The Nature and Development of Criminal Law

The criminal law is a body of rules listing the various criminal offences, identifying the ingredients there of (including common elements such as general defenses) and specifying the potential punishment.

For instance, the criminal law tells us that, amongst others, rape and theft are crimes; it tells us exactly what the elements of these offences are and what potential punishments they carry.

The list of crimes (in the sense of wrongdoing punished by the community) in early law was extremely short, and included as major offences witchcraft and incest.

For offences such as homicide, wounding, rape, theft etc., the only remedy in primitive law was self-help.

As society developed, self-help was replaced by a system of enforced payment of compensation. The harmed victim, or his kin, was entitled to compensation from the wrongdoer. Such offences were thus not perceived as public wrongs affecting society as a whole. Only the victim or his
kindred had sustained a loss and was entitled to have this loss made good.

The community at large did however have some interest in such forms of wrongdoing. Even in Anglo-Saxon times severe punishments were meted out against offenders who were unwilling or unable to compensate. By the end of the twelfth century it had been realized that such wrongdoing had implications beyond the simple harm sustained by the victim.
First the wider community and then the king began to assume responsibility for criminal justice. Those who had broken the ‘king’s peace’ were brought before the king’s judges who were itinerant justices. The charges were laid on behalf of the community by a ‘grand jury’. Punishments were imposed that did not involve compensation to the victim. In short, the criminal law began to assume one of its most distinctive features, namely, that it is concerned with public wrongs.

A crime is a public wrong in the sense that the public at large is affected by it. The community is threatened or offended by the crime. For example, the crime of rape does more than harm the victim. Society is threatened and made less secure by the rape: the rapist could strike again. Accordingly, society is not prepared to leave the matter to the victim to seek compensation. Rape is made a crime and society attempts to apprehend the rapist and secure his punishment.

Two related features dominated the early criminal law.

  1. Most offences were extremely broad, covering a wide range of wrongdoings. For instance, there was only one homicide offence, the present distinction between murder and manslaughter coming into existence only in the fifteenth century.
  2. Until the end of the twelfth century it appears that the criminal law was primarily interested in the amount of harm done. Man was punished not because he was blameworthy but because he was an instrument of harm. Such thinking led some primitive laws to punish all instruments of harm.

Thus animals could be executed and axes burned. They, and the man who used them, were tainted with evil. Such thinking is still with us today to a certain extent. For instance, if a carving knife were used in a murder we would all regard as distinctly odd (to put it mildly) the man who knowingly used that knife to carve his Sunday roast!

Sources of the Criminal Law (II)

Continental Countries

The nations of western Europe entered the modern period with a corpus of criminal jurisprudence reflecting the varying influences of Roman law, canon law and local custom. The law that so evolved was notable for its harshness and its arbitrary qualities, and few protections to accused persons were provided. Reform of the criminal law thus became an important objective of liberal reform. As early as 1532 Charles V promulgated the Constitutio Criminalis Carolina for the whole of the Holy Roman Empire. Austria produced two famous codes in the 18th century:

  • Constitutio criminalis Theresiana of 1769
  • Emperor Joseph II’s code of 1787.

By far the most important enactments in the history of modern European criminal law were the two Napoleonic codes, the Code of Instruction Criminelle of 1808 and the Code Penal of 1810. The first was finally replaced in 1958 by the Code de Procedure Criminelle, but the latter, although substantially revised in 1832 and in 1863 and frequently amended at other times, has never been repealed. The Code Penal constituted the leading model for European criminal legislation throughout the first half of the 19th century. Thereafter its influence waned, although it continued to play an important role in the legislation of certain Latin-American and middle eastern countries.

The German codes of 1871 (penal code) and 1879 (procedure) provided the models for many central European countries, and have had significant influence in Japan and South Korea. The Italian codes of 1930 represent one of the most interesting legislative efforts in the modern period.
Since World War II notable undertakings include the code of procedure of 1950 and the penal code of 1957 adopted by the German Federal Republic and the Yugoslav criminal code of 1951.

Comparisons between the systems of penal law developed in the western European countries and those having their historical origins in the English common law must be stated cautiously. As already noted, substantial variations exist even among the nations that adhere generally to the Anglo-American system or to the law derived from the French and German codes. However, in many respects the similarities of the criminal law in all states are more important than the differences.
Certain forms of behavior such as those identified in Anglo-American law as murder, aggravated assault, robbery, and theft are everywhere condemned by the law. In matters of mitigation and justification the continental law tends to be more explicit and articulate than the Anglo-American law, although modem legislation in countries adhering to the latter are reducing these differences. Contrasts can be drawn between the procedures of the two systems, yet even here a common effort to provide fair proceedings for the accused and protection for basic social interests
is expressed.

Other Countries

There are almost infinite variations in matters of substance and detail in the law of the countries of Africa and Asia. Some of these nations possess highly sophisticated bodies of law such as those in the country of India. The penal law of many of the new nations of Africa and Asia still bears the imprint of the principles and institutions established by the colonizing powers, and hence continues to feel the influence of the continental codes in some instances, and of Anglo-American law in others. In many of these countries, however, the law developed by the colonizing power varied significantly from that administered by the mother country. The amalgam is further complicated by a great verify of local factors such as religious beliefs, ideological commitments, tribal customs, and the extent to which a trained bench and bar have emerged.

In many of the new nations political instability inhibits the development of advanced systems of criminal justice that provide adequate procedural protections, especially to those accused or suspected of political crimes. In some instances, however, measures like the Preventive Detention act, 1958, in Ghana are similar to legislation that had earlier been applied in British India. Because in many respects the penal law is closely associated with the exercise of governmental power, evolution of the law in the new nations and countries like Communist China will depend on the nature of political developments in those nations.

Criminal Law

Criminal law may be broadly conceived as that body of law which defines criminal offenses, establishes procedures for the apprehension, charging, and trial of suspected offenders and which fixes penalties and modes of treatment applicable to convicted offenders. All organized societies display a body of rules, no-fins or
customs tending to protect the security of individual interests and the survival of the group. The distinction between the criminal law and other forms of social control, however, is ordinarily not sharply drawn in primitive societies. Even in modern Anglo-American law the distinction between criminal law and tort law defies wholly satisfactory definition.

Crime scene in Criminal law

For most practical purposes, however, it is sufficient to say that a tort is a private injury and that the purpose of a tort suit is primarily to obtain compensation from the wrongdoer for injuries sustained by the victim. A crime, on the other hand, even though it may (and ordinarily does) involve injury to some individual, is conceived as an offense against the state and is punishable as such.

Thus the same conduct may render the actor liable in tort to make compensation to the victim for injuries inflicted and, at the same time, answerable to the state in a criminal proceeding. Tort law and criminal law may
also be distinguished by the procedures employed and the sanctions imposed.

