Turpin Barker Accounting Firm Report Examples

Type of paper: Report

Topic: Business, Finance, Accounting, Organization, Management, Company, Banking, Money

Pages: 7

Words: 1925

Published: 2020/12/25


Beginning a business includes arranging, settling on key financial choices and finishing a progression of lawful exercises. Accounting firms like Turpin Barker provide services for setting up a strategy for success and securing financing, to extending or migrating a business. Turpin Barker gives counseling administrations to help organizations to make a better choice regarding finance. (Turpinbainsolvency.co.uk, 2015).
It is important for the brothers to actualize or overhaul their bookkeeping and business reporting frameworks (Carlson, 2012). They basically need an answer that will address their issues, meets expectations when it should and is savvy to actualize. This report presents different types of businesses structures, difference in managerial and financial accounting and the sources available to them for financing.


Types of businesses available to the brothers
Sole proprietorship
Through sole proprietorship business, an organization is completely held accountable for all the obligations and debts involved in the business and all the profits are only the property of the organization. However, a creditor is also allowed to make claims against the sole owner of the business in order to receive the debt (Cooper, Schindler & Sun, 2006).


Comparatively lower cost to initiate own business (McEvoy, 1984).
Least expenses of the regulatory burden.
Complete power over the process of decision-making (Zott, Amit & Massa, 2011).
Least possible working capital needed in order to start-up.
Limitless liability ( because if a person has business debts he has to use personal assets in order to pay them off) (Cooper, Schindler & Sun, 2006).

Deficiency of continuation of the business if the sole owner is absent.

Problems in raising the overall capital (Zott, Amit & Massa, 2011).
A partnership is a decent type business structure in the event that an organization needs to bear on a business with an accomplice (McEvoy, 1984). With a partnership, money based resources are consolidated and put forward in the business. The organization could secure the terms of business with the partner in order to ensure themselves if a disagreement comes along. This agreement lets both the parties to be tied down to their end goals (Collis & Hussey, 2013). In partnership, different partners share the profit as prescribed by the signed terms and conditions.

Easier to start a partnership.

Initials costs will be shared among the partners.
Partners hold the same share in profits, assets, and management (Collis & Hussey, 2013).
Much similar to the sole proprietorship, because there exist no legal distinction between personal assets or business of an owner (Ross, 2003).

Difficult to find a trustworthy and suitable business partner.

Conflicts could emerge between partners in case of disagreement (Ross, 2003).
Limited company
An alternate type of business-oriented structure is a limited company. Limited company could possibly be developed at the governmental or regional level (Drucker, 1994). When a business own establishes a limited company, it becomes a legitimate entity which is independent of share holds. However, being a shareholder of a limited company, a businessman is not liable for all the obligations, acts or debts of that organization (Aaker, 1984).

Restricted liability.

Rights are manageable.
Permanent continuation.
Detached lawful entity.

A limited company is strongly regulated.

Costly to incorporate compared to sole proprietorship or partnership (Drucker, 1994).
Potential disagreement between directors and shareholders.
Apparent problems with the rights of directors (Pratt, Zeckhauser & Arrow, 1985).
Financial accounting and management accounting
Financial and managerial accountings are both essential instruments for a business, yet fill diverse needs. A business uses accounting to focus operational plans later on, to survey past execution and to check current business capacities. managerial and financial accounting have diverse groups of onlookers, as financial specialists are not typically included in the regular operations of the business yet are worried about their venture, though administrators need data rapidly to settle on everyday business choices (Zimmerman & Yahya-Zadeh, 2011).

Financial accounting

Financial accounting is utilized to present the financial strength of an association between its outside partners. Governing body, stockholders, financial establishments and different speculators are the group of onlookers for financial accounting reports. It shows a particular time of time in the past and empowers the crowd to perceive how the organization has performed. The particular period is regularly alluded to as the "Exchanging Period" and is generally one year long. Financial records focus on the business in general instead of dissecting the part parts of the business (Davies, & Crawford, 2011). For instance, deals are totaled to give a figure to aggregate deals as opposed to distributing a nitty gritty examination of offers by item, advertize and so on.

Managerial accounting

Managerial accounting is utilized by administrators to settle on choices concerning the everyday operations of a business. It alludes to accounting data created for administrators inside an association. CIMA characterizes Management accounting as "It is the methodology of distinguishing proof, estimation, aggregation, investigation, readiness, translation, and correspondence of data that utilized by administration to plan, assess, and control inside a substance and to guarantee fitting utilization of a responsibility for its assets". This is the period of accounting concerned with giving data to administrators to use in arranging and controlling operations and in choice making. It is built not with respect to past execution, yet on present and future patterns, which does not consider precise numbers. Since administrators regularly need to settle on operation choices in a brief time of time in a fluctuating situation, Managerial accounting depends intensely on estimating of business sectors and patterns. There is no legitimate prerequisite to planning administration accounts, albeit few well-run organizations can get by without them. There is no foreordained arrangement for Managerial accounts. Managerial accounts normally incorporate a wide assortment of non-financial data (Drucker, 2012).

Difference between financial accounting and managerial accounting

Managerial accounting is exhibited inside while financial accounting is implied for outside partners. Albeit financial administration is of awesome significance to present and potential speculators, Management accounting is important for directors to settle on present and future financial choices. Financial accounting is exact and must hold fast to GAAP, yet administration accounting is frequently even more an estimate or assessment, since most supervisors don't have time for accurate numbers when a choice needs to be made (Horngren, Harrison, Oliver, Best, Fraser, & Tan, 2012).
Managerial accounting is concerned with giving data to supervisors i.e. individuals inside an association who direct and control its operations. Conversely, financial accounting is concerned with giving data to stockholders, leasors, and other people who are outside an association. Managerial accounting gives the key information which associations are really run. Financial accounting gives the scorecard by which an organization's past execution is judged. (Kaplan, Atkinson, & Morris, 1998).
Financial accounting has its attention on the financial proclamations which are appropriated to stockholders, moneylenders, financial investigators, and others outside of the organization. Courses in financial accounting cover the sound accounting guidelines which must be taken after when reporting the consequences of an enterprise's past exchanges on its asset report, wage articulation, proclamation of money streams, and explanation of changes in stockholders' value (Mariotti, & Glackin, 2014).
Managerial accounting has its attention on giving data on the organization so that its administration can work the organization all the more successfully. Managerial accounting and expense accounting additionally give guidelines on processing the expense of items at an assembling endeavor. (Weygandt, Kimmel, & Kieso, 2015).

Sources of finance available to the owner including long, short and medium term resources

