AWiB October 2 Event Recap
For many of us, Math and numbers is that scary monster under our bed or closet. We would rather close our eyes then deal with the mystery. ACCA Ethiopia delivered a rather refreshing and eye opening presentation on October 2 2014. This month’s AWiB event focused on unravelling the mystery of finance and embracing number crunching and financial analysis. Building your finance capability is not only about looking at the business you are at now- but the business you plan to grow into.
The presentation was divided into three parts. The first talking point was delivered by Mr. Netsanet Tsegaw, Head of ACCA Ethiopia. Why do you need to build financial capability? asked Mr. Netsanet to a room full of keen professionals. For a business to grow from a small start up to a large industry, its need for a sophisticated financial management must grow simultaneously. The quickest way to enhance your financial capability is to buy the skills you need. Depending on how much capital you have and the stage of your business operations, you may wish to hire an external consultant to guide your financial operations, a book keeper or an in-house accountant. The appointment of a finance director represents a marked increase in financial capabilities explained Mr. Netsanet.
So having learnt that we do need accountants to build our financial capability, the next logical step would be to understand how accounts can help us. Kalkidan Tadesse (ACCA), currently the Finance Manager for Massida Solutions Plc, explained that the primary role of an accountant is to guide your business growth. Hence, accountants are more than number crunchers. Their role includes, keeping financial records straight, preparing financial projections and cash flow forecasts, following up on outstanding payments and ensuring compliance to name a few. Accountants are up to date on proclamations relevant to their clients operations, liaise and learn from third parties like banks and lawyers and continuously update the business owner or manager on financial standings. Through budgets, financial reports and financial analyses, accountants are able to map out a well calculated financial journey.
Lastly, we heard from Yodit Kassa, Education Manager of ACCA Ethiopia. Yodits presentation guided us away from the accountant to the business manager itself. Depending on the nature of the business, many business owners resort to hiring an accountant when they feel like they have reached a certain level of growth. Therefore in the meantime, they themselves must fill the gap created in managing their finances. So how can we develop accounting skills?
Thanks to modern day technology, there are many standard excel templates widely available to produce balance sheets and cash flow projections. There are also numerous technical articles available to coach you as you develop your financial skills.
In wrapping up this highly informative evening, our esteemed presenters encouraged AWiB members to become well rounded professionals, to develop their basic skills in finance, to embrace accounting and reach far greater heights.
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