Basic Accounting Concepts and Principles
Posted by admin in Accounting on January 18, 2012
The main purpose of financial accounting is to provide necessary economic information required for decision-making in a business. Financial accounting follows certain rules and guidelines to prepare reports on the financial standing of an entity. These rules and guidelines are usually referred to as Generally Accepted Accounting Principles (GAAP). GAAP sets its accounting standards and guidelines for preparing financial reports for public, private, non-profitable organizations, and governments owned companies.
Readers of a financial report should be intimated if the information provided in the financial statements follow the GAAP guidelines. The accountant or auditor is responsible for ensuring this procedure. Some basic accounting concepts and principles are:
Business Entity: This principle treats the company as a separate entity from its owners. Personal accounts of owners/partners should be kept separate from profits and expenses of the company.
Cost: This principle states that the company has to consider the original cost of fixed assets like building and machinery, rather than market value. But today most of the companies report only the market value.
Sincerity: According to this principle, the auditors should prepare the financial reports in order to project the real financial position of the company rather than fabricating facts.
Monetary Unit: This principle assumes that transactions should be recorded in a single currency and exchange rate. This will help the company compare its accounts to the previous years, in spite of a change in the rate of inflation.
Consistency: According to this principle, the accountants should use the same methods and functions for different periods of time. For example, the same rate of percentage should be applied for all depreciation. This principle is also known as the principle of regularity.
Prudence: The main objective of this principle is to show the real financial position of the company. The accountants should show the correct revenue accounts and provide a provision for expenses which may occur in the future.
Matching: According to this principle, all the revenues and concerned expenses incurred should be shown in the same financial period. The main objective is to avoid any overstatements of income at any particular time.
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Sales Negotiation Training: Effective Sales Negotiation Skills and Techniques
Posted by admin in Negotiation on January 7, 2012
You may be a person who does not like to negotiate, but often ends up in positions where negotiation becomes necessary. Most people wrongly think that negotiation skills are only for salespeople. But, imagine a situation where you are planning to sell your house. Now, without negotiation you might end up getting a price that’s much lesser than what your house deserves. Think of the losses you might have to incur, just because of poor negotiating skills. Thus, reasonably good negotiation skills can benefit you greatly, even if you are not in the sales business. For people in sales businesses, excellent negotiation skills are a must. Your sales depend upon your ‘sales talks’ and the price you fetch for your product, entirely depends upon your negotiation skills.
Consider following guidelines for effective sales negotiation skills and techniques.
Understand Your Product and Evaluate Customer Feedback
The first step towards excellent sales negotiation, is to thoroughly understand your product. Study your product or service well, and evaluate the values that you have to offer. Seeking feedback from your customers is crucial to sales success. Your customers can give you a better idea about your weak points, and the areas where your competitors score over you. Always be open to suggestions and criticism from customers. They are pivotal in improving your product. Understanding your weak points can help you in the preparation of an explanation and swiftly sail you through tricky questions, during a negotiation.
Understand Your Competitors
Conduct a market research and find out who the major competitors are, in your chosen product line. Research the tactics of these contenders and plan accordingly. Identify your strong areas and assert them positively, on the negotiation table. Refrain from criticizing your competitor’s product, as that would make you look too desperate to sell your product.
Plan a Sales Strategy
Plan a sales strategy with your marketing team. Develop a line upon which to act, during a negotiation. Adhere to those guidelines while you are actually negotiating.
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