Finance and accounting Essay Example | Topics and Well Written Essays - 750 words

Finance and accounting - Essay ExampleAs a result, auditors in this case are required to round off the accounting information in order to determine how well the barter is doing. It requires proper financial statements which provide a clear insight on the scotch health of these accounting companies. Generally, it gives an insight on the companys soundness in the short and long term. As a result, financial analysts, investors and likewise the members of the customary are in a position to try and gauge a companys competitiveness in the market place. KPMG in accounting business is trying to strengthen its legal function in trying to ensure that our structure, processes, and policies meet the highest levels of the accounting profession. Challenges that accounting companies face Bad debts In his presentation, Judge Holmes, for modeling in the year 2011, the financial markets witnessed negative vibes mostly on the currency markets after their investors shunned risky assets which event ually led to the low yielding assets. This was witnessed by one German representative who said that the European mounting debt crisis could not be easily cured during that month since its leaders had to meet and discuss how to counter the debt crisis from even getting worse (Skinner 97) Unemployment is still another challenge in Europe which is mostly affecting the accounting companies at the moment. ... (Skinner 99) The Greek debts have also increased and this has also affected the European countries. When it comes to the U.S. economy, without funds and investments, there are no ways the country support survive in this economy since unemployment range has risen to shocking numbers and as a result, the economic uncertainties have led to political pressure and lack of leadership (Skinner 109) How to solve these problems According to Holmes, in trying to solve these challenges, a survey can be done whereby the businesses can be broken into six sections which are the current firm c heck off and its prospects for its growth, the companys growth strategies as well as its tactics, the businesses challenges and its threats, the profitability management, the existing client retention and the companys profit margin. Through this survey, the companies can start growth in the coming decades, for example by selling most of their existing services to some(prenominal) current and also the new clients. score specialists (professionals) are also more needed, because it is with the help of the accounting specialists that most of the accounting companies will be in a position to reduce all these debts thus leading to their growth. Strong internal accounting/audit is also highly needed in trying to curb these problems. The accounting companies need to hire both the external and the internal auditors with auditing experience, as it is with the help of these auditors that the company can review accounting information to determine how well the business is doing. Risk managem ent methodology is also a measure which can be applied to control these accounting business challenges. This methodology involves the use of certain rules that are used to drive action in a particular business. Many