Management and Financial Accounting

Accounting is usually seen as having two distinct strands, Management and Financial accounting. Management accounting, which seeks to meet the needs of managers and Financial accounting, which seeks to meet the accounting needs of all of the other users. The differences between the two types of accounting reflect the different user groups that they address. Briefly, the major differences are as follows:

  • Nature of the reports produced. Financial accounting reports tend to be general purpose. That is, they contain financial information that will be useful for a broad range of users and decisions rather than being specifically designed for the needs of a particular group or set of decisions. Management accounting reports, on the other hand, are often for a specific purpose. They are designed either with a particular decision in mind or for a particular manager.
  • Level of detail. Financial reports provide users with a broad overview of the performance and position of the business for a period. As a result, information is aggregated and detail is often lost. Management accounting reports, however, often provide managers with considerable detail to help them with a particular operational decision.
  • Regulations. Financial reports, for many businesses, are subject to accounting regulations that try to ensure they are produced with standard content and in a standard format. Law and accounting rule setters impose these regulations. Since management accounting reports are for internal use only, there are no regulations from external sources concerning the form and content of the reports. They can be designed to meet the needs of particular managers.
  • Reporting interval. For most businesses, financial accounting reports are produced on an annual basis, though many large businesses produce half-yearly reports and a few produce quarterly ones. Management accounting reports may be produced as frequently as required by managers. In many businesses, managers are provided with certain reports on a monthly, weekly or even daily basis, which allows them to check progress frequently. In addition, special-purpose reports will be prepared when required (for example, to evaluate a proposal to purchase a piece of machinery).
  • Time horizon. Financial reports reflect the performance and position of the business for the past period. In essence, they are backward looking. Management accounting reports, on the other hand, often provide information concerning future performance as well as past performance. It is an oversimplification, however, to suggest that financial accounting reports never incorporate expectations concerning the future. Occasionally, businesses will release projected information to other users in an attempt to raise capital or to fight off unwanted takeover bids.
  • Range and quality of information. Financial accounting reports concentrate on information that can be quantified in monetary terms. Management accounting also produces such reports, but is also more likely to produce reports that contain information of a non-financial nature such as measures of physical quantities of inventories (stocks) and output. Financial accounting places greater emphasis on the use of objective, verifiable evidence when preparing reports. Management accounting reports may use information that is less objective and verifiable, but they provide managers with the information they need.

We can see from this that management accounting is less constrained than financial accounting. It may draw on a variety of sources and use information that has varying degrees of reliability. The only real test to be applied when assessing the value of the information produced for managers is whether or not it improves the quality of the decisions made.

The distinction between the two areas reflects, to some extent, the differences in access to financial information. Managers have much more control over the form and content of information they receive. Other users have to rely on what managers are prepared to provide or what the financial reporting regulations state must be provided. Though the scope of financial accounting reports has increased over time, fears concerning loss of competitive advantage and user ignorance concerning the reliability of forecast data have led businesses to resist providing other users with the detailed and wide-ranging information that is available to managers.

Online Forums – How to Use an Online Forum

Online forums (also known as online discussion sites, message boards, newsgroups and internet forums) are powerful tools for sharing information. Their use has become omnipresent and wide reaching. Many people use discussion sites on a daily basis, whether it’s to gain knowledge, share ideas or simply to feel as part of a community.

Why use Online Forums?

* communicate with other like-minded people who have the same or similar interests

* exchange intellectual ideas and thoughts

* offer your opinion or advice

* submit materials for others to consider and provide feedback on such as your website, business ideas or questions

* find out new opinions and ideas

* be up to date with latest news and trends

* meet new friends and leads

Participating in forums is another way to stay in contact with persons belonging to the same community and to keep abreast of recent events. It’s a place to voice your opinions, be heard and discover other’s thoughts.

