The Role of Customers in Your Business Success

The primary purpose of a business is to create a customer because it is the customer that will determine the growth potential of a business. Though, it is imperative to create time and effort on how you are going to improve your business and services, it is still the customers that will dictate the success of your business. So, customer service is very vital if you want your business to succeed.

Customer service is a major factor in making sure you achieve business growth and success. It can affect your business positively or negatively. This is reason why the whole business plan, marketing strategies, sales and profit will largely depend on its impact on the customers. Primarily, you are in business to generate revenue through selling your products and services to people who are in need of the services. All these people want to know if your products and services will make impact in their lives and meet their needs.

To make sure that you generate income for your business, you must be willing to satisfy the desires and needs of your customers. Your whole business is resting on that foundation. Every decision making must take into cognisance how it is going to affect the customers. You should make it a point of duty ensure that you have an excellent customer service system.

All strategies you have put in place to ensure you have great marketing and sales will help in attracting new customers for your business but it is the excellent customer service that keeps the business going and makes customers wanting to come back. People will only want to do business with those they are comfortable with and can trust. As a business owner, you must make sure that you make your customers have that confidence, trust and satisfaction in you by giving them the best quality service.

This factor has created opportunities for large and small businesses. It affords every business to offer the best quality service which their organisation will be known for. By so doing, they have been able to distinguish themselves from all the rest in that sector of business.

In recent years, there has been continuing change in the demands of the customers because of the ”law of dynamism”. So it is your duty to know exactly what your customer’s needs and wants are. You can get hooked up to some customer support systems that offer quality incentives on how to give your customers the best quality services. It will assist you to expand your customer base and retain your customers. A recent survey reveals that using these systems has increased some company’s turnover by almost 50%.

All businesses must realise that customer service plays a major role in the success of any business. You must have the ability to focus on the need of your customers rather on your own selfish gains, and supporting them with all the abilities at your disposal to make sure that they are 99% satisfied with the services they are getting from you as this is the determinant of their coming back to patronise you. This will make your business much more cost effective and in turn increase the output you are getting in terms of profit because to make you succeed in business.

Source by Oyekanmi Akinnola

The Benefits of Good Money Management Skills

The benefits of having good money skills when it comes to money management are incredible. Being able to effectively manage your money will open up new avenues in your life that were previously unavailable due to a lack of money. Learning how to manage your money will essentially give the disposable income that is required to live a life without limits. Few other skills compare to that of effective money management.

Live a More Stress-Free Life

When you manage your money correctly you should live a more stress-free life. Money is one of the most stressful things in someone's life and therefore has to be managed properly to reduce the stress involved with it. Effective money management will avoid some of the serious consequences that come with not staying up to date with your bills, sending your kids to college, and any other type of stress that money brings to one's life. If you always have some spare cash lying around you will feel much more secure. The security that money brings plays a huge part in helping people to reduce stress.

Achieve Your Dreams

Everyone has different dreams in life. However, almost every dream that one can have involves money in some way or another. Being able to effectively manage money is the only way for most people to achieve their dreams if they do in fact involve a financial component. You are not going to be able to take your partner on that dream vacation without money. That is just not how the world works. However, if you effectively manage your income then that dream vacations becomes a lot more realistic. Having money can help you achieve all sorts of dreams within vacations as well. You may dream of sending your child to college or seeing your favorite professional sports team in live action. Either way chances are your dreams will cost you money and money management can be the path that gets you to making those dreams really happen.

Travel and Take More Vacations

While a dream vacation may not be in your plans, you will probably agree that you would like to be able to travel more. Traveling and seeing the world is something that costs a lot of money. For most people having good money skills is their only hope of being able to travel and see the world. There is a reason that most all people with money choose to spend it on traveling the world and seeing all that earth has to offer with their own eyes.

Enjoy Ultimate Freedom

Sadly, in this world money affects the amount of freedom a person has in their day to day life. If you have unlimited money then you can literally do almost anything you want. You can sleep in, eat out, go to the moon, and almost anything if you have the right amount of money. By attaining some great money skills when it comes to money management you can continuously open up your life to more freedom.

Source by Sue Curtis

The 7 Principles of Business Integrity

If you have integrity, nothing else matters. If you don’t

have integrity, nothing else matters. — Alan K. Simpson

If I were to ask you what attribute is the most influential

in regard to the success of a business, would you know

immediately which one is the most important? Based on my

many years as a business owner and entrepreneur, I have

discovered that at the very top of the list is the

distinguishing quality of integrity. Without integrity at

the helm of a company, a business is usually short-lived. In

fact, when business integrity is present throughout the

deepest layers of a company and not just at its surface, it

becomes the heart and soul of the company’s culture and can

mean the difference between a company that succeeds and a

company that falters.

The Internet’s Immeasurable Impact on the Marketplace!

