THE SOURCE OF RISK MANAGEMENT & ITS APPLICATION

Since the birth of accounting in the year 1494, many accountants are thought of as pessimistic, of conservatism, cool and brooding over issues before speaking about them. They consider risks before returns. What really makes accountants think or at least are perceived that way? There is one particular principle in accounting that influence accountants so much. In fact, none of the other principles have that incisive effect like this one. It is the Prudence or Conservatism Principle that makes accountants so. But what is that? The conservatism principle is the general concept of recognizing expenses and liabilities as soon as […]

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NOTHING FAILS LIKE SUCCESS?

It sounds like irony if success leads to failure. Research proves that the more successful a person becomes, s/he becomes complacent, do no longer do what s/he did to become successful and, therefore, begin to fall gradually until finally loses everything. A classic example in the Bible is the success of Solomon. In our local parlance, the success got into his head, that is, he became swollen-headed and he fell into the enticing arms of womanizing. So what should you do when you become successful? The simplest thing is to continue to improve upon what you already have. The classic […]

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MARKETING YOURSELF USING AIDA MODEL

We have looked at Vision, Mission and Strategy in the past two days. We begin by identifying a personal vision and mission statements and move on to setting personal strategy. Let’s take it that you have accomplished your vision and mission with your effective strategies. What next? You are good at what you do but who knows about what you do? Your skills, your profession and your vocations acquired are lying dormant because you did not make yourself available to the market or people who could “buy” from you. I would like us to take steps on how to market […]

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CARVING PERSONAL VISION & MISSION STATEMENTS AKIN TO CORPORATE WORLD

Vision Statement Your vision is your dream. It’s what your company believes are the ideal conditions for your environment; that is, how things would look if the issue important to you were completely, perfectly addressed. It might be a world without poverty, or an environment in which all people are treated as equals, regardless of gender or racial background. Whatever your organization’s dream is, it may be well articulated by one or more vision statements. Vision statements are short phrases or sentences that convey your company’s hopes for the future. By developing a vision statement or statements, your organization clarifies the […]

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HOW TO POSITION YOURSELF STRATEGICALLY

Yesterday we looked at how you will plan for your life using Vision and Mission statements. We looked at the case of Johnson who qualified as an international accountant after carefully carving a vision and mission statements for his chosen profession. Today we shall look at how to strategically manage your life in order to achieve your desired feats. Without strategy, your mission and vision are useless. You shall remain at the dream stage for the rest of your life. Many of us are still at the dream stage of our life; nothing get realized, nothing achieved just because we […]

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SECRETS OF SUCCESS: GIVING

After taking a break for studying for one hour, I came out to receive fresh air in front of GIMPA library. Then I saw a young white lady jogging uphill towards the library entrance. Time was around 6:30pm in mid-1997. The lady approached me, panting and asked for a favor: she was an exchange programme student studying at the University of Ghana, she came jogging from the University to GIMPA but now it was getting dark and she needed to get back to campus with a taxi but did not have any money on her and if I could help […]

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PERSONAL PLANNING USING MANAGEMENT ACCOUNTING TECHNIQUES

In planning for one’s life, I would like us to look at some management accounting techniques as guides. MANAGEMENT ACCOUNTING Management accounting looks at internal accounting information for guiding management while Financial Accounting is more towards the outside world. Issues of planning, budgeting, pricing of products & services and operations management originate from Management Accounting. We shall use only two planning techniques in management accounting and closely relates them to our personal life. In budgeting and planning, we shall look at Incremental Budgeting and Zero Based Budgeting (ZBB). INCREMENTAL BUDGETING TECHNIQUE Incremental budgeting looks at the previous performance relating to […]

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DEPRECIATION AND IMPAIRMENT OF FIXED ASSETS: THE HUMAN ASPECT

In real life, one thing certainly shall happen to us and if care is not taken the second could also happen along the line. We shall draw from accounting knowledge again today. Well what else can I give you? Science or Arts? Sorry I wasn’t trained in any of those fields. This is line with the legal term “Nemo dat quod non habet” – meaning no one can give you what he doesn’t have! In managing fixed assets of an organization, accountants do spread the useful lives of the assets over a certain period. This is meant to reduce the […]

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GOODWILL LINKED TO YOUR VOCATION AND PROFESSION

Last week, we were permitted to look at how we could be blessed through the act of giving. Today I would like us to look at one of the contentious issues and therefore the transactions that had been a subject of much debate in the past as far as accountancy is concerned: GOODWILL. Goodwill is part of the assets of an organization that are classified as intangible; in other words you can never see that type of assets in the organization but it exists. The brand of the organization, the reputation of the skilled workforce, the solid customer base, the […]

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