex and ever-evolving economic development scenario, higher vocational colleges need to rethink their teaching ideas, offer students professional simulated internship positions, and further improve the practical aptitude and professionalism of the students.
However, in the context of the new era students majoring in Accounting in higher vocational colleges usually pay little attention to the professional simulation practice, practice courses are dull and practice training is inadequate.
Higher vocational colleges need to strengthen effective research on the accounting majors, innovate specific content of the simulated internship positions and improve the quality of students’ internships.
Under the background of the new era, higher vocational education is an important part of the modern education system, and its purpose is to focus on cultivating a group of technical and application-oriented craftsmen. For accounting majors in higher vocational colleges, it is necessary to cultivate a group of production-oriented and service-oriented talents through practical activities and technical means based on cultural theory courses.
Facing the era of big data, higher vocational colleges are also facing new challenges and opportunities, so it is imperative to strengthen students’ production practices and social practices. Higher vocational colleges should reasonably carry out simulated practice activities, strengthen school-enterprise cooperation, help students apply theory to reality through practical exercises, and improve accounting application ability in practical jobs.
The important role of accounting simulation practice
In the new era, various employment pressures in different industries are high, and the economic development situation is becoming increasingly severe. Higher vocational colleges must carry out simulation training for accounting majors.
(1) Guarantee the overall teaching effectiveness of accounting majors
In the process of practical teaching in higher vocational colleges, through several years of basic theoretical study, students have a relatively solid grasp of theoretical knowledge. However, if there is a lack of practical opportunities, it will seriously affect the performance of students in future jobs.
For this reason, carrying out accounting simulation training can create a better practical atmosphere, create good opportunities for students to enhance the application of theory, help students transform abstract theories into practical training, and further help students acquire the overall knowledge of accounting work. process.
At the same time, practical training can also help vocational colleges to cultivate more outstanding talents. Professional simulated practical training, can promote the effective integration of theory and practice, further consolidate students’ mastery of accounting theoretical knowledge, and ensure the actual teaching effect of accounting majors.
(2) It is conducive to enhancing the student’s sense of achievement in learning
With the help of simulated internships for accounting majors, students can change their passive learning methods in the process of practice and give full play to their subjective initiative to understand the specific requirements of internship positions.
Students can complete the filling of original vouchers to accounting vouchers, register some internal account books, accurately fill in lists, analyze reports, etc., strengthen the practical training of the entire process of accounting work, and help students gain a sense of accomplishment in their studies.
At the same time, simulated practice can mobilize students’ enthusiasm for accounting learning, make students more enthusiastic about accounting jobs, and can also stimulate students’ learning motivation in the process of completing tasks.
(3) It is conducive to the cultivation of accounting application-oriented professionals
With the continuous transformation and upgrading of the economy and society, the competition in the market economy is intensifying day by day, and the overall environment of the accounting industry is constantly changing, so the practical requirements for accountants are relatively high.
After entering the working position, higher vocational students should not only master the various abilities of accounting, bookkeeping, accounting, and accounting statements but also can analyze the long-term development of accounting and the ability to judge economic trends.
Therefore, through professional accounting simulation training, it is beneficial to cultivate students’ professional ethics, enhance professional operation ability, enable students to better deal with specific problems in practical positions, and improve students’ accounting analysis ability and information judgment ability.
Problems Existing in the Simulation Practice of Accounting Majors in Higher Vocational Colleges
As we all know, accounting itself has certain practical value and technical value. If you want to scientifically master the basic theory of accounting and make some achievements in future practical work, you should carry out practical exercises in advance. However, under the current accounting teaching environment, limited by various factors, there are many difficulties in the process of carrying out internships in accounting positions outside the school, and at the same time, the expected internship effect cannot be achieved. The specific problems are as follows:
(1) There are certain problems at the policy and local government levels
The lack of laws on education construction in higher vocational colleges hinders school-enterprise cooperation. At this stage, some supportive policies issued by our country to higher vocational colleges are mostly expressed in the basic form of opinions and norms, and most of the proposals put forward are initiative-type proposals, not strictly complied with laws and regulations.
Therefore, for some higher vocational colleges to carry out educational and teaching activities, although the authority is strong, the legal system is not effective, which affects the smooth development of some simulation practices. Considering that the relevant laws in my country’s school-enterprise cooperation are still in a blank state, it is impossible to use specific laws as a basis in the simulation practice process.
At the same time, due to the imperfect local regulations and supervision mechanism of simulated practice, the operability of simulated practice in some higher vocational colleges is relatively low. At the legal level of internships, there is a lack of certain illegal cost regulations and strong legal constraints, which has led to some companies often operating in violation of regulations and violating internship agreements.
(2) There are problems in accounting teaching in higher vocational colleges, which affect the cultivation of students’ professional quality
First, there are limitations in the training of accounting majors, which are decoupled from actual job requirements. At present, the training of accounting professionals in higher vocational colleges should take employment as the guideline. However, in the training process of accounting talents in some higher vocational colleges, there is often a mismatch between basic courses and internship positions, ignoring the problems of career orientation and the characteristics of the accounting industry.
To a certain extent, it affects the role and effect of accounting simulation practice. In the accounting teaching of some higher vocational colleges, the theoretical courses of subject knowledge are used as the basic course system, paying too much attention to theoretical teaching and ignoring reality. Therefore, although the trained accounting students have solid theoretical grades, it is difficult to achieve good grades in the simulated practice. Second, the guiding role of intern teachers in higher vocational colleges is limited.
The practical instructors provided by some higher vocational colleges lack the guidance of students’ practical ability, management of life, and guidance of students’ thinking. Due to the lack of practical ability of some accounting teachers themselves, and the low proportion of internship instructors from enterprises, they cannot meet the specific needs of simulated internship students. The number of teachers in some higher vocational colleges is limited. Considering the cost of practice, the instructors in the simulated practice are mostly full-time teachers or counselors.
Some external internship instructors teach a large number of students and have heavy classroom tasks. Therefore, there are certain limitations in working hours, resulting in low enthusiasm for teaching. They can only use remote guidance and online guidance, etc. Students play a real guiding role.
(3) The setting of accounting training projects is unreasonable and cannot broaden students’ accounting horizons
First, the content of accounting training is relatively single, and the content carried out within the competence of higher vocational colleges usually only includes the economic business of some enterprises, ignoring the economic exchanges with other enterprises and other fields. For example, the real estate development, administrative and institutional business, financial insurance business, catering, hotel, and tourism businesses involved in the accounting industry.
At the same time, the accounting professional courses carried out by higher vocational colleges often lack management accounting, financial knowledge, banking knowledge, auditing knowledge, financial management, taxation training courses, etc., which is not conducive to the cultivation of students’ practical application ability and practical knowledge expansion, resulting in The limited performance ability of students in the simulation practice process hinders the extension of students’ professional quality.
Second, the simulated internship project for accounting majors is cumbersome and the time arrangement is unreasonable. In some simulated internships for accounting majors, the individual students complete the one-month business volume of a manufacturing company and need to complete important tasks in multiple positions in the company, including warehouse management positions, sales positions, accounting positions, and cashier positions. The student internship time is generally one month. This kind of practice mode makes students feel at a loss, and lack thinking, and the effect of practice is not satisfactory.
Third, the simulation practice of accounting majors focuses on accounting training, ignoring accounting supervision and auditing. At this stage, the accounting simulation practice carried out by higher vocational colleges mainly revolves around students being able to complete the entire accounting business operation process, including recording vouchers-making account books-applying statements.
First of all, prepare the accounting vouchers according to the original accounting vouchers of the enterprise, then register the account books according to the specific content of the accounting vouchers, and finally prepare the corresponding accounting statements. After the students get the internship task, they use the various materials in the internship as a guide to preparing accounting vouchers according to the requirements of the internship, ignoring the key process of auditing and supervising the accounting business.
The reason is that some higher vocational colleges lacked consideration in the process of preparing internship materials, and did not give some illegal and unfounded original certificates to students for operation, which led students to downplay the importance of review work. As everyone knows, this kind of simulated internship did not play a real role.
Effective strategies in the simulated practice teaching of accounting majors in higher vocational colleges
(1) Improve the basic teaching materials for simulation training of accounting majors
With the continuous reform of the economic system, major enterprises continue to diversify and conglomerate in the process of development. If only enterprises are used as the object of accounting simulation training, they will not be able to fully meet the future development needs of accounting students.
Therefore, higher vocational colleges should hire a team of experienced practical application teachers, vigorously conduct research, comprehensively collect relevant information on the accounting profession and the economic development of enterprises, and understand the current job market for different talents and the positions of accounting talents in different companies. demand.
At the same time, colleges and universities should hire experienced accounting practitioners and write simulation training materials. In addition to a basic accounting business, it should also include accounting in real estate, logistics, commerce, catering services, transportation and tourism, and other industries. Practical learning ensures that students can get in touch with accounting businesses in other industries and fields to the greatest extent.
Through practical training, it helps students systematically strengthen their accounting practice and meet employment needs at different levels in various fields. With the improvement of accounting standards and financial laws, the latest financial and accounting laws should also be followed in the process of compiling accounting simulation training materials.
