tag:blogger.com,1999:blog-3447032723749507202024-03-13T10:01:46.382-07:00CAT - ACCA ResourcesBest Resources For CAT & ACCA Students.Anonymoushttp://www.blogger.com/profile/08922857570881848114noreply@blogger.comBlogger89125tag:blogger.com,1999:blog-344703272374950720.post-8579572876730893622010-09-22T07:29:00.000-07:002010-10-27T23:29:49.779-07:00How To Give Positive Feedback<div align="justify">Don't ever underestimate the power of positive feedback. We are quick to point out to someone when they make a mistake. Sometimes we forget to acknowledge them when they do something right. Giving positive feedback can be a powerful tool for employee motivation. Here's how to use it most effectively.<br />
<br />
<b><span style="color: #992211;">- Do it now.</span></b> Positive feedback is too important to let slide. Say something right away. <br />
<b><span style="color: #992211;">- Make it public.</span></b> While negative feedback should be given privately, positive feedback should be given publicly. Do it in front of as large a group as appropriate. <br />
<b><span style="color: #992211;">- Be specific.</span></b> Don't just say "Good job, Sally." Instead say something like "Hakim, that new procedure you developed for routing service calls has really improved our customer satisfaction. Thanks for coming up with it." <br />
<b><span style="color: #992211;">- Make a big deal out of it.</span></b> You don't want to assemble the entire company every time you give positive feedback, but do as much ceremony as the action warrants. <br />
<b><span style="color: #992211;">- Consider the receiver.</span></b> It is important to consider the feeling of the person receiving the recognition. For a very shy person, thanking him in front of his workgroup is probably most appropriate. For another person, you might hang a banner, balloons, and streamers in the department area. <br />
<b><span style="color: #992211;">- Do it often.</span></b> Don't wait for the big successes. Celebrate the small ones too. <br />
<b><span style="color: #992211;">- Do it evenly.</span></b> Big successes need big recognition; small successes need smaller recognition. If you throw a party for every small success, you diminish its effect for a big success. <br />
<b><span style="color: #992211;">- Be sincere.</span></b> Don't praise someone for coming in on time. Don't congratulate someone for just doing their job. People will see right through you. Really mean it when you give positive feedback.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-44531007343728613202010-09-21T07:41:00.000-07:002010-09-22T07:29:23.853-07:00Accounting - Debits And Credits Explained<div style="text-align: justify;">When you considered becoming your own boss you probably did not think you would be learning an entirely new language just to do so. But accounting terms are some things that most every business owner will need to get used to. Two of the most common accounting terms - debits and credits - are explained below to help you understand how they work in business.<br />
<br />
<b><span style="color: #992211;">Changes In Asset Accounts</span></b><br />
The things that your company owns in business such as cash, cash equivalents, furniture, equipment, machinery, and land are assets. You list each account category and keep running totals of their balance so that you can report them on the Balance Sheet. Assets have a debit balance. To record an increase to this account, enter the amount as a debit in your journal. A corresponding credit is entered to show a decrease in an asset's balance.<br />
<br />
<b><span style="color: #992211;">Changes In Equity Accounts</span></b><br />
Equity is the value of your company to its owners and stakeholders. Equity accounts carry a credit balance. When you reinvest profits or inject additional funds from owners the account increases with a credit entry on your books. To reduce the balance, record a debit to the Equity account.<br />
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<b><span style="color: #992211;">Changes In Liability Accounts</span></b><br />
The total outstanding debt that a company owes its vendors is called a liability. These are debts that can be categorized as short or long-term. To show an increase in liabilities, enter a credit in your journal. As payments are made to decrease the balance you can show this by entering a debit to the Liability account.<br />
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<b><span style="color: #992211;">Changes In Expense Accounts</span></b><br />
Expenses are the costs that you incur in operating your business. They are reported on the Income Statement and carry a debit balance in the accounting journal. To show a change in these accounts enter a debit to reflect an increase the balance and credit when payments are made to decrease the balance. Some examples of expenses are advertising, insurance, payroll and rent.<br />
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<b><span style="color: #992211;">Changes In Revenue Accounts</span></b><br />
All sources of income that your company earns or receives are considered Revenue. These accounts carry a credit balance and are increased by entering the amount as a credit transaction in your journal. A reduction in revenue is done by creating a debit to the revenue account. Sales and donations are examples of revenues.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-49042643139679728992010-09-17T07:21:00.000-07:002010-09-18T06:17:57.425-07:00Balance Sheet - Different Types Of Assets<div align="justify">An asset is anything, tangible or intangible, of value which a business owns or controls and which can be converted into cash. Assets can be of two types: current and long-term assets.<br />
<br />
<b><span style="color: #992211;">Current Assets</span></b><br />
These make up the first major component of a balance sheet. These assets are composed of items that are either in cash terms already or can be easily converted into cash terms within a year, if, for instance, a company decides to wind up its operations.<br />
Examples of current assets are as follows:<br />
<u><span style="color: #992211;">1. Cash And Cash Equivalents:</span></u> These are the most liquid assets of all i.e. money that can be used for any purpose the business wants. This category includes things like petty cash floats and business bank account balances.<br />
<u><span style="color: #992211;">2. Short Term Investments:</span></u> These are assets that a business or company may have when it invests some of its surplus cash in securities or bonds to hopefully earn a higher rate of return than if it is just left in the business doing nothing.<br />
<u><span style="color: #992211;">3. Debtors / Accounts Receivable:</span></u> Accounts Receivable and debtors arise from selling goods or services to customers on credit; at the end of a trading period the amount in the debtors category is what they still owe for the goods or services they have already received. In terms of liquidity they are next in line after cash.<br />
<u><span style="color: #992211;">4. Stock:</span></u> Any business which sells physical goods will probably carry stock to ensure continuity of supplies to their customers. Stock can be partially finished products or finished products which a business expects to be sold to customers in the near future. They are considered to be the least liquid type of current asset when compared to the other three above.</div><div align="justify"><b><span style="color: #992211;"><br />
Long-Term Assets Or Fixed Assets</span></b> <br />
Long-term assets are non-liquid assets which are generally required for the day-to-day operations of a company and which cannot be easily converted into cash. They are also called fixed assets. They are purchased for long- term use for the business and are expected to continue in existence for more than a year, thus contributing to current and future years profits. They are likely to fluctuate in value more than current assets.<br />
Examples of long- term or 'fixed' assets are:<br />
<u><span style="color: #992211;">1. Tangible Fixed Assets:</span></u> Land, buildings, machinery, vehicles, equipment, tools and furniture may be included in this category. The owners of the business use these assets over a number of years in order to carry out their trading activities. Therefore, they are not consumed or sold during the normal course of business.<br />
<u><span style="color: #992211;">2. Intangible Fixed Assets:</span></u> This category includes items like goodwill, patents, copyrights and trademarks. Due to their non-physical nature, the value of intangibles is often less certain than that of tangible fixed assets. As a consequence, specialist valuations are conducted if a business is sold and the balance sheet contains these items. Intangible fixed assets can be either bought into the business or generated from within an organization over a period of time.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-4145510094217304162010-09-09T07:27:00.001-07:002010-09-12T06:23:32.000-07:00The Benefits Of Being A Chartered Accountant<div align="justify">The degree of a chartered accountant is one of the most prestigious degrees in the world. It is not easy to become a chartered accountant considering the difficult courses and examinations that he is supposed to undergo. In fact a chartered accountant is considered to be a cut above the other accountants as he has completed a rigorous two years post graduate program along with the work experience at the same time while pursuing his studies. The chartered accountant is the most in demand finance professional in the world today. Some of the benefits that a chartered accountant enjoys are:<br />
