The recording of financial transactions is bookkeeping, whereas, accounting is interpreting, classifying, analyzing, reporting, and summarizing the financial data. A properly maintained accounting & bookkeeping system helps a business to reduce operating costs and helps to analyze its financial growth.
The books of accounts needs to be maintained as per the accounting standards and policies as per Accounting Standard Board constituted at 21st April 1977.
As per Section 44AB of the Income Tax Act 1961, any person carrying on business is required to get his book of accounts audited if total sales, turnover or gross receipt in business for a financial year exceeds one Crore. In case of profession should get his accounts audited, if the gross receipts are greater than Rupees 50 lakh in any previous year.
MIS stands for management information system. It is a management report which helps the management to review the monthly performance, to compare it with the previous month's and previous year's reports. Executives across at all levels of an organization rely on reports generated from these systems to help them evaluate their business daily activities or problems that arise, make decisions, and track progress.
Budgetary controls is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances, if any. The comparison of budgeted figures with actual figures will help the management to find out variances and take corrective actions without any delay.
Cash Flow statement shows the changes in the cash position (Inflows and outflows) of a firm. It is an analytical reconciliation statement which explains the reasons for the differences between the opening and closing cash balances over a period.
Fund Flow Statement is a statement that shows the ups and downs of the financial position or the changes in working capital of the entity between the two financial years.
| BASIS FOR COMPARISON | CASH FLOW | FUND FLOW |
|---|---|---|
| Meaning | A cash flow statement is a statement showing the inflows and outflows of cash and cash equivalents over a period. | A fund flow statement is a statement showing the changes in the financial position of the entity in different accounting years |
| Purpose of Preparation | To show the reasons for movements in the cash at the beginning and at the end of the accounting period. | To show the reasons for the changes in the financial position, with respect to previous year and current accounting year. |
| Basis | Cash Basis of Accounting. | Accrual Basis of Accounting. |
| Analysis | Short Term Analysis of cash planning. | Long Term Analysis of financial planning |
| Discloses | Cash Basis of Accounting.Inflows and Outflows of Cash | Sources and applications of funds |
The financial position of any company can be better understood with the help of a cash flow statement and fund flow statement, along with the Balance Sheet and Income statement. These two statements helps stakeholders to know the sources and application of cash or funds.
Vendor & Project Management is a discipline that enables organizations to control costs, drive service excellence and mitigate risks to gain increased value from their vendors throughout the deal life cycle. It is the activities included in researching and sourcing vendors, obtaining quotes with pricing, capabilities, turnaround times, and quality of work, negotiating contracts, managing relationships, assigning jobs, evaluating performance, and ensuring payments are made.
Cloud accounting software is unlike traditional way of book keeping by installing accounting software in standalone system or within the intranet set up. A cloud accounting software is a system which can accessible from anywhere by connecting remote servers, it is similar to the SaaS (Software as a Service) business model. Data is sent into “the cloud,” where it is processed and returned to the user.
With cloud accounting, it’s also easier to get real-time reporting and visibility throughout your organization, with greater mobile capabilities and collaboration. Subscription-based models are popular among cloud accounting service providers, and in most cases these subscriptions are usage-based. Companies that pay a cloud accounting subscription receive auto updates depending upon any changes in software functions with no additional charges.