The organizational comes across a variety of issues related to the organization that takes place at the time of the conduction of the operations of the business. The issues are divided into a variety of issues that consist of the issues like the management, public and the accounting issues. Thus, the managers must take steps towards the identification and determination of the issues present in the organization. This will further lead to the construction of strategies that will be effective in nature to play the role of mitigation of such issues and inefficiencies. The aim of this report is to analyze various accounting, management and public accounting issues of Deloitte. Deloitte is United Kingdom based company that provides professional services like auditing services, tax services and other financial services. The major issues that form a part of the business organization are mentioned below:
Figure 1: Issues in Deloitte
(Source: firmsconsulting.com 2017)
The issues discovered at the time of accounting and financial operations are discussed as under:
Figure 2: Accounting Issues in Deloitte
(Source: marketwatch.com 2017)
The ineffectiveness in the system of accounting: The accounting system in the workplace must be effective and efficient as the ineffectiveness is considered as one of the principle issues of accounting. The systems of accounting must be apt and must have a nature of fitting with the needs and requirement of a business organization. A system of proper accounting selection procedure is a major aspect from the perspective of an organization as the system helps in the accuracy of recording the accounting as well as other financial transactions occurring within the business. The selection of the accounting systems has a dependence on the nature of the business. In the modern days, the organizations have an objective of developing the accounting system that is computerized rather than the manual systems. The main objective behind the same is the review or evaluation of the financial conditions of the organization. The system of accounting provides assistance towards the effectiveness in the decision-making processes by providing the required information of financial nature (Armstrong 2014). The effectiveness in the system of accounting also helps in the critical review of the important information that include the accounts payable, receivable, incomes and expenses. Deloitte is mostly an accounting firm and quality accounting can be expected from the company. Thus, in the given case it was observed that there is a lack of effective accounting system in Deloitte that made the business faces a number of problems that played a major role in the business. Further, the decision making process of the business organization has been lacking due to the inefficiency in the system of accounting.
The deficiency in experienced and proficient accountants: The role of the accountants is the fundamental one among all the important functions of accounting and other activities in a business organization. Thus, the accounting staffs must be hired by keeping in mind the following aspects by the mangers of recruitment.
Thus, the above three criterions are among the major ones that must be fulfilled by the accountants. In the modern world, the accountants must possess enough knowledge of recording the transactions of accounting in an effective manner. The calculation of the transactions is not enough, as the accountants must be strong in knowing the amount of debits and credits of the organization. There is a failure in the practices of the accounting if the accountants of the organization do not have a proper knowledge about the debits and credits related to the transactions. The accounting principle does not differ, the differences arises in the manner of the accounting processes that depends on the size of the business organizations.
In case of Deloitte, different kinds of faults and discrepancies have been seen in the debits and credits of the organization, Deloitte. The discrepancies crept in due to the lack in the expertise of the accountants present in the business organization. The lack in the expertise can thus lead to numerous issues within the business organizations that are not expected from the company like Deloitte (Bhasin 2013).
Inappropriateness in the maintenance of the records of the financial data and dealings: The effective recording of the financial data are a significant requirement for every business organizations. The improper maintaining of the information can lead to numerous impacts of negative nature, as it is one of the significant requirements. A variety of benefits arises with the proper maintenance of the financial transactions that include the process of decision-making, audit procedures and other significant dealings within a business organization. The maintenance of financial records in a proper manner also helps in the preparation of tax returns. Thus, the major areas that require the proper and appropriate recording include the preparation of tax, audit procedures and other decision-making processes.
At the time of the preparation of tax return files in Deloitte, different kinds of faults have been noticed. Inappropriate maintenance of the important financial information related to the business organization can be held responsible for this. The same can lead the company to face severe issues related to the taxation and auditing procedures (Carroll and Buchholtz 2014).
The errors in the cash and accrual system of accounting: The major accounting basis is the cash and accrual basis of accounting. The cash basis of accounting recognizes the incomes and the expenses at the time of cash arriving in the business and the accrual basis of accounting recognizes the incomes and the expenses at the time of the incurrence. The accountants must take steps in the establishment of appropriate basis of accounting as it falls among the major responsibilities of a business organization. There must be a balance between the two major basis of the accounting system and the accountants with great care and diligence must maintain the same.
