The_Guillermo_Store

The Guillermo Furniture Store University of Phoenix Budgets and Performance Reports The Guillermo Furniture Store has the same problems that many businesses are experiencing today. The business has competitor that are providing a cheaper product. Also other competition is moving into the small area. The store has to be smart and use every resource at hand. Guillermo’s could use performance and budget reports to measure accomplishments and other goals needed to help the company make proper accounting decisions. These reports measure the Agency's achievements and results against established program goals (U.S. Gov, n.d.). According to US (n.d.), the budget defines the goals and objectives towards which the Agency intends to work within the fiscal year and the funding the Agency believes is necessary to accomplish these goals and objectives (Office of the Chief Financial Officer, para. 1). The budget defines what the company has to allot for each part of the business. The budget is what the company going by financially for the current year and future year. The owner can make a budget to watch his spending and make sure he is not spending money on unnecessary cost. Decision making ties in with the budget and performance reporting. In order to make decisions you have to know where the accounting and cost for the following and current year stand. Guillermo must make a decision for his business and it has to be based on the performance from the last year and what he believes the next year will bring. Ethics Ethics plays a predominant role in accounting. Certified Public Accountants (CPAs) and other accounting professionals know that people who use their services, especially decision makers using financial statements, expect them to be highly competent, reliable, and objective (Enotes, 2010). Ethics sets a foundation on what is expected of people as well as business owners. The purpose of ethics in business is to direct business men and women to abide by a code of conduct that facilitates, if not encourages, public confidence in their products and services (Texas A&M University , 2009). Ethics also aid in decision making and basically makes sure owners make ethical decisions when business is not going the way there reports have shown. The main reason for having ethical guidelines is not to provide a cookbook solution to every practice-related problem, but to aid in the decision-making process for situations that involve ethical questions (Texas A&M University , 2009). Ethics are important and must be followed to run an effective business. Final Decisions All accounting decisions are important when Guillermo make his final decision. Not only will he be affecting his life but also his employees and the people in the community. So of course ethics play an enormous role in the Guillermo’s decision. Also budgeting and performance reports play a relevant part. Without a budget the business will not have a road map from where it has come but also what path it needs to take financially. All the parts of accounting work together a play an important role in its own way. References: Enotes. (2010). Ethics in Accounting: Encyclopedia of Business and Finance. Retrieved March 29, 2010 from http://www.enotes.com/business-finance-encyclopedia/ethics-accounting Texas A&M University . (2009). BUSINESS AND ACCOUNTING ETHICS . Retrieved March 29, 2010 from Texas A&M University , Accounting website. US Gov. (n.d.). U.S Small Business Administration Your Small Business Resources. Retrieved March29,2010fromhttp://www.sba.gov/aboutsba/budgetsplans/BUD_PERF_ACCT_REPORT.html