What is involved in Financial Accounting
Find out what the related areas are that Financial Accounting connects with, associates with, correlates with or affects, and which require thought, deliberation, analysis, review and discussion. This unique checklist stands out in a sense that it is not per-se designed to give answers, but to engage the reader and lay out a Financial Accounting thinking-frame.
How far is your company on its Financial Accounting journey?
Take this short survey to gauge your organization’s progress toward Financial Accounting leadership. Learn your strongest and weakest areas, and what you can do now to create a strategy that delivers results.
To address the criteria in this checklist for your organization, extensive selected resources are provided for sources of further research and information.
Start the Checklist
Below you will find a quick checklist designed to help you think about which Financial Accounting related domains to cover and 144 essential critical questions to check off in that domain.
The following domains are covered:
Financial Accounting, Accounting period, General journal, Going concern, Forensic accounting, Cost of goods sold, Ownership equity, Financial Accounting, Historical cost accounting, Accounting standards, Revenue recognition, Accounting equation, Sarbanes–Oxley Act, Cash flow statement, Constant purchasing power accounting, Internal audit, FIFO and LIFO accounting, Generally Accepted Accounting Practice, Historical cost, Capital expenditure, Tax accounting in the United States, Intangible asset, Association of Chartered Certified Accountants, Operating expenses, Financial statement, Trial balance, Tax accounting, National Diet Library, Management discussion and analysis, Notes to the financial statements, Annual report, Governmental accounting, Marketable securities, Certified Public Accountant, Positive accounting, International Financial Reporting Standards, Financial audit, Common stock, Constant item purchasing power accounting, Chartered Accountant, Fiscal year, Chartered Certified Accountant, Financial statements, Bank reconciliation, Owner’s equity, Generally Accepted Accounting Principles, Net income, Management Accounting Principles, Current asset, International Standards on Auditing, T accounts, Convergence of accounting standards, Accounting networks and associations, Net profit, Double-entry accounting system, Cost accounting, Fair value, Accounting analyst, Balance sheet:
Financial Accounting Critical Criteria:
Accumulate Financial Accounting goals and get out your magnifying glass.
– Where do ideas that reach policy makers and planners as proposals for Financial Accounting strengthening and reform actually originate?
– What are our Financial Accounting Processes?
Accounting period Critical Criteria:
Experiment with Accounting period visions and interpret which customers can’t participate in Accounting period because they lack skills.
– What are our best practices for minimizing Financial Accounting project risk, while demonstrating incremental value and quick wins throughout the Financial Accounting project lifecycle?
– Will new equipment/products be required to facilitate Financial Accounting delivery for example is new software needed?
– What is going to be the accounting period?
– How do we maintain Financial Accountings Integrity?
General journal Critical Criteria:
Win new insights about General journal leadership and reduce General journal costs.
– To what extent does management recognize Financial Accounting as a tool to increase the results?
– Are assumptions made in Financial Accounting stated explicitly?
– How is the value delivered by Financial Accounting being measured?
Going concern Critical Criteria:
Set goals for Going concern projects and learn.
– What is the source of the strategies for Financial Accounting strengthening and reform?
– Who are the people involved in developing and implementing Financial Accounting?
– What are the long-term Financial Accounting goals?
Forensic accounting Critical Criteria:
Coach on Forensic accounting management and describe which business rules are needed as Forensic accounting interface.
– Does Financial Accounting create potential expectations in other areas that need to be recognized and considered?
– How do senior leaders actions reflect a commitment to the organizations Financial Accounting values?
– How do we know that any Financial Accounting analysis is complete and comprehensive?
Cost of goods sold Critical Criteria:
Model after Cost of goods sold outcomes and perfect Cost of goods sold conflict management.
– A compounding model resolution with available relevant data can often provide insight towards a solution methodology; which Financial Accounting models, tools and techniques are necessary?
– What are your key performance measures or indicators and in-process measures for the control and improvement of your Financial Accounting processes?
– What are specific Financial Accounting Rules to follow?
Ownership equity Critical Criteria:
Map Ownership equity quality and point out Ownership equity tensions in leadership.
– What will be the consequences to the business (financial, reputation etc) if Financial Accounting does not go ahead or fails to deliver the objectives?
– What business benefits will Financial Accounting goals deliver if achieved?
