Question

I am working as a cashier at Home Depot. The question is How do I use accounting in my life and my work? Does my work involve using financial accounting or managerial accounting reports?

Answer 1

The definition of the accounting " the art of systematic recording, classifying, summaraising, in a significant manner and in terms of money, transactions and events which are in part at least, of a financial character, and interpreting results ther off " itself says it is used to keep a track of our transactions, classify it according to its nature or some other basis and to summarise all those transactions.

Home Depot is a place where a number of cash transactions will takes place. So it is difficult to remember to all those transactions which are completely different from one another. so here accoutning can be used by a cashier to record all the transactions in day to day order

Even though the basic transactions are,

Purchase - for which cash will go out of the Depot.

Sale - for which cash will come in to our Depot.

But at the same time the sources of inward and outward of cash are different. That means we have to purchase goods form differnt suppliers may be on cash or on credit. and we have to pay to those suppliers when it become due. Here by using accounting we can easily identify whome we have to pay and how much.

At the same time we sell different types of goods in our Depot. And as a cashier its our reponsibility to make sure that how much cash was there in opening, and how much it was at closing, what amount of sales were done and how many products of different types were sold.

In accounting classifying means ledger creation, which we create for each individual product and person. so we can easily identify any person or product when it is required to get data about a particular product or person.

And a cashier has to summarise the total amount of purchases,sales, daily expenses and regular expense and how much he has paid for all those dalily and regular expense etc.

So, as a cashier you can use accounting in your working life in following ways

1) recording all numerous transactions i.e cash or credit, in Home Depot ( because we cannot remember all those transactions)

2) to know the total amoutn of sales, purchases, how much we have to pay to the suppliers and how much we have allready paid....

3) Keep track of all the records of transaction to get data when ever we need, very easily

4)As accounting is a systematic way of recording and classifying it is far better than traditional methods of recording of transactions and in accounting there will be no double payments, as once transaction is recorded it automatically reflects in its connecting account

For example; 1) purchase from supplier for cash

purchase account is debited and at the same time cash account is credited

2)If purchase form supplier from credit

purchase account is debited and at the same time supplier account is credited

In transaction 1) cashier should know how much cash he has to receive on due date from the supplier

and in transaction 2) cashier should know how mcuh cash he has to collect now and record.

So, here a accounting helps a cashier to give the information about when and how much has to paid to supplier in transaction 1)

and how much he has to collect and from whome and for what in transaction 2).

In general for a cashier finanacial accounting is enough but to comapare financial results, to increase the profits by decreasing the cost and increase sales management accounting is usefull.

At the same time a concep of cash management is usefull for cashier. In this concept, how much cash is to be kept for daily usage and who much cash is to be kept in bank. This is used to avoid loss of interest on cash deposited in bank.

So, both finanacial accounting and managerial accounting is usefull for Cashier in Home Depot