Humphrey Richards’ Post

The Essential Role of Skills and Practicality in Accounting Over the years, l have learnt that in the realm of accounting, mere knowledge is not sufficient to excel. While understanding theoretical concepts and frameworks is foundational, it is the practical application of these principles that transforms knowledge into actionable insights and solutions. For example in an NGO specializing in anti-poaching, the role of an accountant extends beyond traditional financial management. Given the unique nature of such organizations, which rely heavily on donor funding and are focused on operations, community development, and infrastructure, accountants must harness specific skills and apply practical solutions to ensure financial integrity and sustainability. Effective accountants leverage a blend of skills and practicability to deliver tailor-made business solutions, fostering creativity within financial systems. This approach involves: 1. Analytical Skills: The ability to dissect complex financial data, identify trends, and provide insightful analysis that informs strategic decision-making. 2. Problem-Solving: Developing innovative solutions to financial challenges, ensuring that businesses can navigate economic fluctuations and regulatory changes seamlessly. 3. Technological Proficiency: Utilizing advanced accounting software and tools to streamline processes, enhance accuracy, and improve efficiency. 4. Communication: Articulating financial information clearly to stakeholders, ensuring transparency and facilitating informed decision-making. 5. Adaptability: Staying abreast of industry trends and regulatory changes, and adapting practices to maintain compliance and leverage new opportunities. By integrating these skills into their daily practices, accountants not only enhance their own effectiveness but also contribute significantly to the financial health and growth of their organizations. This dynamic approach fosters resilience and innovation, positioning businesses for long-term success.

"Think like a business owner." I've been using these words to challenge my team members for years now. Our clients care little about the nitty-gritty of accounting. What they really want to know is that their numbers are accurate, but what they truly care about is their business. So, our job (my job) is to dig deep, understand their business inside out, and then translate that into simple terms for their accounting needs. Anymore, being a CPA is highly specialized in multiple areas of tax, auditing, industry, and consulting; and, we all bring our own unique set of skills to the table. For many years I felt like a complete imposter. On good days, I'd feel incompetent, and on bad days, I'd feel like a total fake. I worked with senior accountants, managers, and partners who could recite FASB and ASC guidance like it was their second language. Meanwhile, I was just trying to pass the CPA exam. But as I've gained more experience and now help lead an accounting advisory practice at Crowe, I've come to realize that even though I still have my moments of self-doubt, there's something special about what consultants like me bring to the table. I have peers and team members who love rules. They live and breathe accounting regulations and can deliver best in class technical work to satisfy clients, auditors, and their regulators. But our accounting advisory financial transformation team, we're about the bigger picture. We see the processes, the people, and the systems that either work together like a well-oiled machine or fall apart at the seams. Because accounting is about more than just rules. It's about understanding how everything fits together, how it impacts the finance teams, and how it helps them make those crucial accounting and forecasting decisions. As we approach accounting with a holistic understanding of the business, it becomes much easier to advise clients and decision makers. We embrace volatility - it's what we do as we help leaders navigate uncertainty and uncover new sources of value.. If your business is considering a transaction, struggling with an audit, or you’re facing significant challenges in your accounting finance function with forecasting cash flows, reconciling challenging accounts, or your numbers just aren’t making sense, my team can help. We are currently working with complex public and private companies to provide real solutions to their needs and we want to help others.  Connect with me to help assess your needs and how we may help. And if you are a student and new in your career, you will figure out where your unique set of skills and interests should be used. Just because you can’t recall specific guidance, and you are struggling through the CPA exam doesn’t mean your career will be less than the “smarter” people, it just means your paths are different. Please reach out - I'd love to connect.

🔍 Myth: Accountants only deal with numbers and financial statements. - Accountants are not only number crunchers, but also strategic advisors for businesses. - They provide insights and analysis to help businesses make informed decisions. - Accountants play a crucial role in risk management and ensuring compliance with financial regulations. - They contribute to strategic planning, budgeting, and forecasting for the organization. - Accountants possess strong analytical skills and are proficient in using financial software and tools. 🔍 Myth: Accounting is a boring and monotonous profession. - Accounting offers diverse career paths such as financial accounting, management accounting, auditing, and tax accounting. - Accountants have the opportunity to work in various industries, including technology, healthcare, and entertainment. - The profession is evolving with the integration of technology and automation, offering new challenges and opportunities. - Accountants work in dynamic environments, collaborating with cross-functional teams and contributing to business growth. 🔍 Myth: Accountants only work during tax season. - Accountants have year-round responsibilities, including financial reporting, budgeting, and auditing. - They provide strategic financial advice and performance analysis to organizations on an ongoing basis. - Accountants play a crucial role in ensuring accurate and timely financial information is available for decision-making. - They help businesses comply with financial regulations and prepare for audits throughout the year.

Accounting is demanding. The endless invoicing and financial reports can drain all your energy. I've seen talented accountants burn out. But the best accountants don’t just get lost in the daily grind. They find a way to balance routine tasks with high-impact work. The accountants who thrive are the ones who take time to understand their clients' businesses. They provide valuable advice and use their skills to make real improvements. They analyze past data to find ways to optimize. They meet with clients to learn about their changing needs. They look for opportunities where accounting can add strategic value. They know how to stay engaged and make a real impact. If you’re an accountant feeling burned out, take a moment to reflect on how you’re spending your time. Are you using all your skills, or are you getting stuck on routