The Importance of Accounting in the Corporate World CUTTINGTON UNIVERSITY GRADUATE SCHOOL TUBMAN BOULEVARD MONROVIA, LIBERIA Course

: Management Accounting 601 Submitted to: Mr.Paye S. Gbelayan Submitted By: Group 3 Members Names ID # Mali Zubah Baysah GP11166 Johnny P. Kaleewoun GP11186 Kafinah E. Tanyoun GP10047 Tobi Moore GP11010 J. Ernest Lloyd GP09169 Submission Date: January 2 0, 2012

Table of Contents Page NO: Introduction 3 The Importance of Accounting in the Corporate World 5 The Role of Accounting in Business 9 The significance of accounting systems in generating reliable accounting informa tion 11 The importance of management accounting information for internal parties 12 Several professional organizations that play important roles in the communicatio n of accounting information 13 Importance of personal competence, professional judgment, and ethical behaviour on the part of accounting professionals 13 Various career opportunities in accounting 13 The Role of the Treasurer Accounting in Corporate World 14 Accounting role Of The Treasurer in Corporate World 14 Accounting Role in Developing And Monitoring The Budget In Corporate World

15 The Balance Sheet 15 Preparing a balance sheet 16 Using Past Budgets for developing Proposed Budget 19 Monthly Financial Statements 19 Accounting Role in Risk Management as it relates to Corporate World 22 Treasury Operations and controls 22 Accounting Cash and Liquidity Management in Corporate World 23 What does Treasury career involve? 23

Introduction: Why is Accounting in the corporate world Important ? What impact does Accou nting have in the corporate World? Accounting in the Corporate World is very Imp ortant because it is the basis and key frame work that every business is built u pon. Accounting enlighten you on how, where and when one should invest your Mon ey, help you in assessing interest rates available for example paying off your education or house mortgage loan and calculate those easy instalment payment. E mployees in business organization should acquaint themselves with the basic fund amental on which accounting standards are implemented. Companies can expand and grow their capital base on implementation of a proper accounting practices and methodologies. The objective that companies has developed in past can be recogni zed and easily achievable through good set of accounting practices used by the c ompanies in their various financial aspect.

The Importance Of Accounting In the Corporate World Accounting can enlighten you on how, where and when should you invest your money, help you in the assessment of the interest rates available for example p

aying off your education or a house mortgage loan and calculate those easy month ly instalments for your car or motorcycle. Accounting is the basic and the key f ramework that any business is built upon. In our day to day life, we perform var ious activities which are directly based on accounting principles and are inevit able. When the students make the transition from their university life to an ent ry to the business world, accounting is inevitable and can work wonders when pro actively learnt. Employees in business organizations should acquaint themselves with basic fun damentals on which accounting practices and theories are implemented in these co mpanies. Companies can expand and grow their capital base depending on the leve l of investment. Implementation of proper accounting practices and methodologies can be good to improve the profit/loss structure, establish good news for the c ompany in the share market, use a certain portion of the money for certain prosp ects and apply it wisely in investments on which the companies future can thrive upon. The objectives that the company has developed in the past few years can be recognized and easily achievable through good set of accounting practices used by the companies in their various financial aspects e.g. buying and storage of r aw materials. Perhaps the basic definition of accounting is simple. Accounting, put in s imple word is nothing but the data that a company makes available to its users, investors, employees and shareholders. A business entity exists and is able to run owing to the mentioned of people who invest or work in the companies providi ng their services to some or the other degree. Any business is based on a sole u nderlying motive or principle i.e. profit. Accounting is a branch which enables the companies to fulfil the reason for their basic existence. Accounting informa tion is very much essential for a business to manage and take a control of the r esources utilized and the finances which are applicable. The degree if profit-ea rning can be substantially worked upon and enhanced. Accounting makes a company realize the decline in its profitability level. Marginal liability and marginal assets and the difference between them can be understood. In the modern society, accounting is used widely. Young males and f emales look forward to develop a career in accounting. They want to transform in to accounting professionals and get hands-on experience in accounting. This is s o as to get a shot at the top positions in the industry. Once you enter an accou nting stream in a reputed company, you start to manage the finances in company, the various investment options, evaluate the business insurance policy, interest rates of your debts and options to direct the flow of income into the company. Accounting is so vital owing to its need for a diversified group of people rangi ng from the receptionist who welcomes you at the desk to the manager who handles all the staff. It is also used by the Government to evaluate its borrowing opti ons and levy of taxes on various groups of incomes, goods and services. A busine ss organization can seldom run its day to day operations without the use of acco unting. Existence of accounting is something which is felt in every sector of an y business conducted. The nature of the account keeping tools varies according t o the size of the business. It can be as simple of a pen dipped in an ink-pot an d a register to record all the transactions to complex accounting systems used i n big companies which includes software in the form of friendly graphical user i nterfaces which can be operated only after a detailed and intensive training ses sion in the company. Accounting forms a vital element of any business. The growth of the business can be recorded and important figures which determine success of busine ss organizations can be closely monitored and analyzed. Placing of figures in th e ledgers is called bookkeeping . Perhaps you must have seen large sheets of paper which are marked or ruled with red and green ink lying on the table/desk of your manager. These are none other than books of accounting. Data related to financial records is handled via private accounts in a large business enterprise or an organization which runs with a purpose which is not for making profit (non-profit organization). Accounting need is felt in o ther concerns related to areas of manufacturing, sales etc. These are collective ly termed as industrial accounts due to their industry-specific needs. Accountin