The importance of integrity has always existed among the

business community, but in recent times has been shown as

falling short. It is the Internet’s immeasurable impact on

the global marketplace that is now making the expression of

integrity, reliability and credibility extremely important.

Furthermore, the consequence of global competition means

that customers will simply not consider a company that shows

any less than the highest level of integrity. Since there is

a wealth of competitive companies easily available and

accessible via the Internet, there is in fact no need to

accept anything less than the best.

Where Does Integrity Start?

In an effort to build upon a foundation of integrity, the

first requirement would be to establish excellent rapport

with clients. Based on many years of study, the best and

most practiced method for achieving rapport is by way of

Relationship Marketing. Just as it sounds, Relationship

Marketing is founded on the single and most critical

characteristic, known as “Integrity.” However, achieving

true integrity with clients often leaves many an

entrepreneur bewildered, grasping for techniques and

strategies that guarantee their futures. But integrity is

not something that can be grasped and then simply used.

Integrity in its essence must be so ingrained within the

nature of an individual, its company and the team members,

that it remains steadfast no matter what. Without question,

others sense it and find it very attractive.

The True Nature of Integrity!

Now you are probably asking yourself, what is the true

nature of integrity? There are in fact some very basic

principles that surround the qualities of business

integrity. At its core, integrity begins with a company

leader who understands the qualities of integrity which then

filters down throughout the company into every department

and every member’s approach and attitude.

In recent research performed by the Institute of Business

Ethics- an organization which is among the world’s leaders

in promoting corporate ethical best practices, it was found

that companies displaying a “clear commitment to ethical

conduct” almost invariably outperform companies that do not

display ethical conduct. The Director of the Institute of

Business Ethics, Philippa Foster Black, stated: “Not only is

ethical behavior in the business world the right and

principled thing to do, but it has been proven that ethical

behavior pays off in financial returns.” These findings

deserve to be considered as an important tool for companies

striving for long-term prospects and growth.

The following 7 Principles of Business Integrity are the

basics of integrity and a good starting off place to

consider. By integrating each of these principles within a

company environment, the result will be nothing short of a

major rebirth of the enterprise.

Principle #1: Recognize that customers/clients want to do business

with a company they can trust; when trust is at the core

of a company, it is easy to recognize. Trust defined is

assured reliance on the character, ability, strength, or

truth of a business.

Principle #2: For continuous improvement of a company, the leader

of an organization must be willing to open up to ideas

for betterment. Ask for opinions and feedback from

both customers and team members and your company

will continue to grow.

Principle #3: Regardless of the circumstances, do everything in your

power to gain the trust of past customer’s and clients,

particularly if something has gone awry. Do what you

can to reclaim any lost business by honoring all

commitments and obligations.

Principle #4: Re-evaluate all print materials including small business advertising, brochures and other business documents

making sure they are clear, precise and professional;

most important make sure they do not misrepresent or

misinterpret.

Principle #5: Remain involved in community-related issues and

activities thereby demonstrating that your business is a

responsible community contributor. In other words, stay

involved.

Principle #6: Take a hands-on approach in regard to accounting and

record keeping, not only as a means of gaining a better

feel for the progress of your company, but as a resource

for any “questionable ” activities; gaining control of

accounting and record keeping allows you to end any

dubious activities promptly.

Principle #7: Treat others with the utmost of respect. Regardless of

differences, positions, titles, ages, or other types of

distinctions, always treat others with professional

respect and courtesy.

While it is most certainly an integral and positive step for

a small business to recognize the significance of integrity

as a tool for achieving its desired outcomes, that is only

the beginning. What must truly be recognized for true

success is that while certain precise universal principles

lead to business integrity, it is in the overall mindset of

the company and the unfailing implementation of these key

elements that an enterprise is truly defined. A small

business that instills a deep-seated theme of integrity

within its strategies and policies will not only be evident

among customers, associates and partners, but its overall

influence cannot help but to result in a profitable,

successful company. By recognizing the value of integrity,

and following each of the aforementioned 7 principles for

achieving integrity, your success cannot be far off.

Source by Robert Moment

3 Key Components to Effective Time Management

Effective time management is a necessity commonly needed by anybody expecting to successfully manage the typically busy lifestyles we live today. Coordinating business, social, and family activities can be a very stressful task. Without establishing some sort of time management system you are inviting tension and chaos into your life.

Although lifestyles may vary there is an overall need for just about everyone to develop some sort of time management skills. From the important matters concerning your business to managing a household there will always be multiple tasks needing to be completed. This can only be done by you managing your time in an efficient manner, but where do you start?

Let’s discuss 3 simple time management tips you can use to immediately take back control of your day while increasing your productivity.

Task Listing

The first order of business for anyone juggling a hectic schedule is to first list the things you want to accomplish. Certain sizable tasks will require that you break them down into the steps that are involved and needed to actually complete the task itself. When developing your ‘to do’ list you will also be able to note the estimated amount of time you’ll need to complete each task.

