Assets and Liabilities
Financial Statements Are The End Result Of The Accounting Process.
Some people recognize that accounting is the language of business. But what exactly is it accounting? How important is accounting for the business? In short this site, we try to review some information that might be useful for you. Accounting itself is a process that identifies the financial data, records, and as the end result, the financial statements. There is little difference between the accounting and bookkeeping. Bookkeeping accounting is actually part of the process of recording only. While the accounting includes the identification and communication.
These financial statements are the end result of the accounting process. Included are
- report loss / gain, changes in capital, balance sheet, and cash flow statement (see examples). Loss / gain is used to provide a picture of the company’s financial performance, while the balance sheet to identify the company’s financial position. The financial position in this regard is the position of property, debt, and capital. The objective of financial statements is to provide information to certain parties regarding the position, performance, and changes in financial position so useful as a basis for economic decision making / business.
Indonesia, like many other countries, its economy is dominated by medium and small companies are still not fully aware of the usefulness of accounting too. Broadly speaking, a store can determine its financial condition. If profitable, the stock of goods will increase and vice versa. But if anyone asks how much real benefit, they can not know.
Such a situation is a lot found everywhere, not only in Indonesia. If indeed there is applied an accounting system, usually just for a formality.
Actually, if this sort of business accounting needs? The answer is actually
is not always. Depending on the cost and benefits are. In general, the usefulness of accounting are:
- owners can see the advantages for certain companies
- Easier cost control
- monitoring the company’s assets
- liquidity and solvency is certain
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Tags: Accountancy, Balance Sheet, Business, cashflowstatement, Finance, financialstatement, Indonesia, small business | 
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Function of Wealth Management Asset
Function of Wealth Management is made to help organizations to monitor and calculate their wealth, such as tools, hardware and software, vehicles, office equipment, electronic equipment, machinery, and others from buying until removal or disposal of more efficiency. This function is very easy company to store a list of their wealth, all purchase documents as ordered, costs, amount, location, used by anyone, service history, registration and insurance calculations, accumulated depreciation and current value.
Asset Management provides asset for the company to travel as a whole, not just to look at any assets that are purchased and how much it cost, where the assets are used and how they are utilized, where their location, including the cost of anything, but it also helps prevent the loss or theft of asset that can reduce costs for insurance and tax payments are excessive.
Functions in Asset Management in ERP SunFish simplify administration of the asset and its relationship with the task of recording. All routine management tasks including maintenance of asset categories, transactions such as transfers, depreciation, removal, disposal, re-evaluation, and financial adjustments can be made easy with just a few clicks and will greatly save time and users can create.
The course of the audit, the journal of transactions, calculation and recording of statements of support with ease reconciliation and analysis of the transparency to control the overall asset. It also provides basic functions to make decisions about the budget plan and the acquisition of new investments, in which transparency and sustainable to meet optimization even further to infrastructure assets.
Posted in Assets and Liabilities | Tags: Accounting, Asset, Asset Management, Business, Business Services, Depreciation, Fixed asset, Investment management | No Comments »
Art in Understanding Accounting
you ever read a financial statement? Or do you even feel empty because it is difficult to digest the concept? Let alone ordinary people like you, even accounting students, many also find it difficult to understand financial statements. Quite strange is not it?! Early days of development, accounting is a craft (art). Now, no longer worthy to be called the accounting craft, let alone books. Accounting is more complex than just aesthetics. The meaning of art in accounting is a way to apply them. Perhaps because of the complexity of it, the more difficult to understand accounting. Seeing only college student text book sometimes been horrified. It could be the language used by the scientific variety feels less mundane. Moreover, reading the college text book of translations. Scientific language increasingly untidy.
Posted in Assets and Liabilities | Tags: Accountancy, Accountant, Accounting, Business, Certified Public Accountant, Financial statement, Firms, small business | No Comments »
Learn the basics before you begin to analyze
Step Action
The most important part of menperoleh information from people who are competent. Learn the basics before you begin to analyze, It is difficult to analyze the balance if you are unfamiliar with basic terms, such as accounts receivable, cash and cash equivalents, intangible assets, and liabilities.
Watch assets, liabilities and equity
Balance Sheet includes the assets of the company plus the portion financed from equity and debt. Balance usually include a list of assets, which can include property, equipment and other assets. Liabilities and shareholders ‘equity, to cover current liabilities, long-term liabilities and shareholders’ equity will be listed on the right. Total on the left side must equal the total on the right side.
There are several tools available to help calculate important ratios, including return on assets (ROA) and return on equity (ROE). This tool can be used to analyze profitability, liquidity and long-term financial strength.
Find balance sheets online
There are many places to find information about corporate balance sheets, including annual reports and corporate information or investor relations section on its Web site.
Analyzing Balance Sheet Company
The consolidated of balance sheet is a financial report which is very important, this article is easy-easy-an can help you evaluate the financial health of a company.
Balance Sheet, also known as the consolidated financial position or statement of financial condition, the report that displays all items that are owned or controlled by the company, concerning company ownership, and corporate debt that has occurred. Knowing how to analyze balance is important, whether you are considering acquiring a company or just trying to strengthen and solve business problems on your own.
Preparation steps that must be known
- Balance Sheet following the formula Assets = Liabilities + Capital (Equity)
- Balance describes a certain point at a time, usually on the last day of the quarter or fiscal year, and reflects the balance, or the values, assets, liabilities and equity on the day.
- Balance disclose the company’s financial condition, while the income statement shows the performance advantage.
Posted in Assets and Liabilities | Tags: Asset, Balance Sheet, Business, Equity, Finance, Financial Services, Income statement, Working capital | No Comments »
Is your Website an Asset or Liability
Today, this mindset has changed drastically. We all know that we need a website, but many of us think that just having one was enough. In fact, there is research showing that many companies with online presence have not touched their Web sites for years. They do not spend time improving functionality and appearance, and they have not considered the basics of website usability and the inherent potential of search engine optimization. Of course, we all know now that having a website is an important business asset, if done correctly. It’s easy to see that if your vision outdated eyesore, it became a liability that hurts you more than it helps you. Conversely, well-designed site can make all the difference. This is the first place our users to research products and services, serving as lead generation, CRM tools, even making a purchase.
Assets and Liabilities
Assets: These are all things that give us our pocket money.At this point, you should know what assets you have in your life. All those things that give you an income, either daily, monthly or annually. At this point you will be saying “Yes, I feel that my salary.”
Therefore we will also define the type of income. We have 2 types of income, passive income (money coming into my pocket without having to work) and on the other income assets (our wages, depends on our work, but we do not have a dime). So, start to list on a sheet assets and liabilities income you have. Surely you are alone with your salary.
Are you beginning to see the importance of the assets? Imagine for a moment in which you can acquire an asset that gives you income without working, you will have more time, and then continues, over and over again. Reached the point where you’ll have so many activities, you will not need to work and most importantly, you’ll have plenty of time to do what you really want.
Liabilities: These are all things that we take money from my pockets.”This is the easy part right?. How many things we have in our lives that we take money. A mortgage, a loan, the car, children, the outputs, the bride, club, etc, etc, etc. Read the rest of this entry »
Posted in Assets and Liabilities | Tags: Assets, Credit cards, Expenses, Financially, Liabilities, Money, Passive income, Salary, The other income assets, Type of income | No Comments »