SUMMER INTERNSHIP PROJECT REPORT ON

[“STUDY OF ACCOUNTING FUNCTION IN AMRIT

TRADERS”]
Submitted in Partial Fulfilment for the Award of the Degree of
Master of Management Studies (M.M.S.)
BATCH 2021-23
SUBMITTED BY
DHWANI PRAJAPATI
ROLL NO: B-23

SPECIALISATION
FINANCIAL MANAGEMENT

UNDER THE GUIDANCE OF

PROF. PROF NAVEEN SRIVASTAVA.

1
DECLARATION

I, Miss. Dhwani Rameshbhai Prajapati hereby declare that the work embodied
in this project work titled

STUDY OF ACCOUNTING FUNCTION IN AMRIT TRADERS

forms my own contribution to the research work carried out under the guidance
of Prof. Naveen Srivastavais a result of my own research work and has not been
previously submitted to any other Degree/Diploma to this or any other University.

Wherever reference has been made to previous work of others, it has been clearly
indicated as

such and included in the bibliography.

I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Signature

(Miss. DHWANI PRAJAPATI)

Certified By.

(Prof. Naveen Srivastava)

2
CERTIFICATE FROM THE COMPANY

3
CERTIFICATE FROM THE INSTITUTE

This is to certify that Miss. DHWANI PRAJAPATI of HUMERA KHAN

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH has
successfully completed the project work titled “STUDY OF ACCOUNTING
FUNCTION IN AMRIT TRADERS” impartial fulfilment of requirement for
the completion of MMS degree as prescribed by the University of Mumbai.

This project report is the record of authentic work carried

out by him during the academic year2021-2023.

She has worked under my guidance.

Signature:

Name: Prof. Naveen srivastava -Project Guide (Internal)

Date:

Counter signed by,

Signature:

Name: Dr. Govind Shinde -Director

Date:

4
ACKNOWLEDGEMENT

To complete any project, the help is required from many individuals and an
organization.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions inthe completion of this project.

I take this opportunity to thank Amrit Traders and H.K.I.M.S.R. for providing
this internship program which has provided an opportunity to gain practical
working knowledge in the organization.

My sincere gratitude to Mr. Rishav Patel without their kind direction and proper
guidance this study would have been incomplete.

I would like to thank Prof. Naveen srivastava for his careful guidance which
was extremely valuable for my study.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my parents and peers who
supported me throughout my project.

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Index
Chapter Particular Page No.
No.
I Introduction 9-21
Background of the study 9
Background of the topic 10-11
Company profile 12
Statement of the problem 13-15
Need of the study 16-17
Scope of the study 18-19
Objectives of the study 20-21
II Research Methodology 22-50
Research design 22
Primary data 23-34
Secondary data 23-34
Method of data collection 35-37
Field work 38-41
Data-analysis techniques 42
III Data Processing and Analysis 43-50
IV Conclusions 51-52

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List of Chart

Chapter No Title Page No.

1 Income Statement 15
2 Financial Planning 17
3 Financial Planning Process 19
4 Goals & Objectives 21
5 Method of Financial Statement Analysis 22
6 Data Collection 23-37
7 Cash flow 24
8 Trial Balance 25-26-27
9 P&L 28
10 Balance sheet 29-30
11 Capital 31
12 Fixed Assets 32
13 Current Assets 33
14 Loans (liability) 34
15 Field Research 41
16 Data Processing & Analysis 44-45-48

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EXECUTIVE SUMMARY

 Apply the fundamental concepts and tools of finance.

 Apply financial management concepts and tools to the decisions
faced by a manager in investment decisions.
 Apply financial management concepts and tools to the financing
decisions and dividend decisions faced by the firm.
 Evaluate the corporate governance structure of firms and
examine the interactions, from a governance perspective,
between firm management, financial markets and stakeholders.
 Appraise the risk profile of firms; specifically, estimate the costs
of capital, including debt and equity capital using financial data.
 Discuss the operations of three distinct capital markets: the
equity market, the bond market and the derivatives market, and
the financial assets traded in each of these markets.
 Explain the global financial environment and the globalization
process experienced by multinational corporations.

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Introduction

 Background of the study:I have select B com

which comes in Commerce background. Commerce as a subject
is defined as a study of trade and business activities, dealing
with accounting and financial activities. The major subjects
taught in Commerce stream are Accountancy, Economics, and
Business Studies. Students with a genuine interest in the
following subjects must choose this stream.

B.com means Bachelor of Commerce (General) is an

undergraduate degree designed to provide students with a wide
range of managerial skills, while building competence in
particular areas of business such as financial accounting,
banking laws, corporate accounting and others.

Prepares students for entrepreneurship and employment: unlike

the BBA which prepares students for management roles, a
B.com degree prepares students for the corporate world as well
as entrepreneurship. Students obtain enough business and
financial knowledge that they can adapt to a job or of an
entrepreneur.

Commerce refers to the elaborate and conscious process of

buying and selling either/both products and/or services. This
process of buying and selling is usually on a large scale.
Commerce includes the buying or selling of products or services
along with the exchange of monetary compensation.

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 Background of the topic: Summer Internship
Project(Finance)

A accountant is a type of accountant who is primarily

responsible for overseeing the financial progresses. Some
accountant tasks include analyzing and approving outgoing
expenses, issuing bills and collecting payments from clients and
working with auditors.The work of accountant is to get
preparing invoices for clients. They may also be expected to
maintain folders of invoices.
Focusing on the accuracy and completeness of the necessary
documents. Other entry-level jobs for accountant is to recording
budget changes, coordinating billing with other offices
andcommunicating the financial status with managers.

The most important skills for accountant:

 Time management.
 Invoices management.
 Attention to detail to effectively analyze general ledger accounts
and financial statements.
 Ability to manage transactions efficiently and accurately.
 Checking GST number in Invoices.

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 Time management: Time management is the process of
organizing and planning how to divide your time between
different activities. Get it right, and you'll end up working.

 Invoices management: Invoice management is a streamlined

process where the vendor invoices or bills are captured, coded,
and routed for approval with advanced AP Automation software
technologies. Accounts payable confirms the goods/services
have been fulfilled and the information is accurate including
required approvers.

 Check Ledger: A check ledger or check register is a booklet that

comes with your preprinted checks. It is used to help keep track
of all transactions in the checking account, including deposits
and withdrawals.

 Transaction Management: It means that the user can access

multiple data from the database without being interfered with
each other. Transactions are used to manage concurrency. It is
also used to satisfy ACID properties. It is used to solve
Read/Write Conflict.

 GST Number: You can visit the GST web portal by clicking
www.gst.gov.in. After that go to the SEARCH TAXPAYERS
and click on the "Search by GSTIN" tab. Enter the GST number
and you'll get the info.

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 Company Profile:

Legal Name: Amrit Traders.

Trade Name: Amrit Traders.

Constitution of Business: Proprietorship

Type of Registration: Regular

Date of Registration: 01/04/2019

Category: Building Raw material supplier.

( Cement, Bricks, Sand )

Address: 13,Amba Ashish CHS Ltd, Daulat Nagar Road no-10

Borivali East

Contact no: 9870707055

Email: [email protected]

Owner name: Amrit Patel

GST Number: 27AFGPP9622Q2ZK

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 Statement of the problem:Financial statements
used in evaluating overall financial performance include the
balance sheet, the income statement, and the statement of cash
flows. Financial performance indicators are quantifiable metrics
used to measure how well a company is doing.

Three typical problems that occur when creating the financial

statements are reporting errors, disagreements in judgment, and
fraudulent financial reporting. Reporting errors are errors that
are a result of such things as miscalculations or transposing
numbers.

One of the biggest problems of traditional accounting systems is

the only look at financially based business performance
measures so that the financial perspective has significantly
higher weighting than others. However, these financial measures
exhibit only the organization's previous performances.

The general purpose of the financial statements is to provide

information about the results of operations, financial position,
and cash flows of an organization. This information is used by
the readers of financial statements to make decisions regarding
the allocation of resources.

The three core financial statements are the income statement,

balance sheet, and cash flow statement.

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The 5 types of financial statements you need to know

 Income statement. Arguably the most important.

 Cash flow statement.
 Balance sheet.
 Note to Financial Statements.
 Statement of change in equity.

 Income statement: An income statement shows a company's

revenues, expenses and profitability over a period of time. It is
also sometimes called a profit-and-loss (P&L) statement or an
earnings statement. It shows your revenue from selling products
or services. Expenses to generate the revenue and manage your
business.

 Cash flow statements:Conventional cash flow is a series of

inward and outward cash flows over time in which there is only
one change in the cash flow direction. A conventional cash flow
for a project or investment is typically structured as an initial
outlay or outflow, followed by a number of inflows over a
period of time.

 Balance sheet: A balance sheet is a financial statement that

contains details of a company's assets or liabilities at a specific
point in time. It is one of the three core financial statements
(income statement and cash flow statement being the other two)
used for evaluating the performance of a business.

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 Note to Financial Statements: Notes to the financial statements
disclose the detailed assumptions made by accountants when
preparing a company's: income statement, balance sheet,
statement of changes of financial position or statement of
retained earnings. The notes are essential to fully understanding
these documents.

 Statement of Change in equity: A statement of change in

equity (also referred to as statement of retained earnings) is a
business' financial statement that measures the changes in
owners' equity throughout a specific accounting period. It covers
the following elements: Net profit or loss. Dividend payments.

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 Need of the Study:The conventional method was also
known as corporate finance during the twentieth century. This
strategy was implemented to raise and manage finances for the
firm. The three points listed below were utilised to analyse the
concept of financial management in this method:

 Financing from institutions.

 The issuance of financial instruments to recover capital market
refunds.
 The accounting and legal connection between the source of
funding and the business.
 Finance was necessary under this strategy not for ongoing
business operations but one-time events such as restructuring,
promotion, liquidation, growth, etc. It was thought essential to
have finances for such events, and it was viewed as one of the
most important tasks of a financial manager.

The modern method took an utterly analytical approach,

emphasising the acquisition of finances and their active and
optimal usage. The fund structure is a critical component of the
overall financial function. The essential elements of this
technique include an appraisal of alternative uses of money,
capital budgeting, financial planning, ascertainment of economic
criteria for company performance, cost of capital determination,
working capital management, Income management.

Making judgments or supporting firm leaders in selecting the

best method to carry out plans by providing up-to-date financial
reports and statistics on key performance indicators

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 Planning

The financial manager forecasts how much money the firm will
need to sustain positive cash flow, allocate funds to expand or
add new goods or services, deal with unforeseen occurrences,
and distribute that information with business partners. Capital
expenditures, T&E and personnel, and indirect and operational
expenses may all be divided into categories in planning.

 Budgeting

The financial manager allows the company’s available cash to

cover expenses such as mortgages or rentals, wages, raw
materials, employee T&E, and other responsibilities. Ideally,
some money will be left over for emergencies and to fund new
business ventures. Companies typically have a master budget
and may have separate sub-budgets.

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 Scope of the study:Financial planning is a term
related to the estimation of fund requirements of business and
deciding the sources for acquiring such funds. In simple terms,
financial planning can be termed as the financial blueprint of the
organization for carrying out the future set of operations towards
attaining goals. It is a detailed process that involves framing
strategic financial policies for procurement, deployment and
monitoring of business funds.

Financial planning determines the optimum capital structure for

the firm and ensures that an adequate amount of funds is always
available. It influences the long-term growth and expansion
plans of the business, hence the proper analysis of the business
environment is must before formulating such policies.

 Ensure Availability of Funds: Financial planning ensures

availability of adequate funds within the business for smooth
functioning. It first estimates the capital requirements and then
determines various sources for procuring such funds.
 Reduces Uncertainties: It minimizes the chances of
uncertainties for business by delivering the right amount of
funds at right time. Proper financial planning avoids any
hindrance to the growth and continuity of business.
 Avoids Unnecessary Funds: Financial planning avoids any
chances of shortage and surplus of funds within the business. It
properly determines the funds requirements before raising them
from distinct sources. Both of these conditions that is shortage
and surplus of funds adversely affects the profitability of
business.

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 Proper Balance Between Funds Inflow and Outflow: It
focuses on maintaining proper balance in between the cash
inflow and outflows to ensure optimum liquidity within the
organization. Financial planning regulates all cash transactions,
lending and borrowing by business organization.

 Facilitates Growth and Expansion Programmes: Financial

planning assist business in fulfilling long term growth and
expansion plans. This guarantees the availability of required
funds every time which support organization in attaining its
long-term goals.

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Objectives of the study:
The main objectives of financial planning which are given below

 Ensuring Availability of Funds When Required: The

foremost and most important objective of financial planning is
to keep in check that funds are available in cases of emergency
or whenever it is required for use. Sufficient funds should be
available with the firms for various purposes.

 Check Unnecessary Fundraising by the Firms: Insufficient

funds are just as bad as surplus funds. Idle money will only
result in a loss for a firm as against investment. Therefore,
proper allocation of funds is a very important part of financial
planning.

 To Ensure Availability of Funds Whenever Required: The

foremost objective of financial planning is assuring that
sufficient fund is available with the company for different
purposes.

 To Check if the Firm Raises the Resources

Unnecessarily:Excess funding is as bad as inadequate funds. If
there is a surplus amount of money, then the financial planning
is to invest it in the best possible manner as keeping financial
resources idle is a great loss for an organization as it will be in
vain.

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 Identifying specific goals and objectives, as well as a timeframe
for achievement.
 Selecting critical assumptions to be used in long-range
projections (i.e. inflation, rate of return, marginal tax rates and
mortality)
 Identifying possible issues and shortfalls in connection with
each objective and listing recommendations for action.
 Reviewing personal net worth with a detailed review of assets
and liabilities.
 Titling assets and making recommendations for change.
 Projecting short and long-term cash flow, as well as retirement
planning alternatives.
 Analyzing college savings goals and making recommendations
for necessary adjustments.
 Providing expert assistance with a wide variety of special
projects.

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Research Methodology
 Research design:Accounting means it is a
comprehensive system to analyse communication of financial
transactions. In other words meaning of accounting is a financial
language which assists you in measuring your growth year on
year.It helps to monitor our success through analysing and
summarizing financial transaction records.

All transactions are recorded in terms of money which is based

on financial character else it won’t be considered.

It is an art of examining operations result to determine financial

position of an individual or a business and a progress of it.

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 Primary data: The main sources of funding are retained
earnings, debt capital, and equity capital. Companies use
retained earnings from business operations to expand or
distribute dividends to their shareholders. Businesses raise funds
by borrowing debt privately from a bank or by going public.

Primary data is collected through interviews, observations,

conversations, field notes, attending meetings.

 Secondary data:Secondary data is the data that have

been already collected by and readily available from other
sources. Such data are cheaper and more quickly obtainable than
the primary data and also may be available when primary data
cannot be obtained at all.

Secondary data are data that has been collected by someone

else. The analysis of secondary data is also known as second-
hand analysis.

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 Method of data collection: Business Data is one
of the vital assets that your business can have. The more
information you possess about an area (your customers,
competitors, etc.), the better you can understand and affect it.
Each future-oriented company uses some business data
collection methods to analyze decisions, improve results, and
gain competitive advantages.Today’s online landscape provides
a variety of data gathering tools and techniques that are
powerful, innovative, cost-effective or free.
List of the best methods and tools for online data collection in
business and marketing research.Data can help you estimate the
effectiveness of every decision. Thus, you can maximize
resources, optimize workflows, and make your businesses more
profitable.
To build and maintain a successful company, you need to gain
and understand data about your customers’ behavior,
competitor’s strengths, market trends, etc.Now, let’s look at
some of the most effective online ways to gather the data.

 Online Surveys:Businesses of all sizes conduct online survey

research to obtain and act on customer feedback.An online
survey is a questionnaire that people can fill in over the
Internet.Respondents can receive online surveys via different
media channels such as email, social media, embedded over a
website, etc.The respondent’s answers are stored in statistical
software tools for further data analytics. Today online surveys
are one of the most popular and effective ways to collect data
for marketing and business research.

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 Competitive Intelligence Tools: If you want to win at your
market and industry one of the crucial things you need is data
intelligence on your competition.Competitive intelligence tools
are quite powerful data collection methods. They are a gold
mine for insights and research on competitors.They allow you to
gather, analyze, and understand data about your competitive
market that includes competitors, products, technologies,
customers, and trends.In our post “25 Best Free Online
Competitor Analysis Tools” you can find a great range of online
tools you can use freely to spy your competitors, spot new
market trends, and find out what’s working within your niche.

 Social Media Monitoring/Listening Tools: Social Media is

one of the biggest sources of data available today.The key to
maximizing the power of social media is collecting data on what
your audience says about your brand, your competitors, and the
market in general.

With more than three billion people using social media

networks, it might seem like an overwhelming task.That’s where
social media monitoring/listening tools come to play. They
show you what people think of your company and help you
manage online conversations relevant to your brand.

