UNIT AND TITLE: Unit 5: Accounting Principles

ASSIGNMENT TITLE: Accounting in Context and Budgetary Control, Production and

Interpretation of Financial Statements

TEACHER NAME: Shruti Satyajit

YOUR NAME: Chonradee Ngamchanpli

YOUR NICKNAME: Tonkaew

CLASS YEAR: 13

DATE: 21/1/2023

TASK: 1,2,3

Task 1

Accounting is one of the most important departments in the organization. Accounting

can be analyzed in many sections: taxation, reporting, auditing and fill the basic financial

problems for all sizes of business. Having an accounting section in the company will

increase the efficiency of the organization in terms of financial.

The purpose of accounting in the complex operating environment is to work with

many departments to make the work more efficient. The main goal of accounting is to

accumulate and report on financial information in each performance, position and cash flow

for the organization's data which lead to decisions making, investing and also in payroll

services of employees which means accounting needs to respond in many roles in the

organization both small and big. Additionally accounting also links competency and reporting

to support the full spectrum of compliance needs including taxations.Scope for small

business mostly hire an accountant as an outsource resource.

 The evaluation of function on accounting has influenced many decisions making of

stakeholders, income statements , liability, expenditure of the company which accountant is

responding to in this section showing stability in profit will increase credibility of company to

stakeholders and how we want them to see the company productivity.

In the consumer perspective, accounting helps small businesses to manage their

income and expand. Shape consumer’s experience and impact consumer loyalty through

accessible and seamless billing and payment. Accounting will mirror the effectiveness of

their company they work with, which they will show performant.

In terms of government, accounting responsibilities in taxes and debit of each

company which directly straight up to the government section in collecting taxes because

accountants need to manage all the financial activities of government commonwealth state

and local level as well.

Accounting include many branch such as financial accounting , management

accounting ,cost accounting ,auditing, tax accounting and insolvency which each branch

requires a skills that are important for accounting job for example Analytical skills using in

the work that are meticulous and need to ensure that every detail is correct, critical thinking

very important in accounting job which need to solving the problem quickly and persuade,

Time management very necessary in every position and last but not least adaptability

helping accounter reach constantly changing and evolving of accounting all the time. This is

only a few examples of skills requirements in the accounting job that are basically needed.

In the age of technology, many technologies have more role in helping people,

including accounting which influences a lot to the company’s operations. Accounting jobs

have been developed to work with the computer and new technology which helps and

increase the ability of accountants to assess statistics values which are faster, accurater and
more highly effective than man made versions. The goal of it is to make fewer mistakes at

work, especially human error .

Moreover it also has some websites and applications to fulfill and be an assistant,

example is bookkeeping which collects each company’s income and expenditures which

help accountants to calculate much more easily. Collected data also appears a lot in

accounting work. Technology came to fix this problem by processing the enormous

complexity of data to the scope that accountants can develop and process to be

understandable data for companies and other departments to use forward.

Additionally, using technology along with an accountant can save costs in large

amounts. For example, small businesses can use only one accountant with the application

and technology to reduce various burdens instead of hiring more people.

With technology, people can access accounting data 24/7 and analyze it in real time.

We can expand the scope easily in case of the business growing up.

Technology has now influenced a lot in many departments of organization, making

positive action and effectiveness of work and upgrading their scope of collecting data for

accounting.

However, there are still issues in accounting of ethics, regulations and compliance

which affect the whole organization system. Accounting jobs require an upright person

because they have to carry out all the finances of the company. Having unethical people will

make the data discrepancy. Also include confidentiality which is very important in the

accounting work, accountants need to keep the agreement of consumers for not publicly

available for other people or other companies.

Task:2 - Memorandum to the client - Cash Budget Analysis

Due to the cash budget analysis, the overall view of cash inflows is less than cash

outflows, leading to accumulated loss. The cash in January is not enough for the

expenditures of the company. Moreover, the cash of sales does not come in the same month

because we give the one month credit term, so the liquidity is insufficient. We can describe in

the cash budget that there is a spot, this company has been losing their balance since the

second month. Because of the campaign that gives discounts to buyers 20% but can only

make 10% increase sales. Even though we less the discounts, sales still can increase which

means this company is invested in the salary and marketing expenditures too much. The

cash inflows is less than cash outflow in the highest point making this company cannot make

the profit. In 12 months this company cannot make any profit or break even.

Task 2 - An evaluation of the role that budgets play in the effective planning and control of

resources in an organization

it can help us evaluate this plan such as….

● Over investment at the beginning, it is hard to recover in the long term leading to

losing of profit. The company needs to invest in the small unit to less risk.

● Source of cash inflows comes from sales only which is not cover the expenditures of

cash outflows, so weather company need to increase cash inflows by sales more

product, release new products, use new strategy to gain attention from customers as

well as keep cash less credit.

● Reduce cash outflows by reducing human capital and outsourcing. Rent new

premises that have lower cost to save more money.

