Decision making process involves strategic planning and control activities. It is a universal fact that information produced by management accountants must be evaluated in the light of its final effect on the outcome of decision made based on it. And therefore presupposes that it is a necessary precedent for accountants to fully understand the decision [...]
Net present value (NPV) of investment appraisal and Internal Rate of Return (IRR) of capital budgeting are the two methods of using the discounted cash flow (DCF) to evaluate capital investment. This article is a continuation of two previous investment appraisal articles introduction to investment appraisal and investment appraisal- ROCE AND PAYBACK WHAT IS DISCOUNTED [...]
An investment accountant is a finance professional who specializes in; identifying, collecting, collating, analyzing, interpreting, and communicating financial information as it solely relates to investment. For one to be investment accountant, the person must firstly become a certified accountant and then acquire the necessary skills required to be an investment accountant. An investment accountant perform [...]
The importance of accounting in schools cannot be over emphasized. Schools are the main hub of every modern economy and would be pulled down to nut if the importance of accounting is not recognized. TO ENSURE THAT ASSETS ARE SAFEGUARDED The huge investments that are made in the educational sector made it prone to fraudulent [...]
Business ethic is that aspect of corporate governance that has to do with the moral values of managers encouraging them to be transparent in business dealings. Business ethics takes into consideration the feelings of customers in fashioning out the services or goods that is given to our customers. It also takes into account the interest [...]
Accounting information system (AIS) is that subsystem of overall management information system that provides information to an organization in the right format, size, time frame, and within a budget. Accountants have many roles to play as far as accounting information system is concerned. In this article, you will learn the various roles that accountants play [...]
Having an accounting qualification is not enough for you to be called a qualified accountant / certified accountant- even when you are called, you are not one! Someone with B.Sc in accounting or MACC (Masters of Accountancy) qualification cannot be said to be a qualified accountant. As a matter of fact, passing all the exams [...]
Military training prepares individuals to perfectly fit into any other career that they decide to finally switch into. To be a good accountant, I have come to discover that one must be in possession of those quality that military men posses. Those qualities of the military that every accountants need is the subject matter of [...]
Managerial accounting is an accounting system prepared by management accountants with the sole aim of assisting the management of a company make an informed internal economic decision. Management accounting as it is popularly known as is a branch of accounting that uses many decision making tools to filter information leaving only useful information for the [...]
Green funds are collection of public funds by fund managers with promise of investing in green projects. Some green fund will promise not to invest in tobacco while green funds will promise not to invest in non-renewable energy projects. A good example of green fund is the alternative energy mutual funds. This brings us to [...]
The importance of accounting in the church is a controversial issue that is giving a lot of clergymen and women concern in our modern world. This is particularly important now that churches have been taken to be a profitable business venture. Without prejudice, this is a fact that may be difficult for some people to [...]
AIS are an acronym used to represent that aspect of MIS (management information system) that deals with accounting informational flows. AIS stand for accounting information system. The main classes of people that use AIS (users of AIS) are the accountants and auditors that can act in various capacities. Below are the major users of accounting information [...]
Relevant cash flows of capital budgeting and investment appraisal are one area that confuses people a lot. This confusion is common amongst students that are taking financial management as course in their bid to become finance professionals. This is basically motivation for writing this article. In this article, you will learn what relevant cash flow [...]
What is investment was on the lips of many some years back but, the question has dramatically changed to what is a good investment now that the global economic crisis and its adverse effects still stir on the faces of many people. I have explained what an investment is in a previous article that can [...]
Investment appraisal is a scientific process of evaluating the financial and non-financial factors to determine the economic viability of an investment opportunity. Another name for investment appraisal is capital budgeting. Companies create value for the owners of a company by investing in projects that have positive NPV (net present value). The reason behind this is [...]
Capital budgeting is a scientific process of identifying, analyzing, selecting and implementing investment projects with returns that are expected to span over more than one year. Capital budgeting is also referred to as investment appraisal. The importance of capital budgeting in the process of investing cannot be over emphasized as capital budgeting gives a calculated [...]
Accountants have many roles like; accountants role in economic development, roles of accountants in fraud fighting, roles of accountants in the face of economic meltdown. The role of accountants is pervasive in nature and this article is another proof of this. In this article are the roles of accountants in a forward looking and vibrant [...]