(2) Divide the levels of accounting simulation training content
The socialist market economic system determines the requirements of enterprises and institutions for accounting talents. If you only master financial knowledge, you will not be able to handle other accounting-related business within the unit. Therefore, to meet the specific needs of various units for accounting talents, in the implementation of accounting simulation training, we should base ourselves on the training content, establish long-term accounting training goals, update accounting concepts, and design new ideas for accounting development.
Accounting simulation should not only guide students to master basic accounting skills, but also add other businesses of the unit to cultivate students’ ability to use funds, operate funds, and make money. Vocational colleges can design some financial training, such as how to control corporate funds, how to use limited funds to purchase more materials, and how to handle travel reimbursement and other businesses.
To strengthen students’ review of the authenticity and legitimacy of original vouchers, higher vocational colleges can design some simulation training courses in accounting analysis, accounting inspection, and accounting to improve students’ professional skills and comprehensive quality.
(3) Improve the integration of manual simulation training and computerized training
To effectively improve the decoupling of manual simulation training and accounting computerized training in higher vocational colleges at the present stage, and enhance students’ understanding of manual accounting positions and computerized positions, teachers should promote manual simulation and computerized accounting positions during accounting simulation training. The fusion of accounting computerized simulation.
In the process of practical teaching, the traditional manual simulation training in the past, including filling in accounting vouchers, registering account books, and other operations, can be transferred to accounting computerization to enter data, strengthen the processing of accounting accounts, prepare accounting statements, and rationally analyze Training in accounting procedures, etc. Teachers should strengthen guidance to ensure that students can share resources between manual simulation and computerized simulation training to ensure the complementarity of materials.
In addition, in the process of integrating manual simulation training and computerized simulation training, students can also analyze different simulation processes, improve students practical training ability, and ensure that work efficiency can be improved in future positions. After many operations, students can not only be proficient in manual business but also be able to flexibly use the computerized accounting software system to become comprehensive practical training talents.
(4) Create a full-featured accounting simulation training classroom
To ensure the effect of accounting simulation training, higher vocational colleges should create a multi-functional accounting simulation training room so that students can get practical training in a simulated financial work environment.
First of all, when creating a simulation laboratory, institutions such as financial and accounting offices and banks should be built, and the laboratory is divided into various departments and business processing centers according to different accounting functions, including credit purchase business, simulation training between enterprises and banks, etc., to create a good simulated working environment for students, and help them experience the specific business process in future jobs in advance.
Secondly, increase the functions of each training position. During the construction of the accounting simulation training room, various assessment methods should also be set up to enhance the awareness of accounting professional ethics, clarify the specific responsibilities of different positions and the operating procedures of each position, etc., to help students truly understand the accounting simulation training In the actual operation situation, strengthen the exercise.
Conclusion
Talent is the intellectual underpinning for the progress of times. Accounting talent cultivation in HVCCs is more concerned with the future economic growth of society. HVCCs should provide a first-class learning environment for the students and nurture professional technical talent. Simulation practice for accounting majors is an essential practical teaching activity. It broadens the scope of accounting students, understand the particular requirements of real positions, and improves their practical application skills. Simulated practice can also improve school and enterprise cooperation and help in developing later teaching.
HVCCs should be aware of the various challenges in simulated practice for accounting majors at the present stage, create and improve legislation related to HVCCs, fully focus on the role of local government, innovate the training mode of HVCCs for higher vocational accounting talent, and further develop the accounting profession in the long term.
How to 3 Implement Simulated Practice in Accounting; Photo by Towfiqu Barbhuiya.
The implementation of accounting systems of public institutions affects the financial activities of the institutions themselves, and it also has an important impact on the level of development of public institutions, which can maintain the sustainable development of public institutions and enable public institutions to obtain more significant economic and social benefits. Therefore, public institutions should strengthen the implementation of the government accounting system, comprehensively integrate the contents of the system, and adjust and innovate the original financial work to ensure the advanced and standardized financial work of public institutions, and promote the development of public institutions through a good system, so that they have better development prospects.
Here are the articles to answer, the doubts about the Analysis of the implementation of accounting systems in Public Institutions
Based on this, this article introduces the significance and challenges of implementing the government accounting system for public institutions and discusses the effective measures for public institutions to implement the government accounting system, to provide a reference for the development of public institutions.
In previous work, our government accounting adopted the working model of budget accounting. Although this model can improve management effectiveness, it is difficult to meet the needs of the development of the times if it is used for a long time. In the context of the new period, the government accounting system has been proposed, and the innovation of the accounting system has been achieved. It can not only re-plan the statements and accounting subjects of public institutions but also replace the original accounting standards and systems of public institutions.
The new accounting system will affect the implementation of the financial management work of public institutions. In this regard, public institutions should pay attention to the correct interpretation of the government accounting system, synthesize the actual development status of the unit, and rationally implement the various contents of the government accounting system to enhance the internal management level of public institutions and give full play to the functional role of public institutions.
Overview of the government accounting system
The government accounting system refers to a system of comprehensive recording and collation of the nature, purpose, quantity, and process of government financial receipts and expenditures. In the government accounting system, it is possible to visually describe and objectively analyze the specific implementation status of the budget. With the rapid development of society, public needs have also changed.
The government’s needs in public financial management have begun to develop towards transparency, and it is necessary to adopt a statistical accounting system to carry out financial management. The new accounting system integrates financial accounting and budget accounting adopts a more rigorous accrual system to replace the previous collection and payment realization system, and improves the normative and rigorous accounting work.
The significance of institutions implementing the government accounting system
(1) Significantly improve the quality of work
In the financial management work of public institutions, the government accounting system stipulates the completeness, comparability, and relevance of financial work, which can accelerate the improvement of the quality of work of public institutions.
First, look at the problem from the perspective of comparability. Based on retaining the previous economic business content, the new government accounting system will add some new businesses to optimize the integration of various content in the financial management of public institutions. Through unified accounting standards and accounting requirements, the comparison of accounting information of various departments of public institutions is made more convenient, to obtain more intuitive data content, and lay a good foundation for the improvement of the quality of accounting information of various departments.
Second, look at the problem from the perspective of completeness. The implementation of the government accounting system by public institutions can not only innovate and optimize the original forms of financial accounting, but also optimize and improve the accounting of assets and liabilities, standardize the estimated liabilities and cultural assets and liabilities, and then ensure the integrity of accounting information.
Third, look at the problem from the perspective of relevance. The use of the government accounting system in public institutions can rebuild the form of accounting and accounting, and also upgrade some functions of financial accounting so that the budget work of public institutions and the government’s financial budget can be cleverly integrated, and the accounting functions can be fundamentally optimized and improved, to provide reliable information for the overall improvement of the quality of accounting work.
(2) Improve the quality of staff
For financial management staff in public institutions, their work is relatively less competitive and they will receive a more stable salary. The implementation of the government’s accounting system puts forward stricter requirements for the competence and literacy of financial managers, and will further urge relevant personnel to improve their abilities, work hard, change their original work concepts and work ideas, and establish a positive work attitude. This not only meets the new work needs in the context of the new era but also improves the quality of the personnel themselves.
(3) Clarify the status of one’s assets
The application of the government accounting system by public institutions in their financial and budgetary work will make public institutions more clear about their asset status. In the government accounting standards, the specific scope of fixed asset accounting is clarified, and the authority of institutions to use assets in actual business activities is pointed out.
Through a clear introduction to the authority for the use of assets, business units can accurately judge the feasibility of their work based on their interests and start accounting for fixed assets. In addition, the innovation and optimization of the government accounting system have further improved the asset accounting form of business units. The system more intuitively explains the status of the fixed assets of the business unit and points out a correct development path for the business unit.
The challenges posed by the government accounting system to public institutions
Although the implementation of the government accounting system by public institutions will greatly improve work efficiency and speed up the financial management of public institutions, it also poses huge challenges to the development of various tasks of public institutions, which are specifically reflected in the following points.
(1) Make the financial processing of public institutions more complicated
Under the new government accounting system, public institutions are bound to flexibly use parallel bookkeeping methods to cleverly integrate the financial accounting system into the government accounting system. Moreover, in the actual accounting work, it is also necessary to flexibly use the accrual system, which has also led to the cumbersome and complicated accounting processing of public institutions and put forward more stringent requirements for the knowledge structure and professional ability of financial managers. Requirements.
(2) Pay attention to the development of basic accounting work
In public institutions, the implementation and implementation of the government accounting system will transform the previous financial statement production methods and financial project accounting methods, and the innovation of such work requires the effective support of basic accounting work. In this regard, public institutions should further strengthen the basic accounting work, especially by updating the original accounting information system and improving the system functions, thereby significantly enhancing the efficiency and quality of system accounting, so that the level of accounting work has been significantly improved.
(3) Put forward strict requirements for the preparation of financial reports
Under the new government accounting system, public institutions must also implement a dual-reporting system, improve the traditional form of financial reporting, strengthen the handling of liabilities and assets, and improve the level of asset accounting. In addition, public institutions should actively consolidate the preparation of financial reports, and make rational use of financial statements in the process of making budget statements, to intuitively and truthfully reflect the financial situation and improve the quality of accounting information of public institutions.
