The Importance Of Accounting Memo

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An accounting memo should be a one-stop shop when it comes to forming a conclusion on an accounting issue. A company would reference an accounting memo to gather information regarding the transaction, accounting evaluation, and reason the position was taken on a problem or issue. The five critical components are listed below as a guide to prepare a professional accounting memo. I. Facts & Background • This section of a research memo is used to describe all the relevant background information to fully comprehend the needs of the transaction and the accounting behind it. • If a party uninvolved with the original transaction picks up the memo years later the individual should understand the issue, why the transaction is taking place, and dictate…show more content…
• The original problem or issue may need refinement after understanding the background. • There is a three-part method to find the questions & issues when writing a memo. i. Identify the problem. ii. Analyze the problem. iii. Refine the problem. • Utilize these three steps as you define the researchable questions. III. Analysis • This section is regarded as the most critical step in writing an effective accounting memo by bringing together the required facts of the research, any supporting authoritative literature, and an accountants overall evaluation before forming a conclusion. • Analysis includes information from relevant guidance, along with an accountant’s own words about how the guidance is applicable. • The memo should contain enough authoritative guidance that the user will not need to perform additional research in the Codification. • Make sure to utilize the concept known as the “guidance sandwich.” i. In a guidance sandwich, an accountant’s comments both precede and follow authoritative…show more content…
Make sure the research memo is reviewed by a co-worker or peer. Listen to the feedback that is given, and if more work is needed fine tune the research memo before submission. Part III 1. When creating an accounting research memo, what are some important factors that go into writing the memo? An accounting research memo is written clearly, is concise, and is a one-stop shop for referencing an accounting solution to an issue or problem. An accounting memo must use the standard memo format. A memo should use proper grammar, a strong active voice, and coherent organization. The memo should reference all laws and regulations stemming from authoritative guidance to back up a researcher’s stance on an issue or problem. In writing an accounting memo, a researcher must understand who their audience is, write in standard English, and avoid writing in technical terms. 2. After reading the text in this research course, what are the five sections use to create an effective accounting research memo? Briefly describe each section. i. Facts and Background • This section is used to describe all the relevant information on the background of an accounting issue to understand the needs of the transaction. ii. Questions and
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