Category Archives: Accounting & Auditing

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Why your accountancy practice should blog …

 

By Morgan International Staff Writers

Blog posts have two main areas of benefit – engaging your audience, and improving the performance of your website.

Blogging for your readers

Your website is usually the first place a customer or prospective customer, a peer, or a competitor will go to find out more about your firm. The pages of your website give the first, and often the only, impression of your services. They are a medium to convert and to inform. Web pages should be concise and deliver the message you wish to convey.

Blog posts are a way to add to your marketing messages with news, information, tips and updates. If they are effectively shared on social media or via email marketing they reach previous visitors of your website, engage your existing audience and can reach new customers who follow blog links back to your site to discover more.

Quality, informative articles, even more in-depth guides and “how to” guides, build credibility and authority in your marketplace. They are an excellent way of showcasing your expertise to potential customers and continuing to guide and engage existing customers.  Your customers need constant coaching to provide the information you need, by the deadline you need it. As they deal with their day today financial management they will have questions and need guidance. Often you will do this on a one to one basis with each client. Writing blog posts about upcoming deadlines, changes to regulations, and articles which answer and explain some of the daily financial challenges a business will face is an effective way to reach many of your clients at once. Using a blog to communicate answers to frequent questions and lead your customers is powerful way to control your client base and maintain their engagement preventing them from looking elsewhere for support. You will also free valuable time to invest when a client needs extra individual attention.

Blogging for your website

Constant new website content is critical for SEO. Search engine algorithms are constantly seeking out fresh content and ranking higher those websites where they find it. Blogs posts and informative articles are an excellent way of constantly building SEO friendly new content on your website. They provide excellent content for social media, linking back to your website and helping to build social media followers. Website linking, and social media platforms and follower growth are two more key ways to improve SEO.

Content marketing describes the strategy of utilising and broadcasting website, blog and social media content. Effective content marketing, especially in the accountancy field where competition is high but full utilisation of SEO strategy is rare can quickly set you ahead of your competition. Locally assess the content marketing of your competitors. If you can see you can quickly do more than they do through simply providing and broadcasting content, you may have found the angle you need to monopolise your marketplace.

 

 

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3 ways to make the transition from student to successful accounting career

 

By Morgan International Staff Writers

Okay, we know, there will be many more than three ways to make your career in accountancy successful. There are probably many hundreds of tips out there to read. We’ve focused on three key areas to remember when making the step from being a laid back, partying or exam cramming student, to being the next big thing at your chosen firm of accountants.

Know your stuff, and keep learning

It’s no secret, some of what you learned in your first or second year, you’ve forgotten. This happens, the important thing is to get your notes, revision and text books back out and re-learn anything you have forgotten. In practice, at work, yes there will be chances to check what your doing is correct, but don’t make a bad impression straight off by not knowing your job.

Be business ready

The progression from casual dressing, casual eating, casual living student to suited and booted business person is more tough for some than others. You had to brush up for your interview, and remember your handshakes, confident glances and concise communication. These are all important things to carry into the workplace day by day to instil confidence in your clients and your peers. Go shopping with your fellow students or new colleagues and look for their advice when choosing workwear, workwear is an investment in your career too.

Accountants are expected to be business people and advisors, as well as the stereotypical penny protecting, financial wizards of the past. Make sure you spend some time practicing your “soft” skills of style and communication. Take a basic business course, or expose yourself to some business groups in the area you will be working so you understand a little of your client’s marketplace.

Set priorities at home and at work

Chances are you are about to experience a big change in your day to day life. That could be moving location, adjusting your working hours, or simply working out how you fit work with self-care, socialising and sleep. If you are in a relationship you will need to work out how you can invest in that successfully too. It’s not only working out how to fit in being active, healthy, and social with a minimum 40 hour working week and maybe a commute too. You also need to prioritise effectively whilst you are at work. Your career will only be successful if you are good at it, so you need to be efficient, effective and achieve. By now you should know what time management methods work for you for your studies, work out how you can apply these to prioritise your workload, get it done, and impress your bosses. You are going to face peak periods of workload which require major focus, and times of high stress and pressure. You will learn to handle these but try and limit excessive socialising during these times, hangovers don’t help deadlines. Good eating, sleeping and exercise do so fit it some gym and a healthy diet while you are under pressure.

Mostly, don’t panic, as a new graduate your boss will know what to expect, so will your colleagues. Reach out if you need help or are struggling, they will appreciate honesty more than failure and understand they need to support your during you first months at work. Accountancy is a rewarding, stable and can be a very profitable career, keep committed to your goals and work hard at them and you will see the return.