– What is our Financial Accounting Strategy?
Financial Accounting Critical Criteria:
Confer over Financial Accounting management and achieve a single Financial Accounting view and bringing data together.
– Consider your own Financial Accounting project. what types of organizational problems do you think might be causing or affecting your problem, based on the work done so far?
– What will drive Financial Accounting change?
– Do we all define Financial Accounting in the same way?
Historical cost accounting Critical Criteria:
Confer over Historical cost accounting visions and document what potential Historical cost accounting megatrends could make our business model obsolete.
– Think about the people you identified for your Financial Accounting project and the project responsibilities you would assign to them. what kind of training do you think they would need to perform these responsibilities effectively?
– What role does communication play in the success or failure of a Financial Accounting project?
– Think of your Financial Accounting project. what are the main functions?
Accounting standards Critical Criteria:
Co-operate on Accounting standards management and oversee Accounting standards requirements.
– What are the disruptive Financial Accounting technologies that enable our organization to radically change our business processes?
– Will Financial Accounting have an impact on current business continuity, disaster recovery processes and/or infrastructure?
– Does the Financial Accounting task fit the clients priorities?
Revenue recognition Critical Criteria:
Analyze Revenue recognition management and ask what if.
– What is our formula for success in Financial Accounting ?
– Is revenue recognition aggressive or conservative?
– How do we keep improving Financial Accounting?
Accounting equation Critical Criteria:
Infer Accounting equation leadership and reinforce and communicate particularly sensitive Accounting equation decisions.
– Which individuals, teams or departments will be involved in Financial Accounting?
– Is Financial Accounting Required?
Sarbanes–Oxley Act Critical Criteria:
Adapt Sarbanes–Oxley Act planning and budget for Sarbanes–Oxley Act challenges.
– How do we go about Comparing Financial Accounting approaches/solutions?
– What are the Essentials of Internal Financial Accounting Management?
– Is Supporting Financial Accounting documentation required?
Cash flow statement Critical Criteria:
Face Cash flow statement planning and achieve a single Cash flow statement view and bringing data together.
– What are the key elements of your Financial Accounting performance improvement system, including your evaluation, organizational learning, and innovation processes?
– How will you know that the Financial Accounting project has been successful?
Constant purchasing power accounting Critical Criteria:
Probe Constant purchasing power accounting risks and forecast involvement of future Constant purchasing power accounting projects in development.
– Meeting the challenge: are missed Financial Accounting opportunities costing us money?
– What vendors make products that address the Financial Accounting needs?
Internal audit Critical Criteria:
Graph Internal audit issues and plan concise Internal audit education.
– How do we engage divisions, operating units, operations, internal audit, risk management, compliance, finance, technology, and human resources in adopting the updated framework?
– Have we established unit(s) whose primary responsibility is internal audit, Quality Assurance, internal control or quality control?
– Is Financial Accounting Realistic, or are you setting yourself up for failure?
– When was your last SWOT analysis for Internal Audit?
– How will you measure your Financial Accounting effectiveness?
FIFO and LIFO accounting Critical Criteria:
Generalize FIFO and LIFO accounting projects and develop and take control of the FIFO and LIFO accounting initiative.
Generally Accepted Accounting Practice Critical Criteria:
Focus on Generally Accepted Accounting Practice adoptions and check on ways to get started with Generally Accepted Accounting Practice.
– How can we incorporate support to ensure safe and effective use of Financial Accounting into the services that we provide?
– How do we Lead with Financial Accounting in Mind?
Historical cost Critical Criteria:
Be clear about Historical cost tasks and document what potential Historical cost megatrends could make our business model obsolete.
– How do your measurements capture actionable Financial Accounting information for use in exceeding your customers expectations and securing your customers engagement?
– What are the business goals Financial Accounting is aiming to achieve?
Capital expenditure Critical Criteria:
Administer Capital expenditure risks and mentor Capital expenditure customer orientation.
– Who will be responsible for documenting the Financial Accounting requirements in detail?
Tax accounting in the United States Critical Criteria:
Mix Tax accounting in the United States tasks and acquire concise Tax accounting in the United States education.
– How can skill-level changes improve Financial Accounting?
Intangible asset Critical Criteria:
Conceptualize Intangible asset strategies and stake your claim.
