Cash Accounting Research Articles

Cash to accruals accounting in British central government: A journey through time

AbstractDepartmental and central government accountability to the UK Parliament was based principally on cash transactions for a period of over 300 years commencing with the Glorious Revolution of 1688. Beginning in the second decade of the 19th century, recurrent proposals for the replacement of cash accounting by accruals accounting were founded on the conviction that ‘commercial’ accounting practices provided a more effective basis for performance measurement, financial control and public accountability. This paper studies the progress of these initiatives through time, with Treasury resistance to the adoption of private sector‐type accounting practices by administrative departments recognised as a persistent and effective barrier to innovation up until the 1980s.

Digital transformation in the business: a solution for developing cash accounting information systems and digitizing documents

Digital transformation is becoming an inevitable trend, having a profound impact on business activities, processes,, and modelsands improving the operational efficiency of businesses. In enterprises, especially small and medium-sized enterprises, accounting professions are mainly still handled manually on books and documents. They have not standardized the professions, especially those that arise in the course of operation. This makes it difficult for accounting such as accounting work gradually increases, the handling of work is delayed, easily confused and errors .... Leading to limiting the development and expanding the size of the business. The problem for each business is the need to automate some accounting operations to adapt to the trend and context of digital transformation, contributing to improving the competitive efficiency of the business. Stemming from the above difficulties, the research will find solutions to help businesses approach and apply processing operations professionally towards the formation of digital businesses. The article will focus on building cash accounting modules and handling professional accounting processes to implement digital transformation in enterprises. The operations mentioned in the article include building the professional process of cash accounting, controlling cash collection - spending, the process of digitizing documents stored at the enterprise, etc... The article will propose how to process data and make reports required by managers for decision-making based on invoices and handling arising transactions.

Real-time crisis management: Testing the role of accounting in local governments

At a time of a global crisis with unprecedented depth and breath, this paper explores the role of accounting in real-time crisis management at local level by investigating how national stakeholders assessed the consequences of the Covid-19 pandemic in Italy, one of the most affected countries. The paper aims at augmenting knowledge on the intersection between weathering crisis and accounting. Calculative practices play an important role to help manage crises since they may foster or undermine relief and recovery efforts. Results show how decision makers used cash accounting disregarding more complete information with a wider and longer-term perspective, against some stakeholders’ and scholars’ advice.

A Study on the Introduction of Cash Accounting Scheme in Tax Invoice for Small Businesses

사업자는 재화 또는 용역을 공급하고 공급시기에 세금계산서를 발급한다. 그러나 그 공급시기가 언제인지 모호하여 적법한 시기에 세금계산서를 발급하기 위해서는 납세협력비용이 발생된다. 만일 잘못된 시기에 세금계산서를 발급할 경우 가산세와 매입세액 불공제 등 과도한 세법상 제재를 받게 된다. 공급자가 외상으로 거래하는 경우 공급자는 부가가치세를 거래징수하지 못한 상태에서 자기부담으로 먼저 부가가치세를 납부하여야 하므로 자금부담이 발생한다. 또한 공급자는 공급받는 자의 파산 등으로 거래징수할 부가가치세의 회수가 불가능한 경우에는 대손세액공제를 받아야 하는데 그 적용요건이 엄격하여 대손세액공제 신청에 있어 납세협력비용이 발생함은 물론 이를 적용받지 못할 경우 장기적인 자금 압박으로 이어지게 된다. 아울러 과세관청 입장에서도 대손세액공제 제도의 운영으로 막대한 행정력이 소요되어 사회적 비용이 크다. 이러한 외상거래에 따른 경제적 부담들은 소규모 사업자에게 발생할 가능성이 상대적으로 높다. 따라서 독일과 영국의 예와 같이 소규모 사업자의 경우 세금계산서를 공급시기가 아닌 공급대가를 현금으로 지급받는 시점에 발급하도록 하는 현금회계제도를 도입함이 타당하다. 세금계산서 현금회계제도는 소규모 사업자의 납세협력비용을 절감하고 자금부담을 해소하며 세금계산서 발급시기의 오류를 줄임으로써 과도한 세법상 제재를 회피할 수 있게 한다. 다만 세금계산서 현금회계제도를 도입할 경우 납세자가 현금 지급시기를 조정하여 납세의무의 발생시기를 조정할 우려가 있다는 지적이 있으나 이는 현행 제도에서도 공급시기를 조정하여 나타날 수 있는 문제로 보인다.A businessman shall supply goods or services and issue tax invoices at the time of supply. However, tax cooperation costs are incurred to issue a tax invoice at a legitimate time because the timing of the supply is unclear. If a tax invoice is issued at a wrong time, it will be subject to excessive tax laws such as additional taxes and unfair purchase tax. When a supplier transacts on credit, the supplier must first pay the value-added tax at its own expense without collecting the value-added tax, which results in a financial burden. In addition, suppliers must receive a tax deduction if they cannot collect VAT due to bankruptcy of the supplier, and the application requirements are strict, resulting in tax cooperation costs in applying for the tax credit. In addition, from the perspective of the tax office, the operation of the loan-loss tax deduction system requires a huge amount of administrative power, which is a huge social cost. The economic burden of these credit transactions is relatively likely to occur for small businesses. Therefore, it is reasonable to introduce a cash accounting system for small businesses, such as Germany and the United Kingdom, to issue tax invoices at the time of payment of supply considerations rather than supply periods. The tax invoice cash accounting system allows small businesses to avoid sanctions under excessive tax laws by reducing the cost of tax cooperation, eliminating the burden of funds, and reducing errors in issuing tax invoices. However, some point out that if the tax invoice cash accounting system is introduced, taxpayers may adjust the timing of the tax obligation by adjusting the cash payment period, but this seems to be a problem that can be caused by adjusting the supply period in the current system.