The achievement of the above-mentioned work requires the accurate analysis of the financial management personnel of the institution so that they can invest more energy in the preparation of financial reports, to improve and improve the work so that the expected goals can be achieved.
An effective path for institutions to implement the government accounting system
(1) Strengthen the construction of the financial team and enhance the business capabilities of personnel
If you want to better implement the government accounting system, public institutions should strengthen the capacity-building of financial personnel.
First of all, institutions can improve their personnel’s business capabilities through training, and use the reward and punishment system to enable financial personnel to actively learn the relevant content of the government accounting system.
Secondly, financial managers can be selected to fully feel the internal and external environment of institutions, better implement the government accounting system, and strictly implement the various standards and requirements under the system, to enhance the effectiveness of financial talent construction. Financial personnel themselves should also have an in-depth understanding of the government accounting system and adjust their previous financial judgment thinking, to have strong workability and business level.
Again, the leaders of public institutions must also accurately grasp the main points and contents of the new government accounting system, and accurately divide the financial work process, to coordinate the links between the financial department and other departments to make the accounting work system more perfect.
Finally, we must actively carry out the training of existing financial personnel, and set relevant assessment standards, and only after passing the assessment can the personnel be put into post work, so that the professional ability of the staff can guarantee the effective implementation of the government accounting system.
(2) Improve the parallel bookkeeping system and improve the efficiency of management work
With the support of the new system, institutions should carry out parallel bookkeeping work by the principle of “dual foundation, dual function, and dual reporting”, which also requires institutions to improve the previous bookkeeping system.
First of all, institutions should carry out basic accounting work by the specific requirements of the financial accounting accrual system, and clarify the accounting objects and accounting content to ensure scientific and accurate accounting.
Secondly, institutions should improve the financial accounting information management system, improve the functions of the information system, simplify the accounting processes and steps, and strengthen the functions of accounting final accounts, performance budgets, etc., thereby providing technical support for the development of accounting work, so that work efficiency and work quality are significantly improved.
Finally, in the process of implementing the budget work, the form of accounting for fund income and expenditure can be used to fully reflect the budget management level of the business unit. At the same time, it is necessary to complete the tracking and investigation of the budget and budget implementation status, to ensure that financial managers can complete their work by the plan, and to ensure the sustainable development of public institutions.
(3) Clarify the functional responsibilities of personnel and strengthen the implementation of the government accounting system
Accounting is an indispensable part of the financial management work of public institutions, plays an important responsibility, and is a key role in the implementation of various policies. In this regard, the work responsibilities of accounting personnel should be divided so that the efficiency and quality of accounting work can be guaranteed.
Although there will be many difficulties in implementing the government accounting system, various problems can be gradually resolved through the clarification of personnel responsibilities. Institutions should understand the important value of the division and implementation of rights and responsibilities, and make accountants aware of their responsibilities through practical actions, to give full play to their functions and functions.
First, public institutions should, by the relevant regulations in the government accounting system, allow accountants to guarantee the authenticity of accounting information, abide by professional ethics in specific work, and ensure that all information is not leaked; second, public institutions should help accountants clarify their responsibilities, optimize the accounting team, improve the literacy of personnel, and ultimately make the implementation of the government accounting system more efficient.
(4) Optimize the internal management system and improve the normative nature of management work
The innovation and optimization of the government accounting system not only determines the overall effect of the accounting of public institutions but also belongs to an important change in the internal financial management process of public institutions. For example, to further understand the time node of income recognition, it is necessary to improve and improve both financial and business and build a smoother communication mechanism for it, so that information transmission and information interaction are no longer difficult.
In addition, the new government accounting system also puts forward strict requirements for the asset management of public institutions. To solve the above problems, public institutions should establish a more reasonable internal management and internal control system to ensure the effectiveness of the implementation of the government accounting system.
In addition, public institutions should innovate the previous financial management system, not only to determine accounting standards, principles, and methods, but also to strengthen the application of the accrual system in accounting, and should sort out the relationship and responsibilities between themselves and subordinate units in an all-round way, and do a good job of research on the consolidated reporting system. Moreover, in this process, it is also necessary to reflect on the financial accounting function.
According to the actual development status and development needs of institutions, various accounting policies are scientifically selected, which cover the amortization period of intangible assets, the depreciation period of fixed assets, and the method of preparing for bad debts. When performing this work, the specific development situation of the institution should be integrated and the work content of each link should be reasonably determined.
For example, network information industry units or Internet-related institutions, their fixed assets will be rapidly updated with the changes of the times, and the intangible losses formed are particularly large. Therefore, when confirming the depreciation period, the actual situation should be taken into account and the rationality of its depreciation should be considered.
(5) Strengthen the construction of information systems to meet the needs of the reform of the accounting system
The advent of the Internet era has made the figure of information technology appear in various industries. To promote the stable development of the industry, information technology can be incorporated into management work. When institutions implement the government accounting system, they can also take advantage of the advantages of information technology to build financial information systems to enable the rapid development of financial information system construction.
First of all, the staff of the financial department should form a strong sense of responsibility, use their organizational capabilities, and take the optimization of information systems as their top priority to meet the work needs of the development of the new period. In addition, a relatively complete and detailed work plan should be formulated, and the accounting information system should be comprehensively transformed to lay a solid foundation for the effective implementation of the government’s accounting system.
Secondly, the financial department should seek the cooperation and help of other departments to build a multi-departmental collaborative information system, realize active exchanges and good cooperation, and work together for the construction of an information system.
Finally, when building an accounting information system, financial personnel should sort out the previous information system problems and clarify the new system work requirements, to build a more scientific and feasible system construction plan, so that the information system can meet the work needs, and make information access and information admission more convenient and safe.
The old and new accounting systems. Our country’s economy is developing rapidly, and the times are constantly changing. The old accounting system can no longer meet the development needs of today’s society. To ensure the steady development of the economy and adapt to the progress of society, the Party Central Committee has adjusted the government accounting system accordingly. As a result, a new accounting system has emerged. Compared with the old system, the new system has undergone many changes, so there have been many problems in the convergence process of the old and new systems.
Here are the articles to answer, the doubts about a convergence of the old and new accounting systems!
This article analyzes this problem. First, it introduces the changes in the new system compared to the old system, secondly, it points out the existing problems in the convergence of the old and new systems, and finally, it proposes corresponding solutions to the existing problems.
Introduction
With the continuous development of our country’s economy and the deepening of the reform of the fiscal system, the scale of our country’s public finances has gradually expanded, and the old accounting system is no longer suitable for the current situation. Therefore, my country implemented a new government accounting system on January 1, 2019.
Compared with the old system, the new system has changed at many levels, promoting the development of government work, but a series of problems have also emerged in the process of connecting the old and new systems, hindering the further improvement of the new system. Based on this, this article analyzes these problems and proposes corresponding solutions, hoping to effectively use the advantages of the new system to ensure the efficient development of government work.
The background, significance, and changes of the new system change
(1) The background of the change of the new accounting system.
My country has gone through more than 40 years of ups and downs since its reform and opening up in 1978. Correspondingly, it took about 40 years for my government’s accounting reform from the initial reform and adjustment stage to the current breakthrough stage of comprehensive reform.No matter what era it is, to make the country strong, the nation rich and strong, adapt to rapid development of the global economy and the ever-changing changes times, they are all making their efforts.
In the context of the new era, to be able to more intuitively understand the real financial income and expenditure situation and ensure the efficient operation of the government’s various tasks, the government has revised the “Accounting System of Administrative Units”, “Accounting Standards of Public Institutions”, “Accounting System of Public Institutions” and other systems since 2010, basically meeting the needs of the current government budget work.
The collection and payment realization system originally adopted by the government cannot accurately reflect the government’s financial income and expenditure status, and therefore cannot prepare reasonable and accurate financial reports, which is not conducive to the government’s next work plan. Because of the above-mentioned problems, the government has had to make institutional changes over and over again to adapt to different types of work needs.
(2) The significance of the change in the new accounting system.
The reform of the government accounting system is an important measure to conform to the development of the times and implement the spirit of the 19th National Congress of the Party. As the so-called details determine success or failure, the change of the new accounting system is established from the subtleties through slow exploration and research.
The new accounting system unifies the accounting system, enabling institutions such as universities, public hospitals, scientific institutions, and academic institutions to carry out the same accounting, and the information between them is comparable, which is conducive to communication and exchanges between institutions. The new accounting system integrates the government’s financial resources.
The use of the accrual system can fully understand the financial income and expenditure situation in the government’s daily financial management, and can more accurately reflect the government’s budget implementation and assets and liabilities. It can better prevent the abuse of funds and can provide a more accurate, truthful, and comprehensive basis for subsequent decision-making, which is conducive to the effective allocation of government resources.
The new accounting system has improved the information platform, guaranteeing the security of information in various departments, closely connected the work of various departments and sectors, re-sorted out the workflow, and carried out a more detailed division of labor, greatly improving the efficiency of accounting work.
(3) Changes in the new accounting system.