This social media outlet can become addictive. For some, Online Forums provide a haven; a place to escape the daily grind and indulge in the community aura. Forum usage is certainly a concern for employers, due to reduced productivity and procrastination on behalf of the users involved. However, most of us are thankful for their existence.

How to Use Online Forums:

The appearance of an online forum may seem daunting at first. There’s information, posts and threads flowing all over the home page in what appears to be an ad hoc manner. Occasionally, the initial reaction of first time users is to put discussion sites in the too hard basket. Here’s an easy step by step guide to using Online Discussions:

* Registration. Most discussion boards require you to become a member by registering or signing up in order to post. Invariably, you will need to provide a Username (your alias), password and an email address. The forum will also require your agreement to its terms and conditions.

* Validation. After registering to an internet forum, you will need to validate your email by following the validation link emailed to you by the site.

* Rules. Familiarize yourself with the rules and netiquette required by the forum. Generally, spamming, double posting and registering multiple user accounts is prohibited. Try to adhere in order to avoid being called a troll for unintentionally breaking the rules.

* Posting. A forum has predefined topics (called threads). Members may submit messages or comments (called posts) within these topics. The message will be enclosed in a box with the username, time and date notified either on the left hand side or appearing at the top of the post. Usually members are allowed to edit or delete their own posts. Many online forums limit posts to a certain number of characters.

* Threads. A thread (topic) is started by a post. Other members may then follow in the conversation started by the original post (sometimes called the thread starter). At times the responses and comments can become derailed. The tread generally displays posts in opposite chronological order (from first to current). The abbreviation OP often refers to the original poster. Some message boards enable you to customize the view to commence with the starting post. They may also have a thread view which shows the branching of replies in priority to chronological order.

* Moderating. Moderators monitor and enforce the message board rules. They may have access to all posts and threads or just those within their area of responsibility. Mods have the power to delete a post and to ban and suspend members who violate the discussion site’s policy. The moderator is usually the site owner’s friend. Among other responsibilities, they also help members in need and respond to complaints.

If you’re a first timer to online forums, try some smaller message boards to start with. Smaller sites still have that community feel and are more than happy to accommodate beginners. Once you become accustomed to the way discussion websites work, you can then join some larger expert message boards if you wish. Above all, don’t be shy to voice your opinion; that’s what forums are for.

Love Motorcycles? Career Ideas for Motorcycle Enthusiasts

While many people think of motorcyclists as those who love to ride as a hobby or only in their spare-time, there are some individuals who are lucky enough to be able to use their motorcycle as part of their job. Just like a moving company has a truck, some people have motorcycles that are essential to their jobs. If you’ve ever considered using your bike as part of your career, here are a few job ideas to get you started!

Racing and Stunt Driving

Obviously, you can use your motorcycle to start a career as a stunt driver or motorcycle racer. This may require a top-of-the-line bike and some hefty health insurance coverage, but can definitely be worthwhile if you’ve got the skills to prove your worth! And if you’re feeling really risky, it may be time to hit road and pull your stunt skills full-time with a daredevil carnival act!

Police Office or Security Guard

If you have a security background or training and enjoy spending time on your bike, certain careers in the security industry may allow you to combine both work and play. As a security guard or police officer, you can help others and patrol grounds while doing it in style! Security guards and police officers oftentimes take advantage of a motorcycle’s mobility to work carnivals, parades, and other large events.

Test Driver

Motorcycle companies will lend out their bikes to test drivers to try out and write reviews for national magazines and online motorcyclist websites. If you’re knowledgeable about motorcycles and enjoy trying out bikes that haven’t even hit the market yet, this may be a great way to combine what you know and love into a fulfilling career!

Motorcycle Courier

While delivering pizzas on a bike may be difficult unless you have really wide saddlebags, there are things that you can deliver and transport on a motorcycle. Motorcycle couriers are individuals who deliver or transport things to and from locations. Time sensitive court documents and paperwork are some items delivered by motorcycle couriers who can navigate through busy cities and traffic better than larger vehicles.