In the given case, Deloitte is not maintaining the accounts with proper following of the basis of accounting and the organization lacks the balance in the major basis of the accounting. This has been happening due to the lack of financial regulations in the organization. These issues in Deloitte can lead to a situation where there can be payment of higher taxes and a shortfall in the cash.
Inaccuracy in the budget procedures: Budget preparation is among the major aspects of the accounting procedure and thus the same must be done in an effective manner. A budget is the statement that helps in the awareness of the prospective amounts of income and expenses of a business. The effectiveness in the preparation of the budgets can lead to the financial success of the business organization. The budgets can help in the effective comparison among the actual and the budgeted results of the financial information at the end of the financial year. Therefore, the budget preparation is a major parameter used in the measurement of the financial performances of the business organization. There must be a minimum gap between the actual and the budgeted financial results as the gap represents the efficiency of the business organization (Black 2013).
The budgets are prepared effectively in cases where the accountants use their well attained expertise and proficiency of accountancy. In the given case, Deloitte is not having a set of well-experienced and qualified accountants that result in the ineffective preparation of the financial budgets. The gap between the actual and budgeted results are also not small that further increases the ineffectiveness of the budgets. For this reason, Deloitte have been facing major drawbacks in the financial decision-making process of the company. Thus, the budget preparation plays a significant role in a business organization (Weske 2012).
Inappropriateness in the preparation of tax returns and reports: The two important aspects of the business organizations include the payment of taxes and preparation of tax returns. The taxes must be paid on a regular basis and as required by the entities and the returns are prepared as per the financial transactions of the organization. The tax returns is a document that undertakes the reporting of the incomes, expenditures, assets, liabilities and other major aspects of accounting. Hence, every business organizations need to pay the required amount of taxes regularly as it has a nature of utmost priority. The tax experts are hired by the business organizations to prepare and record the tax return and other documents. On the other hand, the responsibility and liability of preparation of the entries regarding tax payments and other considerations lies on the accountants and the managers of finance related to the business organizations. The external experts of tax may find it difficult to identify the missed items that the internal accountants of the business organizations might not have noted. Thus, if the items would have been missed, it will not be possible for the outsiders to identify and rectify the same (Cutlip 2013).
Thus, the main and initial responsibility of the preparation and recording of the tax returns lies with the business organizations. In the given case, there are major issues detected in Deloitte that has relation with the preparation and recording of the tax returns. Some major accounting flaws have been seen in the tax file preparation of the company. Thus, it can be concluded that tax payments are important issues for the business organizations.
Inaccuracy in the projections of the Cash Flows: There must be clarity in the projections of the inflows and outflows of the cash in the business organizations. The clear projections will lead to the awareness of the business expenses and total cash flows of the business organizations. The accountants and the managers of finance are responsible for the projection of the future cash flows of the business organizations that will have a basis on the trend followed. The given case represents that Deloitte is not being able to forecast or project its future cash flows in an effective manner due to several errors and defaults. The ineffective projection of cash flows affects the decision-making process of the company. Therefore, Deloitte has been inefficient in the projection of the expenses and the same is a major trouble for the business.
The accounting issues as discussed above forms the major issues within the business organizations, but the problems also have a relation with the management of the business organizations. The management issues of a company are high in number and the issues are mostly related and connected with the employees and other members of staffs present in the business organization. The major issues related to the management of Deloitte include the following:
Figure 3: Management Issues in Deloitte
(Source: bitc.ie 2017)
Lack in performance of the employee: One of the major problems of the business organizations is the performance of the employees. The managers consider the problems to be a reason of the lack of the effectiveness in the performances. The issues related to performances are difficult to solve but they should be identified with due care and diligence. After the identification of the issues related to the performances, the managers must take immediate steps towards their mitigation and control. In the given case, Deloitte has dragged the issues and thus increased the overall difficulty of the business that forms the part of a management issue (Deegan 2013). Lack in employee performance leads the companies towards low profitability and bad financial health.
Inaccuracy in the Process of Hiring: the selection and hiring system of appropriate and proper employees for the business is a difficult and complicate task that is undertaken by the management of the business organizations. It is not easy, as it seems because the inaccuracy in the process of hiring can have many future consequences. The hiring process includes the selection and the recruitment process. The recruitment procedure takes account of selecting the candidates that have a suitability of being chosen for the final round of selection in the business organization. The subsequent stage i.e. the selection process will consider the choosing of the best among the selected ones. The process includes the interview sessions and other activities for selection. Therefore, the business organizations have an obligation to follow the process of recruitment and selection for the effective completion of the process of hiring. As per the given case, it has been observed that Deloitte is not considering the accuracy in following the two stages of hiring that leads to the selection of a wrong and improper set of employees. Thus, the improper hiring process forms the part of a management issue. Ineffective and less skilled employees fail to fulfill the objectives of the companies. Thus, this is a major problem.