Adopt a dual-core computing system.
Before the system change, the old system had always used a single accounting system, the collection, and payment realization system, for accounting and the preparation of statements. The new system changed this and adopted a dual accounting system. The accrual system is determined based on the actual occurrence of economic business, while the collection and payment realization system is based on the actual receipt or payment of cash. The two are two completely different accounting methods. In theory, the two should not exist at the same time. However, the new system breaks through this restriction.
At the same time, the two are used for accounting, and the two are distinguished in certain specific aspects of work, that is, the accrual system is used to account for the relevant work of financial accounting, while the collection and payment realization system is used to account for the relevant accounting of budget accounting. Although the two systems account for accounting operations separately, they are also closely related to each other. The government adopts a dual-calculation method, which makes it more convenient for the government to calculate accounting business, saves more time than before, and improves work efficiency.
Accounting subjects are more perfect.
One of the changes in the government’s new accounting system is the adjustment of accounting subjects. Compared with the old accounting system of public institutions, the new accounting system has both increased and decreased the adjustment of accounting items. The new accounting system further clearly divides a series of income and expenditure of the government, and therefore adds some clearer accounting items, such as centralized payment by the state treasury and management of state-owned assets.
The new accounting system has reduced expenditure subjects such as additional local education fees and cultural undertakings accordingly. The convergence of the government’s old and new accounting systems has been studied. This series of changes by the government has made the accounting subjects more standardized and more in line with the government’s related financial expenditures. The continuous improvement and refinement of accounting subjects have made the accounting of each subject more refined and extensive, thereby ensuring its integrity in the practical application process.
Accounting statements are more standardized.
To better meet the needs of financial and budget management, the new accounting system has streamlined the accounting statements, and the current surplus and budget balance difference tables in the old system have been deleted based on not affecting the preparation. Only the balance sheet and income and expense statements are retained. The format of these two tables and accounting statements tends to be more consistent.
Financial personnel may also be more proficient in the use of statements, and the various departments can better cooperate, thereby improving the work efficiency of each department. In addition, the format of the report has become more standardized, making the data related to the report more reliable, which can better reflect the government’s financial income and expenditure and can also achieve good supervision and management of the government’s work. The effect.
The convergence of the old and new government accounting systems
(1) The personnel’s business is not refined, and the training intensity is insufficient.
In financial work, financial personnel is a major force. Due to the content and wide range of changes in the new system, the requirements for financial personnel are also getting higher, but the financial personnel themselves and the training are not optimistic, which has slowed down the progress of the implementation of the new system.
First, affected by factors such as professional ability and cognitive level, the degree of understanding of various financial personnel is different, resulting in the convergence of the old and new systems, many accounting personnel is unable to adapt to the new form of work, making the new system unable to give full play to its role and value.
The second is that financial personnel lack a sense of responsibility, will not take the initiative to carry out corresponding learning, are unwilling to give up the knowledge they have mastered, to accept new theories that are completely unfamiliar, and do not want to increase their workload as a result, showing a state of slack, which is not conducive to the change of the accounting system.
Third, the Ministry of Finance sent the draft opinions on the new system to various departments, and each department carried out corresponding training work based on the draft opinions, but it did not effectively integrate with the new system from its actual situation, which caused a certain deviation in the implementation of the new system, which in turn affected the efficiency and effectiveness of the implementation of the new system.
(2) Accounting subjects and accounting are inconsistent.
The new system has made a series of adjustments to the accounting subjects, not only deleting some important original subjects but also adding some new content. It takes a certain amount of time for people to accept new things. The changes and adjustments of the accounting system directly lead to changes in working methods. Therefore, the changes in accounting subjects are prominent in the process of convergence between the old and new systems, which in turn hinders the implementation of the new system.
For example, the biggest difference between the government funds collected in the new accounting system and the previous system is that there is no longer a separate corresponding expenditure account, but directly enters the corresponding income account of the general public budget. Because of this difference, when filling in, it is necessary to pay attention to which income account should be included in the original expenditure account to avoid errors and affect work efficiency.
The ”Parallel bookkeeping” method is a brand new method adopted by the new system. It is an accounting model that combines budget accounting and financial accounting and operates together. Before the implementation of the new system, most public institutions still used the traditional accounting method, namely the collection and payment realization system. Because of long-term use, the old model may have become a habit.
Therefore, the new model required by the new accounting system may require a long adaptation process in the early stage of operation. As a result, the corresponding business development of the government may be affected, the widespread application of the dual-core accounting model will also be hindered, and the speed of implementation of the corresponding new accounting system will be slowed down.
(3) Informationization is lagging.
In the information age, accounting information systems are an important information foundation to support government accounting reform. The use of computer and Internet technologies helps the government carry out financial accounting management. However, as far as the current situation is concerned, the construction of the accounting information system by some administrative institutions is not perfect, and there is a certain lag.
The establishment of a new accounting information system will bring difficulties in connecting old and new data, and it will be difficult for the original sectors to adapt to new changes, which will bring a series of problems. Administrative institutions have a low proportion of investment in system construction.
Without the support of an excellent information system, it is difficult to meet the corresponding changes in the new system. Therefore, the establishment of a new accounting information system will be a brand new and serious challenge, and it is urgent to build a more complete and standardized information system.
Measures to connect the old and new government accounting systems
(1) Prepare for the convergence of the old and the new.
The operation of the new system to replace the old system requires a long process, and it cannot be implemented immediately once it is implemented. Therefore, adequate preparations should be made before it is implemented to prevent it before it happens. There are many changes in the new system, so there must be certain differences between the old and new systems, and there will be a series of problems in the connection between the two.
We will make corresponding preparations before implementing the new system, so that when we are facing a problem, we will not panic, but will solve it with ease and in a clear manner, which also improves work efficiency to a certain extent. Actively carry out preparations for the convergence of the old and new systems. On the one hand, administrative institutions should operate the new system on the premise of doing a good job in the inventory of various assets, not only the internal assets of the unit but also the external investments.
Conduct a thorough inventory to ensure that the accounts are in line with the facts. On the other hand, due to changes in the accounting accounts and accounting statements of the new system, it should be planned and connected to better ensure the new system’s effective implementation.
For example, for fixed assets, it is necessary to further determine the depreciation period and method based on considering their nature and usage. For statements, according to the requirements of the new system, prepare balance sheets, budget accounting statements, etc., which is more conducive to promoting the implementation of the new system.
(2) Organize special training to improve the professional level.
Compared with the old system, the new system has undergone many changes, and many contents have been revised, deleted, and adjusted accordingly. For the new system to be implemented smoothly, the most important thing is to strengthen training and enhance the professional competence of financial personnel.
The strengthening of training will help accounting personnel understand the specific processes of the business, start faster and more efficiently, improve work efficiency, and avoid wasting time. The competent departments should actively carry out internal and external exchanges, pass on information to each other, understand each other, and help each other to better familiarize themselves with the new system and start work earlier.
In addition, the competent department should carry out special training, and hire corresponding experts to give special lectures on the difficult problem that everyone has uniformly identified, convey practical measures, and solve these problem quickly and efficiently. There are huge differences between the new system and the old system, which requires the business level of accounting personnel to be higher and higher.
Therefore, accounting personnel needs to change their thinking and innovate their ideas so that they can follow the pace of the development of the new system. Accounting personnel should continue to learn, improve their professional level, gain an in-depth understanding of the new system, master basic theoretical knowledge, and improve their theoretical framework. Financial accounting also needs to be familiar with the corresponding software and be able to operate proficiently to improve work efficiency.
(3) Optimize accounting subjects and unify accounting standards.
There are apparent differences in accounting subjects and accounting methods between the new system and the old system. This difference brings certain difficulties to the preparation of financial reports. Therefore, it is necessary to optimize the accounting subjects and unify the accounting methods. Optimizing accounting accounts is the top priority of the convergence of the old and new systems, and it is also the basis for the preparation of financial reports.
After optimizing the accounting subjects and clarifying the specific content of the accounting subjects, at the moment of the implementation of the new accounting system, the new accounting subjects are used for project accounting and the preparation of statements. This operation can effectively improve work efficiency, reduce time waste, and reduce time costs.
In addition, in the early stages of the implementation of the new system, because of the differences in the accounting accounts of the old and new systems, it is necessary to pay attention to the carry-over between the balances of the accounting accounts of the old and new systems to avoid the phenomenon of missed transfers and under-transfers, which will bring unnecessary trouble to future account checking. Unified accounting standards are also particularly important in the implementation of the new system.
The adoption of a single accounting standard in the old system will face certain accounting difficulties, not to mention the new system adopts dual-core accounting standards. Therefore, for the new system to be effectively implemented, administrative institutions should unify accounting standards, distinguish the scope of the dual-core accounting system, and clarify the boundaries between the two, so that work may be more efficient.
For example, compared with the old system of the new accounting system, the biggest change in the new accounting system is the accounting of fixed assets. To be able to carry out work effectively, administrative institutions need to have a comprehensive understanding of fixed assets, including inventory, actual usage, the actual recorded value of fixed assets, the depreciation method used by fixed assets, etc., to determine a more reasonable and effective accounting standard for the accounting of fixed assets.
(4) Build a more complete information management platform.
Building a perfect information management platform is not to catch up with the trend, but an important way to promote the development of the world economy and society. With the development of information technology in the times, the development of everything needs to build a more perfect information management platform. The government’s reform of the new system will also not avoid the construction of an information management platform.
First of all, since administrative institutions adopt the “dual-core accounting” and “dual-reporting” model, there are certain differences from the previous old system, so adjustments need to be made to change the original single accounting system, and realize the dual-system financial information system and budget information system to process related accounting business in parallel. To a certain extent, the two do not interfere with each other, but they can complement each other and coordinate operations, thereby promoting the development of information technology.
Secondly, administrative institutions should closely integrate the accounting model with the internal control system, budget system, and performance evaluation system, effectively connect, and use a unified information system to make all departments cooperate closely, communicate with each other, perform their duties, and improve work efficiency.
Finally, administrative institutions should improve the security and authenticity of information platforms, ensure the security of important information such as information and data, and prevent leakage. At the same time, they must ensure that the information and data contained are true and reliable, and can be used by users with confidence.
Conclusion
In the context of continuous reform in my country, the relevant financial systems of the government also need to be changed by the development of the times, but the change of the new system carried out by administrative institutions in my country has a certain degree of difficulty, and it is largely affected by the problems left over from the old system. Therefore, the implementation of the new accounting system needs to deal with a series of problems arising from the convergence between the old and new systems.
This article also lists some of them. Relevant accounting personnel should take action to continuously improve themselves while doing their jobs and adapt to the development of the new system. The joint efforts of many parties will escort the smooth implementation of the new system. The problems arising from the convergence between the old and the new systems are also listed in this article. Part of it is also listed. Relevant accounting personnel should take action to continuously improve themselves while doing their jobs and adapting to the development of the new system. The joint efforts of many parties will escort the smooth implementation of the new system.
Discussion on the convergence of the old and new accounting systems; Photo by Simon Kadula on Unsplash.
Discussion on the impact of big data analysis on CPA audit: With the advent of the era of big data, it has invisibly changed various industries, including CPA audits.
Here are the articles to answer, the doubts about the impact of big data analysis on CPA audits with a full Discussion of the Essay!
The era of big data can not only eliminate the obstacles of audit location and time, reduce the expenditure of CPA audit and improve the efficiency of audit work, but also greatly increase the possibility of auditing from the previous sampling to the whole sample in the era of big data. Make auditing more aligned with social reality and reduce the drawbacks caused by sampling. The following Impact of Big Data Analysis on CPA Audits explain below are;
Weak Links of CPA Auditing in the Era or impact of big data analysis
Traditional audit work faces challenges
With the rise of the era of big data, there are many benefits for CPA auditing, such as increased data comprehensiveness and high data authenticity. At the same time, the era of big data has also brought some problems to CPA auditing. In auditing, big data technology is used step by step.
In the process of auditing, big data technology can be used to obtain some data and valuable content, which can be summarized from it, and the main development of the company’s property status, operation management, and regulation innovation can be grasped. direction. In the era of big data, the previous auditing methods are no longer applicable. In particular, sampling audits, in the past were unable to analyze and process all the data due to the actual situation their data is analyzed and processed in the form of sampling, and then the whole is speculated and analyzed based on the results of a small range.
Therefore, the results are minimal. The rise of the era of big data has brought a turning point to sampling audits. We can collect all data according to big data technology, make data samples more comprehensive, increase effectiveness and integrity, improve audit work efficiency, and bring new ideas to audit work.
The overall supervision of the industry is limited, and the division of audit responsibilities is not clear
With the rise of the era of big data, professional workers in some industries will gradually lose their jobs, while other data experts will be produced and have suitable positions. In the process of audit work development, the requirements for auditors are getting higher and higher. In addition to professional knowledge, they also need to learn the analysis of big data and improve the data analysis ability, data calculation ability, and data prediction ability of auditors. Therefore, the learning standards of auditors have been greatly improved.
In the past, audit methods and applications faced many difficulties
Through the continuous development of society, the previous audit methods have gradually become stable. There are many commonly used audit methods, such as observation, interview, and business process description commonly used in control testing. However, in the era of big data, many audit methods in the past are facing difficulties. If audit methods cannot adapt to the changes of the times, they will be gradually eliminated.
Therefore, in the context of big data, the collection, storage, analysis, and processing of data become particularly important, and the methods are constantly innovating. Continuing to use the old audit methods will make the audit work less efficient and unrealistic. At this stage, the auditing ability of auditors also needs to be continuously improved to keep up with various innovative auditing methods in the era of big data.
CPA audit optimization path in the era or impact of big data analysis
The policies and related systems on auditing must be improved as soon as possible
With the continuous progress of computer technology, we are gradually exploring the development of cloud computing and cloud data, shortening the gap with the developed countries in the world, and in some fields, we are certainly at the forefront of the world. However, the development of the era of big data brings opportunities for CPA auditing and also brings many problems. Therefore, effective changes must be made in the era of big data.
Cloud computing is a product of the era of big data. It lacks perfect laws and regulations, and the application of big data needs the support of cloud computing. This makes the regulation and legislation of cloud computing particularly important, because only in this way can data be kept safe The application of CPA audit must also rely on the development of these new technologies in the era of big data. Therefore, the establishment of new audit rules has become one of the more important tasks at this stage.
In the era of big data, relevant regulatory regulations need to be completely changed and followed up to avoid upcoming risks. Relevant departments should also pay attention to the revision of laws and regulations on the application of big data. Re-revising policies and guidelines is an effective way to avoid risks. In the process of auditing, data is an important criterion for reflecting the results. Therefore, if you want to get good audit results, you must have a good data analysis platform.
At present, there are two ways to promote the establishment of data platforms: one is to build on the platform of industry associations, which not only allows the audit work of certified public accountants The second is to establish a regional data analysis and processing platform. Between provinces and municipalities, and between municipalities. In this way, there will be obvious regional distinctions, and the data analysis platform between regions can be integrated into the data analysis platform of the CPA
Strengthen audit supervision and build an audit “cloud platform”
As mentioned above, in the era of big data, if the CPA audit is to apply big data, there will be higher requirements and standards for industry supervision. In practice, if the industry supervision is not in place or not carried out, the audit work will be in a quagmire and cannot function normally. You may also like to learn Effect of Corporate Accounting on Internal Control.
Therefore, if the CPA audit is to carry out the application of big data, it must be under the supervision of the industry, which is a basic requirement. Building an audit “cloud platform” is the top priority in supervision. If big data is successfully used in CPauditsit, it will bring immeasurable economic benefits and commercial impact to society. Therefore, this initiative needs to be properly guided by industry managers The “cloud platform” constructed in this way will have certain social benefits.
Taking a long-term perspective to cope with the arrival of the era of big data
The era of big data is a big change for everyone in society. We can see a lot of business opportunities and will face more opportunities and challenges. Only by constantly learning the technologies in the era of big data, and having the ability to own and process these data, can we become a winner in the development of the era. Not only themselves, but accounting firms also need to make long-term changes to cope with the arrival of the era of big data, not only need to incorporate big data and cloud auditing into plans but also need to try to apply big data, through auditing experiments, to cultivate Audit talents in line with the new era.
Promote the development of big data audit analysis models and audit software
Due to the different professional work in all walks of life, data application needs are also different. For the audit industry, in the application of big data, it is not only necessary to study the model, but also need to study the software development, but also to echo its development, to build a big data audit analysis platform with its characteristics. Whether the effect of this platform can be effectively reflected, it is necessary to further promote the development of big data audit analysis models and audit software, and to carry out goals and methods under the guidance of experts, to meet the needs.
Conclusion
All in all, in the era and impact of big data analysis, the application of big data brings opportunities and challenges to the audit process, making the audit process more in line with the actual situation, and the audit results tend to be more accurate. From this, we can also find that audit staff needs to seize the key points in the development of the times, insist on continuous innovation, meet opportunities and challenges, have problem-oriented thinking, and constantly improve and progress. Only in this way can they improve their professional ability and keep pace with the times.
ERP system uses in various industries in China, such as accounting, financial management, and so on. There are some problems in the ERP application at this stage. The application cost is high, the system types are various, the enterprise selection is difficult, and the lack of universality, versatility, and standardization requires high requirements for the development of the enterprise and the quality of the employees. System data entry and update The accuracy rate is difficult to guarantee, and the construction period is long. Effective solutions to these problems are proposed to promote the smooth progress of ERP financial management.
Here are the articles to answer, the doubts about the ERP system in Financial Management Essay!
In simple terms, an ERP system integrates all resources within an enterprise and uses computers to replace all manual operation processes, thereby improving processing efficiency and enhancing the overall competitiveness of the enterprise. With the continuous development of computer technology, automatic processing of problems has become more and more popular. To cope with changes in the external environment and keep up with social development trends, more and more enterprises choose to apply ERP systems. The ERP system makes enterprise data electronic, information automation, and data sharing, but there are also a series of problems such as financial information leakage, management mode adjustment, low staff quality, and capital outflow.