Sources of the Criminal Law (I)

  1. England

    • The modern criminal law of England and of the United States derives from the English common law of crimes. This body of law had its origins in judicial decisions which, by the middle of the 13th century, were applied throughout the realm and were thus ‘common’ to it. Even in the medieval period, however, legislation played an important role in the development of the English law of crimes. In some instances, legislation was confined to matters of procedure or the stipulation of penalties, leaving definition of the elements of the offenses to judicial precedents. Thus, as late as the 1960s there was no statutory definition of murder in English law. Even the Homicide act, 1957, confined itself to such matters as eliminating certain types of conduct from earlier judicial definitions of murder and specifying the types of murder punishable by death. in other instances, however, parliament has created offenses wholly unknown to the common law.
      Examples include the embezzlement acts of the 18th century and the spate of statutory offenses enacted in increasing numbers since the first quarter of the eight century to achieve objectives of economic regulation or public welfare. England has consistently rejected all efforts towards comprehensive legislative codification ‘of its criminal law, even though the movement for codification has been supported by the prestige of such names as Jeremy Bentham and Sir James F. Stephen.
  2. United States

    • . Although the criminal law of the United States clearly reveals its derivation from the English common law, the adoption of the common law was neither complete nor uniform in the American colonies. The early criminal legislation of Massachusetts, for example, was little influenced by English precedents, being derived in major part from old Testament sources. In Newyork, the influence of English precedents was earlier and more strongly felt. The famous ‘Quaker code’ brought by William Penn to Pennsylvania and Delaware in the closing years of the 17th century was remarkable for its leniency in that only one capital offense, murder, was recognized. Although Penn’s code was operative for only a short period, it is important as anticipating by over a century the humanitarian impulses later reflected in the Anglo-American law.

Throughout the 18th century an increasing number of lawyers trained in the English law practiced in the colonies, and their influence strongly supported recognition of common-law principles by colonial courts and legislatures. By the time Sir William Blackstone’s Commentaries were published (1765-69), the common law of crimes was generally adopted. After the American Revolution, the states incorporated into their law the English common law as it existed prior to a specified date (either 1607, when the settlement at Jamestown was founded, or 1776, the date of the Declaration of Independence). The adoption of the common law was made subject to the constitution of the United States and of the particular state and only insofar as compatible with the conditions of the new nation. These limitations encouraged the rejection of certain archaic feature of the common law of crime, particularly those relating to outmoded and degrading forms of punishment.

What is Amortization

In any organization or business,  there are office equipment, properties, building, vehicles, machinery and tools that are used for years in office or production and it is needful to calculate their useful life to announce the management about date of exchange them with a new one, and so it is important for management to know about charges of these exchanges.

Amortization refer to intangible assets but for tangible assets like office furniture, the term Depreciation will be used

Depreciation example of a chair

For Example: When a table is new, it has 100% of its purchase price value, after one year, its value is 80% of its purchase price, after 2nd year, , its value is 60% of its purchase price, … and to the end that is 10%

life Percentage of amortization
Life percentage of amortization

Amortization example

For example you established a print center and you purchased a special license for a print software for $ 110,000 regard to printer system’s manufacturer manual, this license of print system could be used for maximum  30,000 hours running.You will use this print system for 8 hours per day

30000 (All hours of print life ) / 8 hours using per day = 3750 days

3750 days is useful life of this printer license for your company regard to 8 hours using per day

3750 days = 10 years

Maximum life will be : 10 years
So that, every year, $3000 value will be reduced of its useful life

So after this time, you should buy a new one

Therefore you have an expense account in your office
It is $3000 per year for print system
$250 per month

Reduced useful life of printer hardware (tangible assets) named “Depreciation”.

Reduced useful life of printer software (Intangible assets) named “Amortization”.

For above example monthly Amortization account will be debit for $250.

Next Read: Journal entry of Amortization

Online Stores Disadvantages

Creating a website and register a company for online sales of items and products will be easy but responsibility of this business is not easy as it looks at the first time. main goal of an online store is not establishing it and reach customers between competitors, the final goal is offer services and products as you announced on site else customers will complain from you to judges and that will be start of problem for you.

For example, you decided to sell spare parts of cars online to world wide, so that you should find real solutions for its steps as below:

  1. Advertisement of  site
  2. List of available spare parts (Fake list will put you in bad problem when customer ordered it and you could not provide it)
  3. Packaging of items (Bad packaging will cause damaged effects on items)
  4. Shipment methods  (Select a bad shipment methods will cause high charges and long time transport )
  5. Warranty of items if they will not work after delivery to customers

therefore you see the most duties are after sales and very important 

Online Sales vs Street Shops

When you have a shop in the street, your customers will come in shop and check items or goods and after a short consideration they will buy them or not. so that customer before delivery will check healthiness of item but in online sales, customer will check it after delivery and if that customer will be admire quality of order , it will be send back on the charges on your behalf. sometimes charges of freight are more that 3 times of item costs !!

Profit Statement in iGreen Accounting

In any business owner and manager it is very important to have exact report of profit and loss statement. but calculating profit statement is not easy process. actually profit and loss statement is a sub statement of income statement in every company

Methods of Profit Statement

There many methods to get profit statement report but commonly we can list them as below:

  • FIFO
    • It means price of first item has been purchased and and price of the first sales item
  • LIFO
    • It mean price of the latest item for purchase price and price of the first sales item
  • Average of prices
    • It means average price of all purchases and Average price of all sales
  • Unique Price code
    • In this method, each item will get a unique serial number label with a its price of purchase and sales

FIFO will be used for food industrial and business with expiring date of products, LIFO will be used for update to date businesses like CAR companies,  Average method is common method for shops and retail stores.

Unique price code is the best method, each item in purchase time will get a unique barcode label with a unique serial number and at sales time, this barcode will be scanned and entered in invoice. so that, each item one by one, has its purchase price and sales price exactly.

iGreen accounting supports methods of average price and unique price code. for price code method , iGreen accounting will give you printed labels to stick it on items as same time of purchase.




Brother sewing, INNOV IS 15P


  • 16 stitches
  • 3 Automatic button holes
  • Automatic needle threading
  • LED sewing light
  • Monochrome LCD display
  • JOG dial
  • F.A.S.T. bobbin winding system
  • 1 year warranty



Brother sewing, INNOV FS155


  • 100 built-in utility and decorative stitches
  • 55 characters stitches
  • One-step button hole
  • Automatic needle threading
  • Quick set bobbin
  • LED sewing light
  • LCD display screen
  • Max stitch width 7 MM, Length 5 MM



Brother sewing, INNOV IS 95E


  • 100MM x 100MM Embroidery area
  • 70 built-in embroidery design
  • 400 stitches per minutes
  • Automatic needle threading
  • LCD touch screen
  • Automatic thread cutting
  • USB port/memory card slot



Brother sewing, INNOV IS 955


  • 129 sewing stitches and 3 lettering fonts
  • 596 embroidery designs
  • 6 built-in embroidery fonts
  • USB support
  • Automcatic needle threading
  • Presser foot leveling button
  • LCD touch screen
  • Quick set bobbin



Brother sewing, INNOV IS V7


  • Long arm cutting and embroidery unit
  • embroidery foot with LED pointer
  • Ultrasonic sensor functions
  • 283MM long arm
  • Embroidery area 300 MM x 130 MM
  • Large touch screen
  • USB support
  • Automatic needle threading
  • Quick set bobbin
  • 11% extra large sewing space



Brother sewing, INNOV IS 980K


  • 54 built-in hello kitty embroidery patterns
  • 10 button hole styles
  • 710 stitches / minutes
  • LCD display screen 71 x 58
  • Automatic needle threading
  • Stitch length 5MM, width 7MM



Brother sewing, INNOV IS 800E


  • 260 x 160 MM embroidery area
  • 138 built-in embroidery designs includes 140 frame patterns combination and 11 embroidery fonts
  • 6 built-in embroidery fonts
  • 3.7" LCD touch screen
  • USB support
  • Automatic needle threading



Brother sewing, INNOV IS 1500


  • 283 built-in sewing stitches
  • 163 embroidery designs
  • 260 x 160 MM embroidery area
  • Customizable machine speeds (800-1000 spm)
  • Bright sewing work area with 5 LED lights
  • Large embroidery designs
  • 1 year warranty



Brother sewing, INNOV IS V3


  • 17 built-in fonts
  • 227 built-in designs
  • Frames includes
  • USB support
  • Automatic needle threading
  • Up to 1050 stitches / minute
  • Large embroidery area
  • Large LCD touch screen
  • 1 year warranty



Brother sewing, INNOV IS VR


  • 20 built-in embroidery fonts
  • 200 x 200 MM embroidery area
  • 405 embroidery designs
  • LED pointer placement
  • USB support
  • Up to 1000 stitches / minute
  • Easy to use 7" LCD display



Brother sewing, INNOV IS XV


  • 726 sewing stitches and 15 Styles n
  • 956 embroidery designs
  • USB support
  • Automatic needle threading
  • 10" LCD touch screen
  • Quick set bobbin
  • 5 Sewing fonts
  • Laser guide line
  • Ultra sonic pen
  • Intelligent Eye Camera



International Accounting Standards

IFRS Standards

IFRS1: First-time adoption of international financial reporting standards
IFRS2: Share-based payment
IFRS3: Business combinations
IFRS4: lnsurance contracts
IFRS5: Non-current assets held for sale and discontinued operations
IFRS6: Exploration and production assets for energy and utilities
IFRS7: Financial instruments: disclosures

IAS Standards

IAS1: Presentation of financial statements
IAS2: lnventories
IAS7: Cash flow statements
IAS8: Accounting policies, changes in accounting estimates and errors

IAS10: Events after the balance sheet date
IAS11: Construction contracts
IAS12: lncome taxes
IAS14: Segmentreporting
IAS16: Property, plant and equipment
IAS17: Leases
IAS18: Revenue
IAS19: Employee benefits
IAS20: Accounting for government grants and disclosure of government assistance
IAS21: The effect of changes in foreign exchange rates
IAS23: Borrowing costs
IAS24: Related party disclosures
IA526: Accounting and reporting by retirement benefit plars
IAS27: Consolidated and separate financial statements
IAS28: investments in associates
IAS29: Financial reporting in hyper-inflationary economies
IAS30: Disclosures in the financial statements of banks and similar financial institutions
IAS31: interests in joint ventures
IAS32: Financial instruments: disclosure and presentation
IAS33: Earnings per share
IAS34: Interim financial reporting
IAS36: impairment of assets
IAS37: Provisions, contingent liabilities and contingent assets
IAS38: Intangible assets
IAS39: Financial instruments: recognition and measurement
IAS40: Investment property
IAS41: Agriculture


Accounting standards in UK

Standard Accounting Practice

Standards issued up to 1 August 1990 are known as Statements of Standard Accounting Practice (SSAP).
SSAP4: The accounting treatment of government grants
SSAP5: Accounting for value added tax
SSAP9: Stocks and long-term contracts
SSAP13: Accounting for research and development
SSAP17: Accounting for post-balance sheet events
SSAP19: Accounting for investment properties
SSAP20: Foreign currency translation
SSAP21: Accounting for leases and hire purchase contracts
SSAP25: Segmental reporting

FRSSE: Financial Reporting Standard for Smaller Entities

Financial Reporting Standards

Standards issued after 1 August 1990 are known as Financial Reporting Standards (FRS).

FRS1: Cash flow statements (Revised)
FRS2: Accounting for subsidiary undertakings
FRS3: Reportingfinancialperformance
FRS4: Capital instruments
FRS5: Reporting the substance of transactions
FRS6: Acquisitions and mergers
FRS7: Fair values in acquisition accounting
FRS8: Related party disclosures
FRS9: Associates and joint ventures
FRS10: Goodwill and intangible assets
FRS11: Impairment of fixed assets and goodwill
FRS12: Provisions, contingent liabilities and contingent assets
FRS13: Derivatives and other financial instruments: disclosures
FRS14: Earnings per share
FRS15: Tangible fixed assets
FRS16: Current taxation
FRS17: Retirement benefits
FRS18: Accounting policies
FRS19: Deferred tax
FRS20: Share-basedpayment
FRS21: Events afterthe balance sheet date
FRS22: Earnings per share
FRS23: The effects of changes in foreign exchange rates
FRS24: Financial reporting in hyperinflationary economies
FRS25: Financial lnstruments: Disclosure and Presentation
FRS26: Financial lnstruments: Measurement
FRS27: Life Assurance
FRS28: Corresponding amounts
FRS29: Financial instruments: disclosures

Accounting software for jewellery shop

Jewellery shops (Jewelry) have big amount of trading in money and small amount of item size !. any small mistake in amount of product could have bad results and loss in shops. 

Free accounting software for Jewelry shops

Accounting software for jewellery

You can use iGreen accounting software for your jewellery shops for free. Lite version of iGreen accounting is free of charges and it includes invoicing, purchase, items reports, inventory reports, income statement and SOA (statement of account) report.

Example of invoice for jewellery

As you see here, in iGreen accounting software, we add a diamond ring with photo in inventory list. Also you can zoom-in and zoom-out to check details of ring. Then we post a purchase 10 pcs of ring for $4100 and then we issued an invoice of one ring for $5400. at the end of test, we click on stock report and as you see in the last screenshot it shows us that we got $1300 profit for sales of one ring


Jewellery accounting, Inventory of Ring
Inventory of Ring


Jewellery accounting, Inventory of Ring - zoom-in
Inventory of Ring – zoom-in


Purchase of ring in jewellery accounting software, iGreen
Purchase of ring in iGreen


Invoice issue of ring in jewellery accounting software, iGreen
Invoice of ring in iGreen
Stock report of ring in jewellery accounting software, iGreen
Stock report of ring with profit and loss statement

In this photo, you can see an easy to understand report of profit of sales. so that, iGreen accounting could be use for jewellery shops for free and very easy to understand

Please click here To download iGreen accounting software


Platforms of Applications

There are many programming languages, platforms, and data servers for software developers to producing applications. each platforms and data servers has its unique benefits but we should select true types of them to reach the best results of speeds and security in the end user design of application. data server is very important for financial software like accounting software, CRM, ERP and banks applications.

Here we tried to describe all the most used platforms and data servers to help you select the best for your programming projects.

  • Data Server type

    • Available data servers are SQL Server, Paradox, IBX, DB base, MS Access, Oracle, Informix, Spreadsheet, Text files, Dat files and more.
      Types of data servers for accounting software
      Types of data Servers
      • Oracle is the most powerful data server and it is very expensive. so that commonly big organization, governments and military department only use it.
      • SQL Server is one of the most used data server in the world for network accounting systems and almost any software programmer knows it. Microsoft is the main company that producing this data ever
      • Paradox is old data base of Delphi from Borland. but it is an out of time database and no body uses it nowadays
      • IBX is new data server from Borland for Embarcadero platform and it is not common data server for data software yet
      • DB base is common data-server for small size accounting software and shop accounting software. it doesn’t need a powerful server, so that it will cost no extra for a developer
      • Ms Access is used by new students in universities. very easy to learning and working. but it is not safe and secure for a real accounting software.
      • Informix is out of service and not good on any project
      • Spreadsheet are used by Excel platform and it is very familiar for reception stuffs. but excel doesn’t support modern search and combined search as SQL server and its data is not secured and locked like SQL server
  • Platforms

    • Visual Studio
      • Most of accounting software in middle-east and GCC countries like Dubai, Saudi Arabia, Qatar are designed with this platform. Peachtree accounting has been designed by Visual C++
    • Borland
      • Most of business software in Germany and some European counties will be designed with Borland. It is good to know that Window operating systems have been designed by C++ of Borland. Quickbooks accounting has been designed by Borland platform.
    • C++
      • There are small quantity of accounting software with this platform because it is very hard and systematic. Usually antivirus and super system program will be designed by C++
    • Pyton
      • It is a nice platform for online accounting portal but hard to learning
    • PHP
      • The famous platform and programming language for online accounting portal and blog systems
  • Business Structures

    • Retails Stores
      • This type of accounting is suitable only for small shops with retails daily sales
    • ERP
      • It means Enterprise resource planning and it suitable for an organization to manage the business and automate back office functions of IT, services and HR sections.
    • CRM
      • CRM means customers relation management and it will addresses to departments that want a software for customers management and support warranty cards and follow up customers orders
    • MIS
      • It means Management Information System and it includes all types of application for all departments of a company in an integrated network

Types of accounting software in operations

  • Server location

    • File Server
      • All database files are on your local PC or laptop without network features. EZI accounting software is one these types of software. Peachtree also support local server very easy and it is one most used software in Dubai and GCC countries. This type of server has no security and anybody access files, can open financial data easily
    • Local Server
      • All data are in secured MDF files and only SQL server can open it by a secured password. Peachtree, Quikcbooks and iGreen supports this types of server. Peachtree is used widely in Dubai and GCC and Quickbooks is used in US and Canada.
    • Online Server
      • All your data file only will be store on an online server. so that you can access your accounting data any where in the world by internet connection. iGreen accounting support this type of server very good and easy.
    • Cloud Server
      • Both application files and data files are on online server and actually you will access your accounting software by a special remote terminal. Quickbooks accounting has a perfect cloud version nowadays
  • Report Types

    • Crystal Reports
    • Fast Reports
    • Spreadsheets
    • Text Reports
  • Price of software

    • 0 to 200 USD
      • iGreen accounting and EZI solution
    • 200 to 1000 USD
      • Peachtree accounting in Dubai, Tally accounting in India
    • 1000 to 5000 USD
      • Quickbooks in US and Canada for medium businesses
    • More than 5000 USD
      • Military and special business software for big companies like eBay, Amazon, and ….

Useful Links

Creating a Company File

A company file is where you store your company’s financial records in QuickBooks, so it’s the first thing you need to work on in the program. You can create a company file from scratch or convert records that you previously
kept in a different small-business accounting program, Quicken, or even another edition of QuickBooks like QuickBooks for Mac.
If you’re new to bookkeeping, another approach is to use a file that someone else created. For example, if you’ve worked with an accountant to set up your company, she might provide you with a QuickBooks company file already configured for your business so you can hit the ground running.
This chapter starts by explaining how to launch your copy of QuickBooks. Then, if you need to create your company file yourself, you’ll learn how to use the QuickBooks Setup dialog box or the Easy Step Interview to get started (and find out which other chapters explain how to finish the job). If you’re converting your records from another
program, this chapter provides some hints for making the transition as smooth as possible. Finally, you’ll learn how to open a company file, update one to a new version of QuickBooks, and modify basic company information.

Choosing a Start Date

To keep your entire financial history at your fingertips, you need to put every transaction and speck of financial information in your QuickBooks company file. But you have better things to do than enter years’ worth of checks, invoices, and deposits, so the comprehensive approach is practical only if you just recently started your company.
The more realistic approach is to enter your financial data into QuickBooks starting as of a specific date and, from then on, add all new transactions to QuickBooks.
The date you choose is called the start date. (The start date isn’t something that you enter in a field in QuickBooks; it’s simply the earliest transaction date in your company file.) You should choose it carefully. Here are your start date options and the ramifications of each one:

• The last day of the previous fiscal year. The best choice is to fill in your records for the entire current fiscal year. To do that, use the last day of your company’s previous fiscal year as the company file’s start date. That way, the account balances on your start date are like the ending balances on a bank statement, and you’re ready to start bookkeeping fresh on the first day of the fiscal year. Yes, you have to enter checks, credit card charges, invoices, payments, and other transactions that have happened since the beginning of your fiscal year, but that won’t take as much time as you think. And you’ll regain those hours when tax time rolls around, as you nimbly generate the reports you need to complete your tax returns. If more than half of your fiscal year has already passed, the best approach is to be patient and postpone your QuickBooks setup until the next fiscal year. (Intuit releases new versions of QuickBooks in October or November each year for just that reason.) But waiting isn’t always feasible. In cases like that, go with the next option in this list.

Account Balances and Transactions

Unless you begin using QuickBooks when you start your business, to get things rolling, you need to know your account balances as of your selected start date. For example, if your checking account has $342 at the end of the year, that value goes into QuickBooks during setup. You also need every transaction that’s happened since
the start date you chose—expenses you’ve incurred, sales you’ve made, payroll and tax transactions, and so on—to establish your asset, liability, equity, income, and expense accounts. So dig that information out of your existing accounting system (or shoebox). (If you don’t want to record individual transactions.
Here are the balances and transactions you need and where you can find them in your records:

