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    Budgeting: Accounting Cycle

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    Dyane Cruz
    The company should target reducing its training and development budget for temp workers. Temp workers likely do not need as extensive of training and professional development as permanent employees or management since they are temporary and may not be with the company long-term. Focusing training resources on permanent staff and management will better benefit the long-term goals and success of the company.

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    Budgeting: Accounting Cycle

    Uploaded by

    Dyane Cruz
    24 views3 pages
    The company should target reducing its training and development budget for temp workers. Temp workers likely do not need as extensive of training and professional development as permanent employees or management since they are temporary and may not be with the company long-term. Focusing training resources on permanent staff and management will better benefit the long-term goals and success of the company.

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    Original Title

    Budgeting

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    The company should target reducing its training and development budget for temp workers. Temp workers likely do not need as extensive of training and professional development as permanent employees or management since they are temporary and may not be with the company long-term. Focusing training resources on permanent staff and management will better benefit the long-term goals and success of the company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views3 pages

    Budgeting: Accounting Cycle

    Uploaded by

    Dyane Cruz
    The company should target reducing its training and development budget for temp workers. Temp workers likely do not need as extensive of training and professional development as permanent employees or management since they are temporary and may not be with the company long-term. Focusing training resources on permanent staff and management will better benefit the long-term goals and success of the company.

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    © All Rights Reserved
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    Dyane Cruz

    Budgeting
    You are an intern at a major law firm and have been assigned to the accounting department. Here, you
    have been given an important task: to help the accounting team budget employee costs for the firm. 
     With over 500 employees, the firm massively exceeded its budget the year before. This happened
    because the company didn’t use an efficient accounting cycle. 
    Step 1:  Review the table below and fill it in. Your completed table should illustrate what a good
    accounting cycle looks like. Make sure that you explain the individual steps of the accounting cycle. 

    Accounting Cycle
    Step Accounting Step Explanation of Accounting Cycle Step
    Number

    1 Identify Transactions may include a debt payoff, any purchases or


    Transactions acquisition of assets, sales revenue, or any expenses incurred.
    2 Record Journal With the transactions set in place, the next step is to record these
    Entries entries in the company’s journal in chronological order.
    3 Post Ledger The journal entries are then posted to the general ledger where a
    Entries summary of all transactions to individual accounts can be seen.
    4 Unadjusted At the end of the accounting period (which may be quarterly,
    Trial Balance monthly, or yearly, depending on the company), a total balance is
    calculated for the accounts.
    5 Adjusted When the debits and credits on the trial balance don’t match, the
    Entries bookkeeper must look for errors and make corrective adjustments
    that are tracked on a worksheet.
    6 Adjusted Trial At the end of the company’s accounting period, adjusting entries
    Balance must be posted to accounts for accruals and deferrals.
    7 Financial The balance sheet, income statement, and cash flow statement can
    Statements be prepared using the correct balances.
    8 Close your The revenue and expense accounts are closed and zeroed out for
    book the next accounting cycle. This is because revenue and expense
    accounts are income statement accounts, which show
    performance for a specific period.
     
     
     
     
     
     
     
    Dyane Cruz

    Step 2:  Now look at the following example of a training and development budget. The budget was spent
    on things like exams and professional development of employees. Try to work out how much money was
    spent in TOTAL on each of the employee categories:
    Total training and development budget: $900,000
    Calculate the dollar amount that was dispersed from the $900,000 budget:

    1. 10 percent was spent on management

    900,000*.1=90,000 Money spent: $810000

    2. 40 percent on regular employees

     90,000*.4=36,000 Money spent: $54,000

    3. 25 percent on temp workers

     36,000*.25=9,000 Money spent: $27,000

    4. 25 percent on consultants

     9,000*.25=2,250 Money spent: $6,750


    Dyane Cruz

    Step 3:  Which of these categories should the company target to save money by reducing its training and
    development budget—for example, do temp workers need as much professional development as
    permanent employees? Explain your reasoning in 2-3 sentences.
    Competences to Awareness: Management Development

    1) People will create the jobs of the future, not simply train for them, and technology is
    already central.
    2) Per thousand workers reduces the employment to population ratio by about 40%.
    3) It will be essential for them to get training and develop new job skills.

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