Accountants are experts in business communication and as such have significant role to play in business. The roles of accountants in small business are what I will be discussing in this article but from different perspective. You may have read a lot about the roles of accountants in small businesses but not in the same [...]
Statement of cash flow or cash flow statement/ fund flow statement as it was formerly called is a component of the financial statements that explains how a company manages her finances. Questions like how a company makes money, what a company invests in and how projects are financed are explained in the statement of financial [...]
Investment opportunity is what everyone is actively looking for now that the global economy is still struggling to come out of financial crisis. The only investments that one can put his money into under the face of economic crisis are investments that serve areas that people can hardly do without. In this article are some [...]
The role of accountants as independent advisors needs to be clearly stated to avoid conflict of roles that characterize business world today. This clarification is necessary as the traditional roles of accountants expand on an exponential manner. The traditional role of accountants is principally the; collection, collation, preparation, analysis, interpretation and communication of accounting information [...]
Independent advisors are specialists and experts that devote their time and energy into telling their clients what to do at any particular point in time. Independent advisors are found in every facet of life ranging from medicine to art works. This article is primarily written to discuss the role of independent business advisor. Independent business [...]
What is investment; is one question that anyone considering putting aside some money for future growth need to consider. Investment is one term that has been greatly misunderstood and misinterpreted. People now give all sorts of advice in the name of investment advice. I cringed the other when I heard someone telling his friend to [...]
Workplace bullying and adult bullying is fast becoming a major part of business community and the community at large. People seem to be deriving joy in bullying those below them in their offices. Subordinates out of fear of being bullied fail to blow whistle that would have helped uncover occupational fraud and other frauds that [...]
Accountants have many roles to play in the development of every economy. The growth and development of every economy hinges on how resources are judiciously managed and multiplied. Accounting is all about cost savings and this I am sure is the back bone of economic development and growth. Some of the roles of accountants in [...]
I use the phrase ‘Google age’ to represent the age of information superhighways because that is the age we are living in now. Eras where changes occurs too fast that one hardly digest any change before they disappear. Problems faced by accountants in this age takes after the age that we are in. changes in [...]
Accountants as professionals are at the forefront in the industry of assurance service providers. Assurance service is all about lending credibility to information. This development is a direct response to the call from the general public to all accountants to wake up from their slumber and do what they are supposed to do in the [...]
Accounting information system (AIS) is one aspect of accounting that has been greatly misunderstood and misinterpreted. I am writing this article because of the experience I had in one of the seminars I attended recently. I won’t mention the name of the organizers of the seminar so that they won’t feel hurt (egotistically). But, I [...]
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 [...]
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 [...]
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 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 [...]
Career opportunities in accounting/ 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 at [...]
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 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 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 [...]
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 [...]
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 [...]
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. Handling business risks of pandemic is a business continuity plan that most company and their executives didn’t take serious in the past. But the reoccurrence of these pandemic are beginning [...]
IMPORTANCE OF ACCOUNTING/ ACCOUNTANCY Accounting/ accountancy is no doubt the universal language of business and figure. Those that fluently speak the language are called accountants. The importance of accounting and accountancy cannot be over-emphasized. Imagine what this world would look like if all means of communication are removed from our daily activities. The world would [...]
Help reduce bankruptcy and business failure? Consistently add more value to the business community? Reduce fraud and irregularities Become better consultants and business advisors Meet the new business needs Restore credibility and public confidence to the accounting professional Safeguard our environment The above question and many more are what kept coming to my [...]
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 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 [...]
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 has redirected the direction of accounting profession. Traditionally, accountants were seen as business and audit specialist whose only duty is to keep records of things that has already happened in the past. Accounting in those days was classified into; cost accounting, financial accounting and management accounting. People see accountants then as [...]
While surfing the net, i stumbled upon this article on credit card calculator written by Robin Williams. Happy reading! If you have piled up a huge amount of credit card debt and want to know how long it would take to become debt free by making a specific monthly payment, you need to use a [...]
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 [...]
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 [...]
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 [...]
Sources of finance simply mean various reliable ways by which a business can raise money for the running of business activities without much friction. Majority of businesses out there are often hindered by lack of finance to execute vibrant projects that will otherwise contribute positively to the bottom line of the company. This is not [...]
