Financial Accounting Explained: A Comprehensive Overview

FINANCIAL ACCOUNTING PRESENTATION

A financial accounting presentation provides a concise overview of the financial information and records of a company. It focuses on presenting financial statements, such as the income statement, balance sheet, and cash flow statement, along with key financial ratios and metrics. The presentation aims to communicate the financial performance, position, and cash flow of the company to stakeholders, including investors, creditors, and management. It may also cover topics like accounting principles, policies, and the interpretation of financial data.

OUR COMPANY

Accountimize is built with a mission to change old, manual, and inefficient practices by adapting to the latest technology that helps in optimizing your accounting procedures. We plan to align our clients’ accounting processes with the key strategic priorities of management and ownership, utilizing the most qualified and costeffective resources globally.

Accountimize uses accounting data to identify and highlight inefficiencies and costsaving opportunities to our clients ultimately providing greater sustainability in cash flows and a better ability to execute the underlying business plan.

DEFINITION OF FINANCIAL ACCOUNTING

Financial accounting is a branch of accounting that involves recording, summarizing, and reporting financial transactions of a business entity. It focuses on providing relevant and reliable financial information to external stakeholders, such as investors, creditors, and regulators.

The primary goal of financial accounting is to prepare and present financial statements, including the income statement, balance sheet, and cash flow statement, which showcase the company's financial performance, position, and cash flows. It follows generally accepted accounting principles (GAAP) to ensure consistency and comparability in financial reporting.

REVENUE

PRINCIPLES

PRINCIPLES OF FINANCIAL ACCOUNTING

OBJECTIVE

PRINCIPLE

COST

PRINCIPLE

MATCHING

PRINCIPLE

EXPENSE

RECOGNITION

TYPES OF FINANCIAL ACCOUNTING

CASH ACCOUNTING METHOD ACCRUAL ACCOUNTING METHOD

The cash accounting method is a simple accounting approach that records transactions when cash is received or paid. Under this method, revenue is recognized when payment is received, and expenses are recognized when payment is made. It focuses on the actual flow of cash rather than the timing of revenue or expense recognition. This method is commonly used by small businesses or individuals with straightforward financial transactions. It provides a clear picture of the company's cash position and is relatively easy to understand and implement. However, it may not accurately reflect the company's overall financial performance or provide a complete picture of its liabilities and assets.

The accrual accounting method is an accounting approach that recognizes revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. It focuses on matching income with expenses in the period in which they occur, providing a more accurate representation of the company's financial performance. Under accrual accounting, revenue is recorded when it is earned, even if payment is not yet received, and expenses are recognized when they are incurred, even if payment has not yet been made. This method provides a more comprehensive view of the company's financial position, as it considers accounts receivable, accounts payable, and other accruals. It adheres to the accrual basis of accounting and generally accepted accounting principles (GAAP). Accrual accounting is commonly used by larger businesses and is required for financial reporting purposes in many jurisdictions.

CREDITOR HRD MANAGER

FINANCIAL ACCOUNTING

OBJECTIVES

INVESTOR

SUPPLY CHAIN MANAGER

CREDIT MANAGER

The objectives of financial accounting are to provide accurate and reliable financial information about a business entity to various stakeholders.

Overall, the objectives of financial accounting are to provide accurate, reliable, and transparent financial information that enables stakeholders to understand the financial position and performance of a company and make informed decisions.

OUR FINANCIAL

CASH FLOW RESULT

The cash flow statement, one of the financial statements prepared under financial accounting, presents a summary of cash inflows and outflows from these three categories during a specific period. It provides insights into a company's ability to generate cash, its liquidity position, and its ability to meet financial obligations. The analysis of cash flow helps stakeholders evaluate a company's financial health, assess its cash management practices, and make informed decisions about investments, financing, and strategic planning.

The finance accounting result refers to the outcome or financial performance of a company as depicted in its financial statements. It represents the financial position, profitability, and cash flows of the company during a specific period. The finance accounting result is usually presented in the form of financial ratios, key performance indicators, and summary figures such as net income or profit. It helps stakeholders assess the company's financial health, profitability, and efficiency in managing its resources. The finance accounting result is crucial for making informed decisions, evaluating the company's performance, and determining its future prospects.