Task Prioritization

Now you will review your list and begin to prioritize each task. Certain things may be more important or time sensitive than others therefore you will schedule for their completion first. During this stage your focus is simply to ‘rank’ your list according to their respective priorities or associated deadlines.

Task Scheduling

Here you want to ‘arrange’ for the actual completion of each task on your list by ‘working’ them into your schedule. Using their rank in priority and their estimated time of completion you can now put together a ‘workable’ plan for when each task will be done. Be realistic here and don’t try to over book yourself. It’ll will only make you frustrated and discourage you when you can’t complete all the tasks. It will also increase your haste which will invite error resulting in the inefficient use of your time.

With a little practice here you’ll improve your time management skills helping you to more quickly and accurately develop, schedule and coordinate your activities.

Of course effective time management always culminates in the successful execution of those activities or tasks that you schedule, but then again you already knew. Having in place a time management system such as the one we discussed above enables you to alleviate undue chaos while accomplishing more. Whether it’s for personal reasons or your business, time needs to be properly allotted for each task to be successfully completed. By simply following the 3 time management tips we discussed here today you can enjoy a fuller and more productive life and all with less stress.

Source by TJ Philpott

Starting a Recruiting Agency

If you are interested in starting a recruiting agency of your own, below is a basic introduction that will get you started down the right path.

The first thing you will need is a solid understanding of just what that entails. What does starting a recruiting agency mean and what are the steps you will need to take to get there?

If you are starting a recruiting agency, it simply means you are an Independent Recruiter (which is someone who finds “employees” for “employers”) and you work for your self (as opposed to being a recruiter for a specific company or agency – which would be a corporate recruiter or perhaps a military recruiter). As an Independent Recruiter, you will pick up you own clients (employers) and find candidates (employees) for those clients who need help filling their job openings.

There are many advantages (and some disadvantages) to starting a recruiting agency and being an Independent Recruiter. On the advantage side, you are self-employed so you can make more money and work when you want to. On the disadvantage side, you are self-employed so you will pay more taxes and you will work more hours even when you don’t want too, so you can make more money. In other words, the positives can be negative and the reverse is also true depending on how you look at it.

Starting a recruiting agency and being an Independent Recruiter is not a “get rich quick” scheme. Although the process is fairly simple, it does require several hours of work each day and, as with most things, the more time and effort you put into it, the more success you will have. However, for those who are willing to “do the time”, being a Recruiter can be very rewarding both financially and personally. There is nothing better then knowing you helped someone land their dream job while at the same time making $10,000 $20,000 or even $30,000 dollars in cash. No, that is not an exaggeration.

First thing you need to think about when starting a recruiting agency of your own is where are you going to do this? Ideally, you need a quiet location with some privacy so when you are talking to clients, you are not getting interrupted by noisy pets or family members (mine is dogs and grandchildren). You will need at least enough space for a laptop but if you can setup a space with a regular and a comfortable chair, that is even better. Remember, the more you enjoy your work space and the more comfortable you are spending time in it, the easier it is to discipline yourself to put in the hours you will need to be successful working at home on a computer. This is great advice for anything you choose to do online, not just recruiting.

Next, let’s go over some of the very basics you will need as far as equipment.

The ‘Must Have’ Equipment List

Working desktop or laptop computer with internet access and email. For the computer, the “faster the better” of course but don’t feel like you have to go buy a new computer when starting a recruiting agency. Honestly, my wife normally gets the new computers in my home (and I use the ones she gets rid of). Internet connection is another thing however, and while a dial-up connection will work to start with, high-speed internet is highly recommended. Also, I use Microsoft Word for almost every document (and resume) I send out and I use Outlook for my email client. While neither is necessarily required for starting your own recruiting agency, I very much recommend them since both have spell check and every client you work with will have them as well and because of that, won’t have any problem opening up the candidates resumes you send them.

Inkjet or Laser Printer & Scanner. Any good quality printer/scanner combination will work fine. There will be times when you have to print out contracts or forms that must be scanned and faxed back.

Dedicated Phone Number (land line or cell phone) As far as a phone line goes, it is very important that you have a separate phone number when starting a recruiting agency. If you don’t want to add another land line to your current residence or office, you are, at the very least, going to need to have a cell phone that you can dedicate to recruiting. In other words, you need a number that when candidates and clients call you, they get you personally with a professional greeting like “good afternoon, this is Jane Doe with ACME Agency, how may I help you”. Another big plus when starting a recruiting agency is an 800 number. If you shop around, you can usually get one pretty cheap and it will enable candidates to contact you from work. One other inexpensive alternative is signing up for a VoIP number (internet phone number) such as through Vonage or Skype. The only requirement with those is you must have a high speed internet connection and you will want to test the service to be sure you are getting a quality signal.

Answering Machine or Voice Mail When you are not able to answer your business line, you will need a voice mail system or answering machine/service.

Efax Number (Fax number that uses your email) You must have an Efax number if you are seriously considering starting a recruiting agency (or, if you have a fax machine, feel free to continue to go ‘old school’). Many of your clients still use fax machines and will want to fax you the signed fee agreement. I currently use fax.com which provides me with a toll-free fax number (which comes to my email in PDF format) and also allows me to send faxes using my email program. At the time I wrote this, the service was just $9.95 month.

Agency Name (what are you going to call yourself?) This may seem to be an easy matter but you may be surprised. When I was starting a recruiting agency of my own, I wanted American Engineering Corp to be the name of my company, and indeed, that is what I go by in my email and dealings with my clients. However, when I went to register myself as an LLC with my state, I was told the name was already taken (by a Japanese company of all things!), so I ended up having to add USA to the beginning of my name to get registered.

Another thing to consider when starting a recruiting agency is whether you can use certain words in your name. I found out later that there are many states (fortunately not mine) that require you to have a licensed PE (professional engineer) working for the company to be able to have the word “engineering” in the name.

If you don’t want to go with engineering at all, some common add-on names include; associates, staffing, enterprises, solutions, group, etc.

Once you have your office setup, you are ready to get started. 95% of what I do is online and through email. If you can cut & paste and have at least a basic understanding of the internet and using email and programs like Word, starting a recruiting agency should not be difficult or even cost much money to get started.

Source by Scott Ritter

Weight Loss – Making Physical Activity Work for You

Exercise is commonly considered a source of benefits and an irreplaceable component of a healthy lifestyle. It is not without reason. But physical activity still can work against you in unexpected ways. Let us take a look at the reasons why …

1. Exercise burns calories, but … The No. 1 reason many gyms are in business is they offer the resources for exercise with the purpose of helping people lose weight. Even though exercise should be seen primarily as a way to improve the quality of life and maintain well-being, it is usually done for its caloric effects. If training no longer burned calories, we would see even more sedentary people in our society.

So in this sense, it is effective as an initiative to get more people active. But the problem is it also fires up the appetite. And it is this drive that is to blame for the reason many people are overweight, to begin with.

2. Exercise stimulates your hunger. Going for a half-hour jog is a great way to burn calories and melt some of your stubborn fat. But it also makes you incredibly hungry since it causes a tremendous insulin spike. If you are not careful, there is a good chance you may consume enough calories during the following meal, canceling out your weight loss efforts that day.

Do you know anyone in your life that complains about a lack of progress, despite working out consistently? Sometimes, physical activity can even act as a hindrance. It is crucial never to forget having a balanced and sensible diet is just as essential as exercising.

3. Make physical activity work for you, instead of against you. It is not difficult to allow exercise to enrich your life. You just have to take some practical (and mental) precautions. You must have the discipline to control your portion sizes and not increase them just because you have exercised. Be mentally ready, because you are going to feel hungrier on the days you exercise – especially if cardio is your go-to.

If you are looking to lose weight or lower your blood sugar levels, prudence is a value. You can not be too careful and never lose sight of your goal.

4. Your nutrition matters. Lastly, it bears repeating how and what you eat does matter. No amount of exercise will change that.

It is only when your nutrition is taken care of your health prospers. Exercise and a physically active lifestyle are merely the finishing touches.

Source by Beverleigh H Piepers

Top Reasons to Work With a Maid Agency

Most homeowners are in a dilemma when it comes to the decision of hiring a maid. It does not imply, however, that the family members are too lazy to clean or maintain the cleanliness of the house. It is just that the family could benefit when there is an additional helping hand.

Why hire a maid?

Having someone to help you in house cleaning is an efficient way to manage your time, especially if you have a day job. Whether you are busy with family affairs or career, you definitely want someone to assist you.

There are other possible reasons for hiring a maid, including having a new baby or lack of cleaning skills. When there's a new baby in the house, your focus is more on the baby and his needs. You may be too exhausted to do the laundry or wash the dishes. In this instance, it is very practical to look for a housekeeper. On the other hand, cleaning is not as easy as just sweeping. You have to be very keen on the details, from removing cloth stains to keeping your pieces of furniture dust-free.

Where can you find a maid?

Once you have decided to hire a maid, it is best to consult a maid agency . It is important to work with one that provides a trustworthy and reliable service. This is to make sure that you will get the right person.

One of the best things in getting a maid through an agency is the benefit of assurance. A contract containing all the terms, conditions, and stipulations about the service is prepared, which you have to read thoroughly. The said contract includes the rates, obligations, penalties, and the like. Signing it assures you of a clean house all the time.

You are also guaranteed the experience and experience of the maid. Most agencies have a team of house cleaning specialists who have a lot of experience in the industry and they select the most suitable person for the job. For instance, if your house is too big and you have a garden or pool, the agency will choose the person who had already experienced cleaning in this kind of place.

