CREATING AN ACCOUNTANT CV: MAKING IT COUNT TO CATCH THE EYE

You might be a whiz with numbers, but maybe you freeze when you see an accountant job description in Ireland because you know you have to create a killer CV and cover letter. Accounting is a competitive industry, so even getting called to an interview is a big achievement.
We have already covered accounting interview questions and answers, so in this short guide, we will show you how to write a CV which gets you that interview in the first place.

How to Write an Accountant CV?

When creating an accounting CV, it is crucial for you to understand the correct format. While it is true that hiring managers hate generic CVs, they still expect to see a specific style that is easy to skim read. We have included a downloadable CV template below, but first, let’s take a look at the correct layout.

Personal Information

Hiring managers expect to see the requisite personal information at the top of your CV. Please include your full name, email address, telephone number, and address. Although you may need to include other information such as gender, date of birth, and marital status when filling in online job applications, don’t include it unless specifically requested.

Write an Accountant Personal Statement

This is arguably the most critical part of your CV. It is usually at this point where employers decide if they intend to read on. Summarize yourself in two sentences. It is a challenge to include your best professional features in 50-60 words, but you need to get it right.

Highlight Key Skills

In this section, you have to include the skills that ensure you are an ideal fit for the job. For example, you must have excellent IT skills which includes experience of using relevant software. Write something original because the hiring manager will read dozens of CVs, so you have to ensure yours stands out.
The top accounting skills requested by employers in Ireland include experience with SAP or Oracle systems, experience with a multinational, or post-qualification experience.

Summarise Qualifications and Educational History

Hiring managers need to see that you have done the hard education yards. Make sure you list the most recent qualification first. For example, include details of your Chartered Accountant status after your Bachelor’s Degree. When it comes to an accountant’s CV, professional certifications are of paramount importance.

Employment History

Since space is at a premium, it isn’t usually necessary to include more than three roles. Also, it is best if you only include jobs with skills and responsibilities transferable to the potential new job. If you were a Payroll Accountant and a Sales Clerk, you don’t need to include your brief time working in the local off-license.

Personal Interests and Hobbies

This is the least important part of the CV, and it shouldn’t make or break your application. Even so, it is good to cast aside the whole ‘accountants have no personality’ stereotype. It is also an opportunity to fill in any gaps in your experience. For instance, you can highlight your leadership skills by showing that you were the captain of a successful sports team.

References

We’ve seen applications where employers demand up to four references! Only include employers, educators, or professionals in this section. Include the name, job title, contact information, and address of their company if applicable.

 

Source: https://www.jobs.ie/

How to Be a Courageous Leader in the Post-Pandemic Era

Three must-have traits for courageous leadership in a post-pandemic workplace.

While some contest, or outright refute, whether or not former British Prime Minister Winston Churchill famously said “success is not final, failure is not fatal: It is the courage to continue that counts,” the power of that statement looms large irrespective of origin. Amid the wildly unforeseen fallout from the COVID-19 pandemic, this quote is rather prophetic. It speaks to prosperity not being taken for granted and the notion that failure in and of itself isn’t a death knell. Relative to business, specifically, it also evokes many questions about the very nature of “courage” — a concept often characterized by the demonstration of “strength in the face of pain or grief.”

Of course, it’s presumed that successful leaders can and should inherently be courageous, but in what exact regard is courage a mission-critical managerial quality? To what extent should a leader exude courageousness versus humility? What actions, or results thereof, exemplify how courageous — or not — a leader is? Can a wholly well-intentioned show of courageousness backfire and end up doing more harm than good?

We’re currently living in an unprecedented, decidedly challenging point in time when courage seems to be the order of the day. In an attempt to garner some crystal clarity on how this is actually defined and perceived when in practice, I took these and other questions to an assortment of experts and leaders in the business community. The result of that outreach is as eye-opening as it is inspiring, with salient inputs including this top-line wisdom.

Stick to your guns. By its very nature, the notion of courage connotes danger and evokes a sense of fear. Were there not peril, valor need not be required. To this point, Douglas A. Hicks, dean of Oxford College of Emory University, underscores that courage not only enables someone “to take risks that others fear in order to achieve something important,” but also that doing so requires a backbone. “Courage is not about sticking one’s finger in the air to see which way the wind is blowing, what others are saying. It requires both self-confidence and resolve. CEOs show courage when they commit to keep employees on the payroll in (the) face of recession and do whatever it takes to create long-term profitability,” he said.