Precise continuous time expected deflator for the G2++ model

We propose a continuous time algorithm for the estimation of the cash account stochastic discount factor computed by Monte-Carlo simulations of a G2++ model. By taking into account previous results in a discrete time framework, we define a new algorithm that is i) easier to implement without loss of precision and ii) can be used in continuous time models without incurring in possible discretization errors. The simulated stochastic discount factor will be precise in terms of the risk-free measure adopted even when the number of simulated paths is small.

УДОСКОНАЛЕННЯ ОРГАНІЗАЦІЇ ОБЛІКУ ГРОШОВИХ КОШТІВ ЯК СКЛАДОВОЇ МОНЕТАРНИХ АКТИВІВ

УДОСКОНАЛЕННЯ ОРГАНІЗАЦІЇ ОБЛІКУ ГРОШОВИХ КОШТІВ ЯК СКЛАДОВОЇ МОНЕТАРНИХ АКТИВІВ

Effect of Accounting Practices on Trade and Information Technology in Calabar Metropolis

This study examined effect of accounting practices on trade and information technology in Calabar metropolis. The study specifically assessed the effect of accrual accounting and cash accounting practices on usage of information technology for trade by SMEs in Calabar metropolis. The study applied the survey research design with a well-structured questionnaire administered on three hundred and seven respondents. The ordinary least square technique was the analytical tool used in the study’s analysis. Findings from the analysis showed that accrual accounting and cash accounting practices had no significant effect on trade through information technology. Based on the findings, it was concluded that though accounting practices have no direct significant effect on information technology but in reality, information technology plays vital roles in modern trade towards effective and efficient attainment of organisational goals and objectives of setting up of SMEs. Relying on the findings and the conclusion reached, the study recommended that owners and managers of SMEs should train their employees on the use of accounting software, which are developed by information technology experts, for the timely preparation of accounting reports and or financial statements for prompt decision making. Lastly SMEs should investment adequate resources in accounting information system as this is necessary to monitor the level of organization activities, track receivables and conduct inventory control.

Organization and methods of accounting, audit of cash funds and analysis of cash flows at aviations enterprises

Introduction. Cash as a significant economic category is a function not only of value but also of means of circulation, means of accumulation. Depending on the specifics of the enterprise, accounting, audit and analysis of cash flows has its own specificity, in particular in aviation enterprises. The financial accounting at such enterprises provides registration and registration of business transactions, analytical and synthetic accounting, audit of data, as well as preparation of the required financial statements of the established sample. The works that would take into account the specifics of aviation activity in matters of organization of accounting, audit and analysis of cash flows not enough. The purpose of the paper is research of theoretical, methodological and organizational aspects of accounting, audit and analysis of cash flows, finding out directions of their improvement in aviation enterprises. Results. The article deals with the theoretical, methodological and organizational aspects of accounting, audit and analysis of cash flows, explains the ways of their improvement in aviation enterprises. The wording of the concept of cash (money) in accordance with (NAS) 1 and the specifics of the activity of aviation enterprises according to the current Air Code of Ukraine are clarified. The main sources of information that allow proper accounting, audit of funds and analysis of cash flows of aviation enterprises are considered. The main accounts and subaccounts of cash accounting at aviation enterprises were detailed, including 30 «Cash», 31 «Bank Accounts», 33 «Other Funds». The peculiarities of the audit of cash, the key issues of cash flow analysis to prevent their irrational use are considered. Conclusion. Prospects for further research include the study of the monetary income of aviation enterprises and their accounting in terms of economic activities (open additional flights, joint operation of flights and / or other form of interaction of representatives of aviation business) and forms of ownership (public, private) in terms of technical and service infrastructure.