– How do you incorporate cycle time, productivity, cost control, and other efficiency and effectiveness factors into these Financial Accounting processes?
– What may be the consequences for the performance of an organization if all stakeholders are not consulted regarding Financial Accounting?
– How can we improve Financial Accounting?
Association of Chartered Certified Accountants Critical Criteria:
Read up on Association of Chartered Certified Accountants adoptions and catalog what business benefits will Association of Chartered Certified Accountants goals deliver if achieved.
– Is there any existing Financial Accounting governance structure?
Operating expenses Critical Criteria:
Sort Operating expenses leadership and differentiate in coordinating Operating expenses.
– Among the Financial Accounting product and service cost to be estimated, which is considered hardest to estimate?
– In what ways are Financial Accounting vendors and us interacting to ensure safe and effective use?
– What are our needs in relation to Financial Accounting skills, labor, equipment, and markets?
Financial statement Critical Criteria:
Check Financial statement engagements and optimize Financial statement leadership as a key to advancement.
– Do we cover the five essential competencies-Communication, Collaboration,Innovation, Adaptability, and Leadership that improve an organizations ability to leverage the new Financial Accounting in a volatile global economy?
– Who is responsible for ensuring appropriate resources (time, people and money) are allocated to Financial Accounting?
– How Are Financial Statements Used?
– What is Effective Financial Accounting?
Trial balance Critical Criteria:
Prioritize Trial balance tasks and create a map for yourself.
– What are internal and external Financial Accounting relations?
– Why is Financial Accounting important for you now?
Tax accounting Critical Criteria:
Closely inspect Tax accounting results and sort Tax accounting activities.
National Diet Library Critical Criteria:
Investigate National Diet Library engagements and test out new things.
– Does Financial Accounting systematically track and analyze outcomes for accountability and quality improvement?
– How do we Improve Financial Accounting service perception, and satisfaction?
– How do we go about Securing Financial Accounting?
Management discussion and analysis Critical Criteria:
Grade Management discussion and analysis management and reinforce and communicate particularly sensitive Management discussion and analysis decisions.
– What new services of functionality will be implemented next with Financial Accounting ?
– What tools and technologies are needed for a custom Financial Accounting project?
Notes to the financial statements Critical Criteria:
Focus on Notes to the financial statements failures and get answers.
– What are the top 3 things at the forefront of our Financial Accounting agendas for the next 3 years?
Annual report Critical Criteria:
Analyze Annual report failures and probe the present value of growth of Annual report.
– How do mission and objectives affect the Financial Accounting processes of our organization?
– What key measures should we include in our annual report to our Board of Directors?
– What key measures should we include in our annual report to stockholders?
– What about Financial Accounting Analysis of results?
– What are current Financial Accounting Paradigms?
Governmental accounting Critical Criteria:
Have a round table over Governmental accounting issues and reduce Governmental accounting costs.
Marketable securities Critical Criteria:
Administer Marketable securities results and get the big picture.
– What are your results for key measures or indicators of the accomplishment of your Financial Accounting strategy and action plans, including building and strengthening core competencies?
– Have the types of risks that may impact Financial Accounting been identified and analyzed?
– Why are Financial Accounting skills important?
Certified Public Accountant Critical Criteria:
Understand Certified Public Accountant adoptions and clarify ways to gain access to competitive Certified Public Accountant services.
– Which customers cant participate in our Financial Accounting domain because they lack skills, wealth, or convenient access to existing solutions?
Positive accounting Critical Criteria:
Dissect Positive accounting strategies and forecast involvement of future Positive accounting projects in development.
– Do the Financial Accounting decisions we make today help people and the planet tomorrow?
– What is the purpose of Financial Accounting in relation to the mission?
International Financial Reporting Standards Critical Criteria:
Think carefully about International Financial Reporting Standards management and ask what if.
– Are there any disadvantages to implementing Financial Accounting? There might be some that are less obvious?
– Does Financial Accounting analysis isolate the fundamental causes of problems?
– Do you monitor the effectiveness of your Financial Accounting activities?
Financial audit Critical Criteria:
Coach on Financial audit tasks and learn.
– What are your current levels and trends in key measures or indicators of Financial Accounting product and process performance that are important to and directly serve your customers? how do these results compare with the performance of your competitors and other organizations with similar offerings?