Stacy Caprio of Her.CEO concurs, offering that “a courageous leader has the ability to look at the data and make decisions, even when these decisions go against the grain of public opinion, the media, and general public panic. Not many leaders have this ability, but a true leader is able to make decisions independent of mass fear and panic.”

For those businesses that aren’t exactly linear with some kind of denotable beginning and end, instead operating as a continuous, ever-evolving process (like health care, education, and financial management), Nicola Wealth Chairman and CEO John Nicola urges that “courage comes from the consistency of your message, your ability to support it, and the loyalty of your people delivering it in all environments.” Not only germane to one’s actions, Nicola points out that moxie also manifests in a passive sense by “choosing to do nothing in the face of unrelenting pressure to act.” This as a courage of conviction, based on principles of an individual leader, a leadership team or the company at-large.

Amid the ever-unfolding coronavirus-driven challenges and during prior catastrophic events like the “dotcom crash” and the Great Financial Recession of 2008, Nicola has leaned on corporate ideology for sustenance. “During each of these periods we were under pressure to sell as markets dropped, to not rebalance and try and catch a falling knife, to go into cash and ride out the storm,” he said. Yet, Nicola instead mustered his courage and chose to “to do what we believed the right thing to be was” — a decision he says ultimately resulted in significant performance benefits for his firm’s clients.

How important are these kinds of instincts? Southwestern Family of Companies CEO Dustin Hillis knows all too well, lamenting a time at the company when he had doubts about the sustainability of the business model — multiple facets therein — at that time. “Instead of having courage and actually boldly testing new models, and at the risk of my own income and reputation, I went against what my instincts were telling me. As a result, we went $1 million in debt and almost had to shut the business down. Making the pivot to change the model to what we ended up ultimately doing with coaching and consulting was twice as hard as it would have been two years earlier when I first had the thought. But I did not have the courage to actually take action on what the numbers, the feedback and my instincts were telling me.”

With this, it’s understandable that Hillis currently defines courage as “being afraid and taking action anyway.” He also advocates owning and being daring amid that distress. “True leaders are the ones who acknowledge they are afraid and up against a significant challenge, and yet they persevere and double down on activity during the hardest of times,” he said.

Jennifer McCollum, CEO of leadership development firm Linkage, further substantiates that courageous leaders stick steadfast to their personal standards. McCollum cites her firm’s research findings, which she says are drawn from 100,000 leadership assessments with data from more than one million leaders, revealing specific behaviors that make a leader courageous. One of the three found is “acts in alignment with personal values in challenging, conflicting or ambiguous situations.” With courage as a character trait not to be discounted as a key determinant of a leader’s overarching achievements, McCollum clarifies that, through her firm’s study over 30 years on what the most effective leaders do, “we know courage is a critical leadership practice that differentiates the most effective leaders from the rest.”

Embrace vulnerability.  According to Aaron Velky, CEO of Ortus Academy, courageous leadership includes the decision to be truthful and vulnerable. “Whether or not the truth is easy to share and whether or not you know what speaking the truth will create as an outcome, courage is the ability to offer up where you are and what is real so that someone can process it individually.” Bravely delivering hard messages is not enough, however, as Velky goes on to clarify that, “When we share truth we have to be prepared to listen, but listening is vulnerable, and that’s important too. Courage is owning what we are experiencing. Vulnerability is sharing it — the good, bad, and emotionally jarring.”

Being able to admit and share regarding future uncertainties also speaks to vulnerability as a facet of courageous leadership. In fact, Velky says that the decision to acknowledge not only what is truthful and known, but also the unknown, is another distinct decision a brave leader makes. To demonstrate courage, Velky asserts that one needs to be fiercely committed to recognizing what and how much you don’t have figured out. “Stating the unknowns mitigates the toxicity that is felt when you hide fears and the reasons to have them. Fears are OK, the unknown is OK — once you acknowledge it.”

