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accounting policies and procedures?
policies and procedures
Short note on accounting policies?
They are specific procedures used by a company to prepare its financial statements.
How do you explain discounting of accounting policies?
Explain discounting of accounting policies
How the size of firm impacts on the accounting policies?
It depends on the type of company that you operate and your intentions for the future. If the company is small and run by a sole owner or a family, then accounting policies and procedures may not be that important as long as you record all income and expenses as they are incurred.If it is the company's desire to one day expand by issuing stock to outside investors or by borrowing money from banks or investors, then accounting policies and procedures become very important. Investors and banks will want to see financial records where accounting policies and procedures are routinely followed by management and staff. They will want to see financial statements that are based upon generally accepted accounting principles. They may even request that an independent accountant (auditor) review the company's records to ensure they are correct and reliable before loaning money to the company or investing in the company.It really depends upon what the owners of the company wish to do now and for the future. However, established accounting policies and procedures are always recommended as a sound business policy especially if the company has hired staff to perform accounting functions.
Why are internal controls important?
Internal controls are procedures set up to protect assets, ensure that accounting reports are reliable, promote efficiency, and encourage adherence to company policies. Internal controls are crucial if accounting reports are to provide relevant and reliable information.