Travel Writer and Photographer

What better way to hit the road than with a quality camera and some portable technology. For those with a traveling spirit and an eye for great landscape shots, motorcyclists who have the time and energy to travel the world may enjoy doing so from the seat of their bike! Travel to exotic and unknown places on your bike, snap some photos and write about the area. Sell your work as freelance or start up your own online blog or website to share your adventures with the world!

Mechanic

If you’re more the hands-on, “behind the scenes” type and enjoy the mechanics of a motorcycle, you could always consider a mechanic job focusing on improving and fixing motorcycles for others. Knowledge of how a bike works is required for this technical kind of position, but can be extremely rewarding and fun for those who like a challenge and don’t mind getting their hands dirty!

Motorcycle Sales

For those of you that love motorcycles and have a knack for selling, a motorcycle salesman may be the ultimate job. An added bonus about this career path is that you’re more likely to be successful if you’re genuinely enthusiastic about the items you are selling. Helping other motorcycle enthusiasts gear up with the right equipment is also another great job for those that can’t get motorcycling off the brain. Biker clothing and apparel is becoming a booming business with the growing number of men and women getting into motorcycling for the first time.

Do You Know Your Objectives in Networking?

Networking is Much More Than Socializing

Casual networkers view networking as a form of socializing without focus and without goals. Effective networkers view it as a process of relationship building with very clear goals and objectives.

Business networking, like any other business activity, must be a productive use of time. To maximize your networking effectiveness, you should therefore clearly define your goals and objectives.

Following are some of the most common objectives for business networkers:

Broaden your exposure in the marketplace and create a positive impression on as many people in your business community as possible.

Identify those who might be prospects for your products or services

Build relationships with those who offer products or services that might be of value to you or your clients.

Build relationships with those who might become referral or strategic partners.

Build relationships with those who are influential in your business community.

Build relationships with those who can further your career.

Build relationships with those who might provide business counsel or become advisors or mentors.

Those with whom you network are experts in their fields. They can answer questions about their area of specialization, share their business experience and knowledge, and may in some instances become mentors. No one can know all there is to know about business and the advice of others can at times be extremely valuable. Networking at trade association expos and conferences will allow you to meet executives from other companies who might some day be your employer or be able to recommend you for an opening they have heard about. Earning the respect of those in your local community can lead to offers when positions become available. We have all heard the idiom: “It is not what you know, it is who you know that counts.” Building relationships with the most influential members of your business community is a key to your success.

Referral partners are individuals who are able and willing to send you referrals in exchange for your help sending referrals to them. To find them at a networking event, you must have carefully thought through who the best referral partners for you might be. You must also have a strategy for turning a casual meeting into an opportunity to develop the relationship. As a business person you and the firm for which you work have needs for a wide variety of products and services. Networking is an effective way of meeting those who provide these products and services in your local community. Your customers also need a variety of products or services for business and personal use. If you can direct them to reputable providers of those services, you will be more valued as a resource and their loyalty will be enhanced. Keeping your client’s needs in mind as you meet others at networking events, should be a habit you develop.

Most view this as the primary objective of networking. To identify prospects and create sales opportunities, you must be prepared to describe your business and its benefits clearly and succinctly. You must also be ready to qualify “suspects” and, if necessary, present your Unique Selling Proposition. The goal of an initial networking contact is not to close a deal, it is to create a follow up opportunity. Networking is an extremely effective way of creating awareness in your business community. For many start up companies, it is the only form of marketing that can be afforded. Fortunately, networking can also be the most effective form of marketing available.

Most business professionals view networking as a means of marketing their business, but overlook some of the other objectives that may be equally or even more important. Too much emphasis on selling at networking events can leave a negative impression. If you want to make a positive impression, make sure the discussion centers on them, not you.

What goals and objectives have you set for your networking activities? Which are most important? How will you measure your success? Like any other business activity, you must approach your networking with goals and a plan to achieve them.