g professionals can make their way easily into almost any branch of the company, federal state, local government and organizations that are owned and run by the government. Thus accounting sector has demand in every industry. A single kind of accounting service is specialized upon in government/ private organizations b ut they can do well in any type of accounting service that is mentioned in the d iscussion above. It is easy and not so unusual for accounting professionals to a chieve excellence and have professional skills related to a very narrow sector i n an industry. This can include branches like transportation, manufacturing, sal es, management utilities etc. A management that is well-organized is needed in the today s corporate world. These companies usually hire a special type of accountant called as mana gerial accountant. This very kind of accountant is trained by the company to bec ome a manager one day. Managerial accountant is provided training on various asp ects like employees structure within the company, products developed by the compa ny, various plants that the company possesses or leases, equipment used by the c ompanies to put forward their production in the market etc. These people are wel l trained to possess qualities that will enable them to develop their management skills and handle responsibility at the top management level. Fraud in the account books is a major concern which gives rise to mo st of the biggest public scandals. Businesses are known to record the statements of financial transactions which are popularly termed as bookkeeping since as lo ng as 70 centuries ago! And that s only as far as the records in the history books that are made available to us. By taking a good look at the account books of th e company, we can very well determine the assets and liabilities of the company. Account books provide us with a projected view about how the company is going t o perform in the next few years. It gives the shareholders an idea about if they should withhold the shares or sell them before the company faces loss and start s giving scarce income. Accounting is one language that is universal to any type of business, spread across any part of the world. The people who are able to fu lly demonstrate their master skills in this language are called accountants. Bus iness executives will be as good as blind if kept away and have no access to acc ounting information systems in the form of financial statements. A fruitful deci sion could be arrived at through accounting since the well-informed economic dec ision can be made from account books where the information is collated, interpre ted from a range of sources. Account books when properly utilized help in the pr evention of fraud. They help us to track down to a single transaction possibly e ntered in a suspicious or ambiguous manner that can lead to a major fraudulent a ctivity in the future. You have to produce your last few years balance sheets in front of the banks or any other financial institutions which gives them an overv iew of your credit history and arrive at decision if you are capable or incapabl e of paying back their loan. Thus we have explored various factors that are depe ndent only on accounting or results that are derived from accounting books. The importance of accounting and bookkeeping has been a tradition of the past, prese nt and the future and it is one single utility in a business that is unmatchable . The Role of Accounting in Business Accounting is often called the language of business because it provides much of the information that owners, managers, and investors need to evaluate a comp any s financial performance. According to the world s most successful investor (and second-richest person), Warren Buffet, the best way to prepare to be an investor is to learn all the accounting you can. John Price, The Return of the Buffetteer s, Investor Journal, August, 1998 (May 29, 2006), at www.sherlockinvesting.com/ar ticles/buffetteers.htm. Buffet, chairman and CEO of Berkshire Hathaway (a compan y that invests in other companies), turned an original investment of $10,000 int o a net worth of $35 billion in four decades, and he did it, in large part, by r elying on financial reports prepared by accountants. Accountancy is the process of communicating financial information about a busine ss entity to users such as shareholders and managers. The communication is gener ally in the form of financial statements that show in money terms the economic r esources under the control of management; the art lies in selecting the Today, a