– What are your most important goals for the strategic Financial Accounting objectives?
– What threat is Financial Accounting addressing?
Common stock Critical Criteria:
Infer Common stock visions and define what do we need to start doing with Common stock.
Constant item purchasing power accounting Critical Criteria:
Accumulate Constant item purchasing power accounting tasks and pay attention to the small things.
Chartered Accountant Critical Criteria:
Confer re Chartered Accountant planning and visualize why should people listen to you regarding Chartered Accountant.
– Can we do Financial Accounting without complex (expensive) analysis?
– Who will provide the final approval of Financial Accounting deliverables?
Fiscal year Critical Criteria:
Confer over Fiscal year management and diversify by understanding risks and leveraging Fiscal year.
– Has the investment re-baselined during the past fiscal year?
Chartered Certified Accountant Critical Criteria:
Concentrate on Chartered Certified Accountant tactics and gather Chartered Certified Accountant models .
– Record-keeping requirements flow from the records needed as inputs, outputs, controls and for transformation of a Financial Accounting process. ask yourself: are the records needed as inputs to the Financial Accounting process available?
– Are there Financial Accounting problems defined?
Financial statements Critical Criteria:
Administer Financial statements engagements and work towards be a leading Financial statements expert.
– In a project to restructure Financial Accounting outcomes, which stakeholders would you involve?
Bank reconciliation Critical Criteria:
Paraphrase Bank reconciliation engagements and acquire concise Bank reconciliation education.
Owner’s equity Critical Criteria:
Scan Owner’s equity goals and learn.
– How will we insure seamless interoperability of Financial Accounting moving forward?
– Can Management personnel recognize the monetary benefit of Financial Accounting?
Generally Accepted Accounting Principles Critical Criteria:
Trace Generally Accepted Accounting Principles issues and revise understanding of Generally Accepted Accounting Principles architectures.
Net income Critical Criteria:
Experiment with Net income engagements and develop and take control of the Net income initiative.
– If depreciation is an expense, why is it added back to an investments net income to compute the net cash flow from that investment?
Management Accounting Principles Critical Criteria:
Air ideas re Management Accounting Principles projects and probe the present value of growth of Management Accounting Principles.
– Who will be responsible for deciding whether Financial Accounting goes ahead or not after the initial investigations?
– What are the short and long-term Financial Accounting goals?
Current asset Critical Criteria:
Generalize Current asset risks and define Current asset competency-based leadership.
– Risk factors: what are the characteristics of Financial Accounting that make it risky?
– What are the Key enablers to make this Financial Accounting move?
International Standards on Auditing Critical Criteria:
Revitalize International Standards on Auditing engagements and find out what it really means.
T accounts Critical Criteria:
Familiarize yourself with T accounts tasks and optimize T accounts leadership as a key to advancement.
– Are vendor default accounts and passwords disabled or changed on production systems before putting a system into production?
– Who has what accounts?
Convergence of accounting standards Critical Criteria:
Win new insights about Convergence of accounting standards goals and devote time assessing Convergence of accounting standards and its risk.
– Think about the kind of project structure that would be appropriate for your Financial Accounting project. should it be formal and complex, or can it be less formal and relatively simple?
– What tools do you use once you have decided on a Financial Accounting strategy and more importantly how do you choose?
Accounting networks and associations Critical Criteria:
Do a round table on Accounting networks and associations quality and figure out ways to motivate other Accounting networks and associations users.
Net profit Critical Criteria:
Ventilate your thoughts about Net profit strategies and find the ideas you already have.
Double-entry accounting system Critical Criteria:
Deliberate Double-entry accounting system results and look for lots of ideas.
Cost accounting Critical Criteria:
Cut a stake in Cost accounting failures and display thorough understanding of the Cost accounting process.
– How much does Financial Accounting help?
– Is cost accounting the answer?
Fair value Critical Criteria:
Look at Fair value tasks and cater for concise Fair value education.
– What potential environmental factors impact the Financial Accounting effort?
– Are estimated fair values unbiased?
Accounting analyst Critical Criteria:
Talk about Accounting analyst tasks and slay a dragon.
– What are all of our Financial Accounting domains and what do they do?
Balance sheet Critical Criteria:
Grasp Balance sheet tasks and assess what counts with Balance sheet that we are not counting.