One business leader who’s walking that highly-exposed walk of vulnerability is Mylen Yamamoto Tansingco, CEO of Cropsticks — a social and environmentally-minded B-Corporation operating in the foodservice and hospitality industry. “I do not have all the answers and I’m not going to pretend I do either,” she’s refreshingly quick to admit. As case in point, Tansingco publicly shared what Cropsticks is currently going through amid COVID-19. In her YouTube video titled “ Can my business survive?,” she shared her company’s small business story in endearing, unguarded and highly personal form. “I’m hoping to keep our community motivated and feel seen during this time,” though she understands this is not without some level of risk. “I hope it doesn’t become a ‘courage fail’ after this all over,” she said. Yet she took the leap of faith into that unknown anyway.

Fortune 500 speaker, writer and coach Heather Coros contends that courage is contagious. She emphasizes that curiosity and innovation is only accessible in the brain when a sense of safety is present. “If you’re expecting your team to lean-in, then they need something that feels safe to lean against. By being that safe space, you give the gift of strength and vulnerability to the entire team. And as we know, vulnerability is essential to highly preferred skills like transparency, clear communication and team cohesion.” Perhaps most importantly in this post-pandemic era is Coros’ estimation that “courageous leadership creates a sense of stability amidst the chaos.”

Be undaunted. Wonder Woman Writer, LLC, feels that being a courageous leader is accomplished by having unwavering poise. “You have to believe in yourself and your idea no matter how the person in the room reacts or not,” and “trust that you’re talented and smart enough to figure it out and still accomplish the task at hand.”

Mike Zaino, President and CEO of TZG Financial, likens this kind of requisite resolve among organizational leaders to that of an underdog continuing to fight with relentless persistence despite prior outcomes. It’s “getting knocked down seven times, and standing up eight,” he says. Yet, such doggedness should not be above reproach, as Zaino further points out that it certainly takes courage to not just hear — but accept — constructive criticism. “You’re either learning or you’re dying,” he says.

The idea that courageous leadership requires a willingness and ability to fail and “get back up again,” no matter how many times it need be performed, is one that’s shared by Mercy Project CEO Chris Field. What particularly captures my imagination is Field’s belief that, for courageousness to be a leadership asset, it must be a concerted choice — a daily decision — rather than happenstance. “Courage is a muscle, one we must exercise and grow by being courageous … one decision at a time,” he submits. “Courage takes many forms, but none of them happen by accident.”

While conveying courageousness certainly takes chutzpah, Women Presidents’ Organization CEO Camille Burns cautions that it’s important to exude confidence without arrogance. “I think people often confuse risk-taking with being courageous,” she said. “Taking a risk is a bold move. But it is even more courageous to fail, to accept that something you tried did not have the outcome you wanted or expected.”

Even so, risk-taking does certainly take its fair share of bravado and duly illustrates leaders with this attribute. Tim Chen, Co-Founder and CEO of NerdWallet, points out the prospect for growth moments during times of crisis — namely the one we’re currently immersed in. He appreciates the extent to which COVID-19 has ushered in a defining time for business leaders, offering, “Even though we’re navigating unprecedented uncertainties, I see this as a huge opportunity for the type of courageous decision-making and smart risk-taking that leads to immense personal and professional growth,” he said. “In fact, I can track most of my greatest periods of personal growth to a prior crisis.”

Crises aside, Chen’s colleague Kelly Gillease, NerdWallet CMO, sees an opportunity for courageous risk-taking with frequency. “Great leaders exhibit courage in small ways every day by encouraging risks and bigger thinking or being vulnerable and empathetic when a situation calls for it,” she said. As for the afore-mentioned chutzpah, “having a willingness to call out the elephant in the room” is also courageous behavior that Gillease indicates she strives to model.

When endeavoring to connote courage, attitude is also the name of the game. It’s important to temper said chutzpah so that it doesn’t come across as overly audacious. A haughty demeanor is never one that’s particularly welcomed in business, but this kind of disposition can veritably doom an executive’s image — especially when attempting to navigate a gaffe. “When someone does not acknowledge what they do not know, or the mistake they have made, it is a courage fail,” Burns warns. “Sustained naivety is when you deny the fail, or when you try to blame it on someone else or block out the writing on the walls. If there is no learning derived from failure, there is no achievement. Then, it is a double failure.”

It’s apparent that courageous business practices are guided not just by guts and grit, but also by focused and unwavering guidance that keeps a leader on course. Just ask Field, who muses, “Courage is knowing our North Star and regularly checking to make sure we’re still headed there.”

