Essay Summary of Practicum Report
PRACTICUM REPORT In partial fulfillment Of the requirement in Accounting 330a Presented to: Prof.Teresita Crucero Dean College of Business and Accountancy Central Philippine University Jaro, Iloilo City Presented by: Mary Ann Christi M.Espinosa Bachelor of Science in Management Accounting October 2011 TABLE OF CONTENTS Title Page———- Table of Contents——— Narrative Report——— Analysis Report——— Introduction Letter——— Practicum Rating——— Daily Time Record——— Exam Permits———- Attendance Slips———
Application Form for Practicum——- Parental Consent Form——– Log Book/Daily Diaries——– INTRODUCTION NARRATIVE Internship or on the job training or practicum is one way by which we students are given an opportunity to apply the theories and computations that we have learned from school.
It also helps us to obtain applicable knowledge and skills by performing in actual work setting. College and Universities require their students to undergo such training within a specific number of hours as part of the curriculum.
For us students, a practicum or internship program provides opportunities to go through the actual methodologies of a specific job using the real tools, equipments and documents. In effect the workplace becomes a development venue for us student trainee to learn more about our chosen field and practice what we have learned from the university. On the other hand, a valuable OJT/Practicum program also profits the companies who accept trainees. First trainee provides extra manpower for a significant labor cost than a regular employee. Most of them are eager to learn the ropes so chances are high that they will cooperate.
Employers can use this internship strategy as method of recruiting employees. Since the trainer or supervisor can follow the trainees’ progress, he can gauge based on performance, behavior and attitude if the trainee will make good recruit after the completion of his internship. We trainees can bring fresh ideas in the organization. Given the opportunity to converse our minds freely and without fear, we may be able to contribute significantly in the brainstorming or research and eventually help improve the organizations productivity.
While training the interns, employers are in fact teaching their employees to guide the trainees by stretching their patience, develop teaching skills and make them more sensitive to the needs and mindset of the younger generation. The course of supervision also teaches them how to share what they know and be receptive to questions. Hence, the internship also becomes an avenue in training for future managers of the company. Accepting on the job trainees can truly be beneficial not only to the trainees but also to the companies that provide opportunities for this type of learning.
There is wisdom in the front lines. Such training can be investment that will be valuable to the company later on. This is also why us trainees should take our internship seriously as it can be a powerful tool and possibly even a source of recommendation when they take that big lift from being students to career professionals. Every day, man learns something. It is in his system to learn and discover. Man was born for this. It is an instinct to search for answers in order to satisfy their questions. Save it to their memory and use it in their daily lives.
I am on my last semester as a Management Accounting student, I take pride for what I have achieved at this time of my life plus the fact that it’s not easy to maintain a cut-off grade in most of my Accounting subjects in order for me to stay and graduate as a bachelor in Management Accounting. With regards to my off campus practicum, our school sends us to different offices to put our theoretical learning into practical applications. PUDADERA ACCOUNTING OFFICE is located in Arguelles Street, Jaro Iloilo City. It is a ten minute walk from the 6th gate of Central Philippine University.
The two-storied building was built in a subdivision with the calm atmosphere of the community and its landscape. The appearance of the building is well harmonized with the surroundings. However, it gives guests the impression of dignity and openness. Directly inside the main entrance, Pudadera Accounting Office has a small but welcoming lobby with a natural concrete floor, stylish but difficult to walk on heels. There are several chairs arranged against the wall and a side table which are placed the company’s newspapers and other publications.
The receptionist’s desk is facing the entrance door, and behind it sits two friendly women. Passing through the receptionists’ area which is directly leads to the main office. The area is small but it is well arranged to welcome the clients as well as guests. The receiving area has a big square table in the middle with a large window overlooking the exterior. The remainder of the office space is segmented with partitioning walls, forming a sort cubicle. The office starts its operation from 9am to 6pm from Mondays to Friday and 9am to 12nn during Saturdays. The office is closed on Sundays and during Holidays.
To grow and create value, the company must have the trust of its clients, lenders and investors. The office assists their clients in the proper applications of accounting principles that will become effective. They also assist in completing certain requirements under existing rules and regulations of regulatory bodies such as the Security and Exchange Commission (SEC) and others. The office reviews financial information based on agreed-upon procedures, assisting acquirers/investors in determining factors affecting the price and post-acquisition financial issues and providing integrated support throughout the acquisition process.
They also provide advice and assistance with the registration and reporting requirements of government agencies relating to tax and/ or investment incentives granted under various investment laws and regulations as administered by the Securities and Exchange Commission, Department of Trade and Industry, Bangko Sentral ng Pilipinas, Local Government and etc. It also can provide assistance in determining a company’s tax liabilities, preparing related returns and remitting these taxes to regulatory agencies within the prescribed deadlines.
Some of the clients also ask the office to do the payroll and also provides assistance in Social Security System and Philippine Health Insurance application and payments on their own employees.As I stepped in to the accounting office, the first task I did was to update the books of the firm’s clients. Bookkeeping is the process of recording and classifying business financial transactions, or to put it another way, the process of maintaining the records of a business’s financial activities.
The objective in bookkeeping is to create a useable summary of financial transactions, which provides a snapshot of the business’s financial stability. The most basic form of accounting is the single-entry system. In this system, you record each transaction only once, as either a deposit or as an expense. This system is generally used to determine the profit/loss of a business. However, the preferred system is the double-entry system. The double-entry system is more accurate, and has built-in checks and balances. In this system, each transaction is recorded twice, in each “account” it affects.
This is a more thorough method of keeping a business’s financial transaction in order. Bookkeeping; As part of the business science of accounting, it represents the daily tasks of tracking its financial transaction of a business and recording it correctly. This includes a sale, purchase of equipment and supplies, investment income for the month, or internal transfer of funds. As a bookkeeper, I have the access to all the daily transaction data for a particular client. Amongst the books that I have updated, the office uses single-entry method of bookkeeping.
The approach is very streamlined, tracking only accounts associated directly with money coming in and money being spent by the business which many new businesses and sole proprietors accustomed to. All of this data is then rolled up regularly into a report based on a cash flow structure, showing starting balance, how much new money was earned, how much was spent, and finally a remaining net balance for the period. There are three basic elements of bookkeeping: assets, liabilities, and net assets. Assets are all items used in the operation or investment activities of a business.
This category includes all property, or items of value, owned by a business. Examples include cash, buildings, land, vehicles, tools, inventory, office supplies, furniture, investments, and accounts receivable (any funds owed to the business). Increases in assets are called debits. Decreases in assets are called credits. Generally, various assets are referred to as debit accounts. Liabilities are claims by creditors to the assets of a business, or debts owed by the business to others. Types of liabilities include loans, notes payable, and lines of credit. Net assets are the equity earned by the business.
Net assets are the value of the business once all liabilities have been paid. It can also be called owner’s equity, capital, net worth, profit, or proprietorship. There are also several other things to keep in mind when considering a company’s net assets: • Revenue is the increase in net worth resulting from the operations and other activities of the business. Revenue includes income earned through the business’s services, interest earned on investments, and contributions from individuals or foundations. Although net assets are considered to be credit accounts, sources of revenue are actually considered to be debit accounts. Expenses are the costs of doing business. This includes the cost of goods, fixed assets, and services/supplies used in the business’s operations. Examples of expenses include salaries, rent, travel expenses, and the costs of supplies and utilities. Expenses are credit accounts. • Net assets are calculated by subtracting total expenses from total revenue, on a yearly basis. Whenever revenue is received, net assets increase. Whenever expenses are paid, net assets decrease. The paper side of bookkeeping is managed through ledgers. Each account has a ledger to show each financial change that has occurred to the account.
Sales account shows every sale made in a period by peso amount. It will also show corrections made to the account if there was an error or a bad posting. Eventually, for reporting, all the ledgers used are rolled into one combined report, which then tells management how money was earned and spent for the time period tracked. All business transactions result in at least two changes to the bookkeeping equation. In other words, a transaction that changes a business’s assets must also change that business’s liabilities or net assets. Some transactions increase accounts.
If a business’s assets increase, then there must also be an increase in either liabilities or net assets. Other transactions can decrease accounts. If a business’s assets decrease, so must either its liabilities or its net assets. Bookkeeping goes hand in hand with taxes. Bookkeeping is the process of keeping track of business income and expenses tallying them over time. Taxes are sums that you must pay to government institutions relative to the income and expenses that you tally by means of bookkeeping process. As a practicum, it is our duty to update each of the client’s books.
If we keep the books up to date, it can be relatively simple to file tax returns. Most tax returns involve transferring bookkeeping totals and multiplying them by tax rates. The office maintains a file of receipts for each of the client each month. ANALYSIS Strategizing An up-to-date bookkeeping system enables you to develop strategies to minimize the amount of tax you owe. Income tax rates increase as your income level rises. If you know that you will earn less during an upcoming calendar year, you may choose to make capital expenditures that will lower your tax burden during a year when your overall tax rate will be higher.
If your bookkeeping is current and you only need to perform simple calculations to file taxes, you are less likely to accrue penalties and interest on late filings and payments. Running a business means being vigilant about your bookkeeping so that you always know where you stand. If you have a small business, or are in charge of bookkeeping for a business, then you should know some basic accounting and bookkeeping rules to make sure that you’re able to run your business smoothly, with no hiccups in the financial department. Choose a System * When starting your bookkeeping, you need to choose a system for doing it.
Most businesses choose a cash or accrual system. In a cash system, the bookkeeper records all cash coming in and going out as it is received. For instance, you may make a sale on Friday, but the check doesn’t come until Monday, so you record it on Monday. With accrual, you record things when they happen. You would record the sale on Friday and account for the money then, even if you didn’t yet receive it. Choosing your system relates mostly to how you do business, if you are vigilant about always having the funds on hand, or if you don’t mind doing some of your business on credit.
Choose the method that works best for your company. Maintain Your Books * As a bookkeeper or small business owner, you should be updating and maintaining your books daily. It can be easy to put off an entry until tomorrow, but to keep things organized and orderly, you should be entering things in the books as they happen. Resist the urge to leave things until another day. With books, you’re dealing with numbers and money, and any small mistake can have big consequences. Make it easier on yourself by maintaining the books daily.
Take a few minutes to update and assess, so you are continually in the loop of your financial situation. Leave a Paper Trail * When keeping books, it’s important to always do things in order, to number checks and enter them chronologically with all of the information at hand. You should have records of every single financial move you make, through accounting slips, receipts and receiving orders. If, for some reason, you are targeted by the IRS for an audit, they’ll want to see clean books with correct records. Leaving a paper trail in everything you do financially with the business is essential to bookkeeping.