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Cost Management

By Morgan International Staff Writers

Cost management involves controlling and planning a firm’s or a project’s budget. In this, you have to plan, control, manage, fund and estimate costs so the budget can be allocated appropriately. It encompasses the project’s entire life cycle, from planning it to measuring the performance of the actual costs’ performance until the project is completed.

There are four steps to cost management.

Step 1: Planning the resources

You will need to define all the resources needed to finish the project. Make use of Work Breakdown Structures (WBS) and old information to analyze what physical resources are needed. You can then figure out the associated costs when you find out the resource types and quantities.

Step 2: Cost estimating

You can use any cost estimating method to calculate the cost of carrying out the project. Estimation also depends on how much information is available. You can use parametric modeling or analogous estimating. With more information, estimations become more refined. If any uncertainties remain, they can be reduced by reserving cost. You can use contingencies and escalation.

Step 3: Cost budgeting

The budget will provide an overall outlook of the project’s total and periodic costs. Cost estimates define each activity’s cost, whereas the budget will allocate the cost according to the time period.

Step 4: Cost control

Here, you measure variances from the baseline cost and try to attain minimum costs by using corrective actions. You will have to record each change to the baseline costs. Also, you will have to continuously forecast the expected final total costs. With the availability of actual cost information, cost control centers on explaining changes in the cost baseline. To prevent cost overruns, you might need corrective action.

You can use cost control software tools for procedures of cost control, analysis, and to track and approve variations. You can augment and simplify reporting. This will make it simpler to pass information to all stakeholders.

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Why Bother Getting a CMA Certification?

By Morgan International Staff Writers

The CMA certification is given by the Institute of Management Accountants (IMA). People in the professional field of management accounting pursue this qualification.

Pursuing a CMA requires a substantial amount of time and commitment, along with significant financial burden. Fees for the CMA exam fall from $300 to $350 per part, totalling around $600 to $700. The entrance costs for the program can total $225. The good news for students and IMA members is that they get a $150 discount.

However, despite the costs, getting a Certified Management Accountant certification will lead to a wider scope of job opportunities in the market. How wide is the scope though, and why bother pursuing this certification at all?

It is globally recognised. This certification is the most widely recognised. From the US to the Middle East and China, a CMA is known throughout the globe.

You get paid more. Learning and acquiring skills definitely pay off. A CMA-certified accountant will get paid up to 1/3 more than a non- certified candidate. In the UAE, the median salary ranges from $39 thousand to $45 thousand.

CMA is a practical option. The material that CMA encompasses is relevant to daily practical work and situations.

IMA eases the load. The CMA exam process is easy and clear with few bureaucratic measures.

All in all, the requirements for clearing a CMA exam are quite extensive (you need a bachelor’s degree, you will have to clear a tough exam, then you need two years of experience in management accounting), but the payoffs make the struggles worth it.

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Why Accounting Could Be Your Business’s Biggest Need

By Morgan International Staff Writers

These can be used to compare a business’s performance with other businesses. It can also be used to analyse the efficiency of a business. This helps in making business decisions and enhancing the profitability of a business.

Accounting comes in two types:

  1. Cash Basis Method: This method is usually used in smaller businesses. It is the easier way. With each change of cash from party to party, the cash basis method records the financial transactions that occur. It maintains meticulous records of cash flows. It ensures that there is sufficient capital for operating expenses. But it does compromise on accurate records of trends in sales.
  2. Accrual accounting: This type does not consider whether or not cash is changing hands. It recognises and records transactions while they happen. It is a better choice for analysing and reviewing trends in sales, or similar financial performances. To correct this, cash flow statements are prepared.

An amalgam of financial and management accounting is used. Management is used to keep track of internal business costs, then allocating these costs to the company’s products. It can also predict future sales and create budgets. In financial accounting, financial statements are created according to the company’s financial information. They can be used by external or internal stakeholders.

The use of automated accounting systems has been on the rise. They help track financial information using several programs. Such programs produce electronic reports that can be used with a lot more ease. A business can also easily transfer the information via electronic means to interested stakeholders.

For professional services in accounting, the accounting work can be outsourced to certified public accountants (CPA) or public accounting firms. They assist businesses in producing tax returns and accounting systems. They supply audits and advise, along with corrective measures (if needed). An initial start-up should consider investing in such services to ensure the correct provision of accounting documents.

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How to elude most common tax mistakes?

By Morgan International Staff Writers

Unlike any individual, large corporations and businesses need to maintain tax records so that they never get into any hassle. There are many factors that contribute towards tax hiccups and companies always want to avoid them. Following are the top 9 mistakes that are to be avoided to overcome the costly tax returns:

 

  1. Retention failure

Quality of people is always correlated to the work they perform. For corporations one of the main reasons for large tax imposition is the fact that they fail to retain the top level staff. Good tax and accounting professionals are necessary and should always be retained no matter what.