In order to start-up a business different source of financing could be utilized. These sources include;
Long-Term Sources
Organizations need long-term resources of financing for R&D, flow of cash, procuring equipment and expansion of the company. Methods involved in the long term sources are;
1. Equity Financing
This incorporates preferred stocks and normal stocks and is less perilous concerning responsibilities of cash flow (Czinkota, Ronkainen, Moffet, Marinova and Marinov, 2009). Notwithstanding, it does result in weakening of control, profit and shared ownership. The expense of equity is likewise higher than that of debts - which are, moreover, a deductible cost - thus equity financing might bring about an expanded obstacle rate which may balance any drop in risk of cash flow (Beck, 2000).
2. Corporate Bond
A corporate bond is termed as a security issued by an organization to raise cash successfully to extend its business. It is generally connected to long-term debt apparatuses, by and large with a development date falling no less than a year after the issuance date (O’ Sullivan, 2006).
3. Capital Notes
Capital notes are basically a type of convertible safety that is exercisable to shares. They are also called equity transports (Beck, 2000). These notes are like warrants, aside from that they regularly don't have a lapse date or an activity cost (subsequently, the whole consideration the organization hopes to get, for its potential concern of shares, is compensated when capital notes are issued).
Medium Term Sources
Medium Term sources of finances are accessible for a term period of 3 – 5 years commonly used to finance growth of a business or to buy expensive fixed resources (Brealey, 1970). It is generally the bigger measures of borrowing or the utilization of the funds that separates medium term sources of from the shorter one. Some of the important medium term sources that could be utilized are;
1. Loans:
While the short-term sources allow bank loans of up to 3 years, the medium-term finances allow it for a period of 3-10 years. The credit interest is generally fixed as a margin subject to the credit score and riskiness of the borrowing company. This interest could be fixed or variable (Davis & Pointon, 1994).
2. Lease Financing:
Banks can likewise issue fund leases, which are more focused and likewise favored by some external (foreign) supporters over customary loan financing. It is likewise a helpful choice when other sources of financing are inaccessible (Brealey, 1970).
3. Currency Bonds:
Currency bonds for medium term sources are issued to financers through foreign and local entities. Development bands needed for medium-term finance investors range from minimum 9 months and up to the period of 30 years (Brownlie, 1987). Furthermore, government currency bonds likewise have the profit of being frequently examined by policymakers for better outputs and investment rates (Brealey, 1970).
Short Term Sources
Short term sources could be utilized for a period of a year to facilitate enterprises build stock requirements, payrolls, and everyday supplies. This type of sources incorporates the accompanying instruments for financing:
1. Commercial Paper
Commercial paper is an unprotected promissory note in accordance with an unchanging development of up to 364 days in the worldwide currency market (Altman, 1986). This paper is issued by substantial organizations to get sources of financing in order to meet the short-term commitments of debt. It is just upheld by issuing bank or company’s guarantee to repay the sum on the development date mentioned on the note (Davis & Pointon, 1994).
2. Promissory Note
This is a debatable instrument, wherein one of the involved party (the producer or guarantor) makes an unrestricted guarantee in writing to disburse a determinate amount of cash to the other involved party (the payee) (Altman, 1986).
3. Asset-based Loan
This sort of loan, frequently short term loan, is secured by an organization's resources and assets. Land, A/R (accounts receivable), stock and hardware, are common resources utilized to support the loan (O’ Sullivan, 2006).
It is clear that there are three business choices available to the brothers. Considering their pros and cons the decision could be made. Sole proprietorship gives advantages of working alone that is all benefits are taken by the holder. Nonetheless, the sole proprietor must work for extend periods of time bringing about a little time for the crew. In limited company, there is restricted cash-flow to infuse into the business, and only he bears all the danger of the business. While in Partnership there is more mastery and work burden is imparted. A primary preference of restricted obligation organizations is that their shareholders appreciate constrained risk yet they are not simple to begin because of the quantity of lawful techniques needed.
As an accounting manager I would make the following recommendations for the brothers to start up a business:
Figure out what kind of business you plan to begin. These are partnership, Sole proprietorship or limited liability. The manifestation of your business will decide how you document duties and who is at risk for obligations. Research the advantages and disadvantages of every sort. Look for legitimate guidance for further clarification and support in picking the best sort for your circumstance (Collis, & Hussey, 2013).
At the start of the business the greatest test is liable to be dealing with your income - presumably the most vital financial explanation for another business is the income articulation. The general reason for dealing with your income is to verify that you have enough money to pay current bills. Organizations can oversee income by inspecting an income explanation and income projection (Robb & Robinson, 2012).
Make a strategy for success. On the off chance that you require a credit from a bank to fire up your business, you will need to give the moneylender your strategy for success. Sites and business programming can help you add to your arrangement. Your marketable strategy ought to obviously express your business' main goal and objectives.
Carlson, S. (2012). Notes on the General Theory of Business Finance. Ledelse og Erhvervsøkonomi, 27.
Collis, J., & Hussey, R. (2013). Business research. Pan Macmillan.
Cooper, D. R., Schindler, P. S., & Sun, J. (2006). Business research methods (Vol. 9). New York: McGraw-hill. Pp. 110-131.
McEvoy, G. M. (1984). Small business personnel practices. Journal of small business management. Pp. 201-240.
Zott, C., Amit, R., & Massa, L. (2011). The business model: recent developments and future research. Journal of management, 37(4). Pp. 1019-1042.
Collis, J., & Hussey, R. (2013). Business research. Pan Macmillan. Pp. 150-195.
Drucker, P. F. (1994). The theory of the business. Harvard business review,72(5), 95-104.
Pratt, J. W., Zeckhauser, R., & Arrow, K. J. (1985). Principals and agents: The structure of the business. Harvard Business Press. Pp. 261-275.
Aaker, D. A., & Adler, D. A. (1984). Developing business strategies (Vol. 200, No. 1). Wiley. Pp. 140-190.
Ross, R. G. (2003). Principles of the business rule approach. Addison-Wesley Longman Publishing Co., Inc. Pp. 341-377.
Czinkota, M. R., Ronkainen, I. A., Moffett, M. H., Marinova, S., & Marinov, M. (2009). International business (Vol. 4). Dryden Press. Pp. 390-422.
Altman, E. I. (1986). Handbook of corporate finance (Vol. 15). John Wiley & Sons Inc. Pp. 2035-2140.
Beck, T., Levine, R., & Loayza, N. (2000). Finance and the Sources of Growth.Journal of financial economics, 58(1), 261-300.
O’Sullivan, M. (2006). Finance and innovation. The Oxford handbook of innovation, 240-265.
Brownlie, S. M., & Harris, F. C. (1987). A review of finance for large-scale construction. Construction Management and Economics, 5(2), 115-121.
Davis, E. W., & Pointon, J. (1994). Finance and the firm: an introduction to corporate finance. Oxford University Press, USA. Pp. 298-314.
Brealey, R. A. (1970). PRINCIPLES^ CORPORATE FINANCE (Doctoral dissertation, University of Pennsylvania). Pp. 491-529.
Davies, T., & Crawford, I. (2011). Business accounting and finance. Pearson.
Drucker, P. (2012). Management. Routledge.
Gaff, B. M., Kimball, R. N., & Hanson, J. M. (2012). Raising Capital: Where to Find It, How to Secure It, and Tips on What to Avoid. Computer, (7), 11-13.
Horngren, C., Harrison, W., Oliver, S., Best, P., Fraser, D., & Tan, R. (2012). Financial Accounting. Pearson Higher Education AU.
Introduction to business management. Oxford University Press Southern Africa, 2013.
Kaplan, R. S., Atkinson, A. A., & Morris, D. J. (1998). Advanced management accounting (Vol. 3). Upper Saddle River, NJ: Prentice Hall.
Longenecker, J., Petty, J., Palich, L., & Hoy, F. (2013). Small business management. Cengage Learning.
Mariotti, S., & Glackin, C. (2014). Entrepreneurship and small business management. Pearson Higher Ed.
Needles, B., Powers, M., & Crosson, S. (2013). Financial and managerial accounting. Cengage Learning.
Robb, A. M., & Robinson, D. T. (2012). The capital structure decisions of new firms. Review of Financial Studies, hhs072.
Sba.gov, (2015). Follow These 10 Steps to Starting a Business | The U.S. Small Business Administration | SBA.gov. [online] Available at: https://www.sba.gov/content/follow-these-steps-starting-business [Accessed 16 Mar. 2015].
Turpinbainsolvency.co.uk,. (2015). Turpin Barker Armstrong, insolvency accountants in Sutton, Surrey UK. Retrieved 16 March 2015, from http://www.turpinbainsolvency.co.uk
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons.
Zimmerman, J. L., & Yahya-Zadeh, M. (2011). Accounting for decision-making and control. Issues in Accounting Education, 26(1), 258-259.

