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WHAT ARE SOME POTENTIAL DELIVERABLES FOR A FINANCE AND ACCOUNTING CAPSTONE PROJECT

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The capstone project is intended to be the culminating academic experience for undergraduate finance and accounting students. It allows students to conduct an independent research project that demonstrates their skills in applying what they have learned throughout their coursework. Some key deliverables a capstone project in this field may include:

A comprehensive financial statement analysis and audit of a public company. This would involve obtaining the company’s financial statements (balance sheet, income statement, cash flow statement) for the past 3-5 years from sources like EDGAR. Students would perform both a horizontal and vertical analysis to examine trends over time and identify key ratios. They would audit the statements for any issues, do comparative company and industry analysis, and make recommendations. This could be around 5,000-7,000 words.

A detailed financial forecasting and budgeting model for a private company. Students would need to gather internal financial and operations data from the company. They would then build out comprehensive income statements, balance sheets, and cash flow statements projected for the next 3-5 years on a quarterly basis. Assumptions would be documented for all revenue and expense line items. Forecasting techniques like trend analysis and regression could be utilized. Accompanying narratives would explain forecasting methodology and key assumptions. The model itself and a 7,000-10,000 word written report would be delivered.

A full leveraged buyout analysis and presentation for a potential acquisition target company. This would require collecting public and potentially some private company data. Students would value the company using multiple approaches like discounted cash flow analysis and comparable company/transaction multiples. A pro forma model would show the financial effects of the acquisition including projected income statements, balance sheets, cash flows, and debt schedules for the combined entity for 5 years. An PowerPoint presentation estimating 15-20 slides would visually summarize the analysis and recommendations.

A comparative case study analysis of two or three public companies in the same industry examining strategic issues. Students would comprehensively research the companies’ operations, strategies, competitive positions, financial performance, and valuation. A thorough written case study paper of 10,000-15,000 words would compare and contrast the companies, perform ratio analysis, and draw conclusions about which company is better positioned strategically and financially. Relevant exhibits would accompany the written case study.

An original equity research report on a publicly traded company recommending a “buy,” “sell,” or “hold.” Students would conduct due diligence research compiling all publicly available information on the company like SEC filings, earnings calls, industry reports, Wall Street analyst reports, and company websites. The report of 7,000-10,000 words would provide an objective picture of the company’s business, recent performance, outlook, valuation, and risks. A financial model would project 3-5 years of income statements, balance sheets, cash flows. Extensive exhibits would accompany the report which would include charts, graphs and financial statement tables to support the investment thesis.

An in-depth corporate financial planning project for a private or public company. Student would work with a company to identify strategic growth/investment opportunities requiring capital. They would developed detailed operating and capital budgets and long-term financial plans for 5-10 years including projected years income statements, balance sheets, cash flows and financial rations under various scenarios. Accompanying this model would be a written 7,000-15,000 word financial feasibility analysis examining the viability, risks and returns of the proposed strategic initiatives with alternatives considered. The final deliverable would provide the capital structure and sources of funds recommended.

The above represent some large, comprehensive deliverables that could really showcase synthesis and application of finance and accounting skills learned in a capstone experience. While the scope and specifics could vary depending on a student’s interest area and company/data availability, these provide substantive, real-world-like projects requiring in-depth independent research, analysis, modeling, and written communication to demonstrate mastery of the subject matter. The deliverables would give evidence of a student’s readiness to transition into a career in finance, accounting, consulting, or other business fields upon graduation.

WHAT ARE SOME OTHER SKILLS THAT STUDENTS CAN DEVELOP THROUGH ACCOUNTING CAPSTONE PROJECTS

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Accounting capstone projects provide students the opportunity to not only demonstrate their technical accounting knowledge and skills, but also develop many other important professional skills that will serve them well in their future careers. Through completing a major cumulative project towards the end of their degree, students gain real-world experiences that allow them to cultivate skills beyond the accounting curriculum.

Some of the key skills students can develop include communication skills, research proficiency, time management, teamwork, leadership abilities, and more sophisticated analytical thinking. Let’s examine each of these skills in more detail:

Communication skills are hugely important for accountants to convey financial and other information clearly to various stakeholders, both verbally and in writing. Capstone projects challenge students to communicate extensively with their advisor, peers, and other collaborators as they progress through phases of research, analysis, and presentation. They must learn to articulate accounting issues, findings, and recommendations professionally through written reports, presentations, and other mediums. Feedback helps refine students’ ability to express complex topics appropriately for different audiences.

Research proficiency is another vital skill, as accountants often need to investigate accounting questions, standards, and organizations. Capstone projects mandate exploring accounting problems and business contexts through extensive research. Students practice efficiently gathering relevant information from authoritative sources like professional literature, case studies, and industry experts. They learn to evaluate information critically and synthesize diverse perspectives into coherent analyses supporting their project goals. The iterative research cycle imitates real accounting work.