 

  1. Botch of financial files to personal devices

Financial files are very sensitive in nature and corporations know about this fact. However at times some top level employees use their personal devices to save such files. Data security is a menace and by applying stricter file policies the breach and the related tax can be avoided with ease.

 

  1. Inefficient use of excel

This also leads to disaster. Regular sharing of excel and accounting files might end up in deleting the custom made excel formulae. If the creator does not work with the company then hours have to be spent in reconciling vivacious tax information.

 

  1. Figure estimation outside of the system

Companies spend millions of dollars in tax systems. However the tax department might calculate the figures and returns outside of this system just to ease the workload. This is a malicious mistake that leaves no audit trail or log for any auditor to figure out what happened.

 

  1. Wi-Fi Security breach

Using secured Wi-Fi networks is once again a menace that should be avoided. Such devices are prone to attacks by the intruders if the Wi-Fi is public or keyless system is being accessed. Proper Wi-Fi security and avoiding public networks can put an end to this issue.

 

  1. Closing the books impulsively

Closing the year books impulsively not only leave out important process data but can also lead to mismatched balance sheets at the end. This issue has been faced by enterprises all over the world that ultimately leads to surprising fines and future number skew.

 

  1. Unawareness of the top management

It is a dilemma that the top management of most organizations does not put their time and effort in going through the basic level tax processing. The result is that they never invest in top quality tools and people putting entire process at risk.

 

  1. Misunderstanding city level tax regulations

In accounting there is no shortage of laws. Tax departments often miss the important information about the city level regulations that can result in huge tax exemptions. The effect can be seen at the year end when huge returns are filed which could have been avoided easily.

 

  1. Tax tool investment elusion

Companies often make no to trivial investment in tax and accounting systems. Free or half functioning tools can never give the desired results and it’s a fact. Proper accounting and financial controls can only be implemented if tools are paid for and are up to the mark.

 

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Internal Audit: a growing demand

By Fahad I

The demand of the internal audit is on the rise worldwide and organizations are now implementing best practices that require strict controls, effective risk management and corporate governance. Even regulatory requirements are becoming stricter with every passing day.

Recent fraud cases and the sudden collapse of top companies resulted in the substantial losses for investors. External auditors had failed to identify these fraudulent acts and control lapses were primarily due to scope, nature and timeline limitations. Such incidents have put pressure on regulatory bodies to reconsider corporate structures and to ensure that specialised and knowledgeable professionals assume auditing roles within organizations.

As a result, internal auditors are becoming a significant resource for companies and are required to identify control slip ups, manage risks and ensure that the governance structure is operating effectively. They are not just responsible for overseeing the financial and operational aspects, but are asked to provide strategic advice for more effective decisions within the company.

The corporate world dynamics have changed significantly, organizations are in drastic need of employees with specialized knowledge and qualifications to occupy certain roles.  Certified Internal Auditors are an essential resource and considered of equal importance as  CFOs and COOs.

Regulatory authorities have acknowledged the value of the CIA qualification and have made it a requisite within their corporate legislature. The CIA certification provides an in-depth understanding of systems, business culture and processes. It will enable its holder to identify control flaws, potential risks, and to evaluate alternative measures for best practices in mitigating risks.

Stand out in your career and consider pursuing your CIA credential. Checkout Morgan’s CIA review course to optimize your exam preparation.

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IFRS – What’s Next?

 

By Fahad I

The International Accounting Standard Board (IASB) developed International Financial Reporting Standards (IFRS) as the global standards for the world economy. These are part of a vision for global accounting standards and have been publicly supported by many international organisations, including the World Bank, G20, IMF, IOSCO, Basel Committee, and IFAC.

To assess the progress towards that goal, the IFRS Foundation is developing and posting profiles about the use of IFRS Standards in individual jurisdictions on an ongoing basis. Currently, profiles are completed for 149 jurisdictions including the Middle East.

Recently, IASB has published its five-year work plan. The plan is focused, properly prioritized and centred towards the stakeholders. New standards on financial instruments, Revenue and Leases have already been finalized and the insurance contract standards are at the final stages. IFRS are now considered as the standard language of accounting for the preparation of the annual financial statements.

The future holds more demand for IFRS reporting due to the impact of globalization. Many large US entities with significant international operations are willing to move to IFRS. Countries without any local accounting standards are also expecting the IFRS as the wise solution. It is expected that in the future, the SEC might consider making an option available to major US companies to report under IFRS rather than US GAAP.