 The Data From Your Website Analytics: There’s a huge

amount of valuable data accessible to you through your website
analytics platform.If you aren’t using it, you are missing critical
information about your visitors and customers.Examples of data
that you can gather from your website include: visitor’s location,
patterns of visitor behavior, keywords used by visitors

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 Open Data Sources: When it comes to free online data
collection methods for your business, open data is a tremendous
solution.Open data are large datasets that are free and available
to anyone with an internet connection.
Governments, independent organizations, some businesses and
agencies are those who build open data for free and easy access.
Open data can be many types – from public data collected and
provided by government agencies to economic trend roundups
from financial organizations and banks.
Open data can give a big boost to your business. It makes you
rethink the way you understand and engage with the world. It
opens great business opportunities, such as giving you ideas for
new products and raising your business productivity.

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 Field work:The field of finance is essential for an entity
to handle its financial affairs effectively. A financial
professional is often responsible for managing investments,
accounts and financial documents. It's important for anyone
considering a career in finance to understand what options they
can pursue to decide if the financial field is right for them. In
this article, we discuss what the field of finance is, explore the
different types of finance and list the financial careers you can
pursue.

 Personal finance:Personal finance is the financial management

for a person or family. This involves analyzing the financial
status and activity of that person to strategize for future needs.
Personal finance strategies often depend on the person's
earnings, housing requirements and monetary goals. For
example, personal financial management applies to someone
who is planning for retirement by saving and investing money
throughout their career. Personal finance may also consist of
financial products like credit cards, insurance and mortgages.

 Corporate finance:Corporate finance is the financial

management of a company. Often, the goal of corporate finance
is to maximize a company's profit while managing its financial
risks. The primary activities of corporate finance are usually
investment analysis and risk management. One example of
corporate finance is when a business tries to manage its budget
and decide which projects to finance and which projects to
invest in at a later time.

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 Public finance:finance is the financial management of a
government entity. It involves the government's social and fiscal
responsibilities of overseeing the sharing of resources, the
stability of the economy, the distribution of income and the
adequacy of social programs. Public finance may refer to taxing,
budgeting, spending and other policies that affect how a
government pays for the public services it provides. One of the
main activities of public finance management is managing
income tax.

 Commercial banking:Working in a commercial banking

position involves helping clients with their financial needs at a
bank. Commercial banking professions include bank tellers,
loan officers, mortgage bankers, bank examiners and branch
managers. Someone who works in commercial banking may
offer financial services like management of checking and
savings accounts, retirement accounts and loans.

 Investment banking: Someone with a career in investment

banking usually acts as a financial advisor to help clients raise
their profits. Investment banking positions include sales and
trading, research analysts and mergers and acquisitions. People
who work at investment banks often provide financial advisory
services, manage assets, trade stocks and bonds and finance
deals. They may offer these services to people, companies,
nonprofits or government bodies.

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 Public accounting:Public accountants help people and
companies monitor their finances according to accounting
regulations. A public accountant might record business
transactions, audit financial records, prepare tax returns, prepare
financial documents and provide financial consulting services.
They can work in large partnerships or small firms.

 Private equity:Private equity professionals help businesses

allocate money and resources for current operations and
expansions projects. They may also provide financing for
corporate business transactions, like buyouts and restructurings.
The work of private equity positions can consist of research,
financial modeling, report writing, transaction management and
supervision of the companies in a firm's portfolio.

 Real estate:Commercial and residential real estate financial

careers work with clients to plan the best strategy to fund the
purchase of a family home, office location or shopping center.
Their responsibilities may include mortgage lending, real estate
development, asset management, appraisal and real estate
management. Some potential job paths for financial real estate
include mortgage brokers, mortgage companies and life
insurance professionals.

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Data analysis techniques: One of the main objectives
of accounting is to identify and distinguish the financial transactions
and to record these transactions in the books of accounts
systematically. Thus, the true nature of every single transactions are
recorded and acknowledged. In the end, every transactions are
recorded in general journal and later to preserve it permanently,
transactions have always been maintained in ledger accounts.

It is impossible to estimate profit and loss account of a company in the

even if accountancy documents are not appropriately prepared and
maintained. Moreover, without the right picture of profit and loss account
it is impossible to take strong decisions for an organization.