Source: https://channels.theinnovationenterprise.com/

SARS Auto Assessments – What You Need To Know

In an attempt to streamline the tax return process, SARS has implemented a new Auto Assessment System. In the month of August, many non-provisional taxpayers have begun receiving SMS’s notifying them that they have been selected for the process. The SMS will contain a link directing them to the SARS E-Filling app, where they will be able to view their return, the automated result and have the option to ‘Accept’ or ‘Edit’ the outcome.

 

Returns which have not been ‘Accepted’ or ‘Edited’ by 29 January will be filed automatically.

 

The move has left many taxpayers feeling confused or unsure of how the process works, so we have compiled a list of must know facts when dealing with the new system.

 

I’ve clicked on the link in the SMS, what now? 

 

Once the page has loaded, you will see a clickable option ‘Personal Income Tax (ITR12)’, select this option then click on ‘Request Return’

 

A pop up will then display the automated results, with the exact figure of how much is owed by you (R100), or owed to you (-R100) by SARS.

 

Looks good, what next? 

 

If you agree with the stipulated amount, all you need to do is select ‘Accept’ followed by ‘Confirm”

 

What if you don’t agree? 

 

It is important to review the return and ensure that all taxable revenue streams and deductions are accounted for. When speaking to financial practitioners, they noted that the Auto-Assessment failed to account for all taxable revenue streams, resulting in taxpayers receiving less in their returns, or paying more in tax than they should have.

 

What the auto-assessments doesn’t account for: 

 

  • Rental Income
  • Business & Trade Income
  • Foreign Dividend
  • Foreign Interest
  • Foreign Capital Gain
  • Donations S18A Organisations
  • Travel allowance
  • Use of company car
  • Out of pocket medical expenditure

 

If you suspect that your return has been calculated incorrectly, the ‘Edit’ option will allow you or your tax practitioner to adjust accordingly, ensuring all revenue streams and deductions are accounted for.

 

How long does it take to be paid out? 

 

If you agree with conditions of the rebate, you should receive your refund within three working days. If your return has been edited, it will go under review by SARS. There is no stipulated turnaround time for this review as of yet.

 

As with all new systems and processes, the SARS auto-assessment system has its flaws. It is important to remember that the onus is still on you, the taxpayer, to ensure that your returns are honest, accurate and that all revenue streams are accounted for. This will help ensure that there are no nasty surprises in the future.

SARS Auto Assessments – What You Need To Know

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In an attempt to streamline the tax return process, SARS has implemented a new Auto Assessment System. In the month of August, many non-provisional taxpayers have begun receiving SMS’s notifying them that they have been selected for the process. The SMS will contain a link directing them to the SARS E-Filling app, where they will be able to view their return, the automated result and have the option to ‘Accept’ or ‘Edit’ the outcome.

 

Returns which have not been ‘Accepted’ or ‘Edited’ by 29 January will be filed automatically.

 

The move has left many taxpayers feeling confused or unsure of how the process works, so we have compiled a list of must know facts when dealing with the new system.

 

I’ve clicked on the link in the SMS, what now?

 

Once the page has loaded, you will see a clickable option ‘Personal Income Tax (ITR12)’, select this option then click on ‘Request Return’

 

A pop up will then display the automated results, with the exact figure of how much is owed by you (R100), or owed to you (-R100) by SARS.

 

Looks good, what next?

 

If you agree with the stipulated amount, all you need to do is select ‘Accept’ followed by ‘Confirm”

 

What if you don’t agree?

 

It is important to review the return and ensure that all taxable revenue streams and deductions are accounted for. When speaking to financial practitioners, they noted that the Auto-Assessment failed to account for all taxable revenue streams, resulting in taxpayers receiving less in their returns, or paying more in tax than they should have.

 

What the auto-assessments doesn’t account for:

 

  • Rental Income
  • Business & Trade Income
  • Foreign Dividend
  • Foreign Interest
  • Foreign Capital Gain
  • Donations S18A Organisations
  • Travel allowance
  • Use of company car
  • Out of pocket medical expenditure

 

If you suspect that your return has been calculated incorrectly, the ‘Edit’ option will allow you or your tax practitioner to adjust accordingly, ensuring all revenue streams and deductions are accounted for.

 

How long does it take to be paid out?

 

If you agree with conditions of the rebate, you should receive your refund within three working days. If your return has been edited, it will go under review by SARS. There is no stipulated turnaround time for this review as of yet.

