ACCT11059 – Assessment 1 – Step 1

My blog link: https://joelcarswell.wixsite.com/accountantscorner

 

KCQ 1 – Accounting is more then just numbers on an excel spreadsheet it is how a business is viewed.

Before reading this chapter, I mostly thought accounting was just about recording numbers, preparing reports and working out profit or loss. Accounting is a lot more then that it’s about understanding a business, their strengths and weaknesses. What they focus on, what they neglect. This interests me because it makes accounting seem much broader than I expected and makes me think where do I want Accounting to take me.

If accounting affects how people view a business, it can affect the decisions the business makes because those decisions it makes can either make people view it in a positive or negative light. For example if a company is struggling financially and needs to make people redundant people view this business in a negative light. This decision is based on accounting and how financially viable this company is.

 

KCQ 2 – Accounting Information can be used differently depending on the audience.

One idea I found important was how accounting information of a business is utilised differently by different people. Managers inside a business use the information to help with decision making. Can the business grow in areas? Are there parts of the business that need to be changed? People outside viewing the business judge how successful or positive the business is.

This information can be separated into what is relevant to the person viewing it. A manager might want information on a specific area of the company and how that is performing whereas an outsider may want the entire picture of how the company is performing.

 

 

In my current position as a mining automation site specialist how area is performing well however how spending is dictated by how the rest of the company is performing and company wide cost restraints affect how department exactly the same as other parts of the company, which can make things frustrating sometimes when asking for spending.

 

KCQ 3 – Learning and Communication is just as important as the numbers.

If I’m honest, I was unsure how exactly learning and communication factored into accounting. Reading this chapter and going through this subject I’m starting to understand how the information is communicated is just as important as the information you are communicating. This subject does make me a little nervous as I’m not generally someone who puts themselves out into the public domain through social media for example. The blog exercise in this subject was interesting as I was unsure what do I put on there, what do I want to share, what don’t I want to share.

 

KCQ 4 – A business’s fortune can change overnight.

A business is never set and forget and there is always moving parts and issues to be resolved both internally and externally. A business can be sailing along smooth and not an issue in the world however factors can change almost over night that can change that business. 

A current example is the fuel station near my residence, from the outside it was looking like things were going smoothy there always seemed to be a steady stream of people going there and inside they were training new employees however with Americas war on Iran I have seen that fuel station cut there open bowsers by half and the steady stream of people there doesn’t seem to be there anymore. This to me highlights how managers need to be always adapting and not just resting on their laurels as sometimes things can change that are well out of their control however they have to find a solution that best helps their business.