ccounting is called "the language of business" because it is the vehicle for rep orting financial information about a business entity to information that is rele vant to the user and is reliable. The principles of accountancy are applied to b usiness entities in three divisions of practical art, named accounting, bookkeep ing, and auditing. Accountancy is defined by the Oxford English Dictionary (OED) as "th e profession or duties of an accountant". Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof. Accounting is thousands of years old; the earliest accounting record s, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The people of that time relied on primitive accounting methods to record the gr owth of crops and herds. Accounting evolved, improving over the years and advanc ing as business advanced. Early accounts served mainly to assist the memory of the businessper son and the audience for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a busines s entity involving multiple investors, so double-entry bookkeeping first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest. The development of joi nt stock companies created wider audiences for accounts, as investors without fi rst-hand knowledge of their operations relied on accounts to provide the requisi te information. This development resulted in a split of accounting systems for i nternal (i.e. management accounting) and external (i.e. financial accounting) pu rposes, and subsequently also in accounting and disclosure regulations and a gro wing need for independent attestation of external accounts by auditors. Accounting that provides information to people outside the business entity is called financial accounting and provides information to present and potentia l shareholders, creditors such as banks or vendors, financial analysts, economis ts, and government agencies. Because these users have different needs, the prese ntation of financial accounts is very structured and subject to many more rules than management accounting. The body of rules that governs financial accounting in a given jurisdiction is called Generally Accepted Accounting Principles, or G AAP. Other rules include International Financial Reporting Standards, or IFRS or US GAAP. Accounting as the language of business and the role of accounting information in making economic decisions: Accounting is the means by which information about an enterprise is communicated and, thus, is sometimes called the language of business. Many diffe rent users have need for accounting information in order to make important decis ions. These users include investors, creditors, management, governmental agencie s, labor unions, and others. Because the primary role of accounting information is to provide useful information for decision-making purposes, it is sometimes r eferred to as a means to an end, with the end being the decision that is helped by the availability of accounting information. The significance of accounting systems in generating reliable accounting informa tion: Information systems are critical to the production of quality accounting i nformation on a timely basis and the communication of that information to decisi on makers. While there are different types of information systems, they all have one characteristic in common - to meet the organization's needs for accounting information as efficiently as possible.The importance of financial accounting in formation for external parties - primarily investors and creditors - in terms of the objectives and the characteristics of that information. The primary objectives of financial accounting are to provide inform ation that is useful in making investment and credit decisions; in assessing the amount, timing, and uncertainty of future cash flows; and in learning about the enterprise's economic resources, claims to resources, and changes in claims to

