Accounting in a professional environment Flashcards
What are the three different sectors of business organisations?
- Private sector
- Public sector
- Charities
What are the three main types of businesses in the Private sector?
- Sole traders
- Partnerships
- Companies owned by shareholders
What is a Sole trader?
A Sole trader is owned by one person, who normally invests their own money and is fully liable for any debts
What is a Partnership?
A Partnership is a business agreement between 2 or more people. They all take the same financial risks as Sole traders. There can be up to 20 partners
What are the two main types of companies owned by shareholders?
- Private limited companies (Ltd)
- Public limited companies (Plc)
These companies are not fully liable for debts they only loose what the have invested in the business
What is the Private sector set up to do?
Businesses in the private sector are set up to make a profit for its owners
What is the Public sector set up to do?
The public sector is set up to provide essential services to the public, that are financed through taxes paid
What is the Charity sector set up to do?
Charities are set up to raise awareness of a particular issue, they provide services , research and promote their cause. They are financed through funds they raise
What is the difference private limited companies and a charity?
They both have different objectives. A private limited company makes a profit whereas a charity promotes and raises funds for a cause
How does a limited company differ from a sole trader or partnership?
Limited companies have limited liability of debts whereas sole traders and partnerships have full liability of its debts
How is the private sector different to the public sector?
The private sector focuses on making a profit whereas the public sector focuses on providing essential services
What are external customers?
External customers are people from outside the organisation requesting financial information
What are internal customers?
Internal customers are people from within the organisation requesting financial information
What is the function of the accounts department?
The accounts department controls the finances of an organisation
What different departments is the accounts department likely to deal with?
- Sales
- Production
- Human Resources
- Marketing
- Administration
What three words describes they way in which the accounting function should provide information?
Complete
Accurate
Timely
Why is it important to keep some information confidential?
It is important because it could be misused if in the wrong hands, information could help competitors or the it could be used for fraud by criminals
Give examples of what information should be kept confidential.
Credit limits Debts Contact details Bank details Commercial information
Why is it important for accounting professionals to act in an ethical way?
Because they hold a position of trust, so they must keep the trust of the people they serve
What does being environmentally and socially responsible mean?
It means taking care of the environment and treating all people fairly and with respect
Who’s responsibility is it to make sure a working environment is healthy and safe?
It is everyone’s responsibility
What should you do if you see a risk to health and safety?
Do something about the risk if possible, or report it to your manager
How might keeping your desk tidy help you in an accounting role?
Helps you be more organised and you are less likely to make mistakes
what different ways can you protect personal information?
- Use multi-level passwords on computers
- Use alphanumeric passwords
- Always lock computer screen when away from desk
- Make sure unauthorised people cant see your computer screen
- Limit the number of people receiving highly confidential information
- shred confidential papers after use
- lock filing cabinets
- Don’t leave documents lying around
What can you create to help you manage your time?
Work plans
Why do accounting professionals have to be efficient?
Because their customers usually need financial information quickly, this needs to be done error free so that customers are able to make important decisions and meet deadlines
Why is it important to tell colleagues when you actually will be able to complete a task if you can’t meet a deadline?
So that your colleagues are able to reschedule their work and create contingency plans if necessary. Your manager may also be able to get someone to help you
Give examples of informal training.
- Work shadowing
- Reading journals
- Learning from a work buddy
- Reading from the internet
Give examples of formal training.
- Studying for qualifications
- training at a college
- in house training course
- one-to-one tuition
What is a SMART target?
It is a target that is Specific, Measurable, Achievable, Realistic and Timed
Why is it important to set SMART targets?
Targets that are not smart tend not to be focused, by setting a realistic goal, a SMART target helps achieve what is set out
Give examples of professional skills.
- Numeracy
- Good communication skills
- Literacy
- I.T skills
Give examples of personal skills.
- Reliable
- Punctual
- Willing to learn
- Professionalism
- Well-Organised
Who owns a PLC?
Shareholders
Who should you agree your training goals with?
- Your line manager
- Your mentor
When carrying out tasks, a professional person should ensure that the work is both correct and carried out to acceptable standards. This is a practice known as…
ethical
An organisation that has implemented fuel efficiency policies is demonstrating an example of what?
Sustainability
What will keeping your work area clean and tidy will help to promote?
Effective working practice