Also, it is most likely that a customized cleaning program that suits your needs, and expectations will be recommended. Such program will guide the maid on how to manage your house and determine which areas to focus on.

How to Spot a Reputable Maid Agency?

As mentioned earlier, working with a reliable agency is essential. You can definitely spot one by reading customer reviews and testimonials. Conduct some research online about the agency you would want to work with. Visit its website and read the testimonials page. The content here, however, may be self-serving; So, it's also good to look for blog posts or forums where previous clients shared how satisfied or not they were with the service.

Hiring a maid provides numerous benefits and you can only realize these if you are with the right person. Keep in mind the abovementioned factors when looking for a maid in order to have a clean, safe, and healthy home for your family.

Source by Shine Manson

The Emerging Role (Future) Of Accounting

1. INTRODUCTION

Accounting has evolved as human beings have evolved and as the concepts of the accounting subject are directly coined out from its most fundamental principle of conservatism, it is not difficult to see why the style of accounting at every point in time has a direct link with the age. As man has developed from a primitive age to a modern interdependence age, living has advanced from being subsistent as a hunter-gatherer to a knowledge driven globalised world concept of ‘effectiveness turning to greatness’ and all along with this evolution, self accounting with the abacus has developed through stewardship accounting to financial accounting and now managerial accounting; which has a focus on decision making.

The Financial Accounting Standards Board (FASB) of the US which generally standardised and strengthened the globally adopted Generally Accepted Accounting Principles (GAAP) took significant strides in the year 2012 to come together with the International Accounting Standards Board (IASB) in a manner termed as ‘International Convergence’. Such a convergence is expected to gradually harmonise the GAAPs and the IFRS until they become one and the same in a bid to stream line corporate/company reports into a uniform process globally.

1.1 Statement of the Problem

There is no absolute certainty as to what the future holds for the Accounting Profession. It thus seems however, that the future age which definitely would be one of scientific advancement, would move man from greatness to something worthier for the time. Spiritualism, Environmentalism and Developmentalism could be key factors in the future age. This paper is to find out if Accounting itself would be more of a reality providing accurate solutions to financial problems where man’s ability to value natural capital fairly would give rise to a significant asset on the balance sheet in contrast to the industrial age when even man himself was regarded as labour and not being considered as important as the machines he operated.

2. LITERATURE REVIEW

This paper was approached from a content analysis view point – both conceptual and relational. A content analysis is “a research technique for the objective, systematic, and quantitative description of manifest content of communications” – (Berelson, 52). The conceptual analysis was simply to examine the presence of the problem, i.e. whether there is a stronger presence of positive or negative words used with respect to the specific argument while the relational analysis built on the conceptual analysis by examining the relationships among concepts. As with other sorts of inquiry, initial choices with regard to what is being studied determined the possibility of this particular paper.

2.1 Evolution of Accounting Theory

According to investopedia.com, Accounting Theory in the light of its evolution can be defined as the review of both historical foundations of accounting practice as well as the way in which accounting practices are verified and added to the study and application of financial principles. Accounting as a discipline is believed to have existed since the 15th Century. From that time to now businesses and economies have continued to evolve greatly. Accounting theory must adapt to new ways of doing business, new technological standards and gaps that are discovered in reporting mechanisms hence, it is a continuously evolving subject. As professional accounting organisations help companies interpret and use accounting standards, so do the Accounting Standards Board help continually create more efficient practical applications of accounting theory. Accounting is the foundation of efficient and effective business management and intelligent managerial decision making, without which businesses and trade world-wide would operate blindly and fatally. It is therefore necessary to link how it has evolved to its future role.

2.2 The Origin of Accounting

Luca Pacioli wrote a Maths book in 1494 (ehow) that consisted of a chapter on the mathematics of business. As this book is thought to be first official book on accounting, Luca Pacioli has severally been regarded as ‘the father of accounting’. In his Maths book, Pacioli explained that the successful merchant needed 3 things: sufficient cash or credit; an accounting system that can tell him how he is doing; and a good book keeper to operate it. Pacioli’s theory still holds today, it included both journals and ledgers and it is believed to have popularised the use of the double entry accounting that had been in place since the late 1300s.

2.2.1 The First Change in Accounting

During the depression of 1772, the Accounting profession went beyond book keeping to cost accounting. The theory and the idea were transformed into a method determining whether a business is operating efficiently or using an excess of labour and resources. The new theory of cost accounting allowed a trained book-keeper or an accountant to use the book kept to extract financial reports to show the efficiency represented by such data. This new idea led to the survival of businesses during the depression; business that would otherwise have failed without an intelligent management decision making informed by a cost accounting breakthrough.