<span style="color: #990000;">a)</span> A chartered accountant is one of the most sought after professional in the finance industry. There is a great dearth of young accounting professionals in the financial domain. It would provide you with leverage as the qualification of a chartered accountant is the highest and the toughest qualifications to have. Being a chartered accountant can provide you with a whole lot of opportunities.<br />
<span style="color: #990000;">b) </span>A chartered accountant would always have more opportunities to work overseas as the degree is recognized by a large of number of nations. One can get a head start against the other accountants as he can work in any of the member countries like- Canada, US, UK, Hong Kong, New Zealand and many more.<br />
<span style="color: #990000;">c)</span> According to a recent survey the global competition for the accountants is increasing with every passing day. The degree of a chartered accountant would also always hold one in good stead.<br />
<span style="color: #990000;">d)</span> The financial expertise as well as the business knowledge can make the CA a business leader in his country.<br />
<span style="color: #990000;">e)</span> The in depth experience as well as the rigorous training that a CA undergoes can help him in entering the higher echelons of management. Some of the CEOs of the world's biggest companies are all chartered accountants.<br />
There are many other benefits that can be accrued to a chartered accountant. Being a globally recognized qualification, a chartered professional is the perfectly suited qualification on a global scale. The training that he undergoes prepares him to face any situation howsoever complex and difficult it might be as far as the finances of an organization are concerned. Some of the key areas that a CA works on are checking the veracity of the company's financial reports, bookkeeping, advising on tax and many other responsibilities.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-82478544651816842322010-09-07T10:59:00.001-07:002010-09-09T07:37:34.743-07:00How To Start A Career As A Financial Advisor<p align="justify"><strong><u>Step 1:<br />
</u></strong><strong>To begin with</strong>, you must love connecting with people because being a financial advisor is about developing relationships. It requires high-quality communication, interpersonal skills and talent to convince the person to follow the course you recommend.<br />
<br />
<strong><u>Step 2</u></strong>:<br />
<strong>Enter a bachelor degree program </strong><strong>at an accredited college/university</strong> and choose a finance-related major such as business administration, accounting, etc. Be a good student with a 3.1 or higher GPA and make sure you understand all about financial analysis, corporate budgeting techniques, accounting policies and practices.<br />
<br />
<strong><u>Step 3:<br />
</u></strong><strong>Work at a financial company or bank</strong>. As a fresh graduate, with no experience working with clients, it seems rather difficult to start as an independent financial advisor. You should work at financial company or bank that offers a full training program, higher salary, and supplemental fees and commissions. Your fees and commissions will increase as your client list increases. The company or bank usually supports when you take your further study (such as professional exams or a MBA degree in personal finance or economics). Financial advisors collect information by asking the right questions from clients (for example, what is your goal? How do you feel about...?). Then offer analysis and advice/recommendations so the clients can make the choices.<br />
<br />
<strong><u>Remember:</u></strong> <strong>Good service will get you more clients</strong>. Take care of your clients' needs and keep in touch with them.<br />
<br />
<strong><u>Step 4:<br />
</u></strong><strong>Become an independent financial advisor.</strong><strong> </strong>After working as an experienced financial advisor in the company or bank, if you wish, you can start as an independent financial advisor. Then you have the freedom to choose the best financial products and services to suit your clients' specific needs. However, you should join an independent marketing organization so you can exchange ideas with other financial advisors to improve your skills, knowledge and career. Start up your business with a low cost (under $500). If it becomes profitable, you can expand it and if it doesn't, you do not lose too much money. To advertise your service, build a trusted referral network with the qualified professionals in finance-related subjects such as tax, insurance, mortgage, estate, etc., and then your clients will trust you more. You may have to apply for a license as a Certified Financial Advisor to improve your knowledge and professional standing, especially in mutual funds, stocks, and bonds that are required in retirement and estate planning.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-10223104765725037142010-09-04T07:38:00.001-07:002010-09-05T07:34:43.073-07:00Historic Earnings Information For Financial Management Professionals<p align="justify">In 2002, financial managers had median annual earnings of $73,340. The range of earnings for the middle 50 percent was from $52,490 to $100,660. The earnings of the lowest 10 percent were under $39,120, while the earnings of the highest 10 percent exceeded $142,260. In 2002, financial managers in the industries employing the most of these managers reported the following median annual earnings:<br />
- Securities and commodity contracts intermediation and brokerage – $125,220 <br />
- Management of companies and enterprises – $88,310 <br />
- Nondepository credit intermediation – $78,400 <br />
- Local government – $63,090 <br />
- Depository credit intermediation – $58,790<br />
A 2002 survey, performed by Robert Half International, a staffing services firm specializing in accounting and finance professionals, showed that directors of finance were paid from $75,000 to $204,500, and corporate controllers were paid from $54,000 to $138,750.<br />
The Association for Financial Professionals’ 14th annual compensation survey found that financial officers’ average total compensation in 2002, including bonuses and deferred compensation, was $130,900. Average total compensation for selected financial manager positions was as follows:<br />
- Vice president of finance – $183,500 <br />
- Treasurer – $150,600 <br />
- Assistant vice president-finance – $141,300 <br />
- Controller/comptroller – $134,300 <br />
- Director – $113,600 <br />
- Assistant treasurer – $111,900 <br />
- Assistant controller/comptroller – $115,500 <br />
- Manager – $84,500 <br />
- Cash manager – $64,700<br />
Salary varies by industry, location, and size of an organization (financial managers in large organizations generally earn more than those in small ones). Earnings are not strictly limited to salary: deferred compensation in the form of stock options is gaining popularity, particularly for senior level executives, and many financial managers in both public and private industry receive bonuses, which vary considerably by an organization’s size.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-50438709015051405272010-09-03T05:30:00.001-07:002010-09-04T07:41:42.614-07:00A Chartered Accountant Can Help You In Many Ways<p align="justify">The function of a chartered accountant can be intricate to understand, the majority just associates them with tax returns. This however, is far from all a chartered account is and if that is the only thing you are asking your regular accountant to do, then you are missing out on a valuable source of information advice and knowledge. An accountant is not only trained to deal with the financial aspects of your business, they are often up to date with the legal laws of many other areas and someone you can turn to for guidance and direction.<br />
You should inform your accountant anything that goes in your family. Up to a point of course! Everyone wants to keep the amount of tax they pay to the government down. If your accountant is kept up to date with the financial circumstances surrounding you, they can put this information to good use by devising methods that will ultimately save you money<a href="http://www.articlesbase.com/#"></a> this year and for following years to come.<br />
One of the main tasks you expect from an accountant is that they can help reducing the amount of tax you need to pay. If you provide them with all necessary details they can put this information to good use and plan how you can save money in the long-term. A good accountant will come up with a good strategy that will make it possible for you to save money for future events, such as college funds.<br />
Chartered accountants work in various business and finance sectors. These can include public practice work, the private sector and government bodies. In Australia they belong to the Institute of Chartered Accountants of Australia and use the elected letters CA, higher-ranking members of the Institute are nominated as Fellows and use the letters FCA.<br />
So to the question, what does a chartered accountant exactly do?<br />
