Work effectively in accounting and finance Chapter 3,4,5

Estimation – using a common sense approach to calculation by seeing if the answer produced seems ‘reasonable’ Percentage – ‘per cent’ means ‘out of every hundred,’ so a percentage is the top number of a fraction where the bottom number is 100 Discount – a percentage of an account deducted from that amount Decimal place – the number of digits (numbers) to the right of the decimal point; £ and p are quoted to two decimal place, e.g. £4.99 Rounding – in the case of £ and p, reducing the number of digits to two decimal places by rounding up or down to the nearest p. Benchmark – in costing this is a forecast figure for future performance (e.g. sales) against which the actual figure is then compared. Mean average – the sum of a series of figures divided by the number of figures – this is also known as a ‘weighted average’ Time series – a series of data collected regularly over a period of time e.g. annual sales figures. Line graph – a visual representation of a time series set out in a line Bar chart – a chart which sets out a series of bars, the height of which indicates the extent of the value that varies. Pie chart – a circle divided into sectors to represent in the correct proportion the parts of a whole – like a pie divided into ‘slices’

Chapter 3 Key terms

  Effective communication is essential to the efficient running of an organisation. Any message must be easily understood, correct and communicated on time. Communication in an organisation can be internal (with colleagues) and external (with customers). It is important that all external communications, whatever the format, give a professional image of the organisation. There are many different types of communication, all used for very specific purposes, for example: ·         Verbal and written communications ·         Paper-based and electronic communications The main verbal communications are telephone and voicemail messages, and discussions in meetings. The main written communications are letters, memos, notes and reports (all paper-based) and emails and faxes (electronic messages)

Chapter 4 Summary

    Emails – an increasingly popular form of electronic communication with a unique set of procedures, different from letter writing. Netiquette – the rules for writing emails which must be strictly observed if an organisation is to maintain a professional ‘corporate’ image Memorandum – a formal paper-based internal message (often called a ‘memo’) which can be used for a wide variety of communications, ranging from simple instructions to informal reports; the memorandum is rapidly being suspended by the email Note – a simple written message used within an organisation to pass on information or make a request Fax – the process in which a paper document is scanned and sent electronically to the recipient Business letter – a formal paper document, drawn up in a specific ‘house style’ used for a wide range of purposes and normally posted to the recipient. Informal report – an internal document which is normally used for routine purposes for sending factual information requested by the recipient; it rarely involves any form of opinion or recommendation.

Chapter 4 Key terms

  An individual working independently should be able to combine efficiency and effectiveness in planning the daily workload. Employees working independently should develop the skill of prioritising tasks and to be able to plain their activities accordingly. A ‘rule of thumb’ order of priority for tasks is: 1.      Urgent and important tasks 2.      Urgent and less important tasks 3.      Important and not urgent tasks 4.      Tasks that are neither urgent nor important Employees should be familiar with different types of planning aids. They should be able to write their own. ‘To do’ lists and diaries. They should be able to understand planning aids such as project planning schedules and action plans, but they will not have to draw them up. Employees should understand the need to monitor the progress of a work plan over time in order to meet deadlines, and have the flexibility to be able to re-prioritise if unexpected events happen. Employees should be able to communicate with management if they need help; they should also be able to delegate tasks if the need arises, maintaining confidentiality where appropriate.

Chapter 5 Summary

  Effective – getting the result that you want Efficient – a task done with the minimum wastage of effort and resources Non-routine task – an unexpected task which is not part of the everyday work of an employee Urgent task – a task which has a pressing deadline Important task – a task which an employee needs to complete and which significantly affects other employees ‘To Do’ list – a checklist of tasks, made by an individual, which can be ticked off when they are completed. Schedule – a chart used for planning projects which organises tasks in terms of time and priority. Action plan – a checklist for a series of activities, listing the main tasks, when they have to be done and by whom. Monitoring – the process of examining the progress of the work plan and re-prioritising tasks where appropriate.

Chapter 5 Key terms

WEAF - Chapter 3

WEAF - Chapter 4

WEAF - Chapter 4

WEAF - Chapter 5

WEAF - Chapter 5