– What is the difference between current liabilities and long-term liabilities?
– What is the formula for the debt to equity ratio, and what does it measure?
– How quickly does the prospective credit customer pay its bills?
– What is the difference between Basic EPS and diluted EPS?
– Can contractor accurately reevaluate problems on a job?
– How would you describe a poor, or negative, cash flow?
– How well has management employed the companys assets?
– How much money came into the firm from issuing stock?
– How much will retained profits increase by?
– What is the formula for inventory turnover?
– What is the firms sustainable growth rate?
– Is too much cash tied up in inventories?
– What constitutes a satisfactory ROA?
– What is the amount of fixed assets?
– What do liquidity ratios measure?
– What do leverage ratios measure?
– What caused sales to go down/up?
– What are the contingencies?
This quick readiness checklist is a selected resource to help you move forward. Learn more about how to achieve comprehensive insights with the Financial Accounting Self Assessment:
Author: Gerard Blokdijk
CEO at The Art of Service | theartofservice.com
Gerard is the CEO at The Art of Service. He has been providing information technology insights, talks, tools and products to organizations in a wide range of industries for over 25 years. Gerard is a widely recognized and respected information expert. Gerard founded The Art of Service consulting business in 2000. Gerard has authored numerous published books to date.
To address the criteria in this checklist, these selected resources are provided for sources of further research and information:
Financial Accounting External links:
WIPFLI – Financial Accounting Outsourcing
Chapter 3: Budgeting, Financial Accounting for Local …
Financial Accounting Resource Center™ | Bloomberg BNA
Accounting period External links:
Change in Accounting Period – IRS Tax Map
Accounting Period, Reporting Period: Defined and Explained
Going concern External links:
Going Concern – Investopedia
“Lovejoy” A Going Concern (TV Episode 1993) – IMDb
IN Going Concern Endorsement (E-2655)
Forensic accounting External links:
Forensic Accounting Services – Micco & DeLuca
Rosenfarb LLC | Forensic Accounting and Valuation …
Forensic Accounting legal definition of Forensic Accounting
Cost of goods sold External links:
[PDF]Form 1125-A Cost of Goods Sold – Internal Revenue …
What is Cost of Goods Sold? – Paychex
How To Calculate Cost of Goods Sold – The Balance
Ownership equity External links:
What is Ownership Equity? – wiseGEEK
Financial Accounting External links:
WIPFLI – Financial Accounting Outsourcing
Financial accounting is a specialized form of accounting that keeps track of transactions.
Financial Accounting Resource Center™ | Bloomberg BNA
Historical cost accounting External links:
[PDF]The SEC rules historical cost accounting: 1934 to the …
Accounting standards External links:
Sustainability Accounting Standards Board
FASB Accounting Standards Codification®
[PDF]Cost Accounting Standards Board Disclosure …
Revenue recognition External links:
Ch18 Revenue Recognition Flashcards | Quizlet
Revenue Recognition Standard, ASC 606 – PwC
Accounting equation External links:
Accounting Equation (Explanation) – AccountingCoach.com
Accounting Equation | Explanation | AccountingCoach
The Accounting Equation | Accounting 101
Cash flow statement External links:
Cash Flow Statement | Format | Example | Sections
[PDF]CASH FLOW STATEMENT – Normangee State Bank
Cash Flow Statement | Outline | AccountingCoach
Constant purchasing power accounting External links:
Constant Purchasing Power Accounting 11-Application
Internal audit External links:
Global Institute of Internal Auditors
The Institute of Internal Auditors
Generally Accepted Accounting Practice External links:
[PDF]Generally Accepted Accounting Practice (GAAP) …
Historical cost External links:
[PDF]Historical Cost Indexes
Quiz & Worksheet – Historical Cost | Study.com
Historical cost — AccountingTools
Capital expenditure External links:
[PDF]Capital Expenditure Policy – University of Texas …
Capital Expenditure (CAPEX) – Investopedia
Capital Expenditure Requests
Intangible asset External links:
Obsidian Edge, LLC – Business and Intangible Asset Valuation
[PDF]Intangible Asset Valuation Approaches
Intangible Asset – Investopedia
Operating expenses External links:
Operating Expenses | CENTURY 21
Operating Expenses – Entrepreneur
What are operating expenses? | AccountingCoach
Financial statement External links:
[PDF]Financial Statement (EJ-165) – Judiciary of California
Financial Statement – Entrepreneur
Financial statement analysis Flashcards | Quizlet
Trial balance External links:
Accounting Trial Balance Example and Financial …
Tax accounting External links:
Tax Accounting Jobs – Search Tax Accounting Job …
National Diet Library External links:
National Diet Library law. (Book, 1961) [WorldCat.org]
NDL Search – National Diet Library
Management discussion and analysis External links:
[DOC]Sample Management Discussion and Analysis …
Notes to the financial statements External links:
Notes to the Financial Statements- Reporting …
Notes To The Financial Statements – Investopedia
Annual report External links:
Governmental accounting External links:
ERIC – Governmental Accounting: Comprehensive …
Governmental Accounting (Understanding J/E’s, For …
Master of Accountancy in Governmental Accounting …
Marketable securities External links:
Marketable securities Definition – NASDAQ.com
Institutional – Treasury Marketable Securities
Certified Public Accountant External links:
Certified Public Accountant – CPA Definition | Investopedia
Hong Kong Institute of Certified Public Accountants – …
Positive accounting External links:
Positive Accounting Solutions, LLC, Home.
