Melvin Feller Business Consultants Group Looks at Financial Accounting in Business

Melvin Feller Business Consultants Group Looks at Financial Accounting in Business

Melvin Feller Business Group in Burkburnett Ministries and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way and provide a positive outreach as the director. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations.

Financial Accounting in Business by Melvin Feller

FINANCIAL ACCOUNTING STANDARDS AND PROCEDURES


Financial accounting standards and procedures are related with the reporting of monetary information to describe a business organization. People who achieve a sufficient level of knowledge about financial accounting can use the information to make decisions based on the perception of the organization’s financial health and future prospects. These decisions may include assessment of employment potential, lending money, extending credit, and the purchase or sale of ownership shares.

However, financial accounting does not address issues that are purely internal, as an organization must buy or lease equipment, or increase the employee’s salary. Information that can be used to guide internal decisions is generated according to the rules of managerial accounting. Even though financial accounting is not directed towards the inner workings of an organization, most employers are interested in financial reports to help them determine the future of their business.


SHARES OF CAPITAL STOCKS


Incorporation allows an organization to be seen legally as separate entity, apart from its ownership. In big companies, few owners are able to participate in making operational decisions. Instead, the shareholders elect a board of directors to oversee the business and direct the work of the administration. Companies can issue shares of capital stock that give the holder a right of ownership and allows the company to raise monetary funds. If the organization is financially healthy and prosperous, the value of stock can increase over time, possibly in significant amount. In addition, a profitable business organization can share their good fortune of profits through the distribution of cash dividends. Investors often try to estimate the annual rate of returns that are expect from an investment as a way to compare with other investment alternatives. It is done by calculating the profit for the year in term of stock appreciation and dividends and then divide it by the amount of the investment at the start of the period.


FINANCIAL ACCOUNTING REPORTS


Every day around the world, investors buy and sell the shares of capital stock of thousands of companies. Other people choose to loan money or extend credit to these organizations. These decisions are based on the evaluation of the potential risks and rewards. Financial accounting provides information to decision makers to help them assess the possibility of a price increase of capital stock, dividend distributions in cash, and the company’s ability to generate cash to meet obligations when due. This is a financial information in nature, to be expressed in monetary terms.


However, the numerical data has only limited value. Financial accounting provides financial reports to clarify the verbal explanations to help users in assessing the financial perspective about the health and future of a particular business. This information is made available to the interested parties as part of the annual report that most commercial companies produce each year.

Melvin Feller Business Consultant, Business Owner, Burkburnett ministries and Graduate Student Candidate in Business Organization

Melvin Feller Business Consultants Ministries Group in Texas and Oklahoma. Melvin Feller founded Melvin Feller Business Consultants Group and Burkburnett Ministries in the 1970s to help individuals and organizations achieve their specific Victory. Victory as defined by the individual or organization are achieving strategic objectives, exceeding goals, getting results or desired outcomes and a positive outreach with grace and as a ministries. He has extensive experience assisting businesses achieve top and bottom line results. He has broad practical experience creating WINNERS in many organizations and industries. He has hands-on experience in executive leadership, operations, logistics, sales, program management, organizational development, training, and customer service. He has coached teams to achieve results in strategic planning, business development, organizational design, sales, and customer response and business process improvement. He has prepared and presented many workshops nationally and internationally.