Challenges of Accounting in Global Organizations System

Question: Discuss about the Challenges of Accounting in Global Organizations System. Answer: Introduction As per the research, it has been seen that there is financial crisis in the world. The reports of FASB (Financial Accounting Standard Board) apparently issued the update of describing the milestones that have been related to the major joint projects, with conceptual frameworks. The tourism and the hotel industries are encouraged to mainly work on the processing by providing proper comments of the competitive global marketplace. (Geppert et al., 2016). IFRS works on the significant impact on the hotel company accounting process and the procedures which also provides a proper strategy for the positive change in the organization. In today's time, it has been seen that the changes in USA Accounting system works with the World Accounting Information system and to handle the competitive global marketplace, accounting, and the financial functions, it is important to find the optimized recipe for the business success. It includes the stewardship of the shareholders' value along with the strategic alignment of the company objectives and the operations. The IFRS (International Financial Reporting Standards) have a major impact on the accounting process and the procedures of the hotel company with the strategy that could be put for the positive organization change along with handling the comparative form of the financial information with financial indicators. (Dopson et al., 2016). Kenya has been the best tourist destination for the people in the world. Here, there are different types of the wildlife, diversified cultural as well as the attracting tourist spots. The tourism has helped the country GDP grow to an appre ciable level with the contribution mainly towards the economic development. With the globalized economic and the business environment, the assessment of the accounting systems has been important. With the economics, the accounting tends to provide the information about the firm as well as the transactions that tends to facilitate the allocation of the resources with the decisions that are made by the users for the information. (Ragab et al., 2016). The researchers also include the accounting catalyst where there is the paucity of the academic research to assess the connection of accounting in between the tourism and the applications. Every business, whether large or small has to face the issues of the accounting software which includes: The payroll where the business has only a few employees, along with the maintenance of the employed staff, housekeeping, cleaners for the pool, front desk, gift shop, restaurant, caf, bar and the security items. The labor laws have been set with the payroll for the groups where there are tipped employees like the food service workers who need to handle the back office process as well. The scheduling is set where the hotels live and die depending upon the ebb, and the flow is mainly for the seasonal spikes in the business. With this, there is also a right payroll software, where the owners can easily manage the way to control the costs by staffing as well as the needs. (Turner et al., 2017). The hotel payroll software system tends to integrate with the timecard solutions where there is a scheduling based on the calendar details that provide with the additional capability along with the analysis of the productivity and identification of the gaps. The inventory tracking includes that the hotels have beds to be changed and for this, one needs to keep an extra sheet of the blanket and the spreads for all times. The rotation is mainly in between the rooms as well as the laundry services. There is also need to turn the healthy stock for all the towels, washing clothes, soap, and the shampoo on the daily basis so that the customers are satisfied with the services provided. (Esparza et al., 2016). Hence, for this, there is a need to keep the right track through the use of the right software. The Quickbooks can easily handle the features with the seamless integration. For this, there are point-of-sale software systems which can handle the accounting, payments as well as the inventory, payroll and the auditing standards. This also provides a better and enhanced security feature so that the data can easily be kept safe from the hackers. With this, the hotel customers also need a proper solution for setting up the invoice details to the bill with the regular scheme or the capturing of the employee timecard info. It works on printing the payroll checks with tracking inventory depending upon the simplified forms of the annual tax returns. (Lempert et al., 2017). The QuickBooks can easily work on it. There is a simplification process where there are accounting standards and challenges for a Micro sales team. Comparative Analysis As per the analysis, there are diversified forms of the issues in the hotel industry which comes from the rate contracting to the engineering, marketing and then to the service delivery system. The complexity is mainly of the information system and to handle the processes or departments. It is based on the Opera for PMS, Micros, MC for the stores or the purchase. The major focus has been on handling the uncertainties in the risk profiling which comes due to the unpredictability of the industry performance. With this, the inadequacy is mainly of the qualified auditors who tend to get the key staff without any major supervision and grasping all the complex issues. (Kudrna et al., 2016). The change in the process comes with the services that are offered. For this, the guests tend to handle the changes in the processes with the complicated auditing, which is communicated at all times including the auditors as well. For the good hotel manager, it is important to focus on how he can spend the times on the meeting and greeting of the guests along with monitoring the check-in procedures in the appropriate manner. There is a corporate governance grid where the board, internal auditing, management and the external auditing team is connected to one another. With the changing services exporting sector, the major outstanding contribution is to balance the payments as well as the competitive market in an effective manner. There are few barriers to entering where the truly globalized market is set with the unnatural barriers for the trading along with handling a large number of the firms. The accounting standards are set with the activities which associate mainly with the person's usual environment along with the economic development. The enrichment of the tourism industry is for the healthy development along with handling the contribution to the economic and the employment growth. The tourism tends to en compass the transport, accommodation, catering along with the recreation of the services for the travelers. (Engel, 2016). The use of the management accounting system in the hotels as well as the managerial accounting in the multinational companies. The emphasis is on the competitor focused practices where the major focus is on the accounting functions in the hotel sector. The accounting tends to entail the different factors and processes which includes: The measurement of the processes to identify and quantify all the economic