Monthly Archives: September 2017

Cash Audit Procedures

very organization must have checks and balances to ensure transparency and accountability in financial matters. The cash audit is one such procedure that every business puts in place. Read through this article to learn more about it.

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Financial audits are carried out in an organization to check the accuracy of the records and to ascertain any discrepancies. It is also used to display transparency to investors, and to reaffirm that the organization is adhering to the generally accepted accounting principles and is devoid of any fraudulent activities. As the title suggests, cash audits are specifically related to transactions in which cash has changed hands. These audits cover a specified period of time, such as a month or a quarter, and is included in the annual report of the organization.

Types of Audit Procedures

There are three known types of audit procedures. Let us take a look at each one of them.

Data Selection: In this method, an auditor checks the numerical data to review the accuracy of the various financial transactions. It enables the auditor to look out for any variations in the proceedings over a fixed period of time. One of the disadvantages of this is that it is too rigid and on the basis of numbers, one cannot fully explain the inconsistency, if any, over a period of time.

Tests of Control: A control test is carried out by an auditor to verify if the organization is being managed efficiently and how the operational risks are being avoided. It also provides them an insight into the decision-making mechanism of the organization.

Account Details Tests: In this method, an organization’s bookkeeping practices are reviewed. During this review, the auditor checks for various journal entries and ensures that the bookkeeping is in accordance with GAAP or the IFRS.

Process of a Cash Audit
Check the summary of the period-end cash balances to ensure that there are no loopholes. The total should match with the ledger total and the previous audit’s working papers.
Check the list of bank accounts in the summary and compare this list with that of the previous year, to check for new additions and omissions.
Verify the organization’s disbursements by checking the bank statements.
Check how many people are involved in dealing with cash. Ideally, only employees with administrative powers and managers should be involved in this process. An auditor also needs to examine the outstanding checks, deposits, reconciling items, etc.
Review the receipt books, and ascertain the reason for any receipts not reflecting in the bank statement. If there are multiple banks in question, check all the interbank transfers, and verify their authenticity.

Meaning of Fixed Expenses

With increase in production, the total fixed cost remains constant, whereas the fixed cost per unit decreases. On the other hand, the total variable cost increases with increase in production, but the variable cost per unit remains constant.
Fixed costs are those costs that do not change in the short run, irrespective of the quantity of goods produced. They do not vary with the change in output or level of production. With the increase in production, the fixed cost per unit reduces and vice versa. You might have come across fixed costs in many instances in day-to-day life.

Let’s start with a household example. During a month, you incur various types of expenses―energy and telephone bills, groceries, utilities, car maintenance, fuel, house rent, etc. Now, if you try to classify these expenses, you’ll find that some expenses depend on use or consumption, while some remain independent of use or consumption. Electricity, telephone, fuel, etc., varies according to use. Hence, they’re variable expenses. On the other hand, if you’re living in a rented place, and you’ve been out on a business tour for a few days, you still need to pay the rent, in spite of not using the place for a few days. Thus, the monthly rent that you pay is a fixed cost.

However, there can be a mixture of fixed and variable expense. For example, your phone expenses might be inclusive of some fixed cost element, irrespective of its use. That part is fixed cost, and the remaining which depends on the usage is variable cost. Such costs are known as ‘semi-variable’ costs.
Similarly, for business organizations, it is very important to classify the costs into fixed and variable costs. Let’s see why, with the help of an example.

Company X has expansion plans. It estimates that the initial setup will require buying and installing heavy machinery. These expenses are fixed costs, since they have to be incurred, irrespective of whether goods or products are produced or not. After market research, it is revealed that the recovery of fixed costs will require a long tenure.

Considering the tenure for recovery of fixed costs, the management decides to drop their expansion plans. Initially, huge fixed costs are incurred, hence any business will take time to recover it; however, comparison of cost and benefit makes it easy for the management to take such decisions.

Factory/Office rent, deposits, machinery costs, depreciation, insurance, annual maintenance contract charges, salaries to office staff, etc., are all examples of fixed expenses. You can save your costs by controlling your variable costs. However, it is difficult to put a budgetary constraint on fixed costs, though they can be controlled, too. Given below are formulas for determining fixed cost.

