Financial accounting is relating to financial transactions of the business. In which involve all capital and financial transaction in the systematic manner. Keep all records and data through accounts department of the company. Financial accounting in include cash low and fund flow of the company. All these transactions are representing in balance sheet and income statement those help to represent profits, losses, equity, debt amount etc. through this easy to determine actual status and performance of the business.(Weil, Schipperand and Francis2013) In the other hand, financial accounting is the summering, analysing and data reporting relating to financial data and capital funds. In which involve stockholders, suppliers, employees, banks, owner of the business. Financial accounting is the systematic records of financial transactions of the business. Those help to representing and determine the business status and their actual or realistic image. In this project report Pickering is the author those representing a research project report in which including financial transaction and transactions of funds in the business. Pickering representing the comparison of different accounting firms of various firms. Through this easy to evaluate their financial strength and weakness in the financial term. Through this research report evaluate different firms of financial transaction. In the research report including various issues and problems relating to various ownership firms because through all kind of ownership firms invest capital or fund to develop their business so its require to maintain financial records and collection of data.
Discuss the different forms of ownership a professional service firm can take.
There are having many forms of ownership those are help to differentiate all business in the systematic manner and their nature of their business. Forms of the ownership a professional services working as the basis of financial investment in the business and how much equity and debt of the ownership(Edwards 2013). There are some different forms of ownership those are representing under the below:
Sole proprietorship: Sole proprietorship is the ownership firm in which only one owner of the business and that only one manage all activities and works of the business. That prepare accounting records their cash flow and fund flow of financial transactions. There kind of firms in owner have unlimited liability because sole proprietor take funds through the market or public so their have debt part is high that invest their own money and equity fund less comparison to debt. These forms mainly including in small kind of firms and business.
Partnership: partnership is the another one form of the ownership in which two or more person start a business or a firm together for conman goal or objective. They are mutually invest money, skills, land, assets and all. This type of ownership firm loss and profit equally divide between all partners of the firm. In which unlimited liability and highly risk to set business and earn profits.
Corporation: Corporation means a business firm that have a separate and different legal entity through the government of the company. Like Stock market, stock market is the separate legal firm there invest money in various firms to earn profits but their having chances of risk. On these kind of firms regulated and control by broad of director and government of the country.
Limited liability company: Limited liability company is the other one firm of ownership. This kind of firms include both partnership and corporation firms. They are working like both as an partnership or an corporation firm. These kind of firm is not incorporate nut these are not considering in corporation. Because they have not different and own entity of the firm. These kind of firm has two or more partner those are mutually working in the firm to achieve targets and objectives of the firms. The owner of the firm enjoy limited liability because this not taking funds or money form the public they are invest their on equity in the firm so that's why LLC in having limited liability to pay money to public and other party.
Cooperative: Cooperative firms in group of individual firms or business. They are working for earn mutual profits and try to remove risk and losses from the business. Its help to develop business and invest money in the different sectors as per the portfolio of the investment sectors. These kind of firms are may be corporate or incorporate in the nature. Its all depends company status and companies nature( Bazley 2013.). What works are doing in the organisation to earn profits. For example: cooperative banks, cooperative companies and all. In the other hand, these all are different types of ownership firms those are help to differentiae with each other and clarify their nature and working quality.
Articulate the research questions that Pickering (2012) is trying to address.
Research questions are representing the collected data and informations relating to business or firms. Through the research question of the partnership firm evaluate and determine financial investment. There are mainly including various research questions those are under the below:
Question 1. What are financial data and its impact on business performance.
According to this question what re financial data that affecting on business performance in both positive and negative way. Financial data include financial transaction, profits and loss, equity, liability of the business, investment in different sectors, shares of the company and all. All these are impacting on the business performance may be there are positive and negative. Financial data is the formal and systematic records of the financial data and their transactions in the business. There are including their cash flow, fund flow, investments in various sectors to earn money all these are affecting business development process in which sometimes investment in various market beneficial and threat through this company will become in surplus and deficit.
Question 2. How financial data helps in strategic decision marking process.
Financial data of the firm help to take effective decisions regarding business. Because in the financial record and statement in mention all investments, cash flow, equity, liability, debt amount of the business. Through these terms easy to identify company status and their financial status how much they are already investing in which sectors and how much they are able to invest in the future. So in the other hand, financial data helps to take effective decision regrading any situation relating to business. Through the financial data company can easy to evaluate their strengths and weakness(Beatty, and Liaon 2014). Decision marking process is the essential to take effective and right decisions regarding various situations those are help to develop their business in the future and help to earn higher profits.
Question 3. How financial data help in attaining organisation objectives.
Financial data help to attaining organisation objectives and their goals. Financial data of the business help to representing their business status and their quality of the business performance. Financial data of the business including cash flow, fund flow, investment market, capital, equity, liability, debts, number of shares and all. All these elements are help to representing company status. Through the all kind of company maintain the records and statement of their financial investment. Financial data and records are maintain through the specialist accounting person of the company. There are require to maintain records have some knowledge about financial terms so its help to understand their words and and flow of investment. In the country available various sectors to invest money in the market there are mainly two type of markets one is money market and second one is money market. Money market are relating to stock market there are available various schemes to invest money to earn high profits but there are having highly risk(Vyas ,2011). So all these are help to achieve targets and goals of the business and help to determine business status in the financial term. Company always invest in the market when that is able to invest and their have chance to earn profits.
Explain the research design used by Pickering (2012) to address the research question.
Research design for firms is require to establish effective and systematic manner. Because research design affecting in the negative and effective manner. Research design based of the research questions those are shows already in last question. Through these easy to understand companies status and their financial investments capability. Research design should be prepare in the systematic manner in which apply strategies and tech according to their company. Research design should prepare by specialist person and evaluate the research design through qualitative and quantitative methods. These both are provide information and data relating to their company in the financial term. In the research question represent how to impact financial data on business, how to achieve objectives and last one is how to help in decision making process. Research design help to achieve targets and objectives of the business and financial data help to determine financial status of the company and also in which sectors invested by the company's head. In the other hand, research design play an vital role to achieve goals and objectives of the business and it should be prepare in the systematic and in the effective manner. Research design including objectives, vision or mission of the company, research specialists, employees, strategies, tech, methods, cost, time schedule etc. All these are representing the research project. Research design should effective and systematic in the nature so all persons are easy to conduct research and collect informations and data relating to their research( Wang, 2014). Financial data is the important to representing company status and ability to invest money and fund in the market to achieve targets and objectives of the business. To assessing the research in determine and evaluate performance of research and what are the changes should change according to review and feedback of research report. There are easy to identify their weakness and strength of the business and also how to achieve targets and goals of the business in the effective and systematic manner. In the other hand, research design is important to define business in the systematic way there are set all activities and works in the systematic manner so all persons are complete their task and works in the effete way. All kind of research find out something new and innovative things to develop business and achieve deicide goals of the business(Agoglia, Doupnik and Tsakumis, 2011). So that's why company conduct research to innovate their business and their services to improve profits and revenue of the business so they can invest the funds in different sectors and earn profits. When company earn higher profits so that become in surplus. In the other hand, research design play an vital role to improve performance and financial status. Research design through determine company and financials investment of the fund in various sectors. Through the research process easy to evaluate their weakness and strength.
Summarising the finding of Pickering (2017)
Financial accounting is the systematic process in which representing the all financial elements like equity fund, debt amount, cash flow, fund flow, transactions of finance in different sectors. Financial data through identify business status and how much they are able to invest money in the market. Financial data include transaction of finance of business those are maintain the record and statements in the systematic manner. These help to determine business status and their actual position in the market. In the other hand, financials data through conduct informations and status relating to the company in which involve their investments relating to company. Company always take funds and capital through the public so in this case they are liable to pay that particular amount to them with interest(.ByardLi and Yu, 2011.). But equity of he company means how much own mount of capital invest by company to develop their business in the effective manner to achieve targets and goals. Research report of the company help to define objectives and vision of the company through the research project find out some different different things and innovative things to develop business. In the research project involving many stages like implementations, evaluation, assessments, measuring and all. In these steps help to give proper informations regarding project and their company. All kind of company conduct research to develop their business in the systematic way to achieve targets and goals of the business. Research is play vital role to increase profits and development of the business. In the market available various ownership firms those are representing their nature and working quality. Firms are regulating and controlled by the government of the country there are made some effective rules and regulations those have to follow by all companies(Bushman 2014). In the other hand all different companies has number of owners are different like partnership firm has including two or more partners those are manage and control buiness and they are start the business to earn profits mutually. In the partnership firm all partners are mutually invest the fund and money to develop their business and achieve the targets. Cooperative companies, LLC, sole proprietorship firms and all. All these are working in different different objectives and targets. Financial data of the company based on their equity and debt ratio in which equity of the company representing the own funds those are invested by the company to develop their business their own risk but debt amount means take funds through the public so in this case company will liable to pay back amount to public with interest.
Financial data involves set of information which is connect to the financial condition of a organization and set of information are utilize by internal management to analysing the company performance and explain various level and plan must be inter-related to each other. Financial data include financial statements that show the formal information of the activity of financial of an entity. Financial statement help to identify the financial effect of organization transaction on the entity and financial statement divide in four types statement of financial position, Income statement, cash flow statement and statement of changes in equity. Statement of changes in equity include total profit and loss, share capital issued, dividend payments, gains or losses and the effect of differences in accounting policy. Cash flow statement is part of operating activities, investing activities and financing activities. Operating activities include primary activity of business. Investing activities involves purchase and sale of assets other inventories. Financial activities involves represent the financial activities. There is a big impact of the financial data in a partnership business as it is used to share revenue generated by the business. According to the rules of partnership arrangement by them. Making financial data in a partnership firm is really very important if both the partners are of different regions and came into existence trough joint venture. But if the partners are friends then it is not mandatory
Books and journals
Agoglia, C.P., Doupnik, T.S. and Tsakumis, G.T., 2011. Principles-based versus rules-based accounting standards: The influence of standard precision and audit committee strength on financial reporting decisions. The accounting review, 86(3), pp.747-767.
Bazley, M., and et.al 2013. Financial Accounting: An Integrated. Thomson Pty Ltd, South Melbourne.
Beatty, A. and Liao, S., 2014. Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics, 58(2), pp.339-383.
Bushman, R.M., 2014. Thoughts on financial accounting and the banking industry. Journal of Accounting and Economics, 58(2), pp.384-395.
Byard, D., Li, Y. and Yu, Y., 2011. The effect of mandatory IFRS adoption on financial analysts’ information environment. Journal of accounting research, 49(1), pp.69-96.
Christensen, H.B. and Nikolaev, V.V., 2013. Does fair value accounting for non-financial assets pass the market test?. Review of Accounting Studies, 18(3), pp.734-775.
Edwards, J.R., 2013. A History of Financial Accounting (RLE Accounting) (Vol. 29). Routledge.
Henderson, S., and et.al 2015. Issues in financial accounting. Pearson Higher Education AU.
Vyas, D., 2011. The Timeliness of Accounting Write‐Downs by US Financial Institutions During the Financial Crisis of 2007–2008. Journal of accounting research, 49(3), pp.823-860.
Wang, C., 2014. Accounting standards harmonization and financial statement comparability: Evidence from transnational information transfer. Journal of Accounting Research, 52(4), pp.955-992.
Weil, R.L., Schipper, K. and Francis, J., 2013. Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.