problems relating to the use of accounting and financial processes within an organizational context.
Tito Maloba
November 26, 2008
Nairobi,Kenya
Abstract.
Accounting and Finance is a very important function of any business either for profit making or for non-profit making institutions. It provides an avenue where a business analyses its operations in terms of what they own, what comes and what goes out. This write-up looks deeper into the accounting and financial processes in an organization and the problems associated with these processes. The introduction part tries to look into the meaning of accounting and finance and the processes involved in each case. The main discussion focuses on deeper diagnosis of the problems encountered in accounting and financial processes.
Introduction
Accounting can be considered as consisting of two elements:
? Recording the transactions of a business to provide information for day-to-day management.
? Summarizing the transactions of a period to provide interested parties with information about the performance and position of an enterprise.
The purpose of accounting is to provide information to users of financial statements. Users of financial information include the management shareholders and potential shareholders, employees and their trade union representatives, lenders and government agencies. Financial accounting is mainly concerned with the production of financial statements for users outside the organization, although the records from which the statements are prepared are, pf course, also essential for the day-to-day running of the business.
Accounting processes in an organization are listed below:
1. Preparation of financial reports to all internal and extern ...