There is no single equipment that does not suffer from wear and tear as time passes. It will not be in line with accounting ethics and completely wrong for accountants not to take the wear and tear suffered by company’s assets at the time of preparing the financial statement. Tangible Non-Current Assets (NCA) like buildings, […]
Archives for May 2022
Double Entry Procedure | How to Record Business Transactions in Accounting
The financial statements are produced at the end of the period as it will be silly and impracticable to produce a financial statement each time a transaction is made. However, every transaction must be recorded and is recorded as they take place. The recording usually starts from the journal entry, then the ledger, then all […]
Accounting Adjustments | when and how to make accounting adjustments
The whole essence of getting involved in the accounting process is to produce valuable, speedy and accurate accounting information that the end users of accounting information can rely on for economic decision making. To do this, business transaction information is captured on the fly – you will agree that doing things on the fly will […]
Application of Effective tax rate to employee income | how to correctly tax employee income using Effective Tax Rate
There are always some grey areas in every profession. Taxation in the field of accounting happens to be one area where interpretations and applications of the provisions of the Finance Act / Tax Laws. Understanding the application of effective tax rate to employee income is an important forensic accounting skill that you will never regret […]
Digital Finance Powered by Fintech | Challenges and Opportunities for Banks
What is digital finance? Digital finance is an umbrella of the many products that Fintech companies are launching into the financial ecosystem all in the bid to fully decentralize financial services. Digital finance includes but not limited to; smart financial software, easy to access financial business models, mobile financial inclusion, flexible customer relationships that is […]
Internal Control vs Internal Audit | Similarities and Differences between Internal Audit and Internal Control
In a bid to be part of the month long celebration of Internal auditors globally in this month of May, I recently attended a function where I was asked to give an impromptu talk clearly stating the difference between internal control and internal audit. It was then that I realized that I struggled to provide […]
Sample of Internal Audit Charter with Free Downloadable Attachment
I decided to share this sample of internal audit charter as part of my way of giving back to the society in this month of May – my month of birth. Feel free to adopt this free internal audit charter and use it in your audit engagement as desired. The content of this article can […]
What is an Accounting Standard? Uses and Importance of Accounting Standards
To properly answer the question ‘what is an accounting standard?’ in such a way that managers from and those from non-financial background can understand it, we need to firstly refresh our mind on the importance of accounting. You can refer to the linked article above for full article on the importance of accounting. I will […]
Strategy Map Excel Template for Small Businesses
In this article is attached an excel strategy map template designed by hybrid accountant for small business owners and modern business managers. I am basically writing this article just to share the template with readers of my accounting blog – so pardon the brevity of this article. Download the strategy map excel template here What […]
Qualities of a good company | Seven (7) Soft Business Valuation Aspects
Business valuation is not all about the figures in the financial statements as many people erroneously think. My many years of experience in business analysis has taught me that it is some times more important to look out for qualities of a good company while at the same time applying proven business valuation techniques. In […]