resources. Some of the most important characteristics of financial accounting in formation are it is a means to an end, it is historical in nature, it results fr om inexact and approximate measures of business activity, and it is based on a g eneral-purpose assumption. The importance of management accounting information for internal parties: Management accounting information is useful to the enterprise in achi eving its goals, objectives, and mission; assessing past performance and future directions; and evaluating and rewarding decision-making performance. Some of th e important characteristics of management accounting information are its timelin ess, its relationship to decision-making authority, its future orientation, its relationship to measuring efficiency and effectiveness, and the fact that it is a means to an end. Elements of the system of external and internal financial reporting that create integrity in the reported information: Integrity of financial reporting is important because of the relianc e that is placed on financial information by users both outside and inside the r eporting organization. Important dimensions of financial reporting that work tog ether to ensure integrity in information are institutional features (accounting principles, internal structure, and audits); professional organizations (AICPA, IMA, CIA, AAA); and the competence, judgment, and ethical behavior of individual accountants. Several professional organizations that play important roles in the communicatio n of accounting information: The FASB and SEC are important organizations in terms of standard se tting in the United States.The FASB is a private-sector organization that works closely with the SEC, which has legal authority to designate financial reporting standards for publicly held companies. Professional organizations that provide services to individual accountants in various segments of the accounting profess ion are the AICPA, IMA, IIA, and the AAA. The importance of personal competence, professional judgment, and ethical behavi or on the part of accounting professionals: Personal competence and professional judgment are, perhaps, the most important factors in ensuring the integrity of financial information. Competenc e is demonstrated by one's education and professional certification (CPA, CMA, C IA). Professional judgment is important because accounting information is often based on inexact measurements and assumptions are required. Ethical behaviour re fers to the quality of accountants being motivated to "do the right thing" in ap plying their skills. Various career opportunities in accounting: Accounting opens the door to many diverse career opportunities. Publ ic accounting is the segment of the profession where professionals offer audit, tax, and consulting services to clients. Management, or managerial, accounting r efers to that segment of the accounting profession where professional accountant s work for individual companies in a wide variety of capacities. Many accountant s work for various governmental agencies. Some accountants choose education as a career and work to prepare students for future careers in one of the other segm ents of the accounting profession. While keeping detailed records (that is, book keeping) is a part of accounting, it is not a distinguishing characteristic of a career in accounting; in fact, many accounting careers involve little or no boo kkeeping. The Role of the Treasurer Accounting In Corporate World: The Treasurer's role is one of the most important functions on the Board in corporate world, after that of the Chair. Financial accountability is o f the utmost importance to non-profit associations. If your funders lose faith i n your ability to control and account for finances, they lose faith in the whole organization. The role of the Treasurer in Corporate world is outlined as follows: * the Treasurer's job description * the roles of the Treasurer, Bookkeeper and Auditor

* the balance sheet * the development of the budget * monthly financial statements * glossary of financial terms Accounting Role Of The Treasurer in Corporate World: In the case of smaller associations, the duties of Treasurer may be combined with those of the Secretary. If this is the case, the individual holds the title of Secretary/Treasurer. In addition to being a critical role for the a ssociation and the Board, the Treasurer's role can be difficult because of its t echnical nature. Often, non-financially trained Board members leave all responsi bility for finances to the Treasurer, preferring not to try to figure out what a ll the numbers mean. This means that the Treasurer not only has to take primary responsibility for finances, but also has to educate sometimes unwilling Board m embers about what the finances mean. Leading the Board is an important task the Treasurer must perform. Since the Treasurer is ultimately responsible for the finances of th e corporation, the Treasurer should keep neat and accurate records and pay atten tion to detail. She should be available so as to handle transactions on a timely basis and should not be afraid to ask questions. Accounting Role In Developing And Monitoring The Budget In Corporate World: One of the most important responsibilities of the Treasurer is to monitor the budget. Keeping track of income and expenditures is one thing; keeping track of the budget is another. The Treasurer needs to inform the Board on a regular basis as to whether income and expense projections are turning out as predicted. If not, the Board needs to make the appropriate adjustments.The Treasurer also takes a lead role in the preparation of the budget for the upcoming year. By dev eloping a balance sheet to assess the financial health of the association, and b y analysing the current budget and comparing it to the last budget, the Treasure r, along with the staff person, should be able to develop a budget that can sati sfy the needs of the association while being fiscally responsible. The Balance Sheet: One of the keys to understanding the financial position of the association is to gauge the association's financial condition at a specific point in time. The following chart is a balance sheet which reflects the association's overall financial condition. It shows how much the association has (assets), how much it is owed (assets) and how much the association owes to others (liabilities) at a given point in time. Assets minus liabilities indicate your equity. A balance s heet, then, is a snapshot of your financial condition at any one time. The Treas urer needs to prepare a balance sheet like this before developing a budget for t he next fiscal year. Preparing a balance sheet: The Balance Sheet provides a "snapshot" of the organization s financial stan ding at a specific point in time. All of the assets, liabilities and the fund ba lance or net worth are listed. The Assets section is listed first followed by th e Liabilities and Net Assets section. Assets should equal the Liabilities and Ne t Assets. Included under the Assets section are Current Assets and Fixed Assets. Current A ssets are cash-related items such as the ending balances of all checking and/or savings accounts as of the date the Balance Sheet is prepared. Amounts owed to t he organization or accounts receivable (dues owed but not yet paid if accounting is done by the accrual method) should be included in the Current Assets section as well. Fixed assetssuch as equipment that is owned by the local, buildings, e tc. should be listed in the Assets section under the heading Fixed Assets. The C urrent Assets along with any Fixed Assets make up Total Assets. The other major section of the Balance Sheet is the Liabilities and Net As sets section. Liabilities are the debts that are owed by the organization. They include amounts owed for items purchased on credit (accounts payable), salaries owed to employees but not yet paid, per capita owed to affiliates and taxes or l oans that are also payable.The Net Assets section refers to the combination of U nrestricted, Temporarily Restricted and Permanently Restricted Assets. The diffe

