Consulting is all about using your expertise to sovle a genuine problem of another person who does not have that knowledge that you have under your belt. Accounting skills is one of such technical knowledge that can be used to make a living out of consulting. Accountants can be fitted in many facets of business […]
UNDERSTANDING THE OPERATING ACTIVITIES OF A BUSINESS, THE BASIS OF FINANCIAL STATEMENT ANALYSIS
Operating activities is the basis of every business and understanding operating activities of any business makes us understand how a business makes her income. The income statement is prepared based on accrual principle to report net income for a period along with the components: revenues, expenses, gains, and losses. This then means that we will […]
ANALYZING INVESTMENT ACTIVITIES, AN IMPORTANT ASPECT OF FINANCIAL ANALYSIS/ FINANCIAL STATEMENTS ANALYSIS
Analysis of investing activities is an aspect of financial statement analysis that is very important in the successful implementation of business analysis. This is a continuation of the financial analysis / financial statement analysis article. I broke it down so that you won’t get bored reading it. Investing activity is one of the three functions […]
FINANCIAL ANALYSIS AND FINANCIAL STATEMENT ANALYSIS, LEARN TO DO IT JUST LIKE YOUR ACCOUNTANT
Financial analysis or financial statement analysis is that aspect of business analysis that is carried out with the intention of getting financial insight of a business by an analyst. It is the traditional function of accountants and other finance professionals to carry out business analysis. But, armed with the information in this article, you too […]
EMERGING CAREER OPPORTUNITIES IN ACCOUNTING/ ACCOUNTANCY
Career opportunities in accounting or accountancy continues to expand and gain more grounds in the job markets as the effects of increasing fraud and financial systems meltdown continues to bite hard on both individuals and corporate bodies. Cases of bankruptcy and business failures continually make the head line these days. Business community and industry leaders […]
FINANCING DECISIONS IN THE FACE OF ECONOMIC GLOBAL CRISIS
Financing decision is the second most important decision that companies and their financial managers make. Financing decision is concerned with the study of the financing mix or capital structure of a company. One thing is to find investment opportunities and another thing is to source for finance that will help the project sees the light […]
MISSION STATEMENTS AND VISION STATEMENT EXPLAINED
Mission statement and vision statements are two phrases that can either stand on their own or be combined as a single document usually called a statement of philosophy. For the purpose of this post, I will explain the two phrases differently. MISSION STATEMENT To start with, I will first of all explain what a mission […]
STRATEGIC PLANNING AND STRATEGIC MANAGEMENT
Strategic planning and strategic management are those set of decisions and actions that result into the formulation, selection and implementation of organization’s long-term objectives. That is, the setting of strategies for achieving organization’s objectives. A strategy is simply a company’s game plan. Take a football team for example, their goal as a team is to […]
ROLE OF ACCOUNTANTS ON THE FIGHT AGAINST ECONOMIC CRIME AND FRAUD
Economic crime and fraud continually make headline news. People tend to be resorting to economic crime and fraud in order to cushion the effects of the economic global crisis. A lot of managers have lost hope as most of these frauds and economic crimes are committed and perpetrated by insiders. This then presupposes that economic […]
ACCOUNTING AS A COMMUNICATION TOOL
Accountants no doubt are the most qualified communicators in the business world. Accountants are trained to be communicators specializing in communicating financial information in a language that is understood by all and sundry. The information must meet the requirement of information for it to be termed so. Some of the features of anything that must […]
HANDLING BUSINESS RISKS OF PANDEMIC
Business risks are those factors (both controllable and uncontrollable) with the potential of having an outcome that can affect business operations and ultimately affect profitability. (EDITED on 12/02/2021- A lot of businesses faced a sad reality in 2020 when Corona Virus pandemic took the whole world by surprise. Businesses that had no form of backup […]
THE IMPORTANCE OF ACCOUNTING
Accounting or accountancy is no doubt the universal language of businesses and figures. Those that fluently speak this language of business are called accountants. The importance of accounting and accountancy cannot be over-emphasized as the evidence is there for all to see. Imagine what this world would look like if all means of communication are […]
What are Accountants and Auditors doing to Improve the Standard of Living?
I recently ran into an old friend of mine who has lost his lucrative job in a once very successful business. He asked me a question that really touched me. His question to me was; “what are accountants doing to improve the standard of living?” This guy is the bread winner of his family and […]
How to source for your investment accountants with ease
An investment accountant is that finance specialist that is saddled with the responsibility of keeping track of the investments of an individual or an entity. They ensure that funds sourced for investments and proceeds from already invested finance are properly accounted for. Also, it is the duty of the investment accountant to ensure that relevant […]
Investment appraisal terms, meanings/definitions for non-financial managers
Investment appraisal is one area of the study of finance that has a lot of misunderstood terms. Here are 22 of those terms and there meaning in common language that can be understood by everyone. The terms to be explained are listed below followed by brief explanation of the term IRR; IRR stands for Internal […]
Users Of Accounting Information System
Accounting can be said to be a process that collects, collate, record, analyse, interpret and communicate financial information to end users in the form/ format that they will understand. Accountancy is the only language that businesses all over the world understand. And for you to be a better business person, you have to know how […]
Accounting information system, redefining the accounting profession
Accounting information system has redirected the direction of accounting profession onto a positive path of becoming a highly sought after information processing professionals with super magic powers to crunch data and make sense of it – this is otherwise known as big data analysis. Traditionally, accountants were seen as business and audit specialist whose only […]
How long will it take to pay off your credit card debt?
While surfing the net, i stumbled upon this article on credit card calculator written by Robin Williams. Happy reading! There is this psychological benefits of knowing when to be free from any kind of debt. If you have piled up a huge amount of credit card debt and want to know how long it would […]
Investment appraisal for everyone especially the non-financial managers- payback and return on capital employed method.
Recall that an introduction to this article was given in the part one of this series. Hence, no further introduction would be made here. Our aim here is to explore the various investment technique needed by everyone in a simple manner that you will have no difficulty comprehending the concepts. BINGO!!! Payback period Payback period […]
Difficulties faced by small firms when seeking finance and their possible solutions
You will agree with me that finance is the life blood of every business; big or small. Debt and equity finance are two main categories of sources finance that a company can use. While big and established firms find it relatively easy to raise finance, small firms find it more difficult to raise fund/finance […]
Dangers of having high level of gearing- business and financial
Business gearing and financial gearing are terms used to explain the volatility of a company and its activities. While the business gearing measures the risk that a company will fail as a result of not making enough contribution to cover for its fixed cost, financial gearing on the other hand is used to measure the […]