Conflicts in teams: In every business organization, there is an expectation that there are harmony and good connections among the members of the team. However, there can be situations arising within the team where bad connections among the members might evolve out to make the situations worse in the business organization. The members might go against one another and complain that can create a variety of issues. In the business process of Deloitte , the employees need to work in different teams like audit teams, tax teams and others. In such cases, the managers of Deloitte must take up the responsibility to undertake the matters and try to resolve the same within a short span of time.In the given case, there have been several conflicts arising within the team that has created a situation of low harmony and unity among the members. This is not a healthy sign for Deloitte as the same can lead to low productivity and the lack of harmony is thus, a major issue that has a relation with the management (Dodge 2015).
Providing important facts and information to the employees: The management of the business organization must take steps in making the employees aware about the mission, goals, vision and major objectives that has to be achieved in the desired period. The employees need to know about the important aspects and must get the direction to fulfill the responsibilities towards the job. The effectiveness in the knowledge will lead to employees to form an alignment among their personal and organizational goals and objectives. In the given case, it was observed that the senior management of Deloitte lacked in spreading the proper knowledge about the mission, goals, vision and major objectives that has to be achieved by the employees. Thus, the employees were running behind their personal targets and did not care about the overall targets of the business organization. Thus, the provision important facts and information to the employees is a major issue of a workplace. For this reason, lack of coordination can be seen among personal targets and organizational target.
Failure to create a healthy and positive environment in a business organization: Every business organization has an obligation of creating an environment that is healthy and positive for the employees and the entire workforce. The ways of the creation of the positive and healthy environment within a business organization include the steps of giving motivation, appreciation, encouragement, incentives and other benefits. The above steps help in instilling a feel of belongingness among the workforces of the business organization. It helps the employees to feel enthusiasm and happiness towards their work to get recognition and other rewards. In the given case, the managers of Deloitte have failed to create a healthy and positive environment in the business organization. The same has led the employees to suffer in the productivity and performances that is a major issue for Deloitte (Drumbl 2013).
Failure to provide effective training and other initiatives for the development of the employees: The manager’s responsibility does not end up with the selection process; there must be provision of effective amount of training after the process of hiring. The managers must provide adequate amount of training and must undertake other programs towards the development of the new employees to achieve more profits and productivity. The training and development programs make the employees more efficient and they become capable of performing in an efficient manner to increase productivity. Therefore, the management must take necessary steps for the arrangement and providing of effective programs related to the training and development of the new employees. The old employees must also be trained with the new updates available for them. In the given case, Deloitte is lacking in the provision of effective programs related to the training and development of the employees. The training programs are not undertaken and the employees with improper and inaccurate amount of knowledge are moving towards lower productivity. The same has led the employees to suffer in the productivity and performances that are a major issue for Deloitte and the same must be solved immediately (Euphrazia 2016).
Ineffectiveness in the retention of the high-leveled employees: The business organizations consist of a large number of performers that even consists of start and high-leveled employees. They are the ones who have been excelling in their performances and are the assets of the company and providing great amount of contribution towards the production of the business organization. The management must undertake major steps towards the retention of the employees by meeting their desired needs and requirements. These processes form the important part of the business organization and thus, the management must take steps to retain such major assets. It has been seen that other top financial service companies like PWC, KPMG and other have been headhunting the top level employees of Deloitte In the given case, the management of Deloitte has not taken any significant steps and thus it is a major issue for the business organization and the same must be solved immediately.
Other than the above mentioned accounting and management issues, the issues related to the public relations are also a part of the major issues related with the business organizations. They are connected and linked with the customers of the business organization and the major issues related to them are as under:
Figure 4: Public Relation Issues in Deloitte
(Source: holmesreport.com 2017)
Ineffectiveness in the approach to create Public Relations: With the change in the time and evolvement of latest technologies, the need of changing the traditional way of approaching the public has changed. Earlier, the medium of approach included the press releases but in modern times, preference is given to the relationship of a personalized nature i.e. creation of a direct relationship with the customers. In the given case, the management of Deloitte has not taken any modern way approaches and thus it is a major issue for the business organization and the same must be solved immediately (Ford 2014).