rence between the balance(s) at the beginning of the period in the checking and/ or the savings accounts and the balance(s) stated above in the Assets section is calculated and listed as the Unrestricted amount. Assets that are being held fo r a specific purpose or are under the control of outside donors are considered e ither permanently or temporarily restricted. If the balance(s) at the end of the period is more than the beginning balance(s), the result is a surplus. If the o pposite is true, then the Balance Sheet will reflect a deficit. The Total Liabil ities along with the Total Net Assets should equal the Total Assets amount. This figure would be depicted at the bottom as the Total Liabilities and Net Assets. Asset: an item of value owned by the organization. An asset may be in the form o f cash, securities, equipment, or real estate, etc. Corporation: In the case of a non-profit organization, the corporation refers to an organization with letters patent, incorporated without share capital. Liabilities: any obligations by which an organization is bound to pay a sum expr essed in dollars, or having to give up some asset having a monetary value. Local unions obligations or debts. Net Assets: are the amount that would be left over if all of the union s assets ha d to be sold to satisfy all of the union s liabilities. Sometimes called Net Worth or Members Equity. Current Assets: those assets which mature into cash in one year or less (CA). Accounts Receivable: dollars due from customers as a result of selling services or inventory on terms which allow for delivery prior to the payment of cash. The transaction exists as a receivable on the balance sheet until cash is collected from the customer (A/R). Inventory: the goods and materials a company sells to make a profit. Inventory e xists in three forms: raw materials, work in progress, and finished goods. In th e process of selling inventory, either cash is received or an account receivable is created (INV). Prepaid Expenses: when cash is used to purchase a good or service, the benefits of which will be realized or received within the current year (12 months). Fixed Assets: physical assets which have life in excess of one year. This includ es land, buildings, machinery, equipment, furniture/fixtures, and leasehold impr ovements (FA). Net Fixed Assets: Also known as the book value, the net fixed asset is calculate d as the purchase price of the asset (gross fixed asset) less the accumulated de preciation (the sum of the annual amounts charged for the "wearing out" of the a sset) (NFA). Notes Receivable: a loan made by the company which is evidenced by a promissory note (N/R). Intangibles: assets which have no physical properties or "set" values. Examples of intangibles include patents, research and development, and goodwill (INT). Current Liabilities: what the company "owes" which must be paid within one year (CL). Note Payable Bank: obligations evidenced by a promissory note from the bank whic h have maturity dates of less than one year (N/P). Accounts Payable: amounts due to suppliers who have provided inventory to the co mpany (A/P). Accruals: obligations owed but not yet billed (ACCR). Current Portion of Long-Term Debt: the portion of a long-term loan (principal on ly) which is due within the next 12 months (CDTD). Long Term Debt: the portion of a term loan which does not have to be paid within the next year. Staff person: refers to an individual within the organization/corporation employ ed by the board. Subordinated Officer Debt: Cash the officers have invested in the company which is subordinated to any bank financing the company has received. Net Worth: The owner's investment or "equity" in the company which may be either "purchased" or "earned." Purchased equity consists of preferred stock, common s tock, and capital surplus. Simply put, the net worth is the difference between t he assets and liabilities of a company (NW).

