Development Trend Of Management Accounting -Myassignmenthelp.Com

Question: Discuss About The Development Trend Of Management Accounting? Answer: Introduction The organizational and the present statutory requirements that the management of the firm should consider is a strategic plan for achieving the business plan effectively. This can be achieved by decreasing the gross profit by 1% so that the firm incurs a stable revenue in spite of the trading period being tough. $70,000 has also been added to the advertising budget for the achievement of the larger market sector. Moreover, the wages and salaries apportioned for the firm have been increased by an amount of $172,500. The statutory requirements include the superannuation to be of a 9% of wages and salaries. The payroll tax is 4.75% of wages and salaries. The workers compensation accounts for 2% of wages and salaries. The company tax is 30%. Luxury Car tax, Payroll tax, Fringe Benefits tax and GST are the tax related liabilities of VTI Homecare Pty Ltd. The compliance requirements for VTI Homecare Pty Ltd under the Corporations Act 2001has been that there should be a defined code for governing the conduct of the employees and a suitable structure regards to corporate governance. The financial reporting to ASIC should be processed in such a way that it reflects the true and fair view of the company. The audit of the financial statements should also be carried out annually in order to adhere to the requirements of the Corporations Act, 2001. Moreover, the VTI Homecare Pty Ltd should also arrange for a board of directors[1]. The sustainability and the effectiveness of the accounting software, MYOB can be obtained from the facilitation of widening of the visibility scope and business performance. The simplification of the complicated business activities and the acceleration of the speed of the business operations by the further simplification of the management structure is facilitated by the accounting software, MYOB[2]. The other accounting software that are commercially available are Xero and FreshBooks. These accounting software have been the primary competitor of MYOB. FreshBooks has been the mostly used accounting software by the small business owners. This particular accounting software can be utilized on any device like android, iPhone, iPad or Mac. The cost of installation of FreshBooks is generally high. Xero is the accounting software that is primarily designed to suit any business irrespective of the nature of business conducted by the business firm. The facilities offered by Xero are a simplified setup process, clarified recording of the transactions, a proper overview into the current financial health of business and other associated benefits. The only disadvantage provided by this particular accounting software is that the small business owners cannot afford it[3]. The matching principle can be applied by recording the income along with the relevant expenditure for the purpose of ascertaining the profit. The account group indicates the summary of accounts that has been grouped in terms with the specified criteria and can be referred to while the budgets are prepared. It is always recommended to prepare the budgets on the basis of a specific time-period. This is because the budget prepared for a specified time period results in more accurate forecasts. The implication of probity results in the financial probity. The insurance of the management in regards to the funds is facilitated by the financial probity along with the agreement with the fact that the legal obligations have been met. The advertisement expenses have been reduced in the first quarter of the financial year of 2016-17. The salary and wages have been increased in the first quarter of the financial year of 2016-17 and the gross profit have been reduced by 1%. The items that can be included in the budgets for VTI Homeware Pty Ltd are transportation, staff amenities and office expenses. he internal controls that should be implemented in the organization for functioning the smooth operation of business is segregation of duties. The sales budget has been prepared by gathering the relevant information. The most important outcome that has come up with the preparation of the sales budget is that the revenue in regards to the sale of bedroom decorative has increased from $848,562 to $1,018,274. This reflects the demand for bedroom decorative in the market. This budget reveals the total amount of GST to be paid is $406,905 The financial probity in regards to the preparation of the budget has been that all the financial transactions in regards to the debtors have been financially recognized and legally met. The variances have generally occurred in regards to the expenses. This can be assumed as a result of the faulty accounting information system that has recorded the mistaken value of the transactions. However, the other reasons might be the elevation in the price of the raw materials or price level due to the inflation in the economy[4]. The financial performance of the firm has not been well. The margin in regards to the gross profit margin has decreased. The management of the firm should take enough initiative by boosting the sales activities of the firm by rigorous advertising campaigns and other promotional activities. Internal controls like the segregation of duties should be implemented while utilizing the accounting software[5]. The particular recommendation in regards to the specified case is that the management should consider restructuring the entire sales process. The marketing strategies implemented by the organization should be reviewed and improved. Moreover, the internal controls should be qualitatively improved [6]. The primary issue with the selected firm, VTI Homeware Pty Ltd has been that the accounting software utilized in the firm is faulty. Thus, it is highly recommended that the firm considers the installation of a new accounting software. The management should also consider the innovation of the products in order to derive increased sales revenue. The internal controls existing in the organization should also be reviewed and modified and new controls should be implemented in order to make the implemented strategy, a success[7]. References Amirul SM, Mail R, Bakar MA, Ripain N. Information Technology Knowledge and Skills for Accounting Graduates: An Insight from Public Accounting Firms. Indian Journal of Science and Technology. 2017 Mar 20;10(12). Aziz MA, Ab Rahman H, Alam MM, Said J. Enhancement of the accountability of public sectors through integrity system, internal control system and leadership practices: A review study. Procedia Economics and Finance. 2015 Jan 1;28:163-9. 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