The change in the business environment dynamics will establish accountancy as a more challenging profession. With the increasing adoption of IFRS by countries across the globe, it is now becoming essential for the Accounting, Auditing and Finance professionals to remain up to date with the IFRS developments. Even the internal auditors are also required to remain well versed with IFRS to cope with the complex transactions that may lead to fraud. IFRS adoption will also create career opportunities within these fields.

Group entity structures and cross country alliances within companies will help maintain IFRS’s importance as a global reporting language. Even in jurisdictions where IFRS are not currently applicable, accountants are expected to remain well-versed with IFRS knowledge in order to understand group transactions and prepare  financial statements accordingly.

Accounting, auditing and finance professionals lacking IFRS knowledge need to bridge that gap and start considering professional qualifications in order to stay informed. The CertIFR equips individuals with a basic understanding of International Financial Reporting while the DipIFR offers in depth knowledge of IFRS and its application. Consider our qualifications in order to say ahead in an ever changing and complex reporting environment.

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A CPA’s Role in Business Process Management

By Rebecca Langdon

There is a good reason why a high proportion of CEO’s and board members are accountants. Accountancy equips individuals with the skills to deliver results within a business, primarily because attention to the finances is always a strategic priority. Business process management (BPM) is a technique used to increase operational efficiency and performance by optimizing business process.

BPM Explained

Within organizations processes develop over time and very often they may become overly cumbersome, inefficient, and costly. BPM seeks to review those processes and make them more efficient where possible. There is a fairly simple model which is used which is depicted as a continuous loop:

 

The contribution of a CPA

CPAs contribute to business process management in a number of ways:

  1. Design

Within the design stage the current business processes are reviewed. The analysis requires financial acumen to understand the cost of undertaking the current process. In all likelihood this will be very complex and may involve many different types of cost such as resource, cost of stock, overheads, etc. There will also be a requirement to understand the costs in the short, medium and long term. For some assets which are depreciated, a CPA will understand the basis of the depreciation and be able to model the costs appropriately. This skill set will also be required as new processes are being designed, so that the costs can be articulated.

  1. Modelling

The proposed designs will be modelled at this point to understand the potential efficiencies and effectiveness. It may also include techniques such as what-if analysis. It is likely at some of the computations will be complex, and therefore a CPA has the right competencies to assist that this stage.

  1. Execution

Whilst the changes are implemented, it may be that the CPA takes an oversight or management role.

  1. Monitoring
    The way in which the new processes will be monitored will need to be designed with agreed metrics, and analytical techniques. Again a CPA would be able to take a leading role in designing the methods and parameters for monitoring.
  1. Optimization

At this stage the output and learning from the monitoring phase will be used to optimize and improve the recently implemented new business process. Once again an accountant would be well positioned to use the quantitative and qualitative output to design optimizations.

In Summary

Business process management is quite a hot topic and has been hailed by some as a technique to drive widespread operational efficiencies. The basis of these efficiencies is rooted in financial terms and therefore an accountant or financial professional is a key part of any BPM team. If you are interested in pursuing a CPA qualification, take a moment to explore the course information here.

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What Are the Career Opportunities for CMAs?

By Rebecca Langdon

Accredited management accountants hold various roles within organisations. It is not the case that a CMA will always be a Management Accountant for life. The combination of skills including accounting, finance, and management, opens up a wide range of career opportunities. Within this article we look at the top 6 career choices for CMA’s.

Management Accountant

The most obvious starting position is that of a Management Accountant. This may include reporting, analysis, forecasting, and budgeting. You may also get involved with project level accounting.

Management Consultant

The skill set of a CMA lends itself very well to the role of a Management Consultant. In this role you will be often get to meet a variety of different clients, and you may even travel internationally.

Financial Trader

Many ‘Bankers’ and financial traders have an accounting qualification such as the CMA. Having a strong grasp of maths is essential to being a successful trader.

Business Strategist

The CMA equips candidates with the skill set they need to produce and test the feasibility of organizational strategies.

Auditor

Many accountants become auditors. This may be an internal auditor or it would be working for an audit practice who are responsible for auditing the financial statements of their clients.

Longer term call – CEO, Managing Director or Executive Board Member

Did you know that around 25% of FTSE 100 CEO’s are qualified accountants? Qualified accountants make for very successful leaders.

In Summary

It is a really exciting time to be an accountant, particularly one that is CMA accredited. There are a whole host of exciting professions that are calling out for qualified professionals. If you would like to undertake the CMA, or just know more, simply visit our website where you will find lots of useful information.