It is very easy to understand the growth of an organization based on

financial data, when a proper balance sheet is actually maintained by
accountant or account departments of an organization. Objectives of
accounting is to assist in setting up goals and targets based on financial
data of a company.

Appropriate property and cost audit is conducted by way towards

objectives of accounting as a consequence of that right estimation benefits
the business to the large profits.

Vertical analysis simplifies the correlation between single items on a

balance sheet and the bottom line, as they are expressed in percentage.
A company's management can use the percentages to set goals and
threshold limits. The steps in vertical analysis are: Assume sales or
total assets as 100%. Calculate the percentage of each item as a
percentage of sales

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Data Processing and
Analysis:
Using data analytics, accountants can help a company:

 Evaluate Performance: The performance of every area of the

business can be evaluated using predetermined metrics. An
accountant may look at revenue data, quarterly goal
performance or production numbers.

 Mitigate Risk: Areas of current or potential risk can be

uncovered and managed in real-time. Funding needs, process
flows and investment opportunities are all areas that an
accountant may look at.

 Understand Behaviors: Tracking and reviewing consumer and

internal behavior patterns and employee productivity waves
enable accountants to drive business decisions and growth plans.

 Build Business Plans: With a detailed understanding of past

and present business patterns, a company can confidently make
plans for its future. An accountant would look at factors like
historical sales numbers, employee retention patterns,
organizational spending and equipment life-cycles.

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 Structure Business Improvements: When an area of the
company isn’t performing up to expectations, data analytics can
pinpoint where improvements might be needed. In order to
create an effective strategy, an accountant may review sales
forecasts, historical sales performance numbers and operating
costs.

 Find Opportunities: Opportunities to grow and develop a

competitive advantage can be uncovered by analyzing past
performance and looking at current trends. These include
operational capabilities, current customer breakdowns and
market patterns.

 Maximize Profits: With the clear insight that data analytics can
provide, a company can make decisions that will build up their
bottom line. To help with this, accountants will look at a number
of data points including past purchasing behaviors, current
market trends, inventory management and customer orders.

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There are four types of data analysis used in accounting:

 Descriptive Analytics: An accountant looks to answer the basic

question of “What’s Happening.” In order to do this effectively,
they have to take all available data points and create accurate
reports that reflect the reality of the business.
Accountants use descriptive analytics to create reports and
financial statements.

 Diagnostic Analytics: The question to be answered here is

“Why.” Accountants rely on current information and historical
data to provide insights and reasons for the known outcomes.
Diagnostic analytics are used to create dashboards that are part
of an examination of completed business periods.

 Predictive Analytics: This is where accountants try to discern

“What’s Next.” Accountants have long been tasked with
creating business forecasts, but with access to big data they are
also able to predict the patterns that drive those forecasts.
An accountant will use predictive analytics to develop models
that showcase potential business outcomes.

 Prescriptive Analytics: Accountants don’t always just have to

predict where the business will go, they can help them get there.
Using data analytics, an accountant can produce fact-driven
reports that can be translated into actionable steps.Prescriptive
analytics are used when building data-supportedbusiness plans.

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Tools for Data Analytics in Accounting:

Becoming a successful accountant specializing in data analysis

takes a certain amount of technical skill and critical thinking
ability. You’ll need to be able to work within industry specific
data analytic tools to help companies make good decisions.

 Excel:
Excel is a popular tool for smaller businesses. It’s easy to
navigate for core accounting needs including drafting budgets,
building financial statements and developing balance sheets.

 Tableau:
Accountants who work in larger data-sets (e.g. a mid-sized
company) have found Tableau to be a strong and flexible tool.
It’s particularly valued for its’ ability to visualize data.

 Power BI:
Power BI combines business intelligence and data visualization.
It’s also a highly connected application as it easily connects with
Excel, Quickbooks, Google Analytics and more so accountants
can use it to aggregate multiple streams of data.

 IDEA:
Accountants use IDEA because it’s software that was
specifically built for data analytics. Data can be easily imported
and analyzed quickly, efficiently, and in a user-friendly format.

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 A.I. and Analytics:
A.I. (Artificial Intelligence) holds powerful potential for the
accounting field but when it comes to data analysis it has
limitations. While A.I. systems may be able to analyze large
datasets quickly, a human will still need to critically evaluate,
interpret and create business plans based on that data.

