Tag Archives: Management

Benefit Plans, Financial Planning, New Business setup

The 14 Determinants of Management That Will Help You Manage Your Business Effectively

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Management is an effective part of any business. It is also a process, which is crucial within an organization at every level of the hierarchy. Are you facing greater employee turnover, low employee motivation levels, a tensed office environment, confusion amongst your employees or any other thing, which is not going the way it should be? The answer to all these issues is proper management.

You ask yourself or others about what is management and you get an answer instantaneously like “Management is to control an organization”. However, it is not as unpretentious as it sounds. Many entrepreneurs who own a small dream, struggle with managing a business. It is not about treating people like your slaves because this will do you no good. The key is to act as one of them and communicate on their level, get to know their demands on which you act later to create a positive vibe in the environment, united to work towards a common goal.

To manage your business, acting on proper guidelines is vital. Working on the 14 principles of management presented by Henri Fayol, who was the father of modern management theory, has helped us steer our business in the right direction adapting the right work culture.

The 14 Principles of Management:

  1. Division of Work

Assigning tasks to employees in whom they excel brings out their true desire and passion to work for the business. It also helps them become more efficient and skilled in their tasks.

  1. Authority

The manager must have proper authority to give orders and should be responsible in giving them because every employee is working under him/her.

  1. Discipline

It is necessary in an organization to provide the employees with a base attitude and behavior to adopt while on work.

  1. Unity of Command

Having different controlling personnel is confusing. Supervision from a single person can help bring unity in work and a powerful command over employees.

  1. Unity of Direction

Having a manager to make the employees work in the same direction towards achieving a single plan is known as unity of direction.

  1. Relegation of Separate Interests to The General Interests

Interests of a single employee should not be the priority of action even if the manager’s personal interests are at stake.

  1. Remuneration

It is the most important factor upon which rests the satisfaction level of employees.

  1. Centralization

Balance of involvement of employees in the decision making process should be the aim for a more passionate workforce.

  1. Scalar Chain

Proper chain of command and hierarchy level must be known to all employees to make their working and reporting more specific and effective.

  1. Order

Everything at work must be clean and arranged in order.

  1. Equity

Managers must be kind, disciplined and handle their responsibility with care when communicating with staff.

  1. Stability of Tenure of Personnel

This refers to the management of employee turnover. Planning is the key to resolve this issue.

  1. Initiative

Staffs should be given the opportunity to think and carry out plans.

  1. Espirit De Corps

It is a combination of the above 13 principles. Promoting unity and team spirit brings about harmony in work and helps achieve this principle.

SK Financial is your destination for proper guidelines to management of your start-up business.

Benefit Plans, Financial Planning

Sticking To Principles from One Accounting Body Can Help Your Business Flourish in Global Markets

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All businesses work on some principles to drive their organization on a pre-planned track that will deem effective in the end. Whether we talk about human resource, management, taxation, finance, accounting or any other function of the business, working with some principles provides for a clear direction and support in achieving the business goals.

Are you a booming business? But you are not clear about the accounting body you want to follow when preparing your financial statements? Then this article will be your guideline towards making an informed choice.

Two major accounting standards are followed in the United States.

US GAAP

The accounting standards used commonly in the US are known as US GAAP (Generally Accepted Accounting Principles) formulated by the FASB (Financial Accounting Standards Board) for governing of the financial reports of non-governmental organizations. There is also the AICPA (American Institute of Certified Public Accountants) who is responsible for developing the standards used in auditing private company’s financial statements.

US GAAP outlines the principles for maintaining the records of inventory valuation, short and long-term investments, taxation and every other component of financial reporting. The guidelines issued by GAAP educate on how to record accounting information properly, in a consistent and fair manner.

Although no company is required to follow these guidelines but large companies, do follow these to provide consistency when comparing organizational statements. Even investors look for proper financial statements that will give them the fair picture of the organization that can be trusted upon, is consistent, reliable, comparable, and relevant in disclosing the right information.

IFRS

This abbreviation refers to International Financial Reporting Standards by the IASB (International Accounting Standards Board). Previously these standards were also known as the IAS (International Accounting Standards) issued by the IASC (International Accounting Standards Committee). People still know the standards as IAS rather than IFRS but the principles are same.

IFRS’s are designed for the goal of communicating with the world through a common language of accounts in business that is comprehensible and comparable. IFRS’s have greatly benefited the international trade and overseas shareholding practices. These accounting standards are making progress across boundaries and becoming increasingly successful in replacing the national accounting standards.

Some general features of IFRS are:

  • Fair Presentation & Compliance

This refers to the faithful representation of transactions considering several events, conditions and respective definitions of components of financial statements.

  • Going Concern

Financial statements should be prepared to show the organization is in operation and should not be produced if management intends to liquidate.

  • Accrual Basis of Accounting

Assets, expenses, income, liabilities and equity should satisfy recognition criteria present in the IFRS framework.

  • Materiality & Aggregation

Every distinct item should be read separately unless immaterial. Similar items should be shown as one.

  • Offsetting

Although forbidden, some standards require this when explicit conditions are fulfilled.

Frequency of Reporting

IFRS guides to prepare financial statements at least annually although listed companies are required to publish provisional financial statements.