Cite this page
Choose cite format:
  • APA
  • MLA
  • Harvard
  • Vancouver
  • Chicago
  • ASA
  • IEEE
  • AMA
WePapers. (2020, December, 25) Turpin Barker Accounting Firm Report Examples. Retrieved August 12, 2022, from https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/
"Turpin Barker Accounting Firm Report Examples." WePapers, 25 Dec. 2020, https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/. Accessed 12 August 2022.
WePapers. 2020. Turpin Barker Accounting Firm Report Examples., viewed August 12 2022, <https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/>
WePapers. Turpin Barker Accounting Firm Report Examples. [Internet]. December 2020. [Accessed August 12, 2022]. Available from: https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/
"Turpin Barker Accounting Firm Report Examples." WePapers, Dec 25, 2020. Accessed August 12, 2022. https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/
WePapers. 2020. "Turpin Barker Accounting Firm Report Examples." Free Essay Examples - WePapers.com. Retrieved August 12, 2022. (https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/).
"Turpin Barker Accounting Firm Report Examples," Free Essay Examples - WePapers.com, 25-Dec-2020. [Online]. Available: https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/. [Accessed: 12-Aug-2022].
Turpin Barker Accounting Firm Report Examples. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/turpin-barker-accounting-firm-report-examples/. Published Dec 25, 2020. Accessed August 12, 2022.

Share with friends using:

Please remember that this paper is open-access and other students can use it too.

If you need an original paper created exclusively for you, hire one of our brilliant writers!

Related Premium Essays
Contact us
Chat now