 Modern tools for accounting data analytics:

TallyPrime is a go-to solution for comprehensive business
management tools with accounting data analytics. In addition to
managing and integrating all the different facets of a company’s
business, TallyPrime also allows users to use data analytics tools
to derive better insights into financial information.

 Accounting and data science:

Accounting and accounting data analytics together add
tremendous value to accounting firms and their clients. When
accountants use data analytics they are able to offer deeper
insights and in-depth analysis and monitoring of the company’s
financials. Accountants are also able to provide more accurate
forecasts and estimates and lower the risk of decision-making.
Accountants can help companies better align with their
customer’s expectations and improve their services and
products.

 Data mining in accounting:

Data mining is the process of analyzing huge amounts of data in
order to identify any patterns in them. It is helpful to gain
inferences on customer trends, behavior and trends within the
financial data of a company. Companies can use the information
that they get from data mining in order to better tailor their
offerings and target the requirements of their customers.

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 All About the Data Processing Cycle

The data processing cycle consists of a series of steps where raw

data (input) is fed into a system to produce actionable insights
(output). Each step is taken in a specific order, but the entire
process is repeated in a cyclic manner. The first data processing
cycle's output can be stored and fed as the input for the next
cycle, as the illustration below shows us.

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 Step 1: Collection
The collection of raw data is the first step of the data processing
cycle. The type of raw data collected has a huge impact on the
output produced. Hence, raw data should be gathered from
defined and accurate sources so that the subsequent findings are
valid and usable. Raw data can include monetary figures,
website cookies, profit/loss statements of a company, user
behavior, etc.

 Step 2: Preparation
Data preparation or data cleaning is the process of sorting and
filtering the raw data to remove unnecessary and inaccurate
data. Raw data is checked for errors, duplication,
miscalculations or missing data, and transformed into a suitable
form for further analysis and processing. This is done to ensure
that only the highest quality data is fed into the processing unit.

The purpose of this step to remove bad data (redundant,

incomplete, or incorrect data) so as to begin assembling high-
quality information so that it can be used in the best possible
way for business intelligence.

 Step 3: Input
In this step, the raw data is converted into machine readable
form and fed into the processing unit. This can be in the form of
data entry through a keyboard, scanner or any other input
source.

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 Step 4: Data Processing
In this step, the raw data is subjected to various data processing
methods using machine learning and artificial intelligence
algorithms to generate a desirable output. This step may vary
slightly from process to process depending on the source of data
being processed (data lakes, online databases, connected
devices, etc.) and the intended use of the output.

 Step 5: Output
The data is finally transmitted and displayed to the user in a
readable form like graphs, tables, vector files, audio, video,
documents, etc. This output can be stored and further processed
in the next data processing cycle.

 Step 6: Storage
The last step of the data processing cycle is storage, where data
and metadata are stored for further use. This allows for quick
access and retrieval of information whenever needed, and also
allows it to be used as input in the next data processing cycle
directly.

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Conclusions:
The fundamental objectives of accounting is to maintain accurate,
systematic and permanent transaction records of the business and
could stay retrieved as well as evaluated whenever needed. Such
financial information assist to identify the speed of the growth,
improvement areas as well as to take strong decisions that can be
beneficial to company.

Aside from property and cost audit. Another objectives of accounting

is to conduct management audit, income tax audit as well as social
audit as a part of accounting audits. It is generally difficult for any
organization to run business operations without the help of company’s
books of accountant.

Because of maintaining and recording appropriate accounts, it is hard

for almost any member associated with the business to perform any
such financial task that can fill their pocket as well as empty the
business. Because of maintaining proper books of accounts, the fraud
ratio of the firm may even drop down to zero as well.

Anytime systematic financial records have always been maintained,

the correct trial and errors are actually performed as a result of which
no errors tend to be committed as well as any future errors in the
books of accounts can also be corrected.

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Interpretation of the financial statements and data is essential for the
firm’s internal and external stakeholders. With the help of ratio
analysis, we interpret the numbers from the balance sheet and income
statements. Every stakeholder has different interests when it comes to
financial results. Equity investors.

Are more interested in the growth of the dividend payments and the
earnings power of the organization in the long run. Creditors would
like to ensure that they get their repayments on their dues on time.

As we have discussed, the importance and uses of ratio analysis. So, it

is vital to assess the performance of the firms by Analysis their
liquidity, profitability, asset management and efficiency ratios. These
ratios analysis are for making important decisions and forecasting the
future.

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