Task 3: Letters containing Analysis of Financial Statements

Letter to Client no.1 - Chayada Traders

Chonradee Ngamchanpli

5/388 bangkok

Bangkheng Main Street

10220

555-555-5555

Chonradee. Tone knew @email.com

January 21 1, 2023

Chayada

123 Business Rd.

Business City, CA 54321

Dear Mrs, chayada

I would like to inform you that from the income statement and balance sheet at the

end of the 31th march, the Cayada's business net profit is only 10%,which can be increased

by reducing the expenditure. The big portion of expenditures are the salary which causes

40%, general expenditure 18% and commission paid 10%.

 The company can reduce those major expenditures by manpower outsourcing.

These outsourcing can reduce the cost of salary and general expenditure of the company.

Commission pay can also be reduced by setting efficient commission schemes.

The alternative way to increase net profit is to try to reduce the cost of goods and

services. Now the company has 74% of the cost of goods. The company needs to negotiate

more discounts or find other suppliers that are cheaper. If the company achieved this the

chayada will gain more profit

Thank you for your time and I hope to hear good news for you .

Respectfully,

Chonradee Ngamchanpli

Accountant

Letter to Client no.2 - Jay & Smith Associates

Chonradee Ngamchanpli

5/388 bangkok

Bangkheng Main Street

10220

555-555-5555

Chonradee. Tone knew @email.com

January 21 1, 2023
Jay and smith associates

123 Business Rd.

Business City, CA 54321

Dear Mr Jay and Smith

I would like to inform you about your income statements, Jay and Smith have sold

1,225,000 from January to March 2020. The gross profit is 39% or 480,000 and net profit is

only 4%or 48,750. The cost of operation is the major expenditure which is 431,850.So we

have a solution to increase your net profit by reducing the operation cost. The major

operation costs are salary and rent which is 70% of total operation cost.

If we are able to reduce 50% cost of rent by, it will make the net profit reach 10%. At

the end of 31th march 2020, the ROC is only 6 percent, if we want to reach over 10%, we

need to reduce operation cost as in the above example.

The company has a total asset 3 times of current liability which is good financial for

the company.

Thank you for your time and I hope to hear good news for you .

Respectfully,

Chonradee Ngamchanpli

Accountant

Letter to Client no.3 - Bangkok Sports Club

Chonradee Ngamchanpli

5/388 bangkok
Bangkheng Main Street

10220

555-555-5555

Chonradee. Tone knew @email.com

January 21 1, 2023

Bangkok sport club

123 Business Rd.

Business City, CA 54321

Dear Bangkok sport club

I would like to inform you about your income statements, the total income is 60,500 at

the end of year. The expenditure is 32,230which means this organization has profit and the

net profit is 28,270 or 47%.

The major expenditure is employee salary, however overall this organization still has

a good financial position.

The asset of this organization is devised in two categories. The current asset value is

26,140. The other one is fixed assets which are around 112,920. The liability is 8,500. So the

current ratio is 3.075 which is better than the current ratio of last year.The total capital is

114,290.

Thank you for your time and I hope to hear good news for you .

Respectfully,

Chonradee Ngamchanpli

Accountant
Task 3 - An outline of the benefits of contemporary accounting software packages, with

examples of products on the market, justified conclusions and recommendations for your

client.

It cannot be denied that contemporary accounting software has more of a role

nowadays. It helps you make your accounting statements to be more productive and less

errors, save your time and have many functions to use to make your statements more fluent.

● The first benefit is time saving for your client in a cash statement. Accounting

software can streamline your accounting processes to be more efficient and also it

has many applications to use as an alternative. As well as saving money using

accounting software will make the client able to calculate easy income and expenses,

report statements which are cheaper than hiring an accountant.

● Generating reports for clients accounting software can collect the information

and report financial information for your business faster than doing by human with the

risk of having more incorrect information and also reduce human error. Moreover, this

accounting software can be calculated automatically with reliable results which is

more effective than human power with less time to calculate.

● Additionally, having accounting software also helps clients to organize your income

and expenses statements with easier and less error. It will make users able to collect

this information systematically and digitally . As well as make your business know

which part of your record should be fixed to make your business more productive.
 ● Accounting software is able to make a better report, the modern system of

accounting can churn and analyze vast amounts of data and information and make

more shots for comprehensive information.

● Working between client and accountant will be easier by using accounting software

because it is available to share their information and report together. Allowing clients

to communicate with the accountant in the direct point.

In conclusion, I recommend clients to use accounting software such as End-to-end

accounting, Easy collaboration,integrated platform as an example of accounting software

which is guaranteed to be the best accounting software to use in your financial statements

for the reliable information and system. As well as making clients save money and time for

doing some financial statements, it also has an interesting function for collecting information

and data in the long term which also can cooperate with report statements with reliable

sources of data.

(https://www.patriotsoftware.com/blog/accounting/advantages-accounting-software/)

(https://mlprivateclients.com.au/modern-accounting-pros-and-cons/)