Lack of employment of the latest technologies and tools: The organizations must take steps to undertake the employment of the modern techniques and methods to create customized relationship with customers. The major aspects of the modern world must be considered that include the services of media distribution. In the given case, the management of Deloitte has not been reluctant in employing and adopting of new technologies and thus it is a major issue for the business organization. The customers are losing interest and trust in the organization that can be a major issue. For this reason, Deloitte is lagging behind in the competition with other companies.
Lack of clarity and transparency in relations: There needs to be transparency and clarity in the process of the public relations in a business organization. There can be cases where several negative comments can erupt from the side of customers. Thus, the business organizations must take up responsibilities towards solving the negative responses and issues. The help of the transparency can only solve the poor satisfaction of the customers and other issues. In the given case, the management of Deloitte has failed to implement transparency and lucidity in the public relations and thus, it is a major issue for the business organization (Grunig 2013).
Lack in the measurement of the success of the business organization: The initiatives of the business organizations with respect to the public relations must be measured and evaluated for the determination of the success or failures in the activities of the business organization. There must be an employment of a variety of approaches to measure the success of the public relations within the business organizations. In the given case, the management of Deloitte lacks the measurement of the success of the business organization and thus it is a major issue for the business organization.
The bachelor degree course in accounting provides knowledge about the major subjects. Some of the major subject throughout the bachelor degree course are fundamental of accounting, management accounting, economics, management, marketing and communication, public relation, human resource management and many others. While pursuing the bachelor degree course in accounting, these are the principle subjects and they have relation to both the practical and professional lives. The course majorly provides knowledge that has a relation with the issues occurring within the accounting, management in business and relations with public. It also provides the students with the justifications related to such issues and the manner to solve the same.
The above discussions have shown the problems of accounting that has foremost importance within Deloitte. There are particular steps that must be followed by the organizations to solve the accounting problems associated with them. The first step includes the analysis of the consequences and problems faced by the business organizations with the available issues of accounting. The major accounting problems of the business organizations as per the above discussions include the ineffective system of accounting, budgeting processes, recording of financial data and many more. It also included the lack of proficient and qualified accountants. The courses of the degree teach the consequences of the issues of accounting and the manner of resolving the same. The knowledge is provided towards analyzing the whole problem of accounting and justifying the same. In the given case, Deloitte has faced many complexities in the processes of decision-making that took place due to the inappropriateness in the recording system of the financial data (Hall 2012).
The business organization has been facing the issues related to tax that was the fault and discrepancy in preparing the tax returns. Further, the lack in the decision making process of choosing the basis of accounting i.e. cash or accrual occurred due to the lack of well qualified accountants. Thus, all the issues of accounting had affected the operations of accounting in some or the other way in Deloitte. These accounting issues of Deloitte can be identified with the help of knowledge in fundamental of accounting and management accounting. Thus, the bachelor degree of accounting plays an important role in solving the various issues related to the accounting within an organization.
In case of solving the issues of management, the strategies are same like the accounting issues. In case of the issues in the accounting system, there is a necessity of analyzing and justifying the effects related to the issues of management and overall operations of the business organizations. The most important problems related to the management in the business organizations include the issues related to the employee’s performances, lack of significant organizational information, team member’s conflicts, ineffectiveness in the training and programs of development towards the employees and ineffectiveness in the provision of a healthy and positive environment towards the workforces. Thus, it has been observed that there has been loss in the productivity due to the problems in the performances of the employees and due to the conflicts arising among the members of the team (Heath 2013). The lack of training and other developmental programs and activities have further augmented the inefficiency among the employees. Therefore, there is a requirement of organizing programs related to effective training and development activities. There must be creation of positive and healthy environment through the provision of motivation, enthusiasm, incentives and other benefits towards the employees. Thus, the strategy developments require the application of the knowledge taught in the course of the accounting. All these management issues in Deloitte can be identified with the knowledge in fundamental of management.