Amalan Perakaunan Zakat di Majlis Agama Islam Negeri Terpilih

The absence of a specific standard for zakat accounting has led to the inconsistency of zakat accounting practices by zakat administrators in Malaysia. Zakat administrators are alleged to have transparency issues in the zakat-related administrative affairs. The purpose of this article is to examine the accounting practices for the collection and distribution of zakat by the State Islamic Religious Council (SIRC). In turn, this article discusses accounting practices that aligned with generally accepted accounting conventions and comply with the Syariah requirements, which then be the basis for the development of zakat accounting standards. Data collection was conducted through analysis of the SIRC financial statements of 2016 and focus group discussions with officials of zakat administration and the accountants. The study found that all the selected SIRCs adopt fund accounting. They use cash accounting in the event of zakat transactions. Zakat collection is the revenue for the Zakat Fund (ZF) under the fund accounting. Direct (consummative) distributions as an expenditure of ZF in all the selected SIRCs. However, there are differences in accounting for productive zakat distributions involving capital expenditure (i.e. assets). Three SIRCs accounted for it as an expenditure (operations) of ZF and no recognition of assets. Keywords: zakat, income, expenses, State Islamic Religious Council, MPSAS

Audit and Accounting Procedures in Organizations (with reference to Petty Cash)

Over the past few decades, auditing and accounting has gained extreme significance and become a crucial component in the operations of every organization. This is because responsibility is placed on organizations to satisfy all its stakeholders by complying with policies and procedures, which are viewed as ethical in nature by them. Considering the importance of auditing and accounting in the current competitive scenario, organizations have recognized that the proper petty cash auditing and accounting is a vital component in gaining a favorable image within the industry it operates apart from other types and methods of audit. However, there are other factors such as nature of the operations, size of the organization, misappropriation, theft, errors during reconciliation and accounting which affect the results of petty cash auditing and accounting. In view of the importance of auditing and accounting that enables the management for decision making, this study will provide a basic idea about the petty cash auditing, accounting, its impact on the cash balances, the overall liquidity and position within an organization. In addition to the idea and the impact about petty cash auditing and accounting procedures within an organization, this study also helps to find out how the cash used for payment of petty cash expenses utilized effectively and how the unutilized amount is accounted by the organizations. This research study will address about how organizations with the help of its internal and external stakeholders can improve its petty cash auditing and accounting procedures through feedback from all the relevant stakeholders. In addition to the global accounting policy for petty cash auditing and accounting set up by statutory bodies in the field of accounting and auditing, this study will also highlight how confident the management and the employees are about the level of transparency in petty cash auditing and accounting procedures. This study also benefits enthusiastic researchers in the field of finance and treasury who are aspiring and willing to perform advanced research on petty cash accounting and auditing and its impact on the organization’s performance. One of the most common statistical tests i.e. independent sample t-test is used to find out how petty cash audit is viewed among organizations. Through independent t-test, it was found out that the systems put in place for petty cash audit and accounting are adequate but still there exists room for improvement.

Accounting Standards and the Value Relevance of Financial Statements

Using the data of 68 Malaysian listed firms, this study attempts to examine the relationship between accounting standards and the value relevance of financial statements. It also explores the difference in accounting treatment between accruals accounting and cash accounting, and evidence of supplies. This process confirmed that accruals accounting provided a more transparent picture of accounting information when compared with cash accounting aspect. Our findings are quite consistent with our hypothesis which clearly states that in economies wherein strong and secure protection mechanisms for shareholders exist, tend to apply the use of accruals accounting with confidence, assuming that the value relevance of accounting information would not be compromised at any stage.