2.2.2 The American Revolution/ British Courts Influence

The end of the American Revolution saw the first United States (US) governmental accounting system being created in 1789 and it was established to account for and manage the treasury of the US. The double entry practice and theory were adopted. The British courts ruled that they needed professional accountants to make financial information in relation to court cases. Chartered accounting bodies/ concepts were introduced in Britain (and in the US in particular, the Certified Public Accountant – CPA). In 1887, the first standardised exam emerged with Frank Broaker becoming US’s first CPA.

2.3 Modern Cost Accounting

This was first established by General Motors (GM) Company in 1923 and it developed methods that helped cut its costs and streamlined operations and this remained relevant for over 50 years. The new accounting techniques developed included return on investment, return on equity and GM’s flexible/adjustable budget concept.

2.4 Accounting Concepts and Conventions

This was established in US between 1936 and 1938 by the Committee on Accounting Procedure (CAP) thereby standardising Accounting practices for all companies throughout the US. In 1953, the Generally Accepted Accounting Principles (GAAP) was updated to new standards, CAP became Accounting Principles Board (APB) in 1959 and later in 1973, APB (having suffered from poor management) was replaced by Financial Accounting Standards Board (FASB) with greater powers and opinion for its professional stance.

2.5 International Financial Reporting Standards

FASB issued almost 200 pronouncements between 1973 and 2009 thereby establishing the foundation of Accounting Standards in use presently and is now making current moves to harmonise all accounting principles of GAAP with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB). It is widely believed that development of accounting profession in any nation and around the globe is a mixed effort of both accounting theoreticians and practicing accountants. Thus, the framework of accounting is a harmony of efforts whereby professional accounting bodies are usually in the lead of a path to regulation and standardisation of issues relating to accounting.

2.6 The Nigerian Scenario

In Nigeria, the case is not different from what has already been discussed. Most of the country’s accounting standards (concepts and conventions) were inherited from the British colonial masters. And because the world has indeed become a large global village with globalised accounting bodies supervising and making sure that all member countries are abreast with current Generally Accepted Accounting Principles, Nigeria has also tagged along making several public sector and private sector reforms the most recent and famous of which include the approval by the Federal Government in July 2010 to adopt International Public Sector Accounting Standards (IPSAS) for the public sector and the International Financial Reporting Standards (IFRS) for the private sector as a conscious effort to ensure a uniform chart of reporting system throughout the country by both the public sector and private sector.

2.7 International Convergence of Accounting Standards

This concept is both a goal and a path taken to reach such a goal. The FASB believed that the ultimate goal of convergence is a single set of high-quality, international accounting standards that, companies world-wide would use for both domestic and cross-border financial reporting. To this end, conscious efforts are being made by the FASB and the IASB to jointly eliminate the differences between the ‘GAAP’ and the ‘IFRS’. One such conscious effort was made on the April 5th 2012 when an update report was submitted to the Financial Stability Board Plenary on Accounting Convergence. The ever increasing demand by global capital markets driven by investors’ desire for high-quality internationally comparable financial information is as a result of the usefulness it is expected to immediately provide for decision making and thereafter accurate solutions to problem solving. The IASB was established 1st April 2001 as successor to International Accounting Standards Committee (IASC) and on March 1st 2001 the IASB, which is an independent accounting standard-setter based in London, England assumed the responsibilities for Accounting Standardisation. The IASB is responsible for issuing many accounting standards and pronouncements known as the International Financial Reporting Standards (IFRS).

3. PRESENTATION OF FINDINGS

To give a pictorial view to this paper, two (2) illustrations are used to make presentations (interpretations) of the findings. Illustration.1 traces the Evolution of Accounting; its principles, roles, concepts, professionalism, standardisation and internationalisation. Illustration.2 on the one hand relates Accounting evolution with Human evolution and on the other hand it broadens the understanding of the reader with regards to the subject matter. The reader (user) of this paper easily discovers a past-present-future view of the Role of Accounting and it purports to postulate finally what the future of Accounting could (or should) be. Self Accounting is not a terminology found in the literature of Accounting but is used here to depict any primitive Accounting system which was maintained by traders long before double-entry. Self Accounting, thus, was the past of Accounting when the role of Accounting was merely to have records of Incomes and Expenses, show Liabilities and not necessarily showing Assets and profits as distinguished from the personal or private earnings/estates of a trader. Assets at times might have been recorded as expenses. These are assumable because most businesses operated (and still operate) as sole-ownerships. The Present role of Accounting encompasses; stewardship, financial reporting and managerial decision making. These three provide the nexus of what Accounting is today. The stewardship aspect is so referred to because rich merchants in Europe and the Americas at that time trained their slaves to render book-keeping services. So the merchants themselves did not have to do the tasks. Financial Accounting was developed to give standard to financial reporting especially for the users of such reports who are largely to the businesses concerned. Managerial Accounting evolved to provide records that would aid the decision making process of the managers and owners of businesses. Generally all three roles of accounting as at present assist stakeholders to make good judgments regarding their dealings with businesses. These stakeholders may or ‘may not’ have rights to receive the reports so discussed. The stakeholders include; creditors and government (having rights to receive only financial reports); the shareholders, investors and management (who make use of both the financial reports and the managerial reports); the employee and the management team (who are the users of all the reports: book-keeping, financial reports and managerial reports); and the competitors, resident community and customers – who do not have rights to receive such reports but are able to retrieve financial reports (annual reports) to aid their decisions with regards any business of interest to them.