Similar to the issues related to the accounting and management, the issues of public relations are equally important and they are to be solved with the application of the knowledge provided throughout the course of the bachelor degree of accounting. The major issues related to the public relations include the inefficiency of the latest approaches towards the creation of the public relations. The other major issues include the lack of lucidity and technologies in the course of creating public relations. The issues have a negative impact and effect on the operations of the business organization. The lack of technology and clarity leads to the non-satisfaction among the customers. In addition, a number of negative feedbacks given by the customers are a result of the lack of transparency and clarity in the public relations (Irwin 2013). Thus, the solution is the establishment of an approach that is developed towards the attainment of satisfaction among the customers of the organization. Thus, the knowledge of the public relations is important to be developed that is taught in the course of accounting.
The above discussions lead to the analysis and evaluation of the available issues that occur within the environment of a business organization. The several issues include the issues related with accounting, management in business and relations with public. The above analysis helps in the mentioning that the application of the knowledge received by the course of accounting in the subjects like fundamental of accounting, management accounting, human resource management, public relation management and others can lead to the development of new strategies that include the major ones as discussed below:
Every business organization is required to employee the system of accounting that must be sound and effective in nature. The strategy must consider the employment of the system that will suit the operations conducted by a business organization. There must be an employment of the modern and computerized system of accounting or the fast processing of the financial data present in the business organization. The effectiveness in the system will help the business organization to record and document the financial data and information in an effective manner. The strategies will help in supplying the necessary financial information to the managers of accounting and the same will assist them in their decision making process. The subsequent strategy of accounting will include the hiring of the qualified and experienced accountants that will help in the smooth running and increase in the growth of the overall business organization. The employees of Deloitte must be provided with adequate amount and qualitative knowledge that is related with the operations in accounting. They must also have enough amount of practical knowledge to carry on the accounting operations in an effective manner (Kurec 2014).
The accountants must have the basic knowledge of accounting that is the knowledge of debits and credits of the transactions. They must be efficient in knowing the basis of accounting i.e. whether cash or accrual basis as per the given scenarios. The above forms the most important strategies of accounting that must be employed in the workplaces and the business organization. The development of the strategies can take place only if an organization has sufficient amount of resources. By resources it means that the organizations must have the sufficient amount of capital to consider the implementation of new systems like computerized systems in replacement to the manual ones (Rajput 2014).
The cases of the problems related to the management require the employment of the major strategies of management. The procedure of performance appraisal is of utmost priority towards the measurement of the performance of the business. The process of the performance appraisal can easily track the performances of the employees and the workforces. There may be employees who would be lagging behind in terms of the performances and thus there must be introduction and implementation of several training and development activities undertaken by the business organizations. The other major strategy that is required in case of the management plan is the effectiveness and accuracy in the hiring and the selection process undertaken by the organization. The managers of human resources must carry out an effective process of recruitment and selection to ensure that the right people are selected. The managers must also include and implement the proper programs of induction and training to attain higher productivity and efficiency (Smith 2017). The other strategy is the creation of positive and healthy environment for the workforce to motivate the employees. The organization must provide benefits in form of incentives and other rewards to recognize their efforts and thus increase productivity.
There must be a wide range of interactive sessions that must be conducted by the managers of the organization. The sessions must be conducted with the employees towards solving their issues. The directors, Chief Executive officer and other high-leveled managers of the organizations must take part in the interactive sessions. The sessions must mostly talk about the goals, objectives, mission and vision of the organization and the manner in which they must achieve the same. The above strategy will help in the alignment of the self-goals and the goals of the organization. The organization will highly be benefited by the application of the above strategies. However, the implementation of the above strategies will require the desired amount of resources that must be attained. The resources are needed for the establishment of the facilities of training and other activities of development within the organization (Smith 2013). The implementation process will further demand the hiring of the trainers that will further increase the cost of their salary. Deloitte must also take steps in retaining back their top leveled employees by the provision of high quality facilities and salaries.
There is a requirement of major strategies with respect to the public relations within an organization. The major strategy or policy will take into account the adoption of proper and effective approaches in the public relations. There must be latest technologies used in the modern era to create relations with the public. The same can be done with use of internet, emails and other media. There must be transparency and clarity in the approach towards public relations to build faith and trust among the public. The transparency can be achieved by the disclosure or revelation of the requisite information towards the customers.
Conclusion:
The required and necessary information must be provided to the customers so that there is clarity and the customers do not lose their trust on the organization. The organization also has to undertake the measurement of the success that forms the part of the approaches of the public relations (Stacks 2016). The major ways to improve the same will require the reduction of the negative feedbacks and comments received by the customers and the continuous obtaining of the feedbacks from the customers.
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