An Analysis of Basic Accounting Practices of Microenterprises

Every microenterprise needs to learn and perform basic accounting practices to ensure that their business progress is running smoothly. Besides able to improve the business performance of a company, accounting practices also represent the result of operations of a company, as well as the statement of financial position. Therefore, by understanding financial performance very well might help the microenterprises not only to evaluate and monitor their business activities but also facilitate them in a critical way to make a better decision. The purpose of this paper is to study the application of basic accounting practices among the microenterprises in Batu Pahat. The data were collected among 157 owners of microenterprises. The data were analysed in frequency and percentage form by using The Statistical Package for Social Sciences (SPSS). The findings showed that most of the microenterprises practiced a very basic accounting system, maintained both cash and accrual accounting and practiced recording both electronically and manually. The survey also showed that most of the microenterprises completed the accounting cycle by keeping records of their daily business transaction and prepared the financial statement at the end of period mostly on income statement and statement of cash flow. With such well-maintained and completed financial records, it can be translated into feasible and good decision-making which may eventually result in business success. Besides, this survey found that the main challenges that were faced by microenterprises were lack of accounting knowledge and limited cost and time in preparing the financial statement for their businesses. Thus, it was recommended that microenterprises should improve their accounting skills and increase their knowledge by joining any training for seminar on the accounting practices toward the effectiveness of their financial management and entrepreneurial development.

The effect of simplified cash accounting on tax and financial accounting compliance costs

In many countries simplified methods for tax accounting are considered as important step to reduce tax complexity and thereby the compliance cost burden of particularly small businesses. Using two surveys among (1) small businesses and (2) tax advisors, this study examines the effect of cash-based versus accrual accounting on tax and financial accounting compliance cost. While the results of the first study are ambiguous, the second study shows that cash-based accounting is associated with a decrease of external compliance costs of small firms by about 30%. This relative benefit decreases slightly with the size of the business. However, we do not find that the usage of cash-based accounting reduces the demand for professional tax advice.

EFFECT OF INFORMATION ON ACCOUNTING PROFITS AND CASH FLOW COMPONENTS ON STOCK PRICES OF INSURANCE COMPANIES LISTED IN INDONESIA STOCK EXCHANGE (BEI) 2008-2012 PERIOD

Many factors influence the fluctuation of stock prices, including: deposit interest rates, stock trading volume, return on equity, earnings per share. The last two factors are part of the financial statements presented by the issuers. The financial statements contain accounting earnings information and cash flow. Therefore it is necessary to examine empirically whether accounting earnings and cash flows have an influence on changes in stock prices. Data is collected from the stock prices of insurance companies that have gone public in the Jakarta Stock Exchange which have a nominal value per share of Rp.1,000.00 (one thousand rupiah) from 2008 to 2012. This study took 10 existing insurance companies to analyze. The basis for this sampling is based on the amount of data available on the Jakarta Stock Exchange Website. From the results of variable analysis of total cash flow and accounting profit variables in the first equation individually can not significantly influence stock prices. And together all the independent variables have no effect simultaneously on stock prices. The value of Squared R is very low, which means that the variable cannot explain stock prices, but can be explained by other variables not included in the research model. Variable operational cash flows, investment cash flows and funding cash flows in the second equation individually can not influence stock prices significantly. And together all the independent variables have no effect simultaneously on stock prices. Also obtained is a very low R Squared value, which means that the variable cannot explain stock prices, but can be explained by other variables not included in the research model

Determinants of Cash Flow Management Practice on Performance of Commercial Banks in Kenya

The purpose of the study was to analyze the determinants of cash flow management on performance practice of commercial banks in Kenya. Specific objectives of the study were to determine the effect of cash forecasting practice on performance of commercial banks in Kenya, to identify the effect of cash accounting practice on performance of commercial banks in Kenya. The study was based on Portfolio theory of Cash Management, Cash Management theory, Transaction Cost theory, Free Cash Flow theory and pecking order theory. The study used mixed research design which involves collecting and analyzing both qualitative and quantitative data. The target population of the study comprised the 6913 employees in management and supervisory cadres in commercial banks in Kenya. Stratified sampling technique was used to identify the sample size in every stratum. Data collection instruments were both structured and unstructured questionnaires. Data collection methods were both primary and secondary. The data was analyzed using Statistical Program for Social Sciences (SPSS) windows version 21.Multiple linear regression analysis was carried out to analyze the determinants of cash flow management on performance of commercial banks in Nairobi City County, Kenya. Pilot test was carried out for validity and reliability of research instruments. Regression analysis was carried out to test the significant levels of one variable to the other in the study. ANOVA was carried out to test the hypotheses of the study. The study is significant to the banking sector and the government of Kenya in formulation of different financial decisions and in policy making. The results of the study indicate that all the independent variable have a significant positive effect on performance of Commercial banks Kenya. The findings revealed that commercial banks in Kenya carry out cash flow forecasting practice and that inflation rates influence interest rates in commercial banks in Kenya. Cash accounting practice was found to be positively related to performance of commercial banks in Kenya. The study recommends that the management of commercial banks in Kenya should be enhanced through frequent audits to be able to curb interest rates especially the unanticipated inflation which adversely affects the functions of money by undermining wealth holders’ confidence in its ability to be used as medium of exchange and store of value. Keywords: Cash Accounting, Financial Performance DOI : 10.7176/EJBM/11-17-03 Publication date :June 30 th 2019