  • Cash balances
    • For each bank account you use in your business (checking, savings, money market, and so on), find the bank statements with statement dates as close to—but earlier than—the start date of your QuickBooks company file. Hop onto your bank’s website to identify the transactions that haven’t yet cleared; you’ll need them to enter transactions, unless you download transactions from your bank. If you have petty cash lying around, count it and use that number to set up your petty cash account.
  • Customer balances
    • If customers owe you money, pull the paper copy of every unpaid invoice or statement out of your filing cabinet (or find the electronic versions you saved on your computer) so you can give QuickBooks what it needs to calculate your Accounts Receivable balance. If you didn’t keep copies, you can ask your customers for copies of the invoices they haven’t paid or simply create invoices in QuickBooks to match the payments you receive.
  • Vendor balances
    • If your company thinks handing out cash before you have to is more painful than data entry, then find the bills you haven’t yet paid and get ready to enter them in QuickBooks so you can generate your Accounts Payable balance. (Or, to reduce the number of transactions you have to enter, simply pay those outstanding bills and then record the bill payments in QuickBooks.)
  • Asset values
    • When you own assets such as buildings or equipment, their value depreciates over time. If you included a balance sheet with the tax return you filed for your company, you can find asset values and accumulated depreciation on your most recent tax return (yet another reason to start using QuickBooks at the beginning of your fiscal year). If you haven’t filed a tax return for your company yet, an asset’s value is typically the price you paid for it.
  • Liability balances
    • Find the current balances you owe on any business loans or mortgages.
  • Inventory
    • If you stock products that you sell and track them as inventory, you need to know how many items you had in stock as of the start date, how much you paid for them, and what you expect to sell them for
  • Payroll
    • Payroll services are a great value for the money, which you’ll grow to appreciate as you collect the info you need for payroll (including salaries and wages, tax deductions, benefits, pensions, 401(k) deductions, and other stray payroll deductions you might have). You also need to know who receives with holdings, such as tax agencies or the company handling your 401(k) plan. Oh, yeah—and you also need payroll details for each employee.


Back to QuickBooks 2015 

What’s New in QuickBooks 2015

Despite the fluctuating size of the tax code, accounting and bookkeeping practices don’t change much each year. The changes in QuickBooks 2015 are mostly small tweaks and subtle improvements, but some of them might be just what you’ve been waiting for:

Insights tab in the Home window

In previous versions of QuickBooks, the Home window contained, well, the Home Page, which shows bookkeeping workflow and helps you access the QuickBooks features you use most often. In
QuickBooks 2015, the Home window has two tabs at its top left. As you might expect, the Home Page tab displays the Home Page you’re familiar with. When you click the new Insights tab (page 44), you see a dashboard that highlights your company’s financial status and activity. Initially, the tab’s top panel displays a colorful Profit & Loss graph: green bars represent your monthly income, blue bars indicate your monthly expenses, and a black line graphs your profit by month. But that’s not all! You can click the arrows on either side of this panel to view other high-level graphs, such as a comparison between the current year and the previous year, top customers by sales, and trends in income and expenses.

Insight Tab in Quickbooks 2015
Insight Tab

The bottom half of the Insights tab displays more details about your income and expenses. On the left, the Income section is like a mini Income Tracker (described next, and covered in detail on page 338); it lets you quickly scan totals for unpaid invoices, overdue invoices, and customer payments received
in the past 30 days. And the Expenses list and pie chart on the right help you identify where you spend the most money.

Income Tracker

Income Tracker (page 338) boasts a couple of helpful
enhancements. In addition to colored boxes for estimates, open invoices (that is, invoiced income that isn’t due yet), overdue invoices, and recent customer payments, Income Tracker now also displays a box for unbilled time and expenses.

Income tracker in Quickbooks 2015
Income tracker

In QuickBooks 2015, you can specify the unbilled categories you want to see by clicking the Settings icon at the window’s top right (it looks like a gear), and then clicking the checkboxes to turn unbilled categories on or off.

Reminders window

The Reminders window (page 483) has a new look. On the left side of the window, you now see to-dos and transactions that are due as of today, so you know what’s on deck for your workday. The list on
the window’s right shows to-dos and transactions that are coming up soon.

Reminders window in Quickbooks 2015
Reminders window

If a category is collapsed, click the flippy triangle next to its heading to show each reminder in that section. To collapse a category, click the flippy triangle to hide its individual reminders.

Pinned notes

QuickBooks’ various centers have a new twist: You can now select a note associated with a vendor, customer, or employee and “pin” it so it appears at the center’s top right when you select that name in the center’s name list (page 481). For example, say you create a note about an issue a customer has with an order.

Pined notes in Quickbooks 2015
Pined notes

You can pin that note in the Customer Center so that, whenever you select that customer in the Customer Center, the note is easy to spot

New report formatting

QuickBooks’ reports sport new formatting that makes them much easier to read (page 583). The rows for top-level categories are shaded gray, lower-level category rows are shaded beige, and rows with totals
are shaded light gray.

Updated online payments

If you install QuickBooks 2015 when it’s first released (this version of the program is called R1 and usually comes out in September), you won’t see online payment links and settings. Big changes for online payments were still in the works when this book was written.

Back to Quickbooks 2015

Direct costs Vs indirect costs

Sometimes, direct costs are treated as indirect because tracing costs directly to the cost object is not cost effective. For example, the nails used to manufacture a particular desk can be identified specifically with the desk, but, because the cost is likely to be insignificant, the expense of tracing such items does not justify the possible benefits from calculating more accurate product costs.

The distinction between direct and indirect costs also depends on the cost object

A cost can be treated as direct for one cost object but indirect in respect of another. if the cost object is the cost of using different distribution channels, then the rental of warehouses and the salaries of storekeepers will be regarded as direct for each distribution channel. Also consider a supervisor's salary in a maintenance department of a manufacturing company. if the cost object is the maintenance department, then the salary is a direct cost. However, if the cost object is the product, both the warehouse rental and the salaries of the storekeepers and the supervisor will be an indirect cost because these costs cannot be specifically identified with the product.


Assigning direct costs to cost objects


Direct costs can be traced easily and accurately to a cost object. For example, where products are the cost object,

Direct costs in cost assignment
Direct costs

direct materials and labour used can be physically identified with the different products that an organization produces. Therefore it is a simple process to establish an information technology system that records the quantity and cost of direct labour and material resources used to produce specific products.


Assigning indirect costs to cost objects


In contrast, indirect costs cannot be traced to cost objects. Instead, an estimate must be made of the resources consumed by cost objects using cost allocation. A cost allocation is the process of assigning costs when a direct measure does not exist for the quantity of resources consumed by a particular cost object Cost allocations involve the use of surrogate rather than direct measures. 



For example, consider an activity such as receiving incoming materials. Assuming that the cost of receiving materials is strongly influenced by the number of receipts then costs can be allocated to products (i.e. the cost object) based on the number of material receipts each product requires.

Prices raw materials in cost accounrting

If 20% of the total number of receipts for a period were required for a particular product then 20% of the total costs of receiving incoming materials would be allocated to that product.

Assuming that the product was discontinued, and not replaced, we would expect action to be taken to reduce the resources required for receiving materials by 20%.

in the above illustration the surrogate allocation measure is assumed to be a significant determinant of the cost of receiving incoming materials. You should note that only direct costs can be accurately assigned to cost objects.

The more direct costs that can be traced to a cost object, the more accurate is the cost assignment.

Direct and Indirect Costs

Costs that are assigned to cost objects can be divided into two broad categories Direct and Indirect costs. Both categories can be further divided into direct and indirect material costs, and direct and indirect labour costs Each of these categories is discussed in the following sections.

