Limitations of ratio analysis are those characteristics of ratio analysis that acts as drawbacks when using ratios to get value added insights. Ratio analysis which is a powerful tool used by business stakeholders like management, investors, creditors, business analysts to establish useful relationship between variables has some weaknesses that makes it not to be so […]
ONLINE ACCOUNTING DEGREE IS THE BEST OPTION FOR ENTREPRENEUR
Online accounting degree is one of the best and easiest options for entrepreneurs to get the all important accounting skill that is needed to be successful in managing businesses to greater and enviable height. Research has shown that successful entrepreneurs are those that can tell you the destination and source of every penny that comes […]
WHAT IS AUDIT RISK ASSESSMENT?
It is no longer news that risk based approach to auditing has come to stay. Risk based auditing is the concept of basing the overall auditing procedures on the foundation that is built through the application of audit risk assessment and procedures. We all know that the aim of auditing any subject matter is to […]
What is Management Accounting Control System?
Management accounting control systems (MACS) is the collective processes that helps in fine tuning the best method of managing complex variables including managers and employees. The primary aim of MACS is to supports the application of underlying procedures, processes and documentations within a given enterprise in such a way that results are maximised. Management accounting […]
WHAT IS SENSITIVITY ANALYSIS?
In this article, an attempt is made to provide an answer to the question; what is sensitivity analysis in a very simple and non technical manner. An all encompassing approach is taken to accommodate people of different understanding of the subject matter, so, if you are new to the field of accountancy and you wondering […]
HOW TO MANAGE PRIVACY RISK IN CLOUD ACCOUNTING
There is no doubt that cloud accounting has begun to find its way into the heart of many board members of corporations. This embracement of outsourcing a company’s accounting services to vendors has brought considerable privacy risks with it that needs to be dealt with if a company is to survive. I am not going […]
HOW TO GET ACCOUNTING JOB WITHOUT RELATED WORK EXPERIENCE
Getting accounting job as a fresh graduate accountant with no experience is one of the most difficult challenges that you must deal with as a university or other higher education study graduate. You will be competing with both graduates and people that are not graduates but with real hands on experience. The job market has become so […]
IMPORTANCE OF CHANGE MANAGEMENT IN SUSTAINING THE GROWTH OF A BUSINESS
It was a surprise to me when I was speaking to regional controller of one of the most respected food processing company in Glasgow, UK who still does not appreciate the importance of having an efficient change management process (CMP) in the company. Her reason was that food processing industry does not experience rapid change […]
COMPONENTS OF ACCOUNTING INFORMATION SYSTEM (AIS)
Accounting information system (AIS) as a sub system of the overall business systems has some components that make it what it is. I have seen some articles on the web where the following; computer, accounting software, scanners and printers are given as the only components of AIS. Are these groups of people right? Well, you […]
What is Corporate Governance?
Corporate governance in simple language is a phrase used to describe how businesses are directed, managed and controlled. It is the collection of sets of best practices that help stir the affairs of a company. Forces coming from the government and regulatory bodies help to shape the way corporate governance is viewed. Government and powerful […]
WHAT IS RATIO ANALYSIS? IMPORTANCE, USES AND SIGNIFICANCE OF RATIOS
Every trade has sets of tools that are used by professionals in that trade so as to deliver on their promises. Ratios are quantitative tools that finance professionals use to analyse sets of financial information. A financial planner or analyst for example uses ratio as part of its tools in carrying out some duties like; […]
BALANCED SCORECARD | MEANING/ EXPLANATION, ADVANTAGES AND DISADVANTAGES OF BSC
History has taught many of us an all important lesson of not overly relying on financial measures and other performance measurement metrics that can easily be manipulated by managers and other stakeholders. Traditional performance measurement places too many importance on financially quantifiable variables in order to determine the success or failure of a business or […]
SECURING ACCOUNTING INFORMATION SYSTEM OF A BUSINESS
Security of Accounting Information System (AIS) has never been as important as it is now in the history of business. One thing that is sure is that if you don’t take care of your Accounting Information System, others will take care of it for you. The only difference is that you will definitely not like […]
ROLES | DUTIES AND RESPONSIBILITIES OF ACCOUNTANTS IN FINANCIAL PLANNING
Financial planning is too important in our lives to be left in the hands of many unqualified professionals. Vast majority of people buying into the various financial planning products that are being floated almost on a daily basis are ignorant of the fact that their financial well being is as important as the medical and […]
IMPORTANCE OF CLOUD ACCOUNTING AND HOW TO SELECT FINANCIAL SAAS VENDOR
The importance of cloud accounting cannot be discussed without first of all briefly discussing what cloud accounting is. Cloud accounting is one of the numerous business models of the SAAS (software-as-a-service) business models where vendors provides their clients access to all the features that they need in their accounting department. The idea is to move […]
IMPORTANCE OF ACCOUNTING IN FOOTBALL AND OTHER SPORTS
This article on the importance of accounting in football and other sports is one of the articles on the importance of accounting series like; importance of accounting in schools and importance of accounting in churches. This is not a traditional debate of what method of accounting is best to show the true financial position of […]
ACCOUNTANTS STEALING | 8 REASONS WHY ACCOUNTING PROFESSIONALS STEAL
There is no month that passes that you will not hear the news of an accountant stealing from his or her company. You can confirm this by subscribing to Google alert. You will be surprised at the amount of alert you will be getting in relation to situations where qualified accountants have stolen money from […]
What is Risk Based Auditing? Meaning | Process and Importance of Risk Based Audits
What is risk based auditing was one question that I had problem in answering for a very long time before I finally had my breakthrough in understanding what a risk-based approach to auditing is all about. It won’t be out of order if I make the assertion that many practicing accountants and auditors still have […]
WHAT IT TAKES TO BECOME A MODERN QUALIFIED OR CERTIFIED ACCOUNTANT
Becoming a qualified accountant is the dream of all students of accountancy. Employers don’t really take you seriously if you are not certified as an accountant; and it comes as little surprise that accounting firms can insist on qualifications being completed during a specified period of time. Taking time to study for your professional accounting exams […]
WHAT IS INTERNAL CONTROLS | MEANING, OBJECTIVES AND ELEMENTS
DEFINITION | MEANING OF INTERNAL CONTROLS Internal controls in its broadest sense is the collection of policies, procedures, practices, conventions, norms and organizational structures which managers implement in order to reduce risks to a business model of an organization. Internal controls are developed with the aim of providing management reasonable assurance that an organizations business […]
Accounting firm insurance | factors to consider before choosing a professional indemnity (PI) broker for accountants
Accounting firm insurance is a necessary evil that every professional accountancy firm must have else, settle in limbo. Accounting firms in recent time are adding more business line to their range of services making their business risk exposure increase at an exponential rate. The traditional business lines of auditing and consulting with narrowed focus was […]