Using Past Budgets for developing Proposed Budget: If in the previous example, half way through the year, the association had a deficit, the Treasurer would need to ask whether there is an expectation that this will be reduced over the remainder of the year (and why) or, if not, what can be done to keep it from increasing. At the same time, she should be asking w hether the proposed budget for the next year is realistic when compared to how t his year is going. The Treasurer compares these budgets with the proposed budget for the following year and poses key questions for the board and staff to consider. Monthly Financial Statements: The Board should receive detailed financial statements on a regular basis, usually quarterly. At the monthly Board meeting, however, the Board usually wan ts a quick overview of how the association is doing financially. A written versi on of the Treasurer's monthly oral report to the Board should be included as a s ection of the minutes and should be circulated to all Board members prior to the meeting.Monthly financial statements should be presented showing the current ca sh position and the performance of the association as compared to the approved b udget. To simplify matters, many Treasurers use a standard form for their report s which include the appropriate numbers each month. The chart on the next page i s an example of this type of form. On a standard form for the Treasurer's report, two different areas are tak en into account. First, the overall financial picture must be considered. Most associations begin the year with some money in the bank. A picture that just shows the current yea r's financial activities, therefore, without indicating overall resources, can b e misleading. The first four boxes on the following chart show where the associa tion should be according to the budget, where it actually is, and the difference between the two. Also, any known financial commitments (e.g. insurance premiums paid once a year) should be itemized since they affect the budget. Even though these financial commitments are for the future, the Board cannot accurately gaug e the financial situation of the association unless upcoming debts are acknowled ged. Appropriate provision for these commitments needs to be made. Assets: Monetary or non-monetary items that represent probable future economic b enefits controlled by the association. Balance Sheet: A statement of financial position showing the assets, liabilities , and equity of an association at a point in time. Budget: A detailed estimate of an association's fiscal plan of action for the ne xt year. Capital Assets: This term refers to buildings, equipment, etc. which are not con sumed or used up in the normal operating process. Capital Budget: A fiscal plan for the proposed additions to capital assets and t heir financing. Cash Accounting: A method of accounting for transactions whereby the transaction is recorded when cash is received or spent. Chart of Accounts: A list of all accounts in the General ledger with their assig ned account number. Depreciation: An accounting concept which allocates the cost of a fixed asset as an expense over the expected useful life of the asset. Donations-in-Kind: Gifts in the form of donated goods or services to a non-profi t association. Endowment Fund: Restricted funds from which only the income (e.g. interest) from investing the principal may be spent. Expenses: Outflows of resources arising from the operation of the association du ring a period. Financial Statements: Normally comprising a balance sheet, a statement of revenu e and expenses, a statement of changes in financial position, and accompanying n otes. Fixed Costs: Costs which do not fluctuate with volume. General Ledger: A record of the summarized transactions from all other accountin