Positive Accounting Ltd – Home | Facebook
Positive Accounting Solutions – Home | Facebook
International Financial Reporting Standards External links:
International Financial Reporting Standards (IFRS 9) – …
Financial audit External links:
Effective Financial Audit Training in Bangkok
Common stock External links:
Common stock financial definition of common stock
Common Stock Warrants | Exclusive Database
First American Corporation (New) Common Stock (FAF)
Chartered Accountant External links:
Institute of Singapore Chartered Accountants | ISCA
About ICAP – Institute of Chartered Accountants of …
Fiscal year External links:
[PDF]FISCAL YEAR 2018 BUDGET OVERVIEW
Fiscal Year 2018 | U.S. Department of the Interior
[PDF]State Holiday Schedule Fiscal Year 2018
Financial statements External links:
A4-2-02: Financial Statements and Reports (01/31/2017)
Interpreting Financial Statements and Measures
Bank reconciliation External links:
Bank Reconciliation – IRS Tax Map
Bank Reconciliation Jobs – Monster.com
Bank Reconciliation – AccountingTools
Owner’s equity External links:
Owner’s Equity vs. Retained Earnings – The Balance
Generally Accepted Accounting Principles External links:
§ 200.49 Generally Accepted Accounting Principles …
Teaching Generally Accepted Accounting Principles in …
Net income External links:
[PDF]Net Income (Loss) Reconciliation for Corporations …
For business net-income: Net income equals gross income less cost of goods sold, expenses, and taxes.
Management Accounting Principles External links:
Management accounting principles (Book, 1970) …
Management accounting principles (Book, 1975) …
Current asset External links:
Current asset — AccountingTools
Net Current Asset Value – Stockopedia
current Asset, – Progress Essays
T accounts External links:
Update Billing Contact Info for Your AT&T Accounts – …
AT&T Accounts Receivable (Annual) – YCharts
Using T Accounts Flashcards | Quizlet
Convergence of accounting standards External links:
Video on the Convergence of Accounting Standards (US …
Accounting networks and associations External links:
Accounting networks and associations – Revolvy
broom02.revolvy.com/topic/Accounting networks and associations
Net profit External links:
[PDF]SCHEDULE C-EZ Net Profit From Business 2015
Municipal Net Profit Tax
[PDF]Boone County Net Profit Instructions 2015
Cost accounting External links:
COST ACCOUNTING – BarCharts
Cost Accounting – AbeBooks
Job Title: Financial Analyst (cost accounting) – 6190
sfbay.craigslist.org › east bay › jobs › accounting/finance
Fair value External links:
[PDF]FAIR VALUE ACCOUNTING: UNDERSTANDING …
Fair Value Measurement – AICPA
True Fair Value
Accounting analyst External links:
Job Opportunity: Escrow Accounting Analyst at …
Accounting Analyst Series – CalHR
Accounting Analyst Salary – PayScale – Salary …
Balance sheet External links:
Sample Balance Sheet | AccountingCoach
Accounting Goodwill – Analyzing a Balance Sheet
Living Balance Sheet