CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 1 Individual Assignment 1 Topic: CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS Done By: SUBODH SAPKOTA Student ID: OED2109CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 2 Contents Introduction .................................................................................................................................................. 3 Literature review scope and objective.......................................................................................................... 3 Comparative Analysis.................................................................................................................................... 4 Identified gaps .............................................................................................................................................. 7 Conclusion..................................................................................................................................................... 9 Reference....................................................................................................................................................11CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 3 Introduction Accounting based functions profoundly impact the present financial crisis and are based on the proposal which introduces the concept of completely recapitalizing the finances and various institution associated with and it also able to restore the stabilizing the current international finance systems. The report will discuss in detail about number of theoretical as well as practical gaps in accounting research that explain the overall failure as well as also anticipate the overall crisis at the same time limits the ability to analyze yet respond to it appropriately. There are some challenges which are identified in the report and precisely control and planning. The initial study will be based on different perspectives like coordination issues, competitor's analysis and allocation of resources. (Bodie, 2013). The major challenge is to overcome centrifugal tendencies with growth on some clarity on the strategic intention with the manager trying to bind everything on the global front. It is also based on rewarding attitude in the business culture which is opposite of the locally based interests. Literature review scope and objective It is critical to understand that adamant governance primarily supports finances based reporting system along with some very high quality based standards with a sound framework based on crucial for economic development. There is no doubt that standards which are high quality are based on financial reporting along with ethics and auditing that develops some trust that some investors place in non-financial as well as financial information. This is why; it plays a critical role in contributing the overall economic growth of the country as well as stability in financial position. Since the overall forces of globalization can support more countries to open doors to some global investors and as an organization can also expand across so many borders. (Bebbington et al., 2014). It impacts both public as well as private sector which are increasinglyCHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 4 identifying the advantages of having a standard stand on many financial reporting frameworks which are highly supported by strong as well as internationally accepted standards. The advantages of international financial reporting framework are so many and consist of great level comparability of finance based data for the investors along with willingness on the part of investors to invest all across the borders. It also includes a low level of cost related to capitals and effective allocation of resources which are based on higher economic development. Right before all the advantages are ultimately realized there should be high convergence to a single set of internationally accepted quality based standards. Global convergence is an objective that can be embraced with a set mission and also shared by the different associated members or the standard setters on the global level. There are many domestic setters of standards as well which are supported by many global regulators. Therefore, to achieve global convergence needs more than basic theory based support. It also requires reaching some results as too many global standards that will serve as the main foundation for finances and audit reporting on an international level. It also covers deciding the methods to facilitate the adaptation of different standards and finally taking some corrective measures to motivate some significant level of execution. (Sultan, 2014). Comparative Analysis It is important to aim at some transaction-based functions like payable and receivable along with payroll and accounting based on the general ledger. Because such areas are based on a set routine which is related to rules and doesn't need any in-depth knowledge of the business. It is also simple to transfer to some external providers. There are some providers these days that have successfully tracked the record in passing different kinds of services to some consumers. It is very crucial that the functions like outsourcing a different kind of processes in a transactionalCHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 5 manner are a means to free various internal resources to devote a lot of time and also some necessary attention to significant areas of some business based analysis. In the process, organizations can also save some money and outsource a different kind of process since the providers often do them in an efficient manner at the same time also leverage the expertise in simplifying the process, management, and standardization. (Ebrahim et al., 2014). At the same time, while reducing the overall cost based on accounting and other related processes is crucial to organizations by getting more accurate and timely resources and also analyze financial information to leadership as the main base for concrete decisions. Outsourcing can also save a lot of money and yet create a great capacity for internally based managers to meet small deadlines for business or have a non-routine based accounting as well as financial matters. There are a lot of pieces of evidence of rising interest in accounting and its challenges in global business since there are some crucial advantages associated with it and the main truth is that many recent initiatives by the companies have to fail to show results, especially in an outsourcing based contract. There are some options and more effective methods of gaining goals which are recognized by the company which is based on the decision to completely back away from an outsourcing kind of solution that makes some sense. (Parnell et al., 2014). In other cases, this decision seems to completely defy the basic logic since all the aspects of the contract are defined with strong indicators of advantages for the consumers and will be a contract based negotiation that can further be suspended. There are some challenges and issues and ways to solve those challenges faced during that time. (Weng et al., 2015). Clear explanation of the targeted scope based on some services is a basic rule for success, and this further takes more than the just basic naming of the processes and recognizing the related kind of functions to be considered as the function of outsourcing. Also, this further needs inCHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 6 depth discussion which helps in discussing the flow of the process to achieve the functions that are being considered for the process of outsourcing. With this, it also considers an important case of interfaces with work being done as a part of a company and also recognizing the need of handoffs for testing and also approving the whole control based process to be able to outsource as shared accountabilities. (Teittinen et al., 2013). This is true for all kind of initiative along with some additional issues or challenges in this field. It is important to understand that the process of finance and accounting based operations is very complex by nature and are typically decentralized