Direct Materials

Direct materials represent those material costs that can be specifically and exclusively identified with a particular cost object. Where the production of products or the provision of services represent the cost object, the cost of direct materials can be directly charged to the products or services because physical observation can be used to measure
the quantity consumed by each individual product or service. in other words, direct materials become part of a physical product or are used in providing a service. For example, wood used in the manufacture of different types of furniture can be directly identified with each specific type of furniture such as chairs, tables and bookcases.

Direct Labour

As with direct materials. direct labour costs represent those labour costs that can be specifically and exclusively identified with a particular cost object Physical observation can be used to measure the quantity of labour used to produce a specific product or provide a service. The direct labour cost in producing a product includes the cost of
converting the raw materials into a product, such as the workers on an assembly line at Nissan Cars or machine operatives engaged in the production process in the manufacture of televisions. The direct labour cost used to provide a service includes the labour costs in providing a service that can be specifically identified with an individual client in a firm of accountants or the labour costs that can be identified with a specific repair in a firm that repairs computers.

Indirect costs

Indirect costs cannot be identified specifically and exclusively with a given cost object. They consist of indirect labour, materials and expenses. Where products are the cost object the wages of all employees whose time cannot be identified with a specific product represent Examples include the labour cost of staff employed in
the maintenance and repair of production equipment and staff employed in the stores department. The cost of materials used to repair machinery cannot be identified with a specific product and can therefore be classified as Examples of indirect expenses, where products or the provision of a service are the cost objects, include lighting and heating expenses and property taxes. These costs cannot be specifically identified with a particular product or service


The term overheads is widely used instead of indirect costs. In a manufacturing organization overhead costs are categorized as either manufacturing administration and marketing (or selling) overheads include all the costs oi
manufacturing apart from direct labour and material costs. Administrative overheads consist of all costs associated with the general administration of the organization that cannot be assigned to either manufacturing, marketing or distribution overheads.

Examples of overheads

  • Top-executive salaries costs
  • General accounting costs
  • Secretarial costs
  • Research and development costs

Those costs that are necessary to market and distribute a product or service are categorized as marketing (selling) costs. These costs are also known as order-getting and order-filling costs. Examples of marketing costs include advertising sales personnel salaries/commissions, warehousing and delivery transportation costs.

non-manufacturing and Manufacturing costs
non-manufacturing and Manufacturing costs

This image illustrates the various classifications of manufacturing and non-manufacturing costs. You will see from this figure that two further classifications of manufacturing costs are sometimes used. consists of all direct manufacturing costs (i.e. it is the sum of direct material and direct labour costs) is the sum of direct labour and manufacturing overhead costs. It represents the cost of converting raw materials into finished products.

Next Page: Direct Costs VS Indirect Costs

Back to page: Cost Term and Concepts

Cost Terms and Concepts

Accounting information systems measure costs that are used for different purposes i.e profit measurement and inventory valuation, decision-making, performance measurement and control. Therefore different types of costs are used in different situations. Because the term ‘cost’ has multiple meanings, a preceding term must be added to clarify the assumptions that underlie a cost measurement. A large terminology has emerged to indicate which cost meaning is being conveyed. Examples include variable cost, fixed cost, opportunity cost and sunk cost. First step to understanding of the basic cost terms and concepts that are used in the management accounting literature.


A cost objects is any activity for which a separate measurement of costs is desired. in other words, if the users of accounting information want to know the cost of something, this something is called a cost object.

Examples of cost objects

  • cost of a product
  • cost of rendering a service to a bank customer
  • cost of rendering a service to a hospital patient
  • cost of operating a particular department or sales territory

Anything for which one wants to measure the cost of resources used.

Cost accounts will be classified them into type of expense (e g. direct labor, direct materials and indirect costs) or by cost behavior (such as fixed and variable costs) and then assigns these costs to cost objects.

Please Read More: Direct Costs, Indirect Costs

Absorption costing system

Below image provides an overview of the cost assignment process for an absorption costing system, The term cost tracing is used in this photo to denote the fact that direct costs can be specifically and exclusively identified with a particular cost object.
cost absorption in cost assignment

Cost assignment merely involves the implementation of suitable data processing procedures that identify
and record those resources that can be specifically and exclusively identified with a particular cost object. above image also shows that indirect costs are assigned to cost objects using cost allocations. To illustrate a cost allocation, consider an activity such as receiving incoming materials. Assuming that the cost of receiving materials is strongly
influenced by the number of receipts, then costs can be allocated to products (i.e. the cost object) based on the number of material receipts each product requires if 20 per cent of the total number of receipts for a period were required for a particular product then 20 per cent of the total costs of receiving incoming materials would be allocated to that product.
Assuming that the product was discontinued, and not replaced we would expect action to be taken to reduce the resources required for receiving materials by 20 per cent.

in the above illustration the allocation base is assumed to be a significant determinant of the cost of receiving incoming materials. Where allocation bases are significant determinants of the costs we shall describe them as cause-and-effect allocations Where a cost allocation base is used that is not a significant determinant of its cost the term arbitrary allocation will be used.

Arbitrary Allocation Example

An example of an arbitrary allocation would be if direct labor hours were used as the allocation base to allocate the costs of materials receiving.
if a labor-intensive product required a large proportion of direct labor hours (say 30 per cent) but few material receipts it would be allocated with a large proportion of the costs of material receiving. The allocation would be an inaccurate assignment of the resources consumed by the product. Furthermore if the product were discontinued, and not replaced, the cost of the material receiving activity would not decline by 30 per cent because the allocation base is not a significant determinant of the costs of the materials receiving activity Arbitrary allocations are therefore likely to result in inaccurate allocations of indirect costs to cost objects, For the accurate assignment of indirect costs,
cause-and-effect allocations should be used.

Above image identifies two types of absorption costing systems that can be used to assign indirect costs to cost objects.

  1. Traditional costing systems
    • Traditional costing systems were developed in the early 1900s and are still widely used today They rely extensively on arbitrary cost allocations
  2. Activity-based costing (ABC) systems
    • ABC systems only emerged in the late 1980s. One of the major aims of ABC systems is to use only cause-and-effect cost allocations. Both cost systems adopt identical approaches to assigning direct costs to cost objects. 

Privacy in e Business

The collection of information and data about people is a characteristic of e-business transactions. e-Business marketplaces and portals derive value from data mining activities. Construction companies engaged in e-business will have to manage multiple risks relating to privacy; some relate to personal privacy concerns about their own firms, and others relate to concerns about infringement.
Construction companies wanting to engage in e-business transactions have to give away some information about the company for the purposes of authentication, and attribution; the question is how much information?

Online portals and marketplaces collect more information than is needed for legally authenticating an e-contracting party. They collect information through user registration forms, cookies and track companies’ ‘bidding behavior’. Who owns this information? Does the information collection process violate any privacy laws? This data mining operation presents a potential risk for construction companies engaging in e-business.