  • Comparative Information

As IFRS’s are globally adopted, information should be relevant, narrative, descriptive and comparable with the preceding periods.

  • Consistency of Presentation

Classification of financial statement items should be consistent from one period to next, to make it understandable and easily reviewable.

SK Financial is a Tampa based company that can help you with preparing your financial statements by adopting the accounting principles you reckon necessary for your business.

Financial Planning, HR and Payroll

Management Functions That Will Keep Your Business on Track

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What is management? To understand management, firstly, the true meaning of management must be understood. A business combines several functions at small and large scales to execute a common goal through strategies that are not ideal, but effective for the success of the business in the long term.

Several business functions include:

  • Utilizing Resources
  • Managing Resources
  • Coordinating Activities
  • Selling Products
  • Offering Services
  • Creating Jobs
  • Preparing Budgets, Forecasts and Financial Accounting
  • Payroll Activities
  • Human Resource Activities

All the above functions of the business need a force to bind them together. This binding force of the functions of the business is known as management. Management is commonly explained as an art that coordinates people’s efforts to achieve goals and aims of a business using the resources available efficiently.

Management brings discipline to a business environment. It combines the functions of organizing, planning, controlling, formulating policies and steering a firm’s resources in the right direction to achieve the policy’s objectives.

One of the most important management functions these days is organizational development (OD). With a fast change in technology, people’s intellect, and the world moving towards scarce resources, an organization must properly organize itself to use every resource to its benefit rather than wasting it.

Organizational development takes notice of the changing management needs of a business and tries to cope with them and ensuring that the needs are met immediately. Organizational development is a business process that involves efforts to change people’s attitudes, relationship styles, belief systems etc. for collective benefit of the employees and the organization.

Organizational development was previously categorized as HR function but recently the relative importance of this function has made a separately recognized function. OD is regarded as a strategic business management function that executes various roles in a business.

  • It ensures a balanced organizational climate.

The OD management function helps structuralize the organization and educating the employees with the art of multi-tasking. It helps reduce the number of people or employees by using technology making the production or work process more efficient.It encourages teamwork and train managers to treat the business as their own asset adopting appropriate leadership styles at all levels. Periodic training and effective communication are some of the other roles of the OD function.

  • Installation of PMS – Performance Management Systems

This involves setting clear parameters for performance through job targets, policies and procedures and making these performance levels known. Informing about inadequate performance, warnings and ensuring supply of essential resources is key to efficiency.

  • Minding the cash outflow by:

o   ensuring resource accountability, reviewing and monitoring the pattern of resource utilization and eliminating wastage

o   use of latest technology to execute tasks that prove cost and energy efficient

o   developing the thinking of managers and executives to adopt cost efficient  ways of achieving the goal

o   Identifying employees that contribute to increasing costs and monitor their attitudes and behavior during work hours, and counseling them as a cost reduction initiative

SK Financials provides with a complete guide for startups and growing businesses on how to survive the tight competition. For more info, visit: www.skfinancial.com

Financial Planning

Interview Strategy for Hiring an Accountant in Tampa

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Finding the right accountant can be a complex process depending on one’s individual or business needs. Finding an accountant in Tampa considering the variety of quality CPAs, but one must find the right fit for one’s unique needs. An accountant can either provide limited services come tax time, or become an integral part of one’s business life, acting as a financial and business consultant.

When searching for a CPA in Tampa, it is important to go into process with a full awareness of what ones priorities are and what role they need the accountant to fill. Once one has decided which services they need the accountant to perform, and then the search can begin. An accountant is qualified to perform complex services outside of tax and auditing is not difficult to find, if one knows where to start looking. Generally it is a wise decision to consult ones friends, family and colleagues to see if there are any suggestions or recommendations that they might have. Most individuals and businesses have had to use a variety of financial services at one point or another, so it stands to reason that one’s inner circle will have both good and bad experiences.

Referrals from people that are trustworthy are a good way to begin ones search for a qualified and competent CPA. One must always keep in mind however, that simply because somebody has referred a qualified CPA, does not mean that this individual in particular is specialized or experienced enough in the areas that one requires. When one finds a qualified accountant in Tampa that fits ones expectation of the role they must fill, the interview is the next important step. When choosing accountants, the more questions asked the better; as the more information gathered, the better the relationship can be fostered. If one is a business owner, ask about previous businesses that the CPA has worked with, and what services they provided. The more detail the better, as to reflect the confidence that the CPA exudes when speaking on the subject.

Throughout the interview, if the CPA appears reluctant to share their previous experiences or provide references, then this might very well be a red flag. References should be readily given, and descriptions of previous employment given, in order to provide a picture of competence in the candidate. However, the candidate should not reveal confidential details about the financial affairs of any specific business they work for; one must be sure that the accountant in Tampa be trustworthy enough to handle ones private affairs with professionalism. Throughout the interviewing process, the client and the candidate should be able to develop a connection, whereby the subsequent working relationship could be amicable and fruitful.

Whether one is looking for a simple bookkeeper to manage ones affairs, or a full blown financial firm, like ours, for your business – the right CPA is out there. The interview process is vital to finding the right match for an individual or ones business. Be sure to ask for references and develop a connection with the accountant in Tampa before hiring them. This way, the best relationship can be developed, and might prove to be beneficial for a long time to come.