What is Cost Accounting? Definition and Objectives
Cost Accounting is a term used in management accounting to track and analyze the costs incurred in the production process of goods or services. It involves collecting, recording, and analyzing various types of costs to provide valuable information for decision-making purposes. The main goal of Cost Accounting is to determine the true cost of producing […]
What is the Impact of Big Data on the Accounting Profession?
Big data has had far-reaching effects on the accounting industry, and these effects are probably not exclusive to accounting. As with so many other aspects of Big Data, there is no shortage of “what if” stories of how Big Data might impact the accounting profession. As a result, the accounting profession has adapted to reflect […]
Why internal control is necessary for accounting system
Internal control procedures in accounting are the policies and procedures implemented by a company to ensure the reliability of financial reporting, safeguard assets, and promote operational efficiency. These controls are designed to prevent fraud, errors, and irregularities in the financial reporting process. In this blog post, we will explore why internal control is necessary for […]
Pros and Cons of the Traditional Method of Calculating Overhead
Calculating overhead is an essential part of determining the true cost of goods and services in a business. Overhead costs are indirect costs, such as rent, utilities, and insurance, necessary to keep a business running. The traditional method of calculating overhead allocates these costs to products or services based on a predetermined rate, such as […]
What are different types of annuities
Annuities are financial instruments that guarantee a regular income stream, normally utilized for retirement planning. They are provided by insurance firms and exist in several forms, each serving different financial objectives and risk tolerances. The most common annuity types are fixed, variable, indexed, and immediate or deferred annuities. A fixed annuity offers a guaranteed return, […]
Treasury Bills and Commercial Paper Explained
Treasury bills, or T-bills, are short-term financial securities issued by both the federal and provincial governments having maturities of up to one year. Treasury bills typically have maturities of a few weeks to a few months, with the most common maturities being 91 days, 182 days, and 364 days. Treasury bills do not carry periodic […]
What is the Revenue Recognition Principle?
The revenue recognition principle directs a business to recognise revenue in the period in which it is earned; revenue is not considered earned until a product or service is provided. This means that revenue is recognised during the period in which the service was rendered or the product was delivered to the customer. There is […]
What is Accounting Information System?
Today, when we refer to an accounting information system (AIS), we typically imply a computerised accounting system, as computers and computer software that assist us in processing accounting transactions have become quite affordable. The benefits of adopting a computerised accounting system outweigh the costs of obtaining one, and most businesses, including the smallest ones, can […]
Top 10 Accounting Software for Indian Businesses
If you are an owner of a small business or a self-employed individual, then you must know that accounting can be a real pain. Keeping track of your finances, analysing them, and reconciling them is no easy task. This is where accounting software comes in handy. The world has become digital, and it’s now more […]
Top 10 Accounting Software | Cloud and Desktop
Whether you operate a small business or a large corporation, the proper accounting software can simplify bookkeeping, calculate taxes automatically, and offer real-time financial data. With technology advances, companies today have the luxury of choosing between cloud-based and desktop accounting applications, both of which provide advantages in terms of accessibility, security, and functionality. Here we […]