process, reporting to the higher level with financial accounts for every business. This is why the corporate view alone is more likely to inappropriate and with due diligence has to further extend this into a different kind of business based units. There are some functions that are decentralized in a well-known manner to some business units which more often consist of a mix of different business related analysis and some traditional accounting that leads to various possibilities of usage of various non-standard functions and also dissimilar quality based data. (Gerreffi et al., 2016). The basic level interest of many senior level corporate sponsors is related to outsourcing based research to reduce the involvement of much external personnel in the assessment of outsourcing that can respond correctly by more counterproductive. Some challenges pin down the overall scope, and this further will show some lack of options to conduct detailed diligence in business units and number of many corporate offices just before the contracting.CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 7 Identified gaps Following are the identified gaps or challenges of accounting in number of international organizations: - 1. Development of new business: number of researchers says that getting attention and also grows a new kind of business is the top most issue for accounting and many financial services based companies. (Weng et al., 2015). This is completely aligned with different kind of trend based on all the professional and different service based industries. In a number of market segments, the overall development relies on more challenges that create the new customer. However, the competition is very tough and fierce. Most notably, accounting as well as financial based services companies are under a lot of pressure from much global competition and in this kind of competition and pressure from competitive forces, organic based development is a very critical objective for the companies. 2. Recruiting and retaining good people: the race for talent is getting fierce every day, and this will only increase with every passing time. Acquisition of talent is becoming an important focus for many companies. There is a challenge in this further since there is the major change in generation and cyclical based labor shortage. As and when the generation of baby boomers will retire, it will become more and more important for the company to completely secure strongly based talents and also plan for the next wave of some leaders. (Gerefffi et al., 2016). The brand value plays a major role in the whole process, and part of many company's brands is also at a reputation for gettingCHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 8 employment and also cultivating some big leaders. However, how anyone can build some important kind of reputation and it is important to consider it as a challenge. 3. Changes in internal management and leadership: - we see impacts of the current generation and retirement of baby boomers. Companies are in expansion mode with the huge deal of energy focused on addressing a number of questions associated with leaders as well as some crucial change internally. The issue can be solved with some highvisibility experts. Most probably, one of the kinds of expert in the company can identify it in the industry and sometimes go completely beyond the talents. There are a number of well-known experts, who can boost the perception further of the clients as well as the employees. The research also shows that it is possible to grow with the help of a number of programs which are consistent along with some replicable tools. It is important for the companies to consider the support from external sources to grow the next generation of leaders while also acting as the main draw for a number of potential workers who helps in building the overall reputation. (Gutheri et al., 2014). 4. Issues based on technology: - there are respondents above thirty percent that work as a primary challenge for the companies. This can be further understood as the main issue to keep up with current evolving technologies requirements and associated expectations from clients. There are some common challenges in business as a significant opportunity, and this can be stated as a simple case of some services in accounting as well as financial activities in companies. Like for example, companies also have to leverage the overall power of some the marketing function and at the same time join it with many distinctive based expert's insights that have the options to differentiate themselves from the situation completely.CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 9 5. Client demand and expectations: while dealing with the need of clients and their overall expectation that shows a challenge for over twenty-nine percent of respondents. Numbers of clients also have expectations for best services and more so that their problems can be solved on time. (Suddaby et al., 2015). One important step in this direction was to address the issue and also to know which kind of customer can be satisfied most with the service. For this, it is important to develop programs that are aiming and also securing more customer of a similar kind. Conclusion The marketplace is going to some broad range of transformations, and the impacts of such issues are also getting hit, and all this happens at once to manufacture a whole new kind of business based issues. Companies all across the world are struggling to survive with baby boomers retiring at the same time also driving consolidation which makes the marketplace a huge battle that tries to acquire top talent. (Teittinen et al., 2013). In the present demanding time with highly competitive culture, the capacity to be able to anticipate the challenges can be spelled with the difference that exists between the work leaders. This is why it become necessary to understand the competitive environment and the overall capacity to predict the emerging issues that can highlight the main difference that exists between the market leaders. Therefore, it is important to set out to understand different business issues that will further define the future of accounting as well as the financial service company and provide them more edge in competition. The research can decide many things like different business challenges that are faced by professional companies and also various marketing based initiatives especially for companies that are undertaking to discuss a different kind of issues.CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 10CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 11 Reference Bebbington, J., Unerman, J. and O'Dwyer, B., 2014. Sustainability accounting and accountability. Routledge. Bodie, Z., 2013. Investments. McGraw-Hill. Geppert, M., Matten, D. and Williams, K. eds., 2016. Challenges for European management in a global context: Experiences from Britain and Germany. Springer. Sultan, N., 2014. Making use of cloud computing for healthcare provision: Opportunities and challenges. International Journal of Information Management, 34(2), pp.177-184. Ebrahim, A., Battilana, J. and Mair, J., 2014. The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Research in Organizational Behavior, 34, pp.81-100. Parnell, S. and Oldfield, S., 2014. The Routledge handbook on cities of the global south. Routledge. Weng, Z., Jowitt, S.M., Mudd, G.M. and Haque, N., 2015. A detailed assessment of global rare earth element resources: opportunities and challenges. Economic Geology, 110(8), pp.1925- 1952. Teittinen, H., Pellinen, J. and Järvenpää, M., 2013. ERP in action—Challenges and benefits for management control in SME context. International Journal of Accounting Information Systems, 14(4), pp.278-296. Gereffi, G. and Fernandez-Stark, K., 2016. Global value chain analysis: a primer.CHALLENGES OF ACCOUNTING IN GLOBAL ORGANIZATIONS 12 Guthrie, J. and D. Parker, L., 2014. The global accounting academic: what counts!. Accounting, Auditing & Accountability Journal, 27(1), pp.2-14. Suddaby, R., Saxton, G.D. and Gunz, S., 2015. Twittering change: The institutional work of domain change in accounting expertise. Accounting, Organizations and Society, 45, pp.52-68.