Personal or business income tax returns can be prepared by accountants. Business tax returns can be arranged for companies, superannuation funds, partnerships or trusts, capital gains tax and rental properties. They can provide services to help legally lessen defer and plan tax payments. Advice can be given on a range of issues including business tax, sale of shares or property, business acquisitions or disposals and deciding upon the most suitable tax structure.<br />
Australian chartered accountants based in Sydney or other areas will have experience of the Australian Tax Office (ATO), and can give you information and on Business Activity Statements and Goods & Services Tax.<br />
Financial planning is important for everyone, individuals and in business. It is about putting systems into place to safeguard you and your family’s future. An accountant will look at certain areas and devise a strategy that suits. Financial planning is simply putting together a strategy and plan that will enable you to save towards costs of weddings, buying a house or retirement. Chartered accountants will look at your finances and outgoings and make a plan to suit you. A financial planning service should involve superannuation products for maximizing retirement benefits, investments for building wealth together with shares, property, managed funds and fixed interest. Insurance should also be covered as protection from economic loss in the event of death, disablement, accident or illness.<br />
Superannuation can be managed to save and invest money whilst you are working to use in your retirement. For many Australians, this is the second largest asset after the family home. Chartered accountants Sydney can provide advice on Self Managed Superannuation Funds (SMSF) and whether it is suitable for you. Chartered accountants are very useful when registering a new business and for accounting services.<br />
If you have already have a business or are registering a new one and need help then see a chartered accountant who can help with this and the accounting. They will be able to offer valuable advice on increasing profits by the application of useful financial plans and systems. A chartered accountant can help you in many areas; business valuations, payroll services, accounting services, strategic planning and salary packaging, financial statement preparation and computer accounting software are just some of the areas they operate in.<br />
Accountants today are computer friendly, meaning there is no need to make appointments to go into the accountancy office. Most things can be done online, communication and files the most common. Income tax returns can even be arranged from computerized accounting files, such as MYOB and QuickBooks. The agency you choose should be informative and experts in their field of work, they must be able to answer any questions concerning your personal or business account.<br />
Look for a chartered accounting firm offering professional financial planning services. If you are seeking a proficient financial planning service or want help setting up a small business then they can help you realize your goals.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-88911484502701600662010-08-31T05:21:00.001-07:002010-09-03T05:35:33.706-07:00Financial Management Job And Employment Opportunities<p align="justify">Through 2012, employment of financial managers should grow about as fast as the average for all occupations. Despite expected steady growth that should match growth of the general economy, competition will be keen for positions in financial management because there will probably be more applicants than job openings. Employers will look for candidates with expertise in accounting and finance, and will be especially interested in those with a master’s degree. Beyond these basic qualifications, competitive candidates will have strong computer skills, will be familiar with international finance, and will have excellent communication skills, since financial managers work on strategic planning teams.<br />
Job growth for financial managers will be directly related to the economy as a whole. Overall, the next decade will see continued job growth for financial managers, because the need for financial expertise will grow as the economy expands. This growth will come from the creation of new businesses as well as from the expansion of established ones. Growth for financial managers does face several obstacles. Mergers, acquisitions, and short term economic downturns reduce employment in this occupation because companies are likely to close departments, downsize, or even go out of business—diminishing the need for financial managers.<br />
Despite continued, albeit slower, consolidations by the banking industry (which employs over 10 percent of all financial managers), there will be a continued need for bank branch managers. In fact, as they refocus on existing branches and create new branches to serve a growing population, banks are expected to employ an increasing number of branch managers. Moreover, banks that extend their products and services to include insurance and investment products will need branch managers who are familiar with these areas. In consequence, candidates authorized to sell insurance or securities will be more appealing to employers.<br />
The present slump in the securities and commodities industry should not damage long-term prospects for financial managers in that industry because more managers will be needed to handle progressively more complex financial transactions and manage an increasing number of investments. Specifically, firms will need financial managers to raise capital, conduct mergers and acquisitions, and assess global financial transactions. Risk managers, who gauge risks for insurance and investment purposes, will also be needed in the industry.<br />
In some cases, financial managers may be hired temporarily, to steer a firm through a short-term crisis or to suggest ways to increase profits. Even in organizations where all accounting and financial operations are contracted out, financial managers may be necessary to oversee the contracts.<br />
Computer technology will have significant implications for financial managers. Because computers can generate financial reports in less time and with fewer people than in the past, the next decade will see some changes in the ways financial managers perform. For example, corporations will need financial managers to forecast earnings, profits, and costs, and to think of original ways to improve profits.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-15334489889710174192010-08-30T07:23:00.001-07:002010-08-31T05:23:58.770-07:00Role Of A Chartered Accountant In An Organization<p align="justify">An accountant plays a pivotal role in an organization. It is not just during the tax season, accountants can be useful at any time of the year. A chartered accountant can help you solve various financial issues.<br />
Becoming a Chartered Accountant is not an easy task. They need to pass three qualifying examinations and should have 30 months of practical experience before they get their designation of a Chartered Accountant. Apart from high degree of knowledge, they must abide by a professional code of conduct. They must act ethically, maintain client confidentiality, and avoid situations involving a conflict of interest. They can help you and your business.<br />
There are non-designated accountants who do not belong to a professional body. Business owners should not hire any such non-designated accountants. There are Chartered Accountants who provide tax planning and tax preparation services to their clients. However, not every accountant is a tax expert. Tax experts have in-depth knowledge and expertise in the area of taxation. In Canada, The Canadian Institute of Chartered Accountants (CICA) has the most comprehensive tax training program, know as the Canadian In Depth Tax Course. Chartered accountants have the practical experience to be defined as tax experts.<br />
Organizations should find out the type and years of tax experience Chartered Accountants have and check whether he/she has completed the CICA In-Depth Tax Course. You have to hire a CA who is a tax expert. In an organization, the finance department has to handle complicated issues that require expertise, experience and utmost precision. Handling such financial matters is not an easy task. A chartered accountant can help you figure out how to proceed. An experienced chartered accountant can handle your financial matters competently.<br />
Chartered accountants provide a fixed fee to their clients or bill on hourly basis. Moreover, the value that you and your business derive from their services is far in excess of the fees that you pay them.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-9443501017711181322010-08-29T05:47:00.001-07:002010-08-30T07:27:25.218-07:00Financial Manager Training Requirements And Job Qualifications<div align="justify">To break into financial management, candidates need to prepare themselves academically with at least a bachelor’s degree in accounting, finance, economics, or business administration. In an increasingly competitive market, a master’s degree especially in business administration, economics, or risk management is increasingly important. Employers value the analytical skills and the training in the latest financial methods and technology that these degrees provide their employees.<br />
For some financial management positions, formal education can be secondary to work experience. This is especially true for banks, where branch managers have generally worked their way up from other positions. Banks often promote successful, experienced loan officers and other professionals. Some financial managers enroll in their company’s management training programs in order to move into the field.<br />