g journals. The balances in this ledger are summarized and grouped to prepare th e financial statements. This ledger contains the complete financial history of t he association. Non-Current Assets: Assets which are held for a term greater than a year. Exampl es include land, buildings, and equipment. Operating Fund: Consists of unrestricted contributions and day-to-day operating revenues and expenses of the association. Pledges: Promises to donate funds at a future date(s) to a non-profit associatio n. Reconcile: To reconcile is to account for the difference between two related rec ords (e.g. account for the difference between the month-end balance on the bank statement and the month-end balance in the accounting records or books of accoun t. Revenues: Revenues include: income from the sale of goods and services (after de duction of returns, allowances and discounts); gains from sale or exchange of as sets; interest and dividends earned on investments; and donations and grants. Accounting Role in Risk Management as it relates to Corporate World: Treasurers make a lot of decisions that are designed to protect the company from risk, Risk management is about understanding what business and financial risks the com pany is exposed to and considering whether the returns generated are sufficient to justify taking those risks. The risks need to be evaluated and assessed so th at decisions can be made on whether to retain them, to employ techniques to miti gate or transfer risk. The underlying risks can be managed to limit risk. They c an be hedged with counterbalancing exposures often created through the financial markets, or insurance taken out to protect the company s financial health. Preparing for the unexpected is a vital part of the treasurer s role. First the possible eventualities must be identified and then the company must be place d in a position to survive the worst. This must be done with minimal disruption to the company s normal business activities. Risk management is about seeing where risks could damage a company s financial health and putting in place measures to prevent harmful events or if this isn t possible, to limit the negative impacts th ey might have. Treasury Operations and controls: Treasury operations and controls looks at the running of a treasury functi on, taking in its overall policies, the procedures, staffing, systems and contro ls, and the relationships with parties within and outside the group.Once the fir st four core elements of treasury have been mastered the treasurer faces the tas k of putting it all together. Whether the treasurer works on their own or with a team it is a complex managerial assignment to carry out all these varied tasks so that they are completed on a unified basis, without disrupting or contradicti ng each other. For this to happen, the treasurer must be in constant touch with the objectives of the company, be able to balance continually shifting prioritie s and always be aware of the wider business and financial environment. Managing the treasury function is about being in tune with the aims of your company and i ts investors, being in control of financial processes and taking responsibility for important but difficult decisions. Accounting Cash and Liquidity Management in Corporate World: Cash and liquidity management is about forecasting the company s cash needs to run its businesses and then managing the group wide cash flows, short-term bo rrowings and cash in the most efficient manner to ensure that those cash needs c an be met. With the help of IT and communications systems, cash can be pooled in ternationally. Funding and liquidity needs are intimately connected with underst anding and managing working capital, and using the payments and cash reporting s ystems to best advantage. A company will always need cash to pay its bills and enter into new busine ss ventures. Often, a lot of the business own cash is tied up where the company c annot get to it: materials which have been paid for are in the warehouse still w aiting to be turned into saleable goods, your biggest customer hasn t paid last mo nth s bill yet or your subsidiary has a lot of cash in their account whilst head o

ffice is running short. Cash and liquidity management is about doing everything you can to free up your company s cash so the business won t have to borrow more and can make the money it has work harder. What does Treasury career involve: A career in treasury in Corporate World allows you to work in the heart of the c ompany. Corporate treasury is a profession built on the foundation of a number of financ ial disciplines, all of which are not only vital in their own right but also sup port and complement each other. The principal tasks of a treasurer are broadly d efined under five core treasury elements. These elements are also areas in which you may specialize and progress your career. Many companies or organizations wi ll have an employee with the title Treasurer, in much the same way as they may h ave a Company Secretary or a Financial Controller. Even where no dedicated role exists, someone in the organization will almost certainly be undertaking the rol e as a part of their job. In a company which consists of a large group of international businesses, a treasurer s role becomes broader, for instance managing centralized treasury ope rations for the group s subsidiaries worldwide. In some companies treasurers also have a more general responsibility for risk management. This can include managem ent of the insurance function and sometimes management of a company s obligations with respect to tax and relationships with the relevant tax authorities. Some tr easurers also take part responsibility for the company s risks arising from pensio n funds of which it is the sponsor and are also available to help scheme trustee s understand some of the issues they have to deal with.

Conclusion: In Conclusion Accounting is the basic and the key frame work that any business i s built upon in our day to day life. There are various activities which are dire ctly base on the accounting principles and are in evitable. In Our Modern corpor ate world Accounting is the branch which enables the company to fulfil the reaso n for their basic existence. Accounting need is felt in other concern related ar eas such as manufacturing industries, Hospital and Schools. References Financial and Managerial Accounting: The Basis for Business Decisions, 12/e Jan R. Williams, University of Tennessee Susan F. Haka, Michigan State University Mark S. Bettner, Bucknell University Robert F. Meigs Jun 1, 2011 by Vic at Accounting, Money & Finance Business Articles By Mast Business Directory www.treasury.gov www.cipe.org www.investopedia.com www.messcte.com www.accountingjobs.com www.financedirector.com www.accountingtools.com www.treasurymanagement.com www.joaaj.com www.wikipedia.com

The Importance of Accounting in the Corporate World