The Use of Information Systems to Aid Communication and Financial Assignment

The Use of Information Systems to Aid Communication and Financial Management in Business - Assignment Example This research will begin with the statement that information is one of the extremely important elements in a business organization because of that it serves as a support tool for business operation, decision making, managerial functions and organizational activities. Information is normally considered to be the most powerful asset in a business. Many businesses are effectively utilizing the information that is rich with and succeed in a market by achieving competitive advantage whereas many other firms fail in managing it and thus to surviving in the market as well. This piece of research work presents a brief report on how the information system can effectively be used to aid communication and financial management. No matter how small or large the business is, information is highly critical to it and it can help the business attain its goals. Information is essentially important for financial management for various reasons like decision making, and there have been efforts to bring e ffectiveness in approaching the information and the outcome is that an information system approach has been developed. It is important to identify, explain and evaluate how the information system is used and how it can be successfully used in communication and financial management. Stair, Reynolds, and Reynolds pointed out that information system is a set of inter-related elements or components that collect, manipulate, store and disseminate data or information and provide a corrective reaction to meet a specific objective. Information System is thus a process or system approach towards collecting the data or information as inputs, manipulating them through processes, storing them as either tacit or explicit and making use of them once they have been disseminated as outputs. An organization can be said to use information system if there is a system in which people, process, technology, and information are aligned and integrated.

Principles of Taxation Law Case Study Example | Topics and Well Written Essays - 1750 words

Principles of Taxation Law - Case Study Example A supply will not be regarded as a 'taxable supply' to the extent that it is a 'GST-Free' supply or an 'input taxed' supply. The GST payable is calculated at 10 percent of the value of the consideration that entity receives for making the supply (excluding GST). Entities registered for GST are entitled to claim input tax credits for the GST included in the costs of various goods and services that the business has acquired for its activities. "However where an acquisition relates to input taxed supplies, the registered entity may be restricted in its ability to claim input tax credits for that acquisition depending on the purpose of the acquisition and the supplies to which it relates"3. Depending on the size of the turnover the entities registered for GST are subjected to certain reporting obligations. The entities are required to prepare and lodge with the Australian Tax Office (ATO) GST returns on a monthly, quarterly or annual basis. The entities whose turnover is more than A$ 20 million per annum are required to file the GST returns on a monthly basis. ... On the contrary if the input tax on the acquisition is more than the amount the entity is liable to pay then the entity is entitled for a refund from the ATO. Tax Credits on Land Purchase: As per the GST rules if the land is purchased after 30th June 2000, then the input tax credit on the land purchased can be claimed. However this claim for tax credit is subject to the condition that the sale to the entity must be a taxable supply and was not subjected to any margin scheme. In this case since the GST of 10 percent has been paid on the land cost while purchasing the trust can claim tax credit for the GST amount paid on the land cost. In respect of other capital items purchased like kitchen outfit, tables and chairs and cutleries the trust can claim the input tax credit of any GST included in the items purchased. This also covers the GST included in the services acquired after paying GST. The trust should have invoices for all the purchases it has made in order to claim the input tax credits. "Some supplies of goods and services will be GST-free, for example basic food, exports and some health services. This means that GST will not be included in the price of these goods and services."4 Calculation of Taxable Income: The calculation of the taxable income of the trust is shown below: Description Amount A$ Sales 165,000 Add: Closing Stock 8,000 Total Revenue 173,000 Less : Expenses Purchases 33,000 Wages 40,000 Superannuation 3,600 Administrations Costs 8,000 Interest 12,000 Demolition Costs 5,500 Total Expenses 102,100 Net Income 62,900 Income Adjusted for Tax Purposes: Gross Income as per Statement A$