Contribution to the development of the system:
A study team will need to properly analyzed the views and inputs from the accounts receivables participants; not only to analyze the current system, but to ensure that the proposed system will meet the organization’s goals—general systems goals, top management systems goals, and operating management system goals. General system goals are to ensure that the new system benefits exceed the costs, and that the output helps managers to make better decisions. Furthermore, it is necessary to limit access and to improve upon the ability to adjust information needs. The accounts receivables participants must be mindful of the new system’s design and implementation so that it corresponds with management system goals. Finally, the study team will fully analyze the human element and potential behavioral problems associated with the participants’ views on the current system.

The head accountant, clerk, and assisting clerks are participants pertaining to accounts receivables accounting function that will be contributing to the development of the new accounting system requirements. Initially, participants will be asked about their views on the current system and what they would do to improve upon it. This is a crucial stage of the new system’s development, because of the importance that the new system will: meet the users’ needs; not be frustrating or confusing to use; meet the accounts receivable business function needs; adequately resolves current system issues; not be more costly to maintain. This process includes a data gathering stage, a data analysis stage, and an evaluation of the system’s overall feasibility.

What is the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act of 2002, also referred to as SOX, was enacted in reaction with the public’s outcry to more closely regulate corporate and auditor accountability. After the numerous corporate scandals that wound up costing shareholders their entire life savings, it was clear that new legislation was needed in order to protect investors of public companies. SOX for auditors is designed to promote quality control.

How does SOX affect the audits for the accounting firm and for the organization?
SOX affects the audits performed by an accounting firm and for the organization by specifying what activities an auditor should be responsible for, and which activities would be unlawful for the auditor to perform. The following services cannot be performed by auditors, in accordance with SOX: bookkeeping related to the accounting records or financial statements of the audit client, financial information systems design and/or implementation, appraisal or valuation services, internal audit services, management functions, broker/dealer/investment advisor/investment banking, or legal services.

Non-financial performance measures:
Non-financial performance measures are methods for an organization, and often consumers, vendors, and investors, to determine how well the company is doing based on quality of service or their product(s), employee productivity, innovative capabilities, and facility capabilities.

Quality of service can go a long way. It’s often a word-of-mouth branding tool, one which can bring return business or new customers. If a company offers great service, or an exceptional, product this is a measure of how likely the company is to prosper.

Measuring employee productivity can tell investors and lenders how hard the business is going to work. Imagine looking into a small business as an investment opportunity. If you see that while the idea behind the business in sound, but the principles lack the necessary motivation essential to succeed, you probably wouldn’t want to invest. However, on the other hand, you may see that the principles work relentlessly to seek new ways to succeed, you may feel differently.

Innovative capabilities suggest that an organization is capable of creating and producing pioneering products and/or services. Take Nokia for example, they’ve been running an advertisement that features their brand new notebook, one that can connect to the internet anywhere a mobile phone can connect to the internet. The innovative aspect here is that Nokia is the first company to begin as a mobile phone company and diversify into a computer making company, rather than a computer company that produces mobile phones.

Facility capabilities is similar to innovated capabilities, but perhaps more so in that it is a measure of what can be accomplished with the current machinery, product, factory, and locale. Perhaps a company that sells canned corn could convert left over corncobs into some sort of animal feed in the same facility. This would create a new product line while reducing waste management needs.

How is the write-off of a bad debt handled on the tax return?
Taxpayers generally use the specific write-off method of accounting in deducting bad debt. To determine whether a bona fide loan transaction has actually taken place: Does a note or other written instrument exist which evidences on obligation to repay? Have the parties established a definite schedule of repayment? Is a reasonable rate of interest stated? Would a person unrelated to the debtor make the loan?

How does the debtor have to handle the forgiveness of the debt?
The debtor has to handle the forgiveness of the debt by reporting the amount forgiven as income unless one of several tax law exceptions exists.

What qualifies as a deductible home office expense?
Generally speaking, normal business expenses can be deducted when operating a business out of one’s home. In addition, gas, electricity, and even depreciation on the home can be deducted for the area that makes up the home office – or, in other words, the percentage of the home that is used for business activities.

Form 8829 is used to file home office expense deductions. On this form allowable deductions are listed, including mortgage interest, real estate taxes, insurance, repairs and maintenance, utilities, depreciation, allowable operating expenses, and casualty losses.