activities. There have been measurement standards which include the insights as well as the profitability for the operations of the firm. The process includes the strengths as well as the financial positions. There has been a major disclosure to the process where the measurements of the accounting are mainly communicated to the users. The auditing is the process which has been by the accounting professionals and who tend to work on the reliability of proper measurement and the process of communication. (Scafarto et al., 2016). Gaps Identified There are certain hospitality frauds which include the industrial culture, as well as the emphasis, is also on the customer service over the internal controls that tend to go into the running to a hotel, or the restaurant. The better services of the customer equal with the reputation of the business with bigger profits as well. The line employees, supervisors, and the managers are mainly focused on getting the customers with the come back to control the financial standards with short changed forms. There are accounting procedures which are important for handling the security belts of the business along with working on the intentional release of the information. The avoidance of the loss of income from the misuse or mainly from the errors in the operation helps in playing a major vital role with verification of the incomings and the expenditure. The operations in the hotel business, as well as the field of business, includes the different forms of the income and the expenditures as per the field of operations in the hotel business. For this, there are sections for the procedures where the goods of the tourists and the services tend to occur with the achievement of the profits. The utilization includes the hotel units like the bedrooms, bar, buffet and the restaurant. (Islam, 2017). The research has been focusing on the operational fields which are essential for the earning and maintenance of the costs. It also plays an important role where the accounting has been related to the funding of the hotel unit. The capital is necessary for the smooth running of the process, where the major risks are related to the loss of the capital and the credit risks tends to appear for determining the factors with viability formats. The framework of the limited risks are constituted for the financial affairs, with actions focusing on the major effects: The control of the procedures as well as to hold the check to make sure that the investments have been by the policy of investment. The control is for the evaluation, here the costs of the investments are set with the running values when it is compared to the deposits or the loan. The control also includes the availabilities, where the bank deposits and the loans have been set at a particular update, and the confirmation is also necessary for the same. The accounting systems tend to contribute to the provisions where the information is fixed for the performance measurement. With this, the accounting also focuses on the situations of the local accounting practices with the comparative framework that can set the processes at the time. The prospects are related to the accounting theory with the focus on examining and explaining the differences for the cross-national with the accounting development. (Scafarto et al., 2016). There are different techniques and the methods which are applied to the research community which also dominates the smaller number of the institutions and the authors. The accounting is based on the identified concern with different areas of interest, publication media and the research findings. The advancement is about the roaring nineties that includes the challenge with the enterprise financial transactions and the economic events. For the proper accounting, there is a need to represent the entity in the way where the users can recognize the formats as commonsensical. The QuickBooks have been necessary for the enhancement and improvement of the accounting reconciliations with imported transaction procedures from the journal or the accounts which are set through the selected accounting system. The proper customized cloud based system and the review of the financial picture will help in evaluating the expenses, assets and the liabilities of the hotel industries. The software also helps in the management of the control and the procedures. Conclusions The hotel industry like the other industry tends to focus on the decision-making processes as well as controlling all the followed processes. The financial reports are essential for the management of the hotel and to face different challenges. What matters is the core of the hotel liability along with planning, organizing and controlling all the revenues as per the costs of the hotel. (Lempert et al., 2017). With this, one needs to determine the profitability factor along with the research of the finance department which plays an important role to strengthen the internal control along with the cost related to the expenditure and improvement of the profitable margins. The analysis is based on the suggestions and the recommendations that could be made to completely overcome the problems with the improvement of the lacking requirements of the hotel operations. Reference Geppert, M., Matten, D. and Williams, K. eds., 2016.Challenges for European management in a global context: Experiences from Britain and Germany. Springer. Walker, J.R., 2016.Introduction to hospitality. Pearson Higher Ed. Dopson, L.R. and Hayes, D.K., 2016.Managerial accounting for the hospitality industry. Wiley Global Education. Ragab, A.M. and Meis, S., 2016. Developing environmental performance measures for tourism using a Tourism Satellite Accounts approach: a pilot study of the accommodation industry in Egypt.Journal of Sustainable Tourism,24(7), pp.1007-1023. Turner, M.J., Way, S.A., Hodari, D. and Witteman, W., 2017. Hotel property performance: The role of strategic management accounting.International Journal of Hospitality Management,63, pp.33-43. Esparza-Aguilar, J.L., Garca-Prez-de-Lema, D. and Durndez, A., 2016. The effect of accounting information systems on the performance of Mexican micro, small and medium-sized family firms: An exploratory study for the hospitality sector.Tourism Economics,22(5), pp.1104-1120. Scafarto, V., Ricci, F. and Scafarto, F., 2016. Intellectual capital and firm performance in the global agribusiness industry: the moderating role of human capital.Journal of Intellectual Capital,17(3), pp.530-552. Engel, C.J., 2016. A Primer on the Accounting and Reporting Requirements for Not-for-Profit Organizations.Journal of Public Management Research,2(1), p.14. Lempert, D.H. and Nguyen, H.N., 2017. Accounting for Threats to Sustainable Development: An Indicator for Holding NGOs and International Organizations Accountable to Creating the Context for Sustainable Development.Consilience: The Journal of Sustainable Development, (Seventeen). Islam, M.A., 2017. Future of Accounting Profession: Three Major Changes and Implications for Teaching and Research.Business Reporting, International Federation of Accountants (IFAC). Kudrna, Z. and Mller, P., 2016. Harmonizing Internationally to Harmonize Internally: Accounting for a Global Exit from the EU's Decision Trap.JCMS: Journal of Common Market Studies.