admin – Page 2

03Apr 2023 by admin No Comments

Time value of money

The time value of money is a cornerstone of financial analysis. The time value of money is a financial concept that says money is worth more today than it will be in the future due to inflation. It is used by finance professionals to determine the value of cash flows in one period compared to another. The time value of money is the principle that money available now is worth more than an identical amount of money in the future. Why should you care about your money having a time value? understanding how interest rates affect your wealth can save you or your business a fortune. This concept can help investors make informed decisions about their portfolios and investments. Examples of Time Value of Money The time value of money…

03Apr 2023 by admin No Comments

The CFO cook book

Finance & Accounting

We all like putting our best foot forward; similarly, this goes for organisations. Oftentimes, professionals charged with the duty of financial reporting do get overzealous and play fast and loose with the truth. There are different motivations why this is so, it could be to help secure new funding, strengthen specific partnerships, avoid the wrath of investors, or simply earn a performance bonus. Cooking numbers is an accounting euphemism for “massaging the truth” Whereas the scale and intent of the “cookery” may vary, cooking numbers is not entirely equated to fraud. However, corporate misdeeds can sour public perception and investor apathy. It is partly for this reason that the US legislated the now popular Sarbanes-Oxley (SOX) Act of 2002. SOX was directly inspired by the need to hold senior executives to account…

03Apr 2023 by admin No Comments

Independent Business Review

Risk Management

An independent business review IBR is an analysis of a company’s financial and operating position conducted by a professional who is independent of management. The purpose of an independent business review is to provide insights on the financial health of the business through a critical review of the main organisational performance drivers. An IBR is mostly used for determination of whether to establish a credit facility, or to inform the strategies for overcoming uncertainty and doubt about the company’s financial situation. IBRs may be conducted by various entities, including accounting firms, banks, private equity firms, and even rating agencies. The IBR process usually involves reviewing historical financial statements, review of forecasted performance and current and expected business operating environment as well as conducting interviews with key personnel within the company.…

03Apr 2023 by admin No Comments

Debunking accountants

Accounting Services

It is said that thrones are preserved by secrets; if that be so, then there must be a chief keeper of secrets in organisations, people that know where the skeletons are hidden. This conjures up the image of an accountant, those resolute professionals who always have their hands to the grind stone. If these be the keepers of the mysteries in our organisations, then by all means we should discuss everything you need to know about them: what they do, how they can help you, and even some of the hilarious quirks that make them unique. What do accountants do? Contrary to popular belief, accountants are not just bean-counters who sit at the corner sometimes in poorly lit rooms all day crunching numbers. In reality, they provide a vital service…

03Apr 2023 by admin No Comments

A complete guide to IT system audit – part 1

Audit

Information systems audits are becoming an integral part of procedural initiatives taken by organisations. With the proliferation of cloud systems, changes in ways of working and intensified cyber-attacks; IT system audits are more commonplace. In the course of the information system audit means, you will be required to carry out a variety of tasks; it is important to have a checklist. You need to keep track of what tasks are completed and which ones remain outstanding. In this article, we will discuss the basic checklist required for an IT auditor in field of security and infrastructure check. Part 1: People The audit objective of this stage is to confirm whether the organization’s data processing procedures provide for adequate segregation of duties. To meet this objective, you will need to review the…

03Apr 2023 by admin No Comments

Tax Red Flags

Taxation

Receiving a notice that you are getting an audit from the tax authority can wrack your nerves, whose nerves wouldn’t fray? but at the end of the day, an audit is nothing more than an in-depth fact-checking exercise. Below are some few pointers that may invite the tax man to closely review your business affairs: A common pitfall is variance between sales declared under VAT and sales declared under income tax (particularly where you have under declared income against withheld income tax credits) Another simple pitfall is discrepancy on aggregate salaries and wages declared on the PAYE returns against the salaries and wages filed on the income statement of the annual tax file. Applications for cancellation of a tax PIN and company deregistration; is everything ok, are you trying to…

03Apr 2023 by admin No Comments

All About Forensic Audits

Audit

When you think of the word “forensic,” what comes to mind? Crime scene investigations, murder mysteries, and law enforcement officials gathering evidence to solve a crime. All of these images are accurate when it comes to forensic auditing. But did you know that forensic auditors can be used in many other settings as well? In this blog post, we will discuss the seven benefits of a forensic audit and how this powerful investigative tool can be used in business and beyond. What is a forensic audit? A forensic audit is an examination of financial records to determine if there has been any criminal activity. Forensic auditors use their skills in accounting, auditing, and investigation to look for signs of fraud, embezzlement, or other financial crimes. How is forensic audit conducted?…

03Apr 2023 by admin No Comments

A Guide on Strategic Planning

Strategy

Often, we come across some grim statistics: 70% of enterprises fail within their first three years. Of the survivors, about 50% have faltered by the fifth. Surprisingly, business failure rates are consistent regardless of the industry or market. What drives failure? What is not surprising, though, is why organizations fail; you can count all of them on the digits of your one hand: market access, in-existent or rigid business plans, funding, competition, governance. What to do? What then can you do to avoid your organization falling into this abyss? Strategic planning is a part of delivering that wholesome solution. A strategic plan can be simplified to mean “knowing the current state of your organization and where you want it to go.” What is strategic planning? Strategic planning is the process…

03Apr 2023 by admin No Comments

A Complete Guide on Compliance Audits

Audit

In order to maintain regulatory compliance, many organizations undergo periodic compliance audits. What is a compliance audit? What are the different types of compliance audits? How are compliance audits conducted? Why are they important? In this article, we will answer these questions and more. We will also provide a comprehensive guide to compliance audits, including what they are, how they’re conducted and why they matter. What Is a Compliance Audit? A compliance audit is a comprehensive review of an organization’s adherence to regulatory guidelines. The auditor must assess risks, examine and evaluate internal controls, gather evidence and prepare a detailed report on deficiencies and necessary improvements. The goal of a compliance audit is to identify any areas in which the organization may be non-compliant and to recommend corrective actions. Compliance…

03Apr 2023 by admin No Comments

Sustainability for Non-profit organisations

Strategy

Non-profit organisations are strongly desirous of funding an array of programs designed to meet the needs of their target population. A key concern on this ambition is the continued ability of the non-profit to fund these programs; this is a quandary that non-profit leaders face every day. Sustainability for the non-profit organisation means the ability to continue serving the target community even with the risk of funding termination from key donors. The sustainability agenda has been an ever-present conversation, and it has lately been accelerated by the global pandemic. To deliver on long term planning necessary to diversify dependence on key donors while improving institutional capacity of the target population is a tight rope indeed. In spite of these challenges, the issue need to be tackled to prepare the non-profit…