I am doing research for an internship course I am taking for my Accounting degre
ID: 2421515 • Letter: I
Question
I am doing research for an internship course I am taking for my Accounting degree.
I was tasked with researching the average cost of completing a list of financial reports. I realize that this cost would vary depending upon the size of the company the reports are being completed for as well as the size of the firm doing the reports. I was wondering if you would be able to provide me with some average pricing information for the following reports. I know these will be very loose estimates without much information to go on but any help would be greatly appreciated.
Task List and Responsibilities- Kaplan Consulting-
Recurrence
AVG
Cost
Create General Ledger Report at month end
Monthly
Create Trial Balance at month end
Monthly
Create Balance Sheet and Income Statemen
Monthly
Create Statement of Owner’s Equity
Monthly
Calculate the entries that would be involved in the closing of the period.
Format:
Revenue
Income Summary
Income Summary
Each Expense Account
Income Summary
Owner’s Capital (Amount of Net Inc)
*If Net Loss, reverse the order (DR Capital & CR Income Summary)
Add at the bottom whether net income or loss
Monthly
Perform Vertical/Horizontal Analysis
Monthly
Quarter to Date Comparisons
Monthly
Perform Ratio Analysis
Monthly
Prepare Future Year’s Budget
Quarterly
Create a Current Month-to-Date Trial Balance
Weekly
Analyze actuals vs. forecasted budgets to determine variances & make recommendations
Monthly
Create a 12 Month Statement of Cash Flows
Monthly to Practice
Review dept processes for better efficiency
Anytime
Task List and Responsibilities- Kaplan Consulting-
Recurrence
AVG
Cost
Create General Ledger Report at month end
Monthly
Create Trial Balance at month end
Monthly
Create Balance Sheet and Income Statemen
Monthly
Create Statement of Owner’s Equity
Monthly
Calculate the entries that would be involved in the closing of the period.
Format:
Revenue
Income Summary
Income Summary
Each Expense Account
Income Summary
Owner’s Capital (Amount of Net Inc)
*If Net Loss, reverse the order (DR Capital & CR Income Summary)
Add at the bottom whether net income or loss
Monthly
Perform Vertical/Horizontal Analysis
Monthly
Quarter to Date Comparisons
Monthly
Perform Ratio Analysis
Monthly
Prepare Future Year’s Budget
Quarterly
Create a Current Month-to-Date Trial Balance
Weekly
Analyze actuals vs. forecasted budgets to determine variances & make recommendations
Monthly
Create a 12 Month Statement of Cash Flows
Monthly to Practice
Review dept processes for better efficiency
Anytime
Explanation / Answer
Please note that costs are provided only as estimates as it is not possible to determine the exact cost of generating each report as most of the organizations have automated accounting systems where reports can be generated at month end or as and when required without incurring any cost. The only cost associated with the generation of such reports is the time spent by the employee in the extraction of such reports, since data is feeded in the system as and when transactions take place.
____________
The average cost has been determined for a small scale organization having around 300 to 500 transactions per month. Again, these figures are only estimates.
Task List and Responsibilities- Kaplan Consulting- Recurrence AVGCost Remarks Create General Ledger Report at month end Monthly $50 Since the report is generated on a monthly basis, the volume of data will not be very high. Create Trial Balance at month end Monthly $75 Since the trial balance is prepared on a monthly basis, the volume of data will not be very high. Create Balance Sheet and Income Statemen Monthly $100 Since the income statement and balance sheet are prepared on a monthly basis, the volume of data will not be very high. Create Statement of Owner’s Equity Monthly $25 Since the statement of owner's equity is prepared on a monthly basis, the volume of data will not be very high. Calculate the entries that would be involved in the closing of the period.
Format:
Revenue
Income Summary
Income Summary
Each Expense Account
Income Summary
Owner’s Capital (Amount of Net Inc)
*If Net Loss, reverse the order (DR Capital & CR Income Summary)
Add at the bottom whether net income or loss Monthly $25 The number of entries would be limited. Perform Vertical/Horizontal Analysis Monthly $50 The volume of data to be compared will not be very high assuming only the previous month data is used for analysis purpose. Quarter to Date Comparisons Monthly $75 The volume of data to be compared will be high, since the data for a quarter is to be compared. Perform Ratio Analysis Monthly $50 With all the available information, calculation of ratios will not take much time. Prepare Future Year’s Budget Quarterly $250 Since, the budget is to be prepared for a complete year, the amount of time spent may be high. Further, involvement of multiple departments in the creation of budget may be required. Create a Current Month-to-Date Trial Balance Weekly $10 Since the trial balance is prepared on a weekly basis, the volume of data will not be very high. Analyze actuals vs. forecasted budgets to determine variances & make recommendations Monthly $175 Comparison of actual versus forecasted results take time. Further, identification of variances will be reported and discussed with the management on the basis of important decisions will be taken. It is a critical activity. Create a 12 Month Statement of Cash Flows Monthly to Practice $150 Preparation of cash flow statement for a complete year will require considerable time as historical data will have to be collated, organized and reported in proper format. Review dept processes for better efficiency Anytime $500 Since, no fixed frequency has been defined, a fixed amount of budget may be allocated to the activity of business process reviews.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.