Privacy of google search engine

For risks relating to infringement, consider the case of a contractor  engaging in e-procurement activities. The contractor keeps information about potential suppliers on the company IT system. It legitimately
uses this information to select appropriate bidders. To aid future estimating operations, the contractor records all historical bids on all suppliers who previously electronically bid for projects on its e-procurement system.
The historical database includes supplier information, historical bid prices, financial performance collected from pre-qualification forms, safety performance, comments about the supplier performance on previous projects, amongst other information. As a result of a security breach, or a virus, the contractor realizes that the information ended up with a third party – other than the contractor and suppliers. The contractor is liable to the supplier for the loss of information and distribution to other parties and the damages to the supplier that could ensue as a result of
this loss.


Another variation to the same risk relates to using online marketplaces. An owner or a contractor places a Request for Proposals on one of the online marketplaces owned by a third party. Suppliers bid on the project
after entering information about their respective companies. The third party, owner and operator or the marketplace, have a security breach in which other people had access to stored information about this project
mistakenly. Though common sense indicates that the third party should be liable, the contractor or owner may realize that they signed a ‘click through’ agreement that limits the third party’s liability to such instances;
a bad situation to be in.


Jurisdiction is a legal term describing which law is in effect at a given period of time and which court’s decisions will be legally binding. jurisdiction issues arise when parties dispute a contract and try to decide which court has jurisdiction over it. The problem is exacerbated by the fact that in an e-business contract, the question of where the contract was formed becomes daunting.

Jurisdiction benefit in e business

The outcome of the dispute can differ materially if judged under a different set of rules, regulations and laws (Rowe, 1998).
The global reach of the Internet adds yet another layer of complexity:
determining jurisdiction over contracts with international elements.

The key issue of jurisdiction can be simply explained by comparing the spatial distinction of the legal world to the border-less nature of the Internet. The Internet empowers people to engage in e-business activities regardless
of geographical boundaries. In contrast, most of the laws governing contractual relationships, specifically those relating to Construction Law, are limited in one way or another to a certain geographical boundary.
One risk arising from the issue of jurisdiction is unanticipated foreign lawsuits. Foreign in this context means a different state or country. Although the laws regulating e-business vary, the general opinion of the courts imply
that companies engaged in activities or online advertising may have to defend lawsuits in different jurisdictions if those activities violate the local laws (Thelen Reid & Priest LLP, 1997).

location of Thelen Reid & Priest LLP in USA

Link of external Resource about Thelen Reid & Priest LLP

This may very well affect construction companies participating in e-business activities over the Internet, especially in areas such as intellectual property rights and distribution rights.
Companies with local or regional trademarks may find themselves infringing upon others’ trademarks when they advertise their products online. Advertising products on the Internet or engaging in e-business over
the Internet makes the product accessible globally and is not limited geographically, as trademarks are (Thelen Reid & Priest LLP). Similarly, there is a distinction between geographically based (local and regional) distribution
rights and distribution over the Internet through e-business activities.
Distribution of construction materials or products may have only local or regional distribution rights. Would e-business activity constitute a breach if the distribution rights of both the seller and the buyer are within the geographical boundaries? How about if the seller is within the geographical boundaries of the distribution rights and the buyer is outside; or vice versa?

Jurisdiction risks

  • A company can fail to protect its legal rights due to lack of familiarity with a foreign jurisdiction’s
    procedures or, in case of a dispute, where the parties disputing cannot agree on which court has jurisdiction. This is illustrated in the following example:

Jurisdiction example

Consider the case of an Architect, working out of California, employing an Engineering Consulting firm, working out of New York, for the design of a specialty component of a project in Michigan. The Architect and Consulting firm engage in an e-contract and they never physically meet; collaboration and submission of work is completed online. During construction it was discovered that the Consulting firm’s design was faulty and did not meet the Michigan code. The Architect deducts the value of the change from the firm’s pay, the firm is opposed to this and stops
working; a dispute arises.

The question is: which state law has jurisdiction over this dispute?

The issue of jurisdiction in this example may be even more challenging if the error was discovered after construction was complete and the different states involved have differing statutes of limitations and/ or statutes of repose. Enabled by online project collaboration systems, and e-business tools, the probability of occurrence of this risk is
on the rise. The situation is further compounded on global construction projects that involve team members from several countries.

Some of the jurisdiction risks can be avoided by adding choice of law, choice of forum, or arbitration clauses (Thelen Reid & Priest LLP).
Many risks, however, still exist even when such clauses are made part of the agreement. It is also important to note that not all choice of law and choice of forum provisions are enforced by courts (Gallagher, 2000). Is it a possibility that e-business solutions could be programmed to include those provisions and intelligent agents could be made to distinguish between those provisions that are enforceable and those that are not.

Types of legal risks

The legal risks of conducting business online change every day as new technologies are introduced to the market. These technologies pose important problems to legislators that need quick and effective solutions.
The difference between the rates at which e-business technology develops to the rate at which legal framework and rules develop is substantial.

legal risks in ebusiness construction
Legal risks have not been studied in relation to construction e-business.
These risks are identified and discussed in the following sections.

Classified Risks

  • contract formation
  • validity and errors
  • jurisdiction, privacy, authentication, attribution, non-repudiation and agency.

Legal issues

The hype for e-business in the construction industry is now over. With industry players already embracing the change, many are now shifting their focus towards the impact, or non-impact, that e-business has left
in their businesses. e-Business applications in the construction industry are poised for restructuring as industry players have recognized that e-business will re-intermediate existing market relations, disrupting some
and driving new efficiency in others, therefore the focus in the next era should on restructuring tasks.

Legal Issues in ebusiness
Despite predictions about the success of e-business in construction and how it could change the construction industry, the industry is still struggling with e-business applications. Indeed, the adoption by the construction industry of e-business applications and IT in general has been sluggish but steady. The industry should now be concerned with the readiness for the next phase of e-business implementation; a phase that will involve many more players than the innovators and early adopters.

The question of how much value e-business can add to construction operations has been studied in numerous works. The need for legally binding e-contracts in construction applications have been noted. More importantly, the link between the existence of quality legal rules for regulating e-business and the amount of e-business revenue has been established. It has been shown that quality legal rules and enforcement are ‘significantly and positively’ associated with e-business revenues. It is also documented that, if and where a legally binding e-collaboration and e-business system is established in construction projects, the utilization of such a system increases noticeably.
As such, the identification and analysis of e-construction legal risks, coupled with the incorporation of the legal dimension in programming e-business tools can radically improve the utilization of e-business in construction and significantly improve the trust and confidence of the industry in e-business.

There is a gap, however, in the current literature regarding the specific legal risks related to electronic commerce in construction. This chapter attempts to fill this gap by providing a comprehensive analysis of those legal risks.

Types of Legal Risks


How to write a cash book

Cash trading is one the most used method in shops and discount centers. to keep a cash book updated and write a cash book in true format, you need details of cash flow.

When Cash receives from customer, it will be added to cash account with amount of it in Debit column

When Cash be paid to Vendors, it will be added to cash account with amount of it in Credit column

Example of a cash flow statement with iGreen
Example of a cash flow

Under view of accounting concepts, when you receive cash, cash will be debit and capital will be credit and vise versa.

if you want to have automated cash book from your invoices, so you need to use an accounting software but if you are using paper system, so that you should be careful to do not make a mistake in writing voucher in right place in ledger book.