 

As with all new systems and processes, the SARS auto-assessment system has its flaws. It is important to remember that the onus is still on you, the taxpayer, to ensure that your returns are honest, accurate and that all revenue streams are accounted for. This will help ensure that there are no nasty surprises in the future.

 

Source: https://ibtc.co.za/

FROM CASHLESS TO DIGITAL: THE COVID-19 TIPPING POINT

COVID-19 has been a catalyst for the global adoption of cashless payments, with the disruption expected to effect lasting changes in the way people spend.

While consumers had already begun to embrace digital payment options prior to the pandemic, the health crisis has rapidly accelerated the adoption rate with more consumers seeking safer, contact-free payment options.

This accelerated adoption of digital payments will help shape a new normal as businesses begin to emerge from the crisis and attempt to navigate their post-COVID-19 futures.

Derek Cikes, COO at buy now pay later fintech, Payflex, says the pandemic represents a turning point for the payments industry.

“The acceleration towards a cashless society is one of the key opportunities that has emerged from the pandemic, bringing the advantages of digital payments  to the fore –  lower fees,  convenience, seamless delivery, greater security, and more flexible payment options.”

Derek says what makes this trend so interesting, is that historically, people used to hoard cash in times of crisis. Now, the opposite is occurring.

A study by MasterCard revealed that since the beginning of COVID-19 in South Africa, 89 percent of South African respondents have been using contactless methods to pay for groceries, 60 percent for pharmaceutical items, 39 percent for other retail items, 15 percent for fast food, and eight percent for transport.

Similarly, recent figures from Bain echo this, with estimates that by 2025, the adoption of digital payments could accelerate by a 5-10 percentage point increase globally, above what was previously anticipated from 57% before COVID-19 to 67% after COVID-19.

 

Are contactless payments here to stay?

Cash is perceived as a vehicle for the transmission of the virus. As stores, restaurants and other merchants operate in the current contagion environment, contactless payments are key in providing consumers with a much-needed sense of reassurance and security.

“Businesses have no option but to rethink their use of shared payment surfaces, with customers more conscious than ever of what they touch. People don’t want to touch ATM or PIN pads or have to hand their cards to store tellers.  Once viewed as a convenience or nice-to-have, digital payments are now viewed as a critical service.”

 

Evolution of digital payments

Just as the SARS epidemic in 2003 expedited China’s path in launching digital payments and eCommerce in the country, the virus is effecting a permanent shift towards the adoption of digital payments among consumers across all demographics.

In fact, digital payments have become instrumental for many of us to run our day-to-day lives.  As the World Economic Forum rightly points out, digital payments have “been keeping economies running and helping people reduce contact with the virus.”

From tap-to-pay, to payment apps, to digital banking, e-wallet providers, South African fintech firms have reported significant increases in the use and adoption of digital payment methods since the outbreak began in March.

“The perception of cards and cash as vehicles for transferring microorganisms has changed how people physically interact with their payments in favour of contactless options. With health and safety being top priorities, we anticipate this trend to become more permanent with hygiene measures and social distancing expected to be part and parcel of our daily realities for years to come,” says Cikes.

 

Retailers drive adoption of digital payments

Both online and brick and mortar retailers are helping to accelerate this trend with stores like Mr Price enabling consumers a contactless way to pay in-store pay via their app, and most South African retailers offering tap-to-pay-methods.  There is also expected to be an uptick in omnichannel capabilities which bridges payments in any environment, physical or digital.

Another contactless payment method driving this trend is e-wallets with over 500 million mobile money users expected on the continent in 2020. In addition, it is anticipated that the capabilities of digital wallets will expand to offer features, such as digital IDs and transaction monitoring and reporting, which is expected to create even more growth for the payment mechanism.

Flexibility needed more than ever

According to TransUnion’s Financial Hardship Survey, conducted in the United States, United Kingdom, Canada, India, Hong Kong and South Africa, one in six people lost their job in early May, with defaulting on their bills just seven weeks away. 82% of consumers indicated their household income had been impacted, and on average, consumers who were impacted, expect they will be short by R 7542.90 when paying bills or loans.

“Many  are financially stressed and need to be supported with alternative payment solutions which helps their ‘cashflow’ without incurring interest,” says Cikes.