Busineess with Cina

Surely everybody is thinking about how to find a good Chinese supplier.In order to be able to find the right one, we need to run for the exhibition?Must go to visit China?In addition to the use of the Internet and other good way to find good suppliers?The answer is as follows.

Part A:Four ways to find Chinese suppliers?
Surely everybody is thinking about how to find a good Chinese supplier.In order to be able to find the right one, we need to run for the exhibition?Must go to visit China?In addition to the use of the Internet and other good way to find good suppliers?The answer is as follows.

The people one the earth all know that China produced the world`s most of the products, any trademark supermarket and store goods, nine times out of ten are “Made inChina”.Countries buyers looking for a supplier to China, one of the most important reason is that the price is competitive.In fact it is for this reason, a large number of foreign manufacturers flocking to China.

No matter you are a businessman or purchaser, as long as you are on your products in the domestic price competitiveness, you will not be doing nothing, you will try to search for solutions to your business failures.Some of these solutions include:

1. Stop selling those who have borne the brunt of low-priced products.It is not a good way, unless you have a lot of other stock or you just want to spend a long vacation!

2, try to search their products more competitive manufacturer.

3, direct imports from low-cost countries.If we think this method is the best, there are many things waiting for us.For example: choose which country to purchase?How to find a vendor can understand our way?But you will find a circle, you will choose to China.The next question is how to find a Chinese supplier?How to choose?How to communicate to?You may decide to products of interest to you start a few enquiries give it a try, will also buy a sample, if so, then you may have to spend thousands of dollars on sample only for not making the wrong decision.

In fact, there are many excellent Chinese manufacturers did not appear on the B2B website.These excellent manufacturer in manufacturing is very severe, but unfortunately they do not know how to marketing effectively.

So you can go to a few large professional exhibition to find those in the B2B website to find suppliers, site and its participants to communicate and establish a preliminary cooperation intention, maintain a good relationship.

Advantages of Visual Marketing

There are so many websites all over the internet. Websites provides information and promotes products and services. It helps the products and services to connect to the larger mass and that is why websites have been so popular among the people.
Advantages of Visual Marketing Over Textual Content Marketing
There are so many websites allover the internet. Websites provides information and promotes products andservices. It helps the products and services to connect to the larger mass andthat is why websites have been so popular among the people. A website can earnmoney and one tool that is the best in this business is affiliate marketing.Visual Marketing is a type of marketing that is based on performance. There areone or more affiliates that get the profits when customers buy a product. Thistype of marketing has been very much successful in the recent times and hasbeen very popular. Since the inception of computers, the one thing that hasbeen in buzz is visual marketing.

Infographic Designing Agency helps one to achieve the same. Trails andtesting are very important part of any marketing plan and that is why go fordifferent trails and testing products and plans so that you can get an idea ofthe one that is getting the best response and will earn you the most. These aresome of the techniques that can be used for successful visual marketing. Whileon the other hand textual marketing also exists all over the globe. There is ahuge gap between the effectiveness of the textual marketing and visualmarketing. These are few of those differences:

· Youcan measure online: In the case of textual marketing, it is verytough to keep track of the ads that you have posted in the newspaper. But inthe case of visual marketing you can actually keep track of the views and thenumber of people reading the pages or the websites.

· Branddevelopment: Unlike the textual marketing, visual Marketingis a very good place for the industry. When you invest a bit in your digitalmarketing, you can achieve a lot from of websites.

· Exposureis excellent: There is a huge exposure in visual marketingcompared to the traditional marketing management. In visual platform, it isvery easy to reach to maximum customers and that is why in the current dayworld, people prefer visual marketing.

· Reachto qualified customers: There are two kinds of customers, one whowants to buy and the other who don’t. Visual platform is very effective inreaching qualified customers.

· Setsthe stage for customer engagement: In textual marketing, it is very possible toreach maximum consumers. The textual marketing plans are also an expensivemarketing plan, but with a Visual platform. It is less expensive and moreeffective.