Service Outputs in

Service Outputs In-depth View:
1. Statement of Financial Position

The statement of Financial Position enlists the business current resources; its ownings
and how much control and money owners have in their businesses. This statement
will show the overall value of the business resources, both current and non-current
assets. How much initial value had been inputted in all the business resources while
how much had been depreciated over a certain period of operation. In simple terms, it
shows the total amount the business owners own while how much debts they have
within a specific accounting period.
2. Profit and Loss Statement

The profit and loss statement show how the business is doing in terms of its operation.
Either it is gaining a profit or a loss. This statement shows the amount as in revenue
earners and all cost related spenders for revenue earnings. It shows how the business
is doing in its operation via the operation profit/loss and then business net profit after
tax deductions.
3. Cash Flow Statement

Cash flow statement provide how a business is currently utilizing it cash at bank
resources. It states how a business is earning and spending it cash resources.
Typically, cash flow statement is categorized under Customers, Suppliers and
Operations with their own receipts and spending features. With this statement info,
top level managers can assess how their cash resources been utilized and managed for
each period of its stated report period. Any variance with current cash usage, top level
managers can make adjustments to properly align their intended operation goal with
cash utilization.
4. Reconciliation of main accounts:

Reconciliation is a process at which the current business accounting processes
strengths are determined. This process is critical in a sense that it ensures what should
be done and how should it be done are ensured to be consistent. In case there are
errors inputted into the business accounting system, these will be identified and
corrected. Any inconsistent entries made in both or either revenue earning
transactions and cost related transactions will surely cause all relevant reports to be
inaccurate. Overall, the major purpose of this process is to ensure that all accounting
entries made are accurate and correct.
5. Budgeting and forecasting:

Budgeting and forecasting are another common place practice for every business yet
form fundamental basis of decision makings. Budgeting focuses on the control of a
business expenditure while forecasting deals with business future revenue earnings.
Business have a direct control over its budget as its management can make a direct
control over their expenditures to be within their budget limit within a given time. A
service provider will create a client’s business budget by incorporating previous years
spending and future plans for business operation. Forecasting will be designed in a
similar way as budgeting is done but top-level marketing managers inputs will be
closely accounted for.
6. Cost Management:
Cost Management goes hand in hand with a budget. This process ensures that the
budget is smoothly followed. If there is an excess in payment amount leading to
budget overspending, this will be pinpointed and correctional management decisions
will also as well be implemented. If there are additional unnecessary and unused
payments, any urgent business needs will then be utilizing these funds. Cost
management is an administrative process of an agreed upon budget.
7. Analysis of accounts:
Analysis of accounts will give top level managers a comprehensive perspective upon
an enquired account. Given a business have a lot of accounts, this analysis will proof
necessary to be understood before competitive decisions to be made. With their major
categories such as assets, non-current assets, expenses, liability, revenue and equity
and a suggestion from top level managers, a specified analysis of accounts reports can
be derived to further enhance top level managers decision makings. For instance, what
products is with highest sales and product with lowest sales? What business is
primarily spending its cash on? How much cost had been spent on repairs since the
beginning of this accounting period? Etc. With budget and forecasting serving as a
benchmarking tool, the causes of a huge under performance and excellent business
operation can be directly pinpointed via this process.
8. Internal Audit:
This process is carried out if top level management have suspicions about its current
accounting system and staffs. If such suspicions proof to be true, it will be also
pinpointed and the causes of it will be fixed. It even better that internal controls are
strengthen in the first place to prevent the occurrences of fraud and transaction entries
errors. The primarily purpose of internal audit is to assess the business current internal
control and then make improvements to it. Its secondary purpose is to pinpoint and to
draw a conclusion on either fraud had been made or not.

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Service Outputs in

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Service Outputs In-depth View:

1. Statement of Financial Position

2. Profit and Loss Statement

3. Cash Flow Statement

4. Reconciliation of main accounts:

5. Budgeting and forecasting:

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