Accounting is essential to every business because companies can manage and analyse the success of the business. This paper will be discussing Accounting is the process of measuring, processing and communicating financial and non-financial information among internal and external parties of entities. By doing accounting, the business knows the value of its assets such as liabilities, revenues; costs, productivity of labour, expenses, and profitability of the business by doing these companies are able to perform a good tax planning. The main goal of accounting is to provide financial and economic control to the entity, economic information to suppliers, banks, investors, employees and their representatives, managers, lenders, community representatives, government and owners.
Moreover, the author will be looking at the different types of organisations which are non-for-profit and for-profit profit organisations. A profit organisation is a company or other organisation which main goal is to make money (profit). Examples of for-profit organisations are retail stores and restaurants. A non-profit organisation is usually a tax-exempt because it provides valuable services to organisation for the community interest. The main objective is not being profitable, for example: religious, educational, charities, universities, institutions and hospitals. Although the organisation does not need pay income tax, they still produce accounting information because it is needed by users that may have an interest in the organisation and to observe that organisations wealth is being correctly used and controlled. Most of these organisations have tax exemptions status.
Also the researcher will be doing a comparative analysis based on...
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...ts increased by 21.6% because there are 220 more employees than in 2012 to help improve the company’s administration and process of student support schemes. Along with the report, the SLC did a bad management in 2013 because they spent almost the same as they earned compared with the previous year, as seen in the figure 6 below.
Afterwards it is plausible to from the balance sheet that the SLC had more assets in 2013 (£29,239) provided by the fixed assets (property, plant and equipment such as computer and electronic equipment) but their liabilities also went higher.
In Relation to the SLC statements of changes in equity, the report shows that the values remain the same from 2012 to 2013 (figure 7).
Although there had more investment in 2013 than in 2012 of £9,522 as shown in the figure 8 below, it had less cash flows at 31st March 2013 (figure 8).
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