To stay abreast of the complex and dynamic profession of financial management, these managers must upgrade their training throughout their careers. Firms have a vested interest in keeping their employees’ skills sharp, and many firms encourage employees to take graduate courses at colleges and universities or participate in professional training conferences. Banking, credit union, and financial management associations regularly collaborate with colleges and universities to sponsor local and national training programs. Firms frequently cover all or some of the costs of these programs for workers who successfully complete them. Workers enrolled in such programs prepare thoroughly before attending various sessions on subjects like financial analysis; international banking; information systems; and accounting, budget, and corporate cash management. Such specialized courses may accelerate one’s professional advancement, even though the usually criteria for promotion are ability, experience, and leadership.<br />
Professional certification is another option for those looking to expand their skills and emphasize their competence, and many associations offer professional certification programs. Investment professionals with a bachelor’s degree, passing marks on three sequential examinations, and requisite experience can earn the designation of Chartered Financial Analyst from the Association for Investment Management and Research. The Association for Financial Professionals (AFP) awards an accreditation of Certified Cash Manager to financial workers with at least 2 years of relevant experience who pass a computer-based exam. Members of the Institute of Management Accountants can receive the designation of Certified in Financial Management if they have a bachelor’s degree, have at least 2 years of work experience, pass the institute’s four-part examination, and complete ongoing education requirements. Financial managers concentrating in accounting may also become a Certified Public Accountant (CPA) or a Certified Management Accountant (CMA).<br />
Financial managers must possess various skills. Because they constantly interact with and manage people, working on teams and explaining complex financial information, financial managers need excellent interpersonal and communication skills. Financial managers should think creatively and be problem-solvers, and they must be able to apply their analytical skills to all types of business situations.<br />
They also need a broad understanding of business practices, as they work extensively with many of the firm’s departments. They must be able to work on the latest computer technology. Furthermore, the increasingly global nature of finance means that financial managers must be familiar with international finance and they may benefit from being proficient in a foreign language.<br />
Successful financial managers have various options available to them, since efficient business operations rely on effective financial management. Within an organization, financial managers with training, experience, and a solid understanding of various departmental operations are prime candidates for advancement to positions of upper management. Other financial managers choose to move laterally to similar positions in other industries, and those with extensive experience and access to sufficient capital may even found consulting firms of their own.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-77023638465946992992010-08-28T07:10:00.001-07:002010-08-29T05:51:18.643-07:00MBA<div align="justify"><b>MBA Degree Overview<br />
</b>A widely-demanded credential in financial services is the MBA. The key question is how necessary it is. <br />
Many jobs for which an MBA is either required or strongly advised do not really need it. Rather, it frequently is used as a filter to reduce the candidate pool to a manageable size, weeding out (though not necessarily with complete success) less qualified applicants. Indeed, in many respects, requiring the MBA for certain jobs is an alternative to administering a standardized test as a screening device.<br />
The fact of life is that, without an MBA, you are somewhat limited in your career prospects, especially if you expect to work in major corporations.<br />
<br />
<b>Quality of MBA Programs</b> <br />
The quality of MBA programs varies widely, even among those accredited by such bodies as the Association to Advance Collegiate Schools of Business (AACSB). For example, accredited programs can offer vastly different amounts of classroom instruction, ranging from 33 to 60 credit hours (see "Some MBAs are more equal than others," <i>Financial Times</i>, 5/3/2010).<br />
Online MBA programs can seem attractive for the student who is budget-constrained, time-constrained, or who needs maximum scheduling flexibility. However, online MBA programs offer highly limited interaction with instructors and fellow students compared to traditional in-classroom MBA programs, and such interactions are often a key component of the learning experience.<br />
<b><br />
Return on Investment for an MBA</b> <br />
The December 10, 2008 edition of <i>The Wall Street Journal</i> ran an article about the return on investment (ROI) from attending an executive MBA (EMBA) program. The concept is equally valid (and important) for evaluating conventional full-time MBA programs. The calculations developed for the <i>WSJ</i> article depend on these assumptions:<br />
- The MBA program attended and its cost <br />
- The amount of tuition and fees paid by your employer <br />
- The increase in salary that you can expect from graduating the program, based on median results from other respondents<br />
The median results reported by graduates of a given program must be adjusted in light of your own circumstances. Moreover, your own analysis should be conducted on an after-tax basis. Any salary increase attributable to receiving an MBA will be reduced by income and payroll taxes, whereas your expenditure on tuition and fees is likely to be non-deductible.<br />
One of the chief findings in this article is that lesser-known, less-renowned executive MBA programs often offer the best ROI. What the article fails to say, however, is whether the ROI will differ based on where you work. That is, these programs that are less-renowned nationally may have strong local reputations, and the ROI results may be skewed if their graduates are thus overwhelmingly local. In other words, if you travel cross-country to go to one of these high ROI programs, you may not get the same results back in your home region as do the local attendees. That is another factor that should have been controlled for, difficult as it is. Despite all these caveats, this article is a useful reminder that you should engage in detailed empirical analysis of the costs and benefits of augmenting your credentials, be it through a regular MBA, an executive MBA, or other means.<br />
<br />
<b>MBA Program Reform and Rethinking</b> <br />
The <i>HBS Alumni Bulletin</i> (from the Harvard Business School) reports in its September 2008 issue that major MBA program are radically rethinking their curricula. The article contends that increasing numbers of academics, alumni, students and companies are all dissatisfied with the general quality of MBA education, even in elite programs. The author claims that in the 1960s and 1970s MBA programs generally imparted cutting-edge knowledge, but that it's been largely downhill from there.<br />
The author quotes a partner at a top consulting firm who asserts that a bright young associate with five years' experience at his firm would advance just as quickly by staying put, as by getting an MBA. This anecdote, however, conflicts with the general trend by which employers (especially top consulting firms) increasingly insist upon the MBA as the admission ticket to the best jobs.<br />
This points out that there are some organizations that buck the trend, like that unnamed consulting firm. When considering whether to pursue an MBA yourself, first research closely the sort of employers and career paths that interest you most. Look for related job postings and see what academic credentials are required, and what are simply recommended. Only after you do that can you make a truly informed choice about whether an MBA really will enhance your career prospects. And remember, there are no guarantees and plenty of exceptions to every rule.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-23196223432668018932010-08-27T05:22:00.001-07:002010-08-28T07:16:05.689-07:00Financial Management Career Overview And Description<p align="justify">Nearly all firms, government agencies, and organizations have at least one financial manager to supervise the preparation of financial reports, guide investment activities, and execute cash-management strategies. Since computers can very efficiently record and organize data, financial managers spend much time developing strategies to help the organization realize its long-term goals.<br />
Financial managers’ responsibilities vary according to position. Specific titles include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers prepare special reports as required by regulatory authorities and oversee the preparation of financial reports, such as income statements, balance sheets, and analyses of future earnings or expenses, which describe and predict the organization’s financial position. In many firms, controllers supervise the accounting, audit, and budget departments.<br />
Treasurers and finance officers direct an organization’s budgets and financial objectives by overseeing the investment of funds and managing associated risks, supervising cash management activities, addressing mergers and acquisitions, and implementing capital-raising strategies to sustain a firm as it expands. Credit managers supervise a firm’s issuance of credit by establishing credit-rating criteria, determining credit ceilings, and monitoring collection of unsettled accounts. Financial and accounting systems for the banking transactions of multinational organizations are developed by managers who specialize in international finance.<br />
Cash managers help firms meet their business and investment needs by monitoring and controlling the flow of cash receipts and disbursements. Cash flow projections are essential to determining whether a firm needs loans to meet cash requirements and deciding how a firm should invest surplus cash. Risk and insurance managers, in addition to managing a firm’s insurance budget, direct programs to minimize potential risks and losses from a firm’s financial and business operations.<br />
Financial institutions—commercial banks, savings and loan associations, credit unions, mortgage and finance companies, and the like—also employ financial managers. Depending on their area of specialty, these employees’ duties include lending, trusts, mortgages, investments, and various programs, including sales, operations, or electronic financial services. In some firms, these managers might also solicit business, authorize loans, and direct the investment of funds, making sure always to follow Federal and State laws and regulations.<br />
Branch managers of financial institutions oversee all operations of a branch office. Their duties might include hiring personnel, approving loans and lines of credit, attracting business by establishing good relationships in the community, and helping customers with concerns about their account. Financial managers employed in financial institutions need to stay current with the rapidly growing range of financial products and services.<br />
On top of these general responsibilities, financial managers have unique duties in each organization and industry. Government financial managers, for instance, must be intimately familiar with the government appropriations and budgeting processes. Healthcare financial managers, on the other hand, need specialized understanding of healthcare financing issues. In nearly all cases, financial managers must know any special tax laws or regulations that concern their industry.<br />
To reduce risks and maximize profits, firms rely more and more on the guidance of experienced and knowledgeable financial managers in mergers and consolidations, and in international expansion and related financing. Firms increasingly hire financial managers as temporary consultants to advise senior managers on these types of business operations. In fact, some small firms hire contracting companies to handle all of their accounting and financial needs.<br />
Technological advances that continue to reduce the time it takes to create financial reports have forced the financial manager’s role to evolve, especially in business. These managers often work on teams and spend more time analyzing data. From these analyses, they create strategies for more efficient business procedures, which they in turn us to advise top management. Because of this increasing reliance on computers, financial managers need to keep up with the latest technological advances in order to maximize their firm’s efficiency.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-29237085197128798162010-08-22T05:49:00.001-07:002010-08-25T05:05:50.900-07:00How To Become A Good Professional<div align="justify">A Professional is a person engaged in a particular activity for earning a livelihood. As a professional, he is supposed to be an expert on the subject he is dealing with. With his deep knowledge in the subject, he is able to help other people to find a solution for their problems related with his profession.<br />
Everyday new professions are being discovered around the world. Most of these professions are derived from various existing professions. Many earn handsome money by being more creative in their profession. A creative person can make his profession more attractive and people will love to get service from a creative professional. A professional gets his professionalism not only from his knowledge about the subject, but also through hard work and number of years of experience. The professionalism must be reflected on his words and deeds.<br />
A seasoned professional should try very hard to stick to his commitments and will be honest always. These virtues will help a professional to gain confidence of his clients. Once a professional gets his reputation, he is established in his line of activity. A dedicated professional do the work for satisfaction and not merely for money. A professional learns from his mistakes and utilizes them to bring more perfection to his work or services.<br />
A professional can ruin his profession if he does something unethical or against his profession. So a professional needs to know about things that can ruin their profession beforehand so that he can refrain from doing such things.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-92208319230581451032010-08-21T05:32:00.001-07:002010-08-22T05:54:28.917-07:00Internal Auditor (Video)<div style="padding-bottom: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; float: none; padding-top: 0px" id="scid:5737277B-5D6D-4f48-ABFC-DD9C333F4C5D:33b9354a-e0c7-4efd-aa72-f857323effe4" class="wlWriterEditableSmartContent"><div id="37a583fe-4847-4a81-b537-b58be790903a" style="margin: 0px; padding: 0px; display: inline;"><div><a href="http://www.youtube.com/watch?v=EYtzPwmxWDw&feature=player_embedded" target="_new"><img src="http://lh3.ggpht.com/_-Aw8EzNgrS0/TG_HQVAWplI/AAAAAAAAA1w/fhYF2W3XeZM/video5d0f61a7ddf3%5B2%5D.jpg?imgmax=800" style="border-style: none" galleryimg="no" onload="var downlevelDiv = document.getElementById('37a583fe-4847-4a81-b537-b58be790903a'); downlevelDiv.innerHTML = "<div><object width=\"425\" height=\"355\"><param name=\"movie\" value=\"http://www.youtube.com/v/EYtzPwmxWDw&hl=en\"><\/param><embed src=\"http://www.youtube.com/v/EYtzPwmxWDw&hl=en\" type=\"application/x-shockwave-flash\" width=\"425\" height=\"355\"><\/embed><\/object><\/div>";" alt=""></a></div></div></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-79412798412134735592010-08-20T05:17:00.001-07:002010-08-21T05:36:05.239-07:00Top Tips Needed To Become A Pro- Auditor<p align="justify">- A good work attitude with excellent discipline <br />
- The ability to interpret figures and data <br />
- Excellent with math's and have good IT skills <br />
- Good spoken and written communication skills <br />
- Strong analytical and problem-solving ability <br />
- Good organizational and time management skills <br />
- A high degree of accuracy and attention to detail <br />
- The ability to work both independently and as part of team <br />
- Have a good understanding of business <br />
- Honesty and discretion, for dealing with sensitive business information<br />
<br />
<strong><u>- External Auditor<br />
</u></strong>As an external auditor, you would independently review a company's accounts to make sure they are accurate and show a fair view of its financial position. You might also audit public sector organizations such as civil service departments and local councils, to check how public money is being spent and to see if savings can be made. Most organizations are required by law to publish audited accounts.<br />
<u><strong>- Internal Auditor<br />
</strong></u>As an internal auditor, you would examine an organization or department’s polices, procedures and possibly its finances with a view to advising on how it could improve efficiency. You would often be an employee of the organization, or you might work for a specialist outsourced internal auditing service.</p>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-29086594891331699352010-08-19T06:23:00.001-07:002010-08-20T05:19:47.247-07:00External Auditor Certification<div style="text-align: justify;">The external auditor certification process helps audit professionals learn about a variety of accounting, audit and tax topics needed to be competent and productive. This process includes educational requirements, a comprehensive exam, experience criteria, continuing education and ethical considerations. Regulations require an external auditor engaged in reviewing or auditing activities to be certified. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Function<br />
</u></b>The external auditor certification process prepares an auditor to understand important tools and techniques used in the auditing practice. This process also teaches an external auditor generally accepted accounting standards (GAAS) and how to apply them to a review of corporate procedures and mechanisms. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Education<br />
</u></b>An external auditor who seeks certification must have a four-year college degree in accounting, audit or tax. An undergraduate candidate with a liberal arts (e.g., sociology or geography) background also may meet education criteria if at least 24 semester hours are in auditing, accounting or tax. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Examination<br />
</u></b>The four-part certified public accountant (CPA) exam tests an external auditor's knowledge of business processes, audit, accounting and tax. "Auditing and Attestation" tests a candidate's knowledge of GAAS and audit technology tools. "Business Environments and Concepts" ensures that a candidate understands general business topics such as economics, financial management, corporate strategy and market competition. The "Financial Accounting and Reporting" section covers generally accepted accounting principles (GAAS) and how they apply to a corporation's financial statements. "Regulation" tests an applicant's knowledge of federal, state and local fiscal rules as well as broad business laws such as contracts and legal standards for accountants. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Experience<br />
</u></b>An external auditor seeking certification must work for two years under the direction of a CPA with an active license. To meet experience guidelines, tasks must be in accounting, auditing or tax activities. An accounting or audit scholar may meet requirements by substituting teaching with practical experience. For example, an accounting professor in Georgia may receive a license after 5 years of teaching experience. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Continuing Education<br />
</u></b>An external auditor seeking certification must take a minimum of continuing professional education (CPE) hours every year. CPE requirements vary by state. For example, a New York-based external auditor must take 40 hours of business studies or 24 hours in auditing, tax or accounting. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;"><b><u>Ethics<br />
</u></b>A certified external auditor must always hold ethical values when performing an audit or a review of a corporation. Ethical values require a certified external auditor to reveal conflicts of interest as well as illegal or fraudulent activities to a superior, a client, regulators or law enforcement. For example, a certified external auditor may disclose to the top management of a company that the cash receipts clerk is stealing cash via a secret bank account.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-4232133543718557602010-08-16T07:40:00.001-07:002010-08-16T07:41:17.738-07:00Become An Internal Auditor<p align="justify">Considering a career as an Internal Auditor? Find out all you need to know to decide whether this career is right for you. <ul> <li> <div align="justify">What does an Internal Auditor do? </div> <li> <div align="justify">How to become an Internal Auditor? </div> <li> <div align="justify">What is an Internal Auditor's Salary? </div> <li> <div align="justify">How does the future look for an Internal Auditor?</div></li></ul><a name="internal-auditor-career"></a> <p align="justify"><strong><u>What does an Internal Auditor do?<br></u></strong>An Internal Auditor will perform various types of tasks depending on the industry and whether the hiring organization is public or private. The main role of an Internal Auditor is to verify the accuracy of all internal records, evaluate internal systems in order to detect any mismanagement, inefficiencies or fraud.<br>As an Internal Auditor, you will need to be highly educated in regard to all corporate policies, laws and government regulations affecting the way your organization does business. Your assessments of company data and your suggestions for changing any company policies and procedures will be grounded in the knowledge of these fundamentals.<br>In order to be a successful Internal Auditor, you will need to have various sets of skills. You will often need to work alone on projects; therefore, you must have a strong work ethic and desire to perform highly. You will also need to have very strong computer skills as well as have current knowledge of auditing and accounting software available for your organization's type of information system.<br>Since many Internal Auditing projects require an Internal Auditor to acquire data, process data, evaluate internal systems and produce complex solutions, you will need to have strong presentation skills. You will often be charged with the responsibility of presenting complex concepts to upper management and having to successfully communicate the value-added by changing current operations.<br>The Internal Auditing profession is grounded in business fundamentals that are extremely valuable in any type of business related profession. Many individuals with a background in internal auditing go on to be very successful as CEOs or business owners in any industry.<br><br><strong><u>How to Become an Internal Auditor?<br></u></strong>Educational requirements may vary slightly depending on the company, the area you wish to work and your previous work experience.<br>For most all Internal Auditor careers, the minimum educational requirement is the completion of a Bachelor's degree. However, the majority of successful Internal Auditors hold various forms of professional auditing designations such as the following through the Institute of Internal Auditors (IIA):<br>- Certified Internal Auditor (CIA) <br>- Certification in Control Self-Assessment (CCSA) <br>- Certified Government Auditing Professional (CGAP) <br>- Certified Financial Services Auditor (CFSA)<br>After 5 years of experience, the Information Systems Audit and Control Association offers the designation of the Certified Information Systems Auditor (CISA).<br>The most successful Internal Auditors will also have completed MBA programs in Accounting or Finance or MBA programs in Technology if working in that industry.<br>In a hurry? Request free information from some of the top online schools offering Master's or MBA programs in Accounting.<br>Beyond a quality education and the development of skills necessary to succeed as an Internal Auditor, you will need to learn where to gain experience by finding career opportunities.<br>You will find some career opportunities on Internal Auditing Career portals such as the ISAC or the IIA; however, you will probably have quicker results if you contact a local recruiter or begin contacting hiring firms directly. You may find Internal Auditor openings under newspaper or online classifieds (Craigslist or Monster.com).<br><br><strong><u>What is an Internal Auditor's Salary?<br></u></strong>As an Internal Auditor, your salary can vary significantly depending on your level of experience, your level of acquired education and size of the company you work for.<br>The median salary<sup>*</sup> for an Internal Auditor is $54,600.<br>The top 10% of Internal Auditors are pulling in an average of $94,100.<br>In order to boost yourself to this level of success, you will need to perform highly, develop years of experience at a respectable company and lastly, earn yourself an advanced degree.<br>Request information from some of the top online schools in the United States. Online schools are becoming more popular for the working professional and are already highly respected in the business arena.</p> <p align="justify"><a name="internal-auditor-outlook"></a> <p align="justify"><strong><u>How does the future look for an Internal Auditor?<br></u></strong>The job outlook for Internal Auditors looks very good for the coming years. As competition increases in virtually every industry and as the result of accounting scandals, businesses are needing to have better documented and regulated internal policies and programs. Highly educated Internal Auditors are going to be in the highest demand in the future.<br>Those who can systematically and autonomously conduct internal auditing procedures to decrease mismanagement, increase efficiency and reduce any possibility of accounting errors or bad conduct will have limitless employment opportunities.<br>The Bureau of Labor and Statistics has projected that from 2004 to 2014 accounting and auditing career opportunities will increase 22% nationwide from 1,176,200 to 1,440,100 jobs.<br>The future looks bright for the Internal Auditor profession, so go ahead and get started!</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-83748541531762935982010-08-14T03:59:00.001-07:002010-08-14T03:59:45.152-07:00Ten Qualities Of An Effective CFO<p align="justify">An effective chief financial officer is critical to the success of any organization; an ineffective one may be the reason for its failure. Bad CFOs are easy to spot—but what about the average ones, with some good qualities but also some key limitations? This question is most crucial in a turnaround. With cash flow tight and lender cooperation essential, a merely average CFO can inhibit progress or even derail the process. How does one evaluate a CFO's capabilities to handle a turnaround situation? When is immediate replacement appropriate?<br>There are no absolutes, but a "70% rule" can help provide a framework for rating qualities that effective CFOs must possess on a scale of one to 10. The significance and weight of each quality can be adjusted as necessary to a particular situation. CFOs who rank below an average of 70% weighted proficiency in the following 10 qualities probably should be replaced or supplemented.<br><br><strong>1) Uncompromising Integrity And Ethical Standards<br></strong>A good CFO must be honest, ethical and able to develop and maintain the trust and confidence of all constituents. It's not in the job description, but a good CFO knows he is the custodian of everyone's money. The best CFO in a turnaround situation will understand he owes allegiance to all constituents and that sometimes his role is to deliver bad news to the CEO—even if it means risking his job—because it will benefit the stakeholders.<br><strong>2) Financial Accounting, Cash Management And Corporate Finance Competence</strong><br>A successful CFO must possess fundamental accounting knowledge, cash management skills and the ability to manage the financial function. A CFO need not be a CPA, but the person absolutely must know how the numbers are generated and be able to communicate effectively with managers, creditors, shareholders and others.<br><strong>3) Basic Business Knowledge And Strong Understanding Of Company Operations <br></strong>To be effective in a turnaround, a CFO must understand business fundamentals, a company's basic operations and its business model. A CFO who merely reports numbers and has no interpretive ability does not add value in a restructuring.<br><strong>4) Strategic Vision And Leadership Skills</strong><br>The best CFOs can think strategically, help create and execute business plans and demonstrate strong leadership within the financial departments and with the management team as a whole. The CFO can't just be a "numbers guy"; he's got to be a negotiator. CFOs who stay in their offices all day, demonstrate no executive presence, hoard information or are arrogant or condescending are generally ineffective.<br><strong>5) Problem-Solving Abilities</strong><br>A CFO's knowledge of the company, its resources and the numbers is critical in formulating a plan to secure a company's future. Good CFOs look for "win-win" situations, rather than trying to get a "good deal."<br><strong>6) Communication Skills</strong><br>Especially in turnaround situations, a CFO must be able to communicate the financial performance and resources of the company to all key constituents orally and in writing. A good CFO will give you the answers before you ask the questions; a bad CFO will make you feel that if you hadn't asked, you would never have found out.<br><strong>7) Strong Work Ethic</strong><br>A CFO in a turnaround must be willing to work long hours, processing a tremendous amount of work product while paying extreme attention to detail. A CFO who only works eight-hour days will not accomplish the objectives.<br><strong>8) Self-Confidence And Willingness To Take A Stand</strong><br>To gain and keep the trust of all constituents in a turnaround, including the company's employees, the CFO must be self-confident without being arrogant. That means the ability to transmit appropriate messages to appropriate audiences, a willingness to admit mistakes and the ability to offer input without insisting on being right.<br><strong>9) Results-Oriented Mindset</strong><br>A company in turnaround needs a CFO who is committed to results first. The CFO who elevates process above all impairs his ability to see problems, which is a problem in itself—especially when the company's procedures are likely part of what got it into trouble in the first place.<br><strong>10) Reliability</strong><br>A CFO who works reliably under pressure to produce timely, accurate information and is willing to do whatever is necessary to bring about results is invaluable. The right CFO not only wants change, but also can help set the ball in motion. <br><br>What to do once you know the score? A failure to replace or supplement the work of an average CFO can have far-reaching negative economic and organizational consequences. <br>On the other hand, even an average CFO can be useful. If a CFO averages between 50 and 60 but scores well in integrity, business and financial knowledge, work ethic and reliability, retaining the person but hiring an interim financial manager might be the answer.</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-70037964508921235182010-08-13T05:57:00.001-07:002010-08-13T05:57:04.048-07:00How To Become A CFO<p align="justify">Route to becoming a CFO,<br>Do I need an MBA to become a CFO?<br>The simple answer is no. A CFO’s primary responsibility is to manage the corporation’s finances including accounting coordination, financial statement preparation and raising capital. Today’s CFO is changing however and there is a responsibility to perform many of the old COO’s duties. This means today’s CFO is required to understand more than just numbers. A solid background in strategic management, product development and even marketing are all assets for a future CFO to obtain.<br>In a recent interview with CFO of SABIA, Inc Peter Knob loch stated the following qualities makes a good CFO: an in depth understanding of finance, an understanding of GAAP, a high level of interest, and a wide range of experience. Now when talking about experience, this doesn’t necessarily mean good experience. Some of the best learning experiences come from complete and utter failure. An individual who has never made a mistake often is lacking in depth or is not honest.<br>The most common route to becoming a CFO is through an accounting profession. Because of their discipline, organization and ability to present financial information appropriately and with integrity, accounting professionals make excellent CFO candidates. If this is the route you are going to take you don’t necessarily have to stay with the same company hoping to one day be noticed for the superstar you are. It’s okay to move around to different companies to gain experience. However, it’s critical to keep up with continuing professional education, especially in today’s regulatory environment.<br>Once you have put in your time to gain the required education and skill set the final step is to get noticed. Make yourself known. The CEO wants someone of impeccable integrity and loyalty. Network, develop contacts on the board and with your auditors.<br>Just an end note becoming a CFO is like any other noble life long goal. You have to believe in your abilities, you have to be a dedicated life long learner and you have to be proactive. GO OUT THERE AND GET IT.</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-48265842070902984212010-08-12T05:50:00.001-07:002010-08-12T05:50:08.892-07:00Chief Financial Officer<p align="justify">The <b>chief financial officer</b> (<b>CFO</b>) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management. In some sectors the CFO is also responsible for analysis of data. The title is equivalent to <b>finance director</b>, a common title in the United Kingdom. The CFO typically reports to the chief executive officer and to the board of directors, and may additionally sit on the board.<br><br><u><strong>Qualifications<br></strong></u>Few CFO's have no formal qualifications, but many CFO's in large companies have finance qualifications such as an MBA or come from an accounting background. A finance department would usually contain some accountants with Certified Public Accountant or equivalent status. The Sarbanes-Oxley Act of 2002, enacted in the aftermath of several major US. accounting scandals, requires at least one member of a public company's audit committee to hold an accounting or finance qualification.<br><br><strong><u>Federal government of the United States<br></u></strong>The federal government of the United States has incorporated more elements of business-sector practices in its management approaches, including the use of the CFO position (alongside, for example, an increased use of the chief information officer post, within public agencies).<br>The Chief Financial Officers Act, enacted in 1990, created a chief financial officer in each of 23 federal agencies. This was intended to improve the government's financial management and develop standards of financial performance and disclosure. The Office of Management and Budget (OMB) holds primary responsibility for financial management standardization and improvement. Within OMB, the Deputy Director for Management, a position was established by the CFO Act, is the chief official responsible for financial management.<br>The Office of Federal Financial Management (OFFM) is specifically charged with overseeing financial management matters, establishing financial management policies and requirements, and monitoring the establishment and operation of federal financial management systems. OFFM is led by a controller.<br>The CFO Act also established the CFO Council, chair by the OMB Deputy Director for Management and including the CFOs and Deputy CFOs of 23 federal agencies, the OFFM controller, and the Fiscal Assistant Secretary, the head of the Office of Fiscal Service of the Department of the Treasury. Its mandate is to work collaboratively to improve financial management in the US. government and "advise and coordinate the activities of the agencies of its members" in the areas of financial management and accountability.<br>OMB Circular A-123 (issued 21 December 2004) defines the management responsibilities for internal financial controls in federal agencies and addressed to all federal CFOs, CIOs and Program Managers. The circular is a re-examination of the existing internal control requirements for federal agencies and was initiated in light of the new internal control requirements for publicly-traded companies contained in the Sarbanes-Oxley Act of 2002.<br>While significant progress in improving federal financial management has been made since the federal government began preparing consolidated financial statements, the Government Accountability Office (GAO) reported that "major impediments continue to prevent [GAO] from rendering an opinion." In December 2006, the GAO announced that for the 10th consecutive year, the GAO was prevented from expressing an opinion on the consolidated financial statements of the government due to a number of material weaknesses related to financial systems, fundamental recordkeeping, and financial reporting.<br>At the same time, in calendar year 2007, the CFOC announced that for the second consecutive year, every major federal agency completed its Performance and Accountability Report just 45 days after the end of the fiscal year (2006).</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-23479454086225999592010-08-11T00:51:00.001-07:002010-08-11T00:51:48.299-07:00How To Manage And Upgrade Your Professional Career Skills<p align="justify">To succeed on the professional career ladder, your skills ought not be stable. What you need to do is effectively manage or better yet upgrade your skills constantly. This is to ensure that no other people can kick you off your position. More than this, it can give you higher chances of being a worthy competitor for any good place in the ladder.<br><br>If you have a professional job right now, don’t just be contented with what you have. Rather, make every effort to improve your craft. In the end, it is still you who will get the benefits from it. Now, check out these strategies to help you out in managing as well as developing your professional skills:<br><u>- Continuous learning process:</u> Accept that a professional employment is a continuous learning opportunity for you. Use this to master your craft as well as your skills in handling the professional job you have. This surely will help you not only on your current job but as well as your future professional employment. <br><u>- Responsibility over your career:</u> Though you may be employed by a certain company, you are the one who will handle your career yourself. Take responsibility and make sure that you make use of any opportunity to improve your professional skills. Take advantage of conferences, training, and memberships in associations. <br><u>- Job performance:</u> Make every possible way to excel in your current job. Your performance will always be the basis of any promotion along the way. As part of excelling in the craft, you can always approach your supervisor and request for any appropriate tasks he or she can give to you. However, make sure that you can really do the task. <br><u>- Working relationships:</u> This is also an important strategy in developing your skills. Make sure that you are able to perform with a team effectively. Get as much professional example skills that you can use for your career advancement. Also, you can become a good professional example for your workmates.<br><u>- Maintain a network with other people:</u> Aside from workmates, you can be a member of groups of people with the same career as yours. For sure, all of you can exchange experiences and knowledge that can help boost the career of every member. <br><u>- Get a counselor:</u> It is best that you have a regular counselor or mentor for your career. However, make sure that they are well-experienced and knowledgeable in the field. You can have as much mentors as you want depending on the type of skill you want to learn. <br><u>- Future preparations:</u> Often called the “What’s Next Perspective,” it is necessary that you plan ahead of time. Don’t just settle with the thing you have today. <br><u>- Skill enhancement:</u> Enroll in certain skill enhancement programs like computer programs, leadership trainings, and the like. You can go to a learning center or academy to develop or learn a new professional career skill. Also don’t be afraid to take any test to evaluate your progress and competitiveness.<br><br>Now, appreciate that the true test of your professional career path is through your proper management and development of your skills. Don’t think that your development needs to stop after you leave a university, academy, or learning center. Your professional skill development needs to be continuous so as you can find your right place in the career ladder.</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-68742176278679404062010-08-09T00:49:00.001-07:002010-08-09T00:49:40.830-07:00IRR<p align="justify"><strong>Advantages:<br></strong>- Does consider the time value of money.<br>- A percentage is easily understood.<br>- Uses cash flows.<br>- It considers the whole life of the project.<br>- It does not need the cost of capital to be known.<br>- A company selecting projects where the IRR exceeds the cost of capital should increase shareholders wealth.<br><br><strong>Disadvantages:<br></strong>- It is not a measure of absolute profitability.<br>- Interpolation only provides an estimate.<br>- Fairly complicated to calculate although spreadsheets have inbuilt programs.<br>- Non-conventional cash flows may give rise to multiple IRRs.</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-85983044575556126542010-08-08T02:42:00.001-07:002010-08-08T02:42:40.896-07:00Net Present Value<p align="justify"><strong>Advantages:<br></strong>- If company undertakes investment project with positive NPV, the value of share holders wealth is increased by that NPV’s its consistent with shareholders objective to maximize the return on their investment.<br>- Its based on cash flows rather than profits, which are difficult to distort.<br>- Effects of inflation and taxation are properly taken into consideration.<br>- Risk and uncertainty can be incorporated into the NPV working i.e. by using sensitivity analysis, probabilities etc.<br><br><strong>Disadvantages:<br></strong>- A major problem in use of NPV is the choice of discount rate, it is generally accepted that rate to be used should be the cost of capital, but is in itself may be difficult to determine.<br>- Through risk and uncertainty can be incorporated into NPV workings i.e. by using sensitivity analysis and other models, but these models itself have limitations.<br>- The technique assumes that cash flows arise at the end of time period, but in reality its not true.<br>- The method ignores non-financial factors e.g. skills and competencies, customers satisfaction etc, which may equally important as other financial factors.</p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-32810961420508547892010-08-07T01:16:00.001-07:002010-08-07T01:20:15.306-07:00Comparison of NPV and IRR<p align="justify">Two different basic DCF methods have been, NPV and IRR. When used to analyze a project, the decision is easily made:<br> > If a project has a POSITIVE NPV it should be ACCEPTED<br> > If a project has an IRR greater than the required rate of return, ACCEPT it<br>Since the two basic DCF methods are based on the same underlying principle, the time value of money, one would expect them to give identical investment decisions. THIS IS NOT ALWAYS SO four types of investment decision can be identified:<br><strong>1. </strong>Single investment decision<br> When deciding whether or not to accept a single capital project which based on its conventional cash flow pattern (i.e. cash outflow – cash inflow), a project will be accepted if it has a positive NPV at the required rate of return or its IRR is greater than the required rate of return.<br><strong>2. </strong>Mutually exclusive investments<br> Organizations may often face decisions in which only one of two or more investments can be undertaken, these are called mutually exclusive investment decisions. In these circumstances NPV and IRR may give conflicting recommendations.<br><strong>3. </strong>Projects with multiple yields<br> When a project is having non conventional cash flows (cash outflow – cash inflow – cash outflow). <br><strong>4. </strong>Projects without and yield<br> When a project is having only cash outflow or substantial cash outflow as compare to cash inflow throughout its project life.<br><br><strong>Comments: <br></strong>These are the projects which are always unprofitable but will be least profitable at one particular discount rate.<br><br><strong>Conclusion:<br></strong>- Clearly it is difficult to use the IRR method for decision making in these circumstances due to non-precise or conflicting conclusion provided.<br>- As a result NPV method is preferred to IRR method because,<br> a) Absolute and relative measures – the NPV is an absolute measure. but IRR is a relative measure of project viability.<br> b) Reinvestment assumption – the NPV assumes reinvestment at firm’s cost of capital, IRR assumes reinvestment at the IRR, the NPV’s assumption is comparatively more realistic.<br> c) Achieving corporate objectives – use of the NPV method is consistent with achieving a firm’s corporate objective of maximizing share price. (i.e. shareholders wealth)<br> d) Lack of clear guidance for the multiple yields projects, despite having several IRR, projects will have only one NPV at the required rate of return which will be either positive or negative ( or zero ). </p> Unknownnoreply@blogger.comtag:blogger.com,1999:blog-344703272374950720.post-60164521208885277082010-08-06T01:59:00.001-07:002010-08-06T02:00:02.307-07:00Treasury Management<p align="justify"><strong>- </strong>It described as:<br> > The task of handling of all financial matters. The generation of external and internal funds for business. The management of currencies and cash flows, and the complex strategies, policies and procedures of corporate finance.<br><br><strong>- </strong>Treasury management usually involve tasks such as <br> > Setting up and achieving the corporate financial objectives<br> > Liquidity management <br> > Funding management <br> > Currency management <br> > Corporate management<br> > Financial risk management <br><br><strong>-</strong> It forms one of an essential activity of an organization in sustaining survival, stability and growth in the financial aspects of any going concern. </p> Unknownnoreply@blogger.com