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Accounting Principles for Operations Managers

Running head: ACC 201 FINAL PROJECT PART II PROFESSIONAL RELEVANCE ESSAY ACC 201 Final Project Part II Professional Relevance Essay Christopher Gouchenouer Southern New Hampshire University Professor Stephens 3/3/2019 ACC 201 Final Project Part II Professional Relevance Essay, Gouchenouer 2 Looking to the future and what I will need to accomplish to achieve my goal of becoming an operations manager of a manufacturing facility, I am very aware of what needs a company has when considering the position. Operations managers must be able to coordinate and develop processes or procedures that will elevate the company to maximum net operating profits. The manager must understand most of the accounting principles for the daily operational duties to be effectively performed with the purpose of increasing the net income and/or earnings of the company. The duties of the operations manager will include controlling budgets and costs which will directly impact the bottom line. The operations manager position not only seeks to maximize the overall bottom line, but they are trying to maximize the sales/revenue of the business while understanding the analysis process for reports that will show the sales/financial reports which is necessary for a person in the position. In the following paragraphs, I will discuss portions of the accounting cycle that may be used in the operation managers routine that will influence the business in a positive way. In the beginning, a person entering into the position of the operations manager will need to study the accounting journal so that they will be able to evaluate the assets, liabilities, equities and revenues/expenses. After studying the journal, the manager will be able to recognize wage expenses within the expense account. The manager will then be able to interpret/manage all wage expenses so that they will be able to gain a complete understanding of how the wages of the hourly employees affect the bottom line of the company. An example of this is if the company is showing a decline in sales then the wage expenses should also show a decrease as well as the opposite when the sales are showing an increase. The operations manager's job finds a balance that will maximize the output through managing the resources that are available to them. Other accounts that the manager may need to recognize while reviewing the journal are the liability and ACC 201 Final Project Part II Professional Relevance Essay, Gouchenouer 3 interest payable accounts. For all companies, interest could be interpreted as a nuisance to the business because of the accumulated amounts of the interest that could reach millions if the company has a large operation. The interest rate may be negotiated up front to help with the short-term interest levels however, the future interest rates could produce a lower rate that could cost the company significantly more due to being locked into the negotiated rate. The operations manager has the authority to refinance current business loans to obtain a lower interest rate that will save the company money. In the journal,