ATM Machines In The U.S. – How They Work And Why They Are Useful

Since its creation by John Shepherd-Barron in 1960, the automatic teller machine (ATM) has been a mainstay automatic banking machine (ABM). In fact, it has become a critical part of the financial services infrastructure. While many people assume that the technology behind the ATM has plateaued and that ATMs are not developing, the truth of the matter is that ATM machines in the US have experienced tremendous development since their inception. Nonetheless, the core functions of drawing cash and providing account reports still prevail.

So how do ATMs work, you might ask? They rely on multiple sensors, input and output devices to provide a seamless experience for their users. For starters, an ATM user must have a valid prepaid or credit card to transact with the Atm. The card bears the information about the cardholder in a magnetic strip (for the older generation card) or a microchip (for new and more secure cards). To perform a transaction using the card, the cardholder must provide a pin number which is passed to the host server to authenticate the details of the card.

For these processes, you need to interact with the ATM machine, whereby you use the input devices such as the keypad or touch screen to input data. On the other hand, the output device, which in this case is the display, provides output for users. Another output device is the receipt printer which prints detailed recording of the transactions. The ATM is connected to the bank’s server through a network to facilitate the transactions.

In the high-tech world that we have in the U.S., many might consider ATMs as dinosaur technology. Nonetheless, they do play a critical role, and therefore, they have their benefits. For instance, while there are numerous digital payment methods in existence today, the use of cash as a payment method is quite prevalent. ATMs allow people to gain access to their cash held in bank accounts with ease at any time of day as ATMs run 24/7. It is little surprise then that over $400,000 is withdrawn from ATMs across the world today.

Another benefit that modern ATMs provide their users is an increased variety of services the machine can offer. Modern ATMs are being designed to be service point terminals for more than just dispensing cash. As such, some can be used to event ticket purchase and printing, air ticket purchase, paying bills, and foreign currency exchanges, and much more. It is thus safe to say that ATMs have a place in the financial world even moving into the future.

The Role Of Cost And Managerial Accounting To Run A Business

Modern day business procedures have become more complicated than ever. The better a business owner is equipped with intricate details of running a business, the more he is likely to run it successfully. Every business requires a cost-effective solution. A person needs to evaluate the business requirements, and the cost required to run a business, to see whether it is possible for him to implement a certain strategy, and do it successfully. A good business house understands the value of cost accounting. The process of cost accounting helps in the management of the business house.

Cost accounting

It is important for business owners to learn the value of cost accounting. Cost accounting is defined as a process to calculate the finances required to run a business. It is useful in understanding the profit levels a company can reach. Cost accounting gains more prominence especially when a company decides to launch a new product. It helps companies to reach decisions, whether a particular product launch should go ahead or not. Cost accounting dissects the product`s overall benefit in relation to the cost, and how it can help a firm`s business plan. It is this importance of cost accounting that makes it one of the most useful business traits.

How a company decides to use cost accounting is something it should focus on to increase its profitability. The successful firms have always revolved their business plans around cost accounting. Every firm, in fact, has a separate cost accounting personnel, who helps business houses to make or break new business initiatives. It is a little different from managerial accounting.

Managerial accounting

Managerial accounting plays a vital role and provides exclusive report and analysis, which are created only for the people who run a business. Such reports are not supposed to be used by anyone other than the managers of a firm. Managerial accounting details are strictly confidential, and it cannot be used even by shareholders of a company, or even by public regulators and creditors of a firm.

Managerial accounting is a report which will help managers to view things in the future. It is a report which is intended to help business managers to make plans for the future; the report has nothing to do with business events in the past. Management accounting also deals with preparing reports of financial nature and to distribute them to the shareholders and creditors of the company.

International accounting

The role of these accounting processes has various benefits in running a business successfully. A successful business house will always implement the cost and managerial accounting process. A business owner can utilize international accounting methods to make these accounts. International accounting methods are not necessarily used in private firms. There are public firms that use international accounting standards; however, some of the countries have made it mandatory for public firms to follow their accounting process in accordance with international accounting standards and procedure. Still, in some countries, it is not mandatory for firms to follow such procedure and standards.