A Report by GlobalWebIndex shows that 83% of South African consumers are expecting flexible payment options from brands.

“We have seen a huge uptake in our payment solution, which allows people to make interest-free payments over two paychecks.”

People are more financially stretched than ever, and are anticipated to seek payment solutions like the Buy Now Pay Later model that enables flexibility, and doesn’t put them in further debt.

 

Catering for consumer needs

Digital payments have become an ever-evolving solution which will continue to reflect consumer sentiment and needs.

“In the near-term, this will translate into even greater innovation in the digital payments space in order to meet changing behaviours in consumers as they increasingly move away from cash. Retailers that embrace accepting and processing payments through innovative payments technologies will lead the way as we navigate this ‘new normal,’” concludes Cikes.

 

Source: https://www.accountancysa.org.za/

How business forecasting software will help you win clients over

All accounting is beautiful but it’s forecasting that will excite clients most. Predicting growth, foreseeing risks, and estimating earnings has a touch of magic about it. Here’s a great way to start.

Introducing business forecasting apps

Most reporting apps come with forecasting tools that show the trajectory of the business. They’re straightforward to use and produce visual projections that clients find easy to interpret.

Trusted apps include:

How business forecasting software works

Forecasting apps use budget numbers, or recent actuals, from accounting software to create a draft forecast. If you have an old desktop accounting system, you’ll need to transfer the data via a CSV file. But if you have online software, you can share the data with a mouse click.

The software can help you identify trends based on historic data but you, the accountant, are in ultimate control of the assumptions around growth.

What forecasts can you create?

You can create P&L forecasts and balance sheet forecasts to help your client prepare for the year ahead. As you plug in various growth scenarios, the software automatically calculates the GST bill for you.

Tell the software how quickly invoices are generally paid, and it will also create a picture of cash flow. That’s a great tool for small businesses who often have to worry about a short cash flow runway.

Use accounting forecasts to grow your client accounts

Business forecasting software creates user-friendly reports that are easy for your clients to understand. They’re colourful and graphical, which means you can literally paint a picture of what the future looks like. That will open the door to bigger conversations like, “How do we improve this outlook?”

You can get the ball rolling by suggesting where to cut costs. Or by helping clients proactively manage cash flow issues. If they’re going to have extra cash, you might suggest how best to use it (to pay off debt, or to reinvest in the business, for example). Suddenly you’re acting in an advisory role.

Consider presenting clients with a few forecasts based on different assumptions. This is a great opportunity to play with key performance indicators and find out what really drives profitability in the business. Here’s how forecasting apps can help your work.

1. Cover all the bases on budgeting

There are a lot of interdependencies in business. For example, you need to spend more on materials to lift production. Or you might need to pay more in commissions to support a jump in sales.

You can link these elements in your forecast so a change in one area is automatically reflected in another. That helps you make sure nothing is overlooked when planning for growth.

2. Track actuals versus budget

A budget is of most value when the business uses it to keep track of how they’re doing. Is revenue where they thought it would be? Are expenses under control? A feedback loop between budget and actuals helps businesses make running adjustments, where necessary.

That’s why forecasting apps are at their absolute best when linked with online accounting software. The constant flow of data between the two helps you spot problems and opportunities before it’s too late. You can create a monthly report that summarises the main trends, and directs client attention where it’s most needed.

3. Compare scenarios to prepare clients for the future

Because apps make it so easy to create a business forecast, there’s nothing stopping you from testing a bunch of scenarios. You can create separate forecasts based on different growth rates, or staffing levels. Or you could see what happens if your client loses their biggest customer.

Running these types of scenarios helps businesses to make plans for scaling up, prepare for extreme events, and come up with contingency plans.

Accounting forecasts and recurring revenue

Most small businesses treat accounting as a retrospective exercise. They have no idea how much it can tell them about the future. This is a whole new service to sell them on. And it’s relatively easy to pitch – who doesn’t want to know what the future is likely to hold?

Your accounting forecasts don’t have to be a once-a-year activity either. You can set up regular meetings to review budget versus actuals, update the outlook, and make course corrections.

Business forecasting software is a gateway to practice growth

Forecasting allows clients to see their business in new ways. Showing them how the year might unfold based on different scenarios can really help them make sound strategic decisions.

