43455 (Modern Means of Business Communication), страница 2

Credit management gives a firm chance to earn money having an interest on credits and loans given.

Managing taxes means tax implications of various financial transactions.

And finally, financial people help management in decision making. All this functions depend greatly on the information provided by the accounting statements.

7) Accounting & Auditing

Accounting is often called the language of business. It is used in the business world to describe the transactions entered into by all kinds of organizations. Accounting is the recording, classifying, summerising and interpreting of financial events and transactions to provide management and other interested parties, (owners, investors, bankers, lawyers and accountants) with the information they need to make better decisions.

After recording the transactions into the journal they are classified into groups (accounts) that have common characteristics.

There are 5 accounts in accounting: assets, liabilities, owner's equity (capital), revenues and expenses. The double-entry system divides each page into two halves. The left-hand side, value, received, is called a debit side, the right-hand side, value parted with, the credit side.

Auditing is an accounting function that involves the review and evaluation of the financial records and financial position of a company. Audits' are performed by highly qualified accountants (auditors) and are ordered by the management of the company or by state authorities (revision and control). Not so many years ago an audit suggested that a company had financial difficulties or some irregularities in the records. At present, audits are a normal and regular part of business practice

There are two types of auditing: internal and independent.

Internal auditing is a system of internal control which provides accounting controls; against errors and misappropriations. Many companies employ their own accountants to maintain the internal audit.

Independent auditing is done by certified accountants who are not employees of the organization whose books they examine. Independent auditors review the business's operating activities: they examine financial statements, the accounting records and other business papers to determine the accuracy and completeness of the records.

The auditor's judgement or opinion on the fairness of the records is written in a document sent to the client upon completion of the audit. It consists of a letter addressed to the-client that consists of a scope paragraph j(a list of documents that the auditor has examined and the standards that were used for the audit) and an opinion paragraph (the auditor's opinions).

Auditors can help the business set up a reliable accounting system.

8) Modern Means of Business Communication

People have always tried to convey information. Now, they send letters and documents by post, by fax, by computer and they make phone calls from home or the office or, thanks to mobile phones, from wherever they happen to be.

The list of services, thanks to advanced technology, is long and presumably will grow. People can phone and fax from trains and planes. They can buy things, carry out financial transactions, get information - all without leaving their chairs.

This is the global information age. The worldwide computer network known as the Internet connects millions of people worldwide. It connects many computer networks and uses common addressing system.

The most popular Internet service is e-mail. Using e-mail, you can send messages to anyone with an internet account. Most businesses today have electronic address because e-mail provides cheap and rapid communication.

Since the mid-1990s electronic commerce has become one of the most rapidly growing retail sectors involving the use of computer telecommunication networks for maintaining business relationships and selling information, services and commodities. Although e-commerce usually refers only to the trading of goods and services over the Internet, it actually includes broader economic activity such as business-to-consumer and business-to-business commerce as well as internal organizational transactions that support these activities.

A new form of collaboration known as a virtual company is flourishing now. This type of company is actually- a network of firms, each performing some of the processes needed to manufacture a product or deliver a service.

E-mail is cheap and easy to use. E-mail is the transmission and distribution of information through personal computers linked to the telephone system, which allows subscribers to send a message directly to another subscriber that will appear in their electronic mail box.

Computer use continues to grow and develop in all spheres of our life. Its applications have had a great impact on the business world. Computers have helped society by increasing productivity and simplifying many services, such as checking, credit cards, and telephone service.