Job costing: An analysis of the construction industry

The construction industry in New Zealand is very large and shows no signs of slowing down in the near future. It is one of the largest contributors for employment growth. However, some of the largest construction companies are seeing huge losses and debts. This report sets out to find out why this is happening and will do so by analysing job costing methods and investigating variances of quoted and actual costs in the construction/painting industry. Many Potential Job Costing methods have been identified, but the best-suited options were the profit point analysis and micro costing methods. Another potential method to improve quoting would be to use a structured project learning approach. However, the answer may not lie within job costing but with the fact that material and labour prices are increasing yearly and will be different when jobs are quoted from when they are carried out. A survey was sent via email to 85 construction businesses. 10 viable responses were gathered back. A financial analysis was also carried out on 45 jobs gathered from a painting business known to the researcher. The financial analysis found there was an average variance of 5 %, with labour contributing 69% of this. When looking at jobs under $5000 it was found the average variance was 19$5000 averaged 1% variance. The survey results found that average estimated variance for labour was 6% and materials were 1%. The researcher recommends using a structured learning approach. It is essential that construction businesses are aware of increasing material and labour costs. It is also evident that smaller jobs saw larger variances, therefore smaller jobs should be quoted as accurately as larger jobs

The impact of cloud accounting

The accounting industry has experienced a substantial transformation from manual bookkeeping of ledgers and trial balances to advanced accounting software. Many accounting firms, though, use accounting software with standalone packages which do not support the web. As a result, accounting firms demanded integrated software which could manage overall business management system. Accounting firms rely on software advancements in technology and specialised accounting software that can help financial activities like accounts, administrative tasks, payroll, tax and sales systems with fewer complexities. Real time information gave rise to the demand for accounting services which have higher accessibility of cloud-based software applications. The adoption of cloud accounting applications for accounting firms at accelerating speed leads to the question of considering the impact of cloud accounting software which has effects on the operational expenses of accounting firms. This research examines what encourages small accounting firms to grasp cloud accounting. The qualitative method of collecting data of small accounting firms was done through the distribution of questionnaires that use cloud accounting software. Findings from this research were used to understand the impact of employee training and IT costs which firms face by implementing cloud based accounting. The firms in this research have majorly agreed that they experienced overall increase in their operational costs. As a result, organisational efficiency was also increased. The recommendations provided by the researchers point to a similar study to find out the impact of profitability on firms from implementing cloud software and suggest to firms how to use cloud software to expand their client base

Implementing measures of cost control (food & labour) for small restaurant businesses

In 2012, Auckland Region Restaurant Record estimated that there were 2000 restaurants in the Auckland area. Therefore, with fierce competition in the market, it is important for small restaurants to think how they can save costs and be more competitive. This research aims to identify feasible measurements for small restaurant businesses to control food and labour costs in order to possess advantages in the competitive environment. This research contains both quantitative and qualitative research by convenience-based sampling methods. The researched restaurants are located in Hamilton. To analyse the answers from the participants, the responses will be compared with results shown in the literature review and displayed as graphs. Due to limited time and resources, the sample selecting, size and location will be limited. The tentative results from the research illustrate that few of the researched restaurants take measures to deal with food waste and leftovers. They usually dispose of waste into the rubbish bin. Apart from participants who are unaware of inventory storage systems, they adopt FIFO as their storage inventory method. Moreover, employees are not happy if their wages/working hours are cut down, and some of them will decrease their working quality or efficiency. Consequently, restaurants need to balance between employee wages and work efficiency

Prevalence of Bitcoin in New Zealand

Global warming is a reality. Organisations realise their corporate responsibility to conduct their business with the 'future' in mind. Sustainability is having a green conscience and ensuring the steps you take today do not have a negative impact on the future. Green Human Resources Management is to promote the sustainable use of resources within business organisations. The aim of this research is to provide organisations with a Green Human Resource Management Strategy (GHRM). A qualitative approach was followed, and five participants interviewed. The researcher followed this approach to gain an in-depth understanding of business eco-friendly practices, to ascertain if they utilise HR to drive “green” in the organisation and engage employees. The study found that most organisations have implemented some eco-friendly practice and know the value of becoming a 'green' employer. However, the researcher identified a significant gap in that organisations are not aware of or lack the knowledge of how to utilise HR practices to get staff engaged in green policies and procedures. The researcher will strive to come up with various ideas and recommendation to the business on how they can utilise their HR practices to go green and engage their staff

Effect of cloud accounting on an accounting firm’s costs

The accounting profession experienced a significant revolution when paper-based practices, such as manual bookkeeping of ledgers and trial balances, shifted to the use of specialised accounting software. However, most of the accounting software used by accounting firms were standalone packages that were not supported by the Web; therefore the demand from accounting firms for an integrated software that could act more like an overall business management system which could cater for various financial activities such as accounts, tax, payroll, administrative tasks and point of sales systems emerged. The demand for having a single integrated platform for all accounting services with greater accessibility to real time information gave rise to cloud based accounting software applications. The accelerating speed at which accounting firms are adopting cloud accounting software leads us to the primary research question of understanding the effects the introduction of cloud accounting software has on the operational cost of accounting firms. This study also aims to investigate the factors that motivate small accounting firms to embrace cloud technology. The primary method for data collection was through the distribution of questionnaires to 6 Small Accounting firms in Hamilton who have adopted the use of cloud accounting software. The researcher was able to gather some interesting findings from this study, in terms of understanding the effect of staff training and information technology costs that Accounting firms are faced with through the implementation of cloud accounting software. The majority of firms in this study agreed that they have experienced an overall increase in their operational costs, but believe that there has been an increase in their general organisational efficiency