Most good reporting apps come with accounting forecasting tools built in. They turn out attractive, professional and instructive forecasts in minutes. And if you link them to online accounting software, they change dynamically so you can provide a running commentary for your clients.

Test it out and see how it can help grow their business and your practice.

Source: https://www.xero.com/

Building your business to thrive in a crisis

Michael Avery speaks to Pavlo Phitidis the founder of Aurik Business, about his newest book, Reset, Rebuild, Reignite: Build Your Business to Thrive in a Crisis.

In the book, stories of business owners who have successfully turned the crisis to their advantage are underpinned by Pavlo’s practical, action-oriented insights, tactics and strategies that will have you reading with a highlighter in hand, and will equip you to tackle any crisis that affects your business.

 

Source: https://www.businesslive.co.za

Good corporate governance really is good for everyone

Studies show the benefits make for stronger companies and economies, and enable countries to withstand crises

The economy has been particularly hard hit by our response to the Covid-19 pandemic. As the dust begins to settle, business and the government are moving (with varying degrees of urgency) to set their organisations and the economy on the road to recovery. One effective weapon we have in our armoury should not be ignored: corporate governance.

A 2018 article by the International Finance Corporation’s corporate governance lead for Europe and Central Asia, Merima Zupcevic Buzadzic, lists ways in which corporate governance can help countries out of a crisis. She argued that corporate governance creates the framework to enable economies to recover from wars or economic meltdown. Buzadzic also made the important point that a commitment to corporate governance sends a powerful message to a demoralised country and the outside world.

Locally, the past decade and more have provided a graphic illustration of what happens when a country’s leadership is not focused on realising desirable goals. If the governing party had adopted the King IV principles, I venture to suggest that the president would not have had to pen that now infamous seven-page warning letter to his own party, but would rather be in the enviable position of detailing how well the country was rising to the challenge of reconstructing an inclusive and vibrant economy.

SA has a solid base when it comes to corporate governance (albeit not always pervasively and effectively applied in everyday practices). Our King reports have received worldwide recognition, and their various iterations chart the move away from a primitive compliance mindset to one focused on how ethical and effective leadership by the board and other governing bodies can achieve clearly defined outcomes, among them ethical culture, good performance, effective control and legitimacy.

Organisation for Economic Co-operation and Development (OECD) research shows that capital markets favour companies and countries where corporate governance is strong. Capital is highly mobile, and it favours well-governed markets. As former US Securities and Exchange Commission chair Arthur Levitt said: “If a country does not have a reputation for strong governance, capital flows elsewhere.” When it comes to capital, the destinies of companies and the countries in which they operate are thus intertwined.

Studies in the US, summarised in an article by Jay Eisenhofer entitled “Does corporate governance matter to investment returns?”, found that “the quality of a particular company’s governance practices and procedures positively correlates with both good corporate financial performance and shareholder value. Simply put, good corporate governance does in fact pay.”

A local study by Isaih Dzingai and Michael Bamidele Fakoya on the “Effect of corporate governance structure on the financial performance of JSE-listed mining firms” concluded that if mining companies comply with corporate governance codes they, as well as the economy as a whole, will benefit.

An OECD study in Latin America, a geography with many similarities to ours, looked at a wider group of companies and drew similar conclusions. Well-governed companies across various sectors and countries produced better operational and market results than their peers, “reflected in higher levels of profitability, relative share prices and liquidity, and reduced cost of capital”.

Corporate governance not only helps firms outperform when markets are good; it also helps them better weather the consequences of an economic downturn, as demonstrated during the 2008 financial crisis. On December 31 2008, shares in well-governed companies bought in 1997 were worth five times a similar investment in the broad Latin American stock market.

Overall, companies with a strong commitment to corporate governance saw the market reward them with an average 8% increase in market value when communicating improvements in their corporate governance structures and processes.

“The definition of a successful company, and as true for countries, is one that develops a corporate soul — not just a group of people gathered together for a joint commercial purpose,” says Bidvest chair Bonang Mohale. “This is much more than the sum of its many and varied parts. It is the ethos that drives it and makes it special. This requires not only doing right by the business, but also the societies in which it operates.”

The tangible benefits of corporate governance are complemented by a greatly reduced risk from reputational damage, and position the company to deliver positive results to its stakeholders and society more broadly. The same could be said of the country, with whose fortunes all of us are completely aligned.

 

Source: https://www.businesslive.co.za