Having accurate records (reports) support good decision making but sometimes bad interpretation and judgment of the reports and their recorded results may lead to bad decisions taken. The three roles of accounting presently have been the bed-rock with which accounting standardisation of principles and procedures have evolved to date. The Emerging Role (Future) of Accounting then must be anticipated with keen readiness with regards to what should be probable. Illustration.2 would do justice to this concept.

Illustration.1- The Evolution of Accounting in the US (1300 – 2014)

Stewardship (prior 1300)

-Slaves trained to render basic book-keeping

Double Entry (1300)

-Introduction of Double Entry principles

Book-keeping improved (1494)

-Financial Reporting begins

Cost Accounting (1772)

-Managerial Accounting for Decision Making begins

Double Entry (1789)

-Principle of Conservatism fully adopted

Professionalism (1850)

-Concepts/Chartered bodies introduced

AICPA formed in US (1887)

-Providing standards and operational guidelines

-Certification process begins

Qualifying Exams (1897)

-First standardised exams introduced

Cost Accounting Revamped (1923)

-Modern cost accounting methods developed by General Motors Company and remained relevant beyond 1973

Concepts and Conventions (1936)

-Conservatism expanded into other concepts and conventions

-US Committee on Accounting Procedure (CAP) establishes standard accounting practices

CAP Evolves (1953)

-New standards of GAAP fully established

CAP further evolves (1959)

-CAP becomes APB (Accounting Principles Board)

APB evolves (1973)

-Due to poor management and inability to Accounting theory as desired, APB is replaced by FASB

FASB established (1973)

-Financial Accounting Standards Board replaces APB and makes over 200 pronouncements up to 2009

-The foundation of accounting Standards all over the world further strengthened

Influence from the England (2001)

-IASB established as an independent ‘International Accounting Standards-Setter’ based in London, England

-IASB assumes responsibilities from IASC on March 1st 2001

FASB and the International Convergence (2012-2014)

-GAAP (established by the FASB) is being considered for merger into the IFRS (established by the IASB)

3.1 Reality Accounting versus the Future Role of Accounting?

What is Reality Accounting and what then should Reality Accounting encompass? Wikipedia.com defines reality as the totality of all things, structures (actual and conceptual), events (past or present) and phenomena whether observable or not. Reality is thus seen as a term that links ideologies to world views or part of them (conceptual frameworks). Reality Accounting is close to ‘Fair Value Accounting’, which is both a basis and theory of accounting. And it seems to be transforming into the Future Role of Accounting. In Financial Accounting, it is easily seen that accounting reflects corporate and economic realities as they are, though it is common sense to know that accounting cannot adequately reflect reality particularly in relation to the technical limitation of double-entry bookkeeping and Fair Value Accounting. As part of the changes emanating from Reality Accounting, a new concept of ‘Natural Capital’ has surfaced. At the Rio+20 Summit on Sustainable Development organised by the United Nations Conference for Sustainable Development (UNCSD), which took place in Brazil on 20-22 June 2012. At the Conference, a Natural Capital declaration was made such that Natural capital is now understood to be comprising of all Earth’s natural assets (soil, air, water, flora and fauna) and the ecosystem services resulting from them, which make human life possible. It estimated that ecosystem goods and services from natural capital are worth trillions of US dollars per year and constitute food, fibre, water, health, energy, climate security and other essential services for everyone.

3.2 The Concept of Natural Capital

Neither the services, nor the stock of Natural Capital that provides them, are adequately valued compared to social and financial capital despite being fundamental to all that exists. The daily use of Natural Capital remains grossly undetected within our financial system. There is therefore the need to use Natural Capital in a manner that is sustainable. All stakeholders, including the private sector and governments must begin to appreciate and account for the use of Natural Capital and recognise the true cost of its economic growth as well as sustaining human wellbeing now and in the future.

3.3 Natural Capital Framework

Natural Capital though treated as a free good but must be seen as part of a global pool of wealth for which governments must act now and wisely to create a framework that shall regulate, reward or tax the private sector for its use. Reliable policy frameworks that can report the value, use and depletion of natural capital must be the intent of any government desirous of making a good start with this new accounting phenomenon. Deeper economic influence is given to accounting under Reality Accounting since all that are regarded as real are only truly real in their consequence and not in their physical. Therefore the value of Natural Capital for instance would be the value ascertained after considering various factors that give rise to such valuation. These factors include the size, presence of mineral resources, location, other natural resources, presence of plant and animal life etc.