Readability of PBE reporting

The standardisation of Public Benefit Entities reporting has developed since 1992. Beneficial PBE reporting requires representations of position and performance, congruent with the Qualitative Characteristics of the conceptual framework. Non-regulation, optional adoption and sector-neutral standards led to issues of erroneous, complicated and misleading language in past reports. After calls for change, sector specific regulations and a tier system was introduced to address negative impacts on PBE reporting, and catering to different PBE types or users. This study aims to investigate if current reporting is meeting expected outcomes of regulation, specifically: Has the 2015 adoption of sector-specific standards impacted the readability of New Zealand PBE's annual reports? Data was collected by a convenience sample of PBE compliant annual reports and the corresponding sector-neutral report. These reports were converted, cleaned and measured for readability (by applying Flesch Reading Ease, Flesch Kincaid Grade Level and passive sentences measures). The resulting data was analysed with a Paired t-Test for a significant difference. FRE results indicated 93% of reports were tougher than ‘slightly difficult to read’. Most reports indicated a difference of one point or more, 53% of reports improved, while, 33% of reports declined after implementing the PBE regulations. This study concludes sector specific standards have not resulted in a consistent, statistically significant, difference in PBE for any readability measures studied. The use of jargon and the lack of specificity in readability measures are possible limitations of this research. However, for PBE’s to deliver efficient annual reports for users, further changes may be needed

Tax avoidance In New Zealand

This study aims to critically review and analyse the causes and solutions for tax avoidance in New Zealand. The research will explore relevant sections of the Income Tax Act and make recommendations for further research and development. Tax avoidance is gaining further awareness amongst people as are the legal implications that surround tax avoidance. This study makes use of secondary research in which data is collected primarily through review of literature that is made available through published journal articles, periodicals and books. During the research, it was found that the general public has different understandings of tax avoidance. The research also aims to review the sections of the New Zealand Income Tax Act 2004, particularly the sections containing the anti-avoidance laws and ways in which the operation of New Zealand's tax avoidance laws can improve. It will also analyse and recommend what a model tax system should be and the legislation that it should follow to eliminate tax-avoidance

Designing the balanced scorecard to improve student satisfaction in educational organisations

Student satisfaction is the top priority of educational institutions. The focus of this research is designing and implementing a balanced scorecard for educational institutes. Kaplan and Norton developed the concept of a balanced scorecard framework. This framework is broadly applied by both profit and non-profit institutions. Higher educational organisations are under a continuous burden to gather as many students as they can. In this competitive market, there are a lot of factors which contribute to the selection of the institute where students want to study. This research aims to analyse the trends of students and factors which contribute to student selection of an institute. This framework will be utilised to investigate student satisfaction which will contribute to strategic planning and improving performance. The method used in this research was interviews with pupils, which were used to measure their satisfaction, views, and opinions. There is an overall good level of student satisfaction. There are some areas which need attention and suggestions from students can help improve performance. Results derived can also be used for future strategic planning and help in management decisions, and further modification of the frameworks will definitively contribute to a high level of performance and better student satisfaction.

Issues for charities applying the new requirements for financial reporting

This research is to determine the issues that charities/non-profit organisations (charities/NPOs) have encountered when applying the new requirements for financial reporting introduced in 2015. Currently in New Zealand, there are 27,217 registered charities affected by these new requirements. This primary, semi-structured research uses a quantitative method and a convenience approach. Literature reviews were gathered and divided into seven themes, from which the questionnaire survey questions were developed. Nine charities/NPOs in New Zealand respondent to the questionnaire survey with results showing 45% of respondents were under Tier 4; 33% for Tier 3 and 22% for Tier 2. Results further revealed that 67% of the respondents find the new requirements clear. The majority of respondents (56%) also indicated increased accounting costs as a result of applying new requirements for financial reporting. Also, 66% respondents indicated a need for staff training. Overall the new requirements for financial reporting have a positive side as they ensure that financial reports are standardised, comparable, readable, consistent, reliable, and transparent to users such as donors, benefactors, government agencies, businesses, funders, and stakeholders. Thus, the financial reports help in the decision-making of external users

How are client expectations changing the way the accounting profession operates in an increasingly technology-rich environment?

Technology is evolving and we are seeing changes in the way that goods and services are being produced in many industries. Accounting is no exception. As the nature of technology change is exponential, it is imperative as an accounting student to consider the future direction of the profession. This will help to ensure that the skills developed in training align closely with the skills required in future for the workplace. There is considerable existing research. However, two key areas of difference in the current research are the method, and the location of the research (Hamilton, NZ). A questionnaire using T-Paired sampling is the basis for the quantitative analysis, whilst an interview with a partner of a Big-4 accounting firm provides further depth for the research. The interim results support the hypothesis that there has been a shift in what clients expect from their accountants. The research has also found evidence to suggest that the nature of the work undertaken for clients has changed along with expectations