Primena zeta skor modela u funkciji poboljšanja finansijskog izveštavanja u javnom sektoru sa konkretnim predlozima

The aim of this paper is to analyze from the empirical point of view the importance of the adequate bookkeeping methodology for efficient financial management of a budget organization in function of decrease of risk of bankruptcy as well as advancement of quality of information and timely decisions. In this paper the basics, specific characteristics and problems of application of the cash and calculation accounting principles are presented in an original and scientifically founded way in order to advance the quality of bookkeeping information in health organizations and thereby decrease the risk of bankruptcy of indirect budget beneficiaries. In order to assess the zone in which an examined subject is, we have chosen the Zeta Score Model and applied it throughout this examination. The final results point to significant possibilities of application of the said model and to the necessity of revision of accounting methodology and practice in our country.

IPTEKS PENERAPAN AKUNTANSI KAS KECIL PADA PT. PLN (PERSERO) RAYON MANADO SELATAN

The application of petty cash accounting for companies is very important because with the existence of petty cash each company activities will run more efficiently. The use of small cash accounts is considered by some companies to be very helpful in the company's operations that are important and fast needed so that the use of small cash accounts is more efficient than cash accounts. PT. PLN South Manado Rayon also uses or applies small cash accounting because the Rayon Unit itself requires important and fast management needed so that it cannot use a cash account whose expenditure requires checks or demand deposits. This study explains how the application of petty cash at PT. PLN South Manado Rayon and use what recording method for petty cash itself.Keywords: Petty Cash, Recording and Reporting Methods

VAT Cash Accounting Scheme – Lessons from Bulgaria

The VAT cash accounting scheme was introduced in Bulgaria at the beginning of 2014. In this article, the author discusses practical aspects of the implementation of this regime into the local legislation, its advantages and disadvantages, and most importantly, raises the question to what extent it is popular amongst the small businesses for which it is intended.

The Role Of Climate And Culture In The Implementation Of Accrual Accounting: A Conceptual Paper1

Accrual accounting is recognized to provide more accurate financial information compared to cash accounting. Implementing accrual accounting is among the strategic initiatives by governments across the globe, as well as Malaysia to ensure transparency and accountability in government’s financial reporting. The transition from cash basis accounting traditionally used by government to the new accrual accounting regime is highly dependent on the acceptance and commitment of the members of the organizations. As implementation of accrual accounting is a form of change initiatives, conducive organizational climate and culture are important in ensuring successful implementation of the new regime of accrual accounting. Change climate involves change of policies, practices, procedures, routine and rewards systems while change culture involves change of employees’ deeply held values and beliefs. This paper proposes a research framework to explore the influence of organizational climate and culture towards successful implementation of accrual accounting in Malaysia. Keywords: accrual accounting, organizational culture, organizational climate, change management, public sector

ANALISIS PENGARUH ARUS KAS OPERASI DAN LABA AKUNTANSI TERHADAP RETURN SAHAM PERUSAHAAN PERAIH INVESTMENT AWARD (BEST ISSUERS) DI BURSA EFEK INDONESIA

Investors in investing always expect high stock returns. Therefore, investors should beable to assess which companies have good performance, so the stock return is also high. Thefinancial statements, particularly those relating to information on changes in operating cashflows and corporate accounting profit, are one of the important information that can be usedby investors to assess company performance. This study aims to provide empirical evidencerelated to the effect of operating cash flow and accounting earnings on stock returns.The data in this study is secondary data obtained from the company's annual financialstatements in Indonesia Capital Market Directory (ICMD) and Indonesia Stock Exchange(IDX). This study was conducted using the company population of the company winning theinvestment award (best issues) 2017 listed on the Indonesia Stock Exchange in 2015 and 2016.The result of this research is partially variable of operating cash flow (AKO) havepositive and significant effect to stock return, while partially, variable of accountancy profit(LAK) have no effect to stock return and simultaneously variable operating cash flow (AKO)and change of accountancy profit (LAK) jointly have a significant effect on stock returns inthe company's winning investment award (best issues) 2017 listed on the Indonesia StockExchange in 2015 and 2016.Keywords: Operating Cash Flow, Accounting Profit, and Stock Return