The application status of ERP systems in financial management
In the process of enterprise development, logical and clear financial management is very important, and the automated ERP financial management module plays an important role in the entire system. There are interfaces between the financial module and other modules, and the whole is highly integrated, which can realize the integration of financial products and logistics. At the same time, the information data generated in the process of procurement, production, and sales can be automatically included in the financial module, and further general ledger and accounting statements can be generated.
In this process, most of the operations are done automatically by the computer. The application of the ERP system in financial management can integrate all resources of the enterprise, allocate resources reasonably and adjust the work of various departments, basically realizing the dynamic, timely, and integrated data, electronic data input and storage, and authority of operation management responsibilities. , risk management systematization, and other functions. Everything has two sides. While the ERP financial system brings convenience to enterprises, there are also some problems, which affect the function of the ERP financial system.
Problems exist in the application of ERP in financial management
The enterprise management mode does not conform to the ERP management mode
Applying ERP is not a simple process of purchasing information tools, but an important decision to re-change the business process of an enterprise. To implement ERP, we must experience great changes in the business model of the enterprise and the working habits of employees. ERP is a management model related to all parties involved. The application of the ERP system requires companies to sort out business processes in advance, then simplify and reorganize, and finally realize automated operations.
The ERP construction cycle is long and the implementation cost is high
The implementation and application of an ERP system is a rather long process. It usually takes 3 to 5 years from the installation of the software to the formal operation, but experts believe that 18 months is the best. This is because equipment and software systems are replaced very quickly, and the depreciation rate of the system is also very fast. Delays will lead to serious asset losses and reduce benefits. Some ERP systems cannot complete the instructions issued by customers in time in the application, thus increasing the workload and causing the operation management of individual enterprises to fall into a chaotic state.
There are many types of ERP systems, and it is difficult for enterprises to select models
At present, various software companies are continuously established. Although the ERP system modules are roughly the same, the project details are quite different, resulting in no unified standard for the entire ERP system. A large number of enterprises have failed in the selection stage before implementing ERP because they do not realize that the ERP system serves the development strategy and goals of the enterprise.
The low professional quality of employees is not conducive to the application of ERP
The computer operation ability of employees is also an important link to test whether the ERP system can be successfully implemented. The implementation and operation and maintenance of the ERP system require the promotion of compound talents with certain computer knowledge, familiarity with the ERP system, and enterprise management. Also, you may like Effect of Corporate Accounting on Internal Control.
ERP system application lacks flexibility
With the change in the external environment, the organization and management of the enterprise will also change. Companies need to adjust organizational processes and resource strategies promptly. This requires that the application process of the ERP system can be flexibly modified. You may like to know, What is Gynecomastia Surgery and Treatment?
Lack of anti-corruption technology in the process of high-tech implementation
Many enterprises have failed to implement ERP systems due to the influence of corruption. Some people take advantage of the pursuit of new technologies by enterprises and entrepreneurs and the urgent need to enhance the competitiveness of enterprises, to promote immature systems or systems that have failed many times to enterprises. This unhealthy atmosphere has resulted in a large loss of enterprise funds and the failure of ERP system applications.
ERP system has hidden dangers to information security
As information technology continues to mature, more and more information is stored in the form of electronic files. With the advancement of data Electronization and data sharing, the problem of information leakage has become more and more prominent. If a series of confidential documents such as the performance, assets, and liabilities of the enterprise applying the ERP system is mastered by competitors, it will increase the competitive pressure.
Lack of research on risk aversion in the implementation of ERP systems
Many people only know the advanced management concepts embodied in the ERP system, but do not understand the huge risks in the implementation of ERP. Due to the lack of awareness of ERP, many entrepreneurs invest blindly, which is an important reason for the high failure rate of ERP applications. In Western Europe, most small and medium-sized enterprises will carry out risk measurement and risk analysis according to the BS7799 standard when applying ERP, and formulate strategic warning lines and warning points to avoid implementation risks, which play an important role in avoiding ERP risks to a certain extent. effect.
Solutions to the problem
Improve the implementation basis of the ERP system
When building an ERP system, an enterprise needs to have a reasonable management model and at the same time provide effective data support for the establishment of the system.
Strengthen the integration of ERP systems with other information systems
The ERP system has achieved the unification of logistics and capital chains. If you want to include more comprehensive business information, it will lead to too large data in the ERP system and greatly increase the cost. Combining other information systems in the ERP system-based framework can reduce the difficulty of system maintenance and upgrades.
Strengthen the understanding of the ERP system
Guide employees to understand and learn the ERP system, and let them realize that the ERP system is not only a financial management tool but also represents an advanced management concept. Enterprise managers need to formulate overall strategic goals and development directions. When an enterprise chooses the type of ERP system, it needs to analyze the characteristics of the product and the needs of the enterprise itself, to choose the ERP system suitable for the operation of the enterprise.
Improve the quality of corporate financial personnel
The computer technicians responsible for operating the ERP system need to master a certain knowledge of financial management, and the financial department needs to timely feedback on the relevant information and management requirements of financial management to the operation and maintenance department of the ERP system. The staff of the financial management department needs to learn certain computer knowledge, communicate with the operators of the ERP system in time, improve the implementation efficiency of the ERP system and play its role in enterprise management.
Suppliers and enterprises work together to create a dynamic system
Suppliers need to create a personalized system suitable for the enterprise according to the enterprise process. It is necessary not only to understand the outstanding sections and functions of the enterprise but also to confirm the enterprise process. After a detailed and comprehensive understanding of the management and production process of the enterprise, a dynamic system is created. Only by giving full play to the advantages of the universality and pertinence of the ERP system, can the ERP system be used better.
Enterprises should screen out powerful suppliers that can promote their development, and have a full understanding of suppliers’ reputation, system quality, and later operation, maintenance, and upgrades. It is also necessary to understand the outstanding sections, powerful functions, follow-up operation and maintenance, and expansion capabilities of the supplier’s system. Do a good job in the overall planning, determine the future development direction of the company, and select a supplier that is not only suitable for the present but also conducive to future development.
Implement an integrated and transparent fully automatic management system
Enhancing the intelligence and automation of the enterprise ERP system can realize the comprehensive and intelligent operation of the company’s financial management, to achieve the purpose of preventing corruption and creating a more complete system integration. The key function of system integration is to share data.
When the integration is established, it is necessary to focus on monitoring enterprise data to prevent information disorder or backward updating, so that the company can allocate procurement and sales more efficiently. Enterprises should fully consider the influence of suppliers and customers, implement “transparent” management, put an end to “rebates”, and win the trust of the public with a good image.
Improve the accuracy of the information and ensure information security
The ERP system needs to provide the input data to multiple organizational departments for use, and the use of an integrated data system can reduce the number of information input. To ensure the authenticity and reliability of the financial data of the enterprise, it is necessary to increase the internal communication of the enterprise, pay attention to the real-time status of the information at any time, and achieve the purpose of eliminating errors.
When suppliers build systems for enterprises, they should pay more attention to the rigor and relevance of logic between functions and modules, to reduce the possibility of system loopholes and make “hackers” no chance. Enterprises should improve the security awareness of relevant personnel, strengthen information security system management, and establish a sound information security management mechanism.
Conduct a careful feasibility study
To avoid risks, companies should conduct a comprehensive risk assessment before deciding to implement ERP. In the early stage of the ERP project, a feasibility analysis should be carried out, and a warning line to avoid risks, defensive measures before the occurrence of risks, and efficient first aid measures after the occurrence of risks should be formulated, to effectively avoid risks.
First, is the understanding of corporate accounting on internal control. The principles of enterprise internal accounting control According to the relevant provisions of the “Basic Norms of Enterprise Internal Control” issued by relevant departments in my country.
Here are the articles to answer, Exploring the Effect of Corporate Accounting on Internal Control!
The principles that enterprises should follow in establishing and implementing internal accounting control are as follows:
First, the scope of control should be comprehensive. The scope of corporate accounting on internal control should cover corporate decision-making, execution, and supervision, including various businesses related to economic and capital activities.
Second, get to the point. While taking into account the comprehensiveness of the internal accounting control, it should grasp the key problem links, carry out the control in a focused and targeted manner, and avoid the occurrence of the problem of “grabbing the eyebrows and beards”.
Third, mutual restraint and mutual promotion. The establishment of corporate accounting positions should pay attention to the principle of mutual restraint and mutual promotion, clarify the distribution of responsibilities, separate accounts, and better maintain the safety of company assets.
Fourth, is the principle of institutional adaptability. The establishment of an enterprise’s corporate accounting on internal control system should meet the actual needs of the enterprise’s business scale, business scope, and capital operation, and should be adjusted at any time according to changes in the actual situation.
Problems existing in the internal control of corporate accounting
(1) Insufficient attention to enterprise accounting control management
In most enterprises in our country, due to the lack of understanding of modern enterprise management concepts, they do not understand the corporate accounting on internal control management of enterprises and do not pay attention to them. Many enterprises focus their work on production and operation, while internal accounting control management is only a mere formality.
The establishment of internal control systems is incomplete and unrealistic, and the implementation is not firm. Some enterprise managers even mistakenly believe that the establishment of The internal accounting control system will cause contradictions between departments, bring inconvenience to the operation of funds, etc. These wrong views lead to the operation of the internal assets of the enterprise in a state of runaway and highly dangerous.
(2) The internal accounting control system is not perfect
At this stage, some enterprises in our country have established corporate accounting on internal control systems, but careful observation and analysis show that these accounting control systems lack scientificity, feasibility, and systematicness in content. The content of the system is too one-sided, and under the influence of economic interests, the phenomenon of emphasizing operation and neglecting management appears, which makes the direction of internal accounting management unbalanced.
Secondly, the corporate accounting on internal control of the enterprise lacks a long-term mechanism and a preventive control system. It is used to control after the fact. When there is a financial problem within the enterprise and economic losses are caused, internal accounting control will be carried out, and after a few months, the control will be reduced. The problem will happen again.
(3) The quality of the internal accounting control personnel of the enterprise is relatively low
The internal accounting control management work of the enterprise involves various capital operations of the enterprise, so the scope is relatively wide. Therefore, managers are required to have comprehensive qualities. However, most of the internal accounting control personnel of the enterprise are based on basic qualities such as knowledge structure, educational background, and business ability.
The lack of professional ethics education for internal control personnel in enterprise management makes the control personnel have certain problems in professional judgment and self-regulation, and cannot meet the required requirements. Also, you like to read 3 Thinking of Accounting Firms for Small Business.
Methods and measures to strengthen the internal control of enterprises
(1) Increase the emphasis on the internal accounting control of enterprises
In the process of enterprise management, managers should, by relevant national laws and regulations, combine with modern enterprise management systems, attach great importance to the development of internal accounting control, establish the ideological concept of internal accounting control, and formulate practical corporate accounting on internal control based on the actual situation of the enterprise. accounting control system.
In the process of internal control, it is necessary to completely change the traditional wrong concept, take into account the relationship between economic benefits and asset safety, and make real-time adjustments based on the operating conditions of the enterprise based on the principles of standardized management and scientific operation. Strengthen the enterprise capital risk pre-judgment mechanism, avoid the occurrence of post-event control, correctly reduce the capital risk to a minimum, and ensure the safety of enterprise assets to the greatest extent.
(2) Establish a sound internal accounting control system
The key to enterprise internal accounting control is to establish a set of perfect control management systems as the basis. Then the establishment of an enterprise’s internal accounting control system mainly includes the following aspects:
First, is the enterprise’s monetary capital management system. Monetary capital is the most important part of the enterprise’s economic activities. It has the characteristics of wide coverage, large application scope, and high risk. Once there is poor control, it will cause misappropriation and loss of funds. Therefore, the establishment of monetary funds management system plays a very important role in the security of enterprise funds. An enterprise shall formulate a monetary fund management system by the relevant provisions of the Internal Accounting Control Norms – Monetary Funds (Trial) issued by the Ministry of Finance.
Second, the asset management control system is mainly a system for managing various materials such as the existing fixed assets and current assets of the enterprise. In the formulation, focus on strengthening and standardizing financial accounting information, management authority, asset inventory, and asset management.
Third, the internal audit supervision system of the enterprise, the establishment of this system is mainly to strengthen the supervision and management of various financial activities of the enterprise as the goal. Give full play to the responsibilities of the internal control auditors of the enterprise, on the one hand, supervise the implementation of the internal accounting control of the enterprise, on the other hand, create a good internal control environment for the enterprise and make the operation of enterprise funds more secure.
Exploring the Effect of Corporate Accounting on Internal Control; Photo by Sarah Elizabeth on Unsplash.
Relationship between Financial Management and Management Accounting; With the transformation of the modern economic situation, the new concept believes that financial management and management accounting can be gradually integrated and developed, so the overlap and repetition of financial management and management accounting have become an unchangeable fact. Know about Thinking of Accounting Firms for Small Business.
Here are the articles to answer, the doubts about the Relationship between Financial Management and Management Accounting!
This article starts from the similarities and differences between financial management and management accounting, analyzes and compares the two, reflects the mutual learning and absorption between the two, and promotes their respective development together. Secondly, comprehensively analyze the focus and key objects of their work, to define the content of the two.
In the accounting profession, management accounting and financial management are of equal importance, both have deep historical origins, both originated in the 1920s, and have a lot in common in content, both have their own It has its specific research and service objects and development directions. This paper aims to demonstrate the important role of management accounting in the modern economy through comparative analysis and research into management accounting and financial management.
3-1 The similarities between financial management and management accounting;
In the reference book designated by the national certified public accountants, the financial department proposes that financial management is “a part of enterprise management, and is the management work related to the acquisition and effective use of funds”.
This definition highlights that financial management is the management of how funds are obtained and used effectively. After the introduction of western management accounting, some domestic experts believe that management accounting is an emerging discipline, which is generated to meet the needs of enterprise internal management forecasting, decision-making, control, and assessment.
Strengthen enterprise management and improve economic efficiency. It is not only a means to realize the modernization of enterprise management, but also an important content of enterprise modernization management. It can be seen from the above definitions that financial management and management accounting have the same management attributes, and their basic functions are to serve the management of enterprises and meet the needs of enterprise operation and development.
In addition to this fundamental commonality, financial management and management accounting have the following similarities: from the perspective of method system, management theory, and management process, both are carried out in the order of planning, decision-making, execution, and control; two The source of the information analyzed by the readers is the financial and accounting data of the enterprise; the data and report texts and other text carriers generated in the management of the two have no legal effect, and almost no legal responsibility is assumed externally; the two are mainly based on the enterprise’s Operational reality, to take certain measures to actively promote the development of enterprises.
3-2 The difference between financial management and management accounting;
Financial management and management accounting has developed today, and the differences between the two are particularly obvious. The most fundamental difference between the two is that the main content of financial management is to manage funds, and the focus is on how to obtain more funds at a lower cost and how to use funds more efficiently.
Financial management is an important link between the external environment and enterprises and is closely related to the operation of financial markets. Management accounting is about the operation and management information system of an enterprise. It is necessary to consider not only how to use funds efficiently, but also how to best allocate the materialized funds in operation and management activities.
Management accounting also realizes the management of talents through performance evaluation, responsibility accounting, and control accounting, and efficiently allocates talents, resources and positions through effective arrangements, thereby improving the operation and management efficiency of enterprises. The concept of time value in financial management introduces the relevant content about cost and profit in economics, which affects the management and economic benefits of enterprise operation.
And management accounting has continuously absorbed many theories and methods in its development process. These theories and methods can also be digested and absorbed by financial management. In addition, the incentive theory and entrustment theory absorbed by management accounting has a great inspirational effect on financial management activities and performance evaluation in economic practice and are worth learning from.
3-3 Solutions to the intersection of financial management and management accounting;
The general principle in the process of dealing with this problem is: first of all, the repetition rate of the teaching content between the two courses should be minimized, the learning efficiency and interest of students should be improved, and various knowledge points should be coherent according to the requirements of practice, to establish a complete body of knowledge. Therefore, the author thinks that the content of traditional management accounting should be integrated with financial management courses, or directly merged into a financial management course.
From the current development trend, emerging management accounting has gradually become an independent discipline. At the same time, traditional management accounting and financial management are the same in terms of research purposes, objects, characteristics, and reflected content, which is also the basis for the integration of the two.
Combining these two courses into one course has many advantages:
It is beneficial to reflect the theoretical relationship between the two as a whole, to form a complete theoretical system;
In the arrangement of practical training courses, the relevant After the content is integrated, the training can make the students better grasp the content and essence of enterprise fund management, make it more realistic, and improve the training efficiency and interest of the students.
Conclusion;
For an enterprise, both financial management and management accounting are the needs of internal management. It can effectively manage the entire process of the enterprise’s production and operation activities, improve the efficiency of the use of funds, and maximize the economic benefits of the enterprise. Although the relationship between financial management and management accounting is still at the stage of the debate, the differences between them can still be distinguished from different perspectives. Although they have different divisions of labor, they are of great significance to the long-term development of enterprises.
Relationship between Financial Management and Management Accounting; Photo by Beatriz Pérez Moya on Unsplash.
3 Thinking of Accounting Firms for Small Business Expanding for Financial Consulting Business Essay; With the development of the market economy, China’s market economy management system is also constantly improving. However, many small and medium-sized enterprises have some problems in the process of operation, which affects the further expansion of the scale of the enterprise. Enterprises do not know much about the related issues in finance and operation. They need professional institutions for consultation, which is a financial consulting business. Do you like to read 5 Types of Savings Account in the Financial System?
Here are the articles to answer, the doubts about the top accounting firms for small business, expanding for Financial Consulting, and Business Essay!
The development provides a good opportunity. As a professional financial intermediary agency, accounting firms have certain advantages in the financial consulting business, and can better expand the business scope of the firm through the development of financial consulting business, which is of great significance for the development of accounting firms. This paper conducts comprehensive research and analysis on the key problems of accounting firms expanding financial consulting business at present, and proposes corresponding solutions for specific problems, hoping to provide some reference for accounting firms to better expand the financial consulting business.
At present, the main business of accounting firms is to engage in audit, review, and other assurance services. The financial management consulting business is not the main business of accounting firms at present. Therefore, in the process of daily operation, it is rarely valued by the firm. However, an accounting firm is an organization with a professional financial team. Therefore, the professional knowledge in corporate financial management consulting is relatively solid. At present, there are some problems in the expansion of the financial consulting business by accounting firms for small business, which affect the further expansion of the business scope.
The main content of accounting firms to expand financial management consulting business
First, the agency bookkeeping business, mainly helps small and medium-sized enterprises to provide agency bookkeeping and monthly and quarterly reporting services. A certain amount of agency fee is charged through agency bookkeeping to obtain a certain income.
Second, the enterprise registration business is the accounting firm that provides registration for newly established enterprises, or time changes and cancellations of industrial and commercial information and other related services, to charge a certain labor fee.
Third, the design business of the financial management system is mainly to help enterprises to better carry out financial operations and obtain certain remuneration by providing internal financial position settings for enterprises or formulating some financial management-related systems for later managers.
Fourth, help the enterprise to carry out strategic planning, formulate scientific and reasonable strategic planning according to the enterprise’s development strategy and the actual situation of the enterprise, to help the enterprise to complete the development strategy and the annual financial indicators formulated by the enterprise manager.
Fifth, budget management, which is mainly to formulate budget plans according to the business situation of the company in previous years and its future development strategy. This can facilitate the enterprise to better implement the relevant budget indicators and provide a good guarantee for the realization of the enterprise’s business goals.
Sixth, the tax planning work is mainly to reduce the tax burden of the enterprise by providing tax planning for the enterprise and reducing the various service fees charged by the enterprise’s operating pressure.
Seventh, the setting of the internal control system and the setting of the supervision system, the accounting firm designs the complete internal control process for the enterprise to help the enterprise better conduct internal supervision.
Eighth, corporate investment activities are mainly to help companies choose investment plans that are more in line with their business characteristics. Conduct a comprehensive investigation of the financial situation of the project before investment, and provide data support for the enterprise to make investment decisions.
Ninth, the financing plan of the enterprise, according to the capital situation of the enterprise, the rational planning of the financing plan.
Tenth, carry out a comprehensive performance appraisal according to the business operation of the enterprise and provide performance services for the enterprise.
Eleventh, the value evaluation of the enterprise is mainly based on the operation of the enterprise and the operation of each project, as well as the overall experience of the enterprise. A comprehensive assessment of value.
Twelfth, human resources consulting, mainly to provide talent planning for enterprises, to better design the salary standards of enterprises, and to fully motivate employees to carry out daily work.
Advantages and problems faced by accounting firms in expanding financial consulting business
Advantages of accounting firms in expanding financial consulting business;
The project personnel of the accounting firm has high professional standards. There are a large number of certified public accountants in the accounting firm. They have received higher vocational education. Their good professional theoretical level can provide a good theoretical guarantee for the financial management consulting business.
In the process of auditing, they have come into contact with financial accounting in different industries. Therefore, in the process of consulting business development, accountants have certain work experience, which is of great positive significance for better improving the comprehensive level of financial management and ensuring the improvement of the financial consulting level.
Accounting firms have a better understanding of the financial management needs of enterprises. At present, there is a very close relationship between Chinese accounting firms and enterprises. Whether it is daily audit business or review business, we are committed to providing better services for enterprises in the process of carrying out. In the process of auditing business, they understand the relevant needs of enterprises and have a certain understanding of how to carry out relevant work.
On this basis, we can better provide financial consulting services from the perspective of enterprises, which is of great positive significance for improving the comprehensive level of financial consulting services. Accounting firms have a better understanding of the needs of enterprises in their daily business, which provides reliable market resources for firms to carry out financial consulting business, and has a positive impact on the development of the firm’s financial consulting business.
CPA has a good reputation. With the continuous increase in the number of certified public accountants in my country, the professional standards and professional service spirit of certified public accountants have also been highly recognized by people from all walks of life. A good practice spirit and social reputation will attract more customers to hire accounting firms to carry out related financial consulting business, which is very positive for the further development of accounting firms’ financial consulting business.
Relevant problems in the process of expanding the financial consulting business of accounting firms;
Financial management consulting professionals continue to drain In recent years, with the overall reduction and upgrade of the statutory business of certified public accountants, the competition in the industry is gradually intensifying. CPA not only needs to rely on brain power but also needs to consume a lot of physical strength. However, their remuneration has not been significantly improved, which leads to the continuous increase of the turnover rate of professional talents in financial management consulting of accounting firms.
Many certified public accountants with comprehensive professional knowledge and rich practical experience have joined relevant management positions in enterprises. Therefore, the brain drain of accounting firms is serious, resulting in the shortage of professional talents in the process of expanding the financial consulting business of accounting firms.
The intensified market competition in the financial management consulting business has intensified the difficulty of business expansion. At present, financial management consulting is not only undertaken by accounting firms, but also by enterprises and financial industry enterprises. Therefore, the overall competition in financial management consulting is very high. big.
Many colleges and universities and other types of consulting institutions have opened financial consulting services. Coupled with the further expansion of the influence of foreign consulting companies in my country, it is very difficult for my country’s accounting firms to develop financial consulting services.
The level of financial consulting informatization is relatively low, which reduces the quality and efficiency of the business. Currently, in the information age, accounting firms need to use information technology to complete many financial consulting services, comprehensively improve the consulting effect, and ensure consulting efficiency.
However, at present, the overall informatization level of accounting firms is relatively low, and they still use traditional consulting business processing methods. The efficiency of their work cannot meet the needs of customers for financial consulting services, resulting in work efficiency and work quality cannot comprehensively obtain. The improvement of accounting firms has affected the further expansion of financial consulting services by accounting firms.
Effective methods for accounting firms to develop a financial consulting business;
Reform the compensation system and attract outstanding talents;
At present, accounting firms should set up a professional project team in the process of conducting financial consulting business to have a comprehensive understanding of the financial consulting business, and at the same time form core competitiveness, to provide accounting firms with more professional financial services through professional talents. consultation service.
To better retain talents, accounting firms should improve the traditional compensation system and establish a performance appraisal mechanism. Set up different performance appraisal indicators according to the work behavior of the relevant staff, to motivate employees to join the accounting firm’s financial consulting business. At the same time, accounting firms should pay more attention to professional talents and provide them with more diversified training.
Comprehensive assessment of professionals from different aspects. In the process of assessment, it is necessary to establish key performance indicators, and use the balanced scorecard and other related methods to achieve comprehensive training of talents, attract talents while cultivating talents, and provide good financial consulting services for accounting firms. human resources foundation.
Innovate business models and enhance customers’ recognition of corporate services;
With the development of the market economy, the current market competition for financial consulting businesses is increasing year by year. To better gain a competitive advantage in the fierce market competition, first of all, accounting firms should constantly innovate the current business model, and should not continue to use the traditional business model.
To better expand the financial consulting business, accounting firms need to Strengthen marketing innovation, use new marketing methods, let more customers understand the accounting firm’s financial consulting business, and provide customers with good consulting services so that every customer can have an understanding of the accounting firm’s financial consulting business. Basic understanding. Secondly, in the daily service process, it is also necessary to increase the stickiness with customers, establish its brand, and establish a good brand image.
In this way, when customers need some financial consulting needs, they can think of an accounting firm for the first time, to ensure that the financial consulting business of accounting firms can be carried out more widely. To better enhance customer stickiness, the managers of the firm need to use some internal control system diagnostic services to attract customer recognition. Users understand the relevant consulting business. This is a good marketing method, and it is also a solution to the accounting firm’s financial consulting scope. A small important way to this problem.
Increase investment in research and development and improve the level of informatization;
In the Internet era, information technology has become an important factor affecting the overall market operation. In the process of expanding the financial consulting business, accounting firms should actively carry out research and development of products and services, and at the same time increase investment in information technology to comprehensively improve the information technology level of accounting firms’ staff. Read new Software Project Management Plan and Control Method Essay.
First of all, in the process of daily operation, accounting firms should increase information input and use information equipment to achieve basic service work, which is of positive significance for better improving the effect of financial consulting. Secondly, accounting firms should actively cultivate the information technology level of staff, use information technology to improve the efficiency and treatment of financial consulting; and provide a good reputation for the development of accounting firms, to maximize the ability of financial consulting services to be guaranteed. More standardized development in accounting firms.
Conclusion;
Through the investigation and analysis of the relevant problems in the process of financial consulting business development of accounting firms in my country, this paper finds that the existence of many problems has become an important factor affecting the financial consulting business development of accounting firms. Accounting firms must attach great importance to specific problems, analyze specific problems based on reality, maximize the application scope of accounting firms’ financial consulting, and inject new vitality into the development of accounting firms. It is believed that shortly, with the further development of the accounting firm, its financial consulting business will become the main force of the firm’s business operations, providing a reliable source of income for the firm’s development.
3 Thinking of Accounting Firms for Small Business Expanding for Financial Consulting Business Essay; Photo by Dan Dimmock on Unsplash.