Strong time management is crucial as accountants must meet deadlines under pressure. Capstone timelines introduce self-discipline challenges as students must independently pace long-term project schedules and milestones around other responsibilities. They gain experience adhering to deadlines while balancing research, analysis, collaboration, extra-curriculars and more. Problems inevitably arise, so students learn to prioritize tasks, delegate work strategically, and flexibly manage unexpected hurdles.

Working effectively in teams mirrors professional accounting environments. Capstones involve real collaboration over months as groups divide roles, allocate tasks, meet deadlines, resolve conflicts, and provide peer feedback. Students develop interpersonal skills like active listening, adaptability, responsibility, and diplomacy while also improving their own unique contributions to diverse teams. Those who lead teams further enhance their organizational, motivational, and consensus-building leadership qualities.

Analytical thinking represents the heart of the accounting profession. While coursework covers technical analysis methods, capstones require applying higher-level analytical frameworks to integrate multi-dimensional perspectives into comprehensive solutions. Students synthesize organizational contexts and accounting issues into original recommendations involving judgment, critical evaluation, creative design, and justification. Conceptual understanding evolves through iterative analytical practices central to professional accounting work.

In addition to these skills, some programs structure capstones to cultivate an appreciation of professionalism and work ethics. Students may get exposure to internships, case competitions, or interaction with professional mentors. Such experiences help connect classroom learning to career readiness and the rewarding challenge of serving clients’ real organizational needs. Some capstones conclude with career fairs or recruitment events to facilitate post-graduation transitions.

While accounting capstone projects focus on practical application of technical skills, their extensive scope provides rich opportunities for holistic professional development beyond the classroom. Students who invest fully gain transferable competencies directly serving future accounting roles and leadership aspirations. Capstones represent a career-defining experience bridging academic preparation to real world workplace excellence. Feedback throughout the process empowers continuous self-improvement long after graduation.

WHAT ARE SOME OTHER TYPES OF CAPSTONE PROJECTS THAT ACCOUNTING STUDENTS CAN CONSIDER

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Business consulting project: For this type of project, students work as consultants for a small business or nonprofit organization. They conduct an in-depth analysis of the business/organization’s accounting and finance operations. Some key activities students may undertake include analyzing financial statements, assessing internal controls, benchmarking against industry peers, conducting a breakeven analysis, and developing recommendations for improvement. The final deliverable is usually a formal written report and presentation to the client.

Fraud examination project: In this project, students are given a financial dataset from a fictitious or real company that contains indications of possible fraud. They need to analyze the data and documents using forensic accounting techniques to investigate the suspected fraudulent activities. The project involves developing an investigation plan, interviewing key individuals, reviewing evidence, and writing a report summarizing the findings and conclusions. Students demonstrate skills in fraud prevention, detection, and investigation.

Accounting information systems project: For their capstone, students analyze and assess the accounting information system of a company. This involves documenting the current AIS, evaluating system controls, identifying risks, and recommending improvements to ensure accurate financial reporting and compliance with regulations. The evaluation covers topics like security protocols, IT infrastructure, transaction processing procedures, input/output controls, and system changes. Students present their analysis and enhancement strategies.

Tax compliance project: In this project, students work on a portfolio of individual and/or business tax returns from start to finish. This involves obtaining source documents to prepare each return, performing the required calculations, selecting the appropriate tax form, ensuring accuracy, and advising taxpayers appropriately. Students also research tax laws and plan for tax strategies. The final deliverable is the completed tax returns along with supporting workpapers and research materials used. This type of capstone showcases tax preparation and compliance skills.

Financial statement analysis project: For their capstone, students are provided with the annual financial statements of a public company spanning multiple years (3-5 years). They conduct both horizontal and vertical analysis of key financial statement line items to identify trends and flag anomalies over time. Students also calculate and analyze important financial ratios to assess the company’s performance, liquidity, profitability, solvency and efficiency. The project involves writing a written report with recommendations for investing, lending or other decision making purposes based on the analysis. This type of capstone focuses on financial statement evaluation and interpretation.

Not-for-profit accounting project: In this capstone, students volunteer with a local not-for-profit organization (NPO) like a charity, arts group or advocacy organization. They conduct an in-depth analysis of the NPO’s accounting systems, internal controls and compliance with regulations like Sarbanes–Oxley and GAAP for NPOs. Students also help the NPO prepare and analyze their budget and statement of financial position and recommend process improvements. The final deliverable includes a formal report, presentation and implementation of certain recommendations to strengthen the NPO’s accounting operations. This type of capstone provides exposure to not-for-profit accounting.

That covers some examples of different types of capstone projects that accounting students can consider for their final year. The capstone is meant to demonstrate the accounting knowledge and professional skills gained throughout the program. By working on real-world or simulated projects involving consulting work, fraud investigation, financial analysis, tax preparation or not-for-profit accounting, students get to apply classroom learning to practical scenarios. These experiences help strengthen critical thinking, problem-solving, communication and teamwork abilities which are invaluable for their future career. Students get to choose a topic area that interests them the most based on their career aspirations. The department may provide guidance on available and approved project options as well.