Illustration.2- The Emerging Role (Future) of Accounting

HUMAN AGE………….HUMAN EVOLUTION…………………………….ACCOUNTING EVOLUTION

Primitive age………..Hunter – gatherer……………………………..Self Accounting

(Independence)……(Subsistent living)……………………………..(Abacus)



Colonial age…………Colonialisation…………………………………Stewardship Accounting

(Dependent age)…..(Being efficient)……………………………….(Book-keeping)



Modern Age………….Technology driven by Industrialisation…….Financial Accounting

(Independence)…….(Being effective)………………………………(Financial Reporting)



Modern Age………….Technology driven by Knowledge…………..Management Accounting

(Interdependence)…(From effectiveness to greatness)…………(Decision making)

?↓

The Future Age………Technology driven by advancements……..Reality Accounting?

(Efficiency…………….Environmentalism?…………………………..(Not as a tool for decision

based on……………..Developmentalism?………………………….making but providing

Interdependence……Spiritualism?…………………………………..accurate solutions to

…………………………(From greatness to what?)………………….financial problems)

4.0 CONCLUSION

As man seeks greater heights in a modern world full of scientific and research discoveries, Accountants must ponder what the emerging role of their profession must be. From merely providing information on the wellbeing of a business to financial reporting as a corporate responsibility and now decision making managerial approach for future forecasts, what then does that future hold for accounting or how is accounting expected to remain professional and relevant in that future which seems would be molded by environmental and developmental challenges all over the globe. As accurate records and reports have supported good decision making though sometimes bad interpretation and judgment of the reports and their recorded results have led to bad decisions taken, the present roles of accounting, which have formed the bed-rock with which accounting standardisation of principles and procedures have evolved are now facing evident changes.

Under the scope of Reality Accounting, it is clearly observed that concepts such as International Convergence, Natural Capital, Environmentalism, Developmentalism and Fair Value Accounting will sooner than latter set the path for the future of accounting.

This paper is to stimulate academic arguments for or against the subject matter in order to bring to the awareness of accountants about a subconscious change that is already taking place. It is recommended therefore that seasoned researchers should come forth with further ideas, summaries and reviews that can boost a clear pathway for the future of accounting.

REFERENCES

1. http://www.investopedia.com (Accounting Theory)

2. http://www.eHow.com (The History of Accounting Theory)

3. Berelson, Bernard. Content Analysis in Communication Research. New York: Free Press, 1952

Source by Mahmood Omeiza Adeiza

7 Problems Faced by Most Accounting Students

Being an accounting student isn’t easy. You have to be really good at Maths, but that’s not all there is to it. If you want to take up a career in accounting, you will really need to love your job. And while the pay packet can seem lucrative, understand that many accounting jobs involve you to sit for hours on your desk, doing the necessary calculations. Of course, if that isn’t a good thought, then accounting is not for you.

A Career in Accounting

But then, those who do take up accounting know that well. The bigger problem is something else.

Given below are the 7 problems faced by accounting students around the globe.

  1. Managing other people’s money while on a budget – Accounting students have to live their life on a strict and low budget while also manage the incomes of big business houses at the same time. It might be a good idea to take a break before starting an accountancy course and collect some funds to relax as they study year after year.
  2. Leading a social and relaxed life – As students pave their way to adulthood, a university is the perfect place to make new friends, socialize and learn more about life with every passing day. However, accounting as a career can be extremely demanding and an accounting student rarely gets the time to relax or socialize with others.
  3. Immensely competitive – There can be tough competition between accounting students especially because this career has a clear employment goal. This competition can sometimes prove unhealthy and some of the brightest accounting students may fail to secure a job even though they expect to do so easily.
  4. Choosing the correct industry – Trained accountants can choose from various business fields and sometimes it becomes a problem to choose the correct and apt industry for a student amongst the various options available. A student should not limit his opportunities for progression and explore them all before making a final choice.
  5. Formal lifestyle – Being a computer-oriented career, accounting can prove to be quite rigid and requires the student to lead a formal and strict lifestyle both during and after graduation. Internships too can be strict and stressing, without allowing much flexibility to an accounting student.
  6. Being unqualified – An accounting student who fails to complete his degree or secures extremely low marks in his exams due to the excessive academic pressure may face serious problems in securing a job and might be left unemployed while his peers achieve success in their careers.
  7. Online technologies – With the advent of online technologies and an internet culture setting in rapidly, many accounting students find it difficult to secure a job after their graduation as several business homes avoid hiring an accountant when a number of functions and jobs can be completed with cloud-based accountancy software’s.

Every student needs accounting help to be able to do better in their studies.

Source by Larry Luther