Tools Shops in Dubai

in Dubai, tools shops usually sell tools like:


Brands of these tools commonly are from Bush, BlackandDecker, Siemens, …

Coast Tools

Dubai coast shop in Dubai
Dubai coast shop



What is Management Accounting

The Role of Management Accounting Management accounting:  ( defined by the National Association of Accountants (NAA))

( The process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of financial information, which is used by management to plan, evaluate, and control within an organization. )

It ensures the appropriate use of and accountability for an organizations resources. Management accounting also
comprises the responsibility for the preparation of financial reports for non management groups such as regulatory agencies and tax authorities. Simply stated, management accounting is the accounting for the planning, control, and
decision-making activities of an organization. Financial Accounting vs.
Management Accounting Financial accounting is mainly concerned with the historical aspects of external reporting, that is, providing financial information to outside parties such as investors, creditors, and governments. To protect those outside parties from being misled, financial accounting is governed by what are called generally accepted accounting principles (GAAP).
Management accounting, on the other hand, is concerned primarily with providing information to internal managers who are charged with planning and controlling the operations of the firm and making a variety of management decisions. Due to its internal use, management accounting is not subject to GAAP.

Financial accounting vs Management accounting

Financial Accounting

  1. Provides data for external users
  2. Is
    required by the law
  3. Is subject to GAAP
  4. Must generate accurate and timely
  5. Emphasizes the past
  6. Looks at the business as a whole
  7. Primarily
    stands by itself


Management Accounting

  1. Provides data for internal users
  2. Is
    not mandatory by law
  3. Is not subject to GAAP
  4. Emphasizes relevance and
    flexibility of data
  5. Has more emphasis on the future
  6. Focuses on parts as
    well as on the whole of a business
  7. Draws heavily from other disciplines such
    as finance, economics, and operations research
  8. Is a means to an end 8. Is an
    end in itself?


Cost Accounting vs. Management Accounting

The difference between cost accounting and management accounting is a subtle one. The NAA defines cost
accounting as a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying,
allocating, aggregating, and reporting such costs and comparing them with standard costs. From this definition of cost accounting and the NAAs definition of management accounting,

one thing is clear: The major function of cost accounting is cost accumulation for inventory valuation and income determination.

Management accounting, however, emphasizes the use of the cost data for planning, control, and decision-making purposes.

Classification of Management Performs

Planning The planning
function of management involves the selection of long-range and short-term
objectives and the drawing up of strategic plans to achieve those objectives.
Coordinating In performing the coordination function, management must decide how best to put
together the firms resources in order to carry out established plans.
Controlling Controlling entails the implementation of a decision method and the use of
feedback so that the firms goals and specific strategic plans are optimally
Decision making Decision making is the purposeful selection from among a set of alternatives in
light of a given objective. Management accounting information is important in
performing all of the aforementioned functions.


Organizational Aspect of Management Accounting

There are two types of authorities in the organizational structure:

Line Line authority is the authority to give orders to subordinates. Line managers are responsible for attaining the goals set by the organization as efficiently as possible. Production and sales managers typically possess line authority.
Stuff Staff authority is the authority to give advice, support, and service to line departments. Staff managers do not command others. Examples of staff authority are found in personnel, purchasing, engineering, and finance.

The management accounting function is usually a staff function with responsibility for providing line managers and also other staff people with a specialized service. The service includes:

  • Budgeting
  • Controlling
  • Pricing
  • Special decisions.

Controller-ship The chief management accountant or the chief accounting executive of an organizations called the controller (often called comptroller, especially in the government sector.) The controller is in charge of the accounting department. The controllers authority is basically staff authority in that the controllers office gives advice and service to other departments. But at the same title, the controller has line authority over members of his or her own department such as internal auditors, bookkeepers, budge! analysts, etc.

The principal functions of the controller are:

  1. Planning for control
  2. Financial reporting and interpreting
  3. Tax administration
  4. Management audits, development of accounting systems, and computer data processing
  5.  Internal audits

The Certificate in Management Accounting (CMA) Management accounting has expanded in scope to cover a wide
variety of business disciplines such as finance, economics, organizational behavior, and quantitative methods.

In line with this development, the National Association of Accountants (NAA) has created the Institute of Management Accounting, which offers a program leading to the Certificate in Management Accounting (CMA).

The CMA program requires candidates to pass a series of uniform examinations covering a wide range of subjects. The objectives of the program are threefold:

  1. to establish management accounting as a recognized profession,
  2. to foster higher educational standards in the area of management accounting
  3. to establish objective measurement of an individuals knowledge and competence in the area of management accounting.

The importance of bookkeeping

All businesses, without exception, need to keep accurate and readily accessible records of their financial transactions.
Many organizations other than businesses also need to do it, and some individuals too. As a child I had a neighbor who died at the age of 75 leaving records that accounted for every penny of his income and expenditure since his 21 st birthday.
Surprisingly he was a charming, generous man and in no way a miser. Perhaps you too have a personal bookkeeping system to record your own financial affairs, though I would not recommend taking it to these extreme lengths. The benefits to a business of dependable financial records are probably self-evident.

They include:

  • The law requires all companies and many other organizations to prepare accounts that conform with certain criteria. This can only be done if the basic, supporting financial records are in place. 
  • The tax authorities require it. If you do not believe me, try telling Her Majesty’s Revenue and Customs that you cannot do a VAT return because you have not kept proper records.
  • It is necessary to manage the bank account, cash and borrowing. Otherwise cheques might bounce or unproductive surpluses build up.
  • Intelligently used, the records should warn of impending financial difficulties or even insolvency.
  • Intelligently used, the records should provide the basis for efficiency savings and profitable business decisions.
  • Without proper bookkeeping the owners would not know the worth of the business.
  • It is, in many instances, essential in order to comply with money laundering regulations.

Examples of invoicing

The best way to learn an accounting software is to enter real invoices and vouchers in it.

Therefore, we will add different examples of invoice entry of sample businesses in Dubai, Oman and Qatar to show you how to do invoicing by iGreen accounting application.

Manage Currencies

Multi currency is one of top feature in iGreen accounting. so that, you can record and issue sales invoices and any voucher of cash transactions in any currency that you want.

To look at list of currencies in iGreen accounting, in home screen, in right, bottom of screen, please click on update currency.

so that, you will see a form as below as title: Currency Adjust System

As you see, you can get list of currencies by synchronize to our currency web service or you can add any currency manually to this form.

Any currency that added to this list, it could be used in invoices, vouchers and any double entry vouchers and in reports.

Currency list in iGreen accounting

Add New currency

To add a new currency to this list, in yellow box, enter symbol of currency, name of it and its equal rate to home currency.

for Example: if you want to add EUR (Euro currency),  as you see in above photo, you should enter rate of 1 euro to 1 dollar : it is 1.12  (it means 1 Euro equals to 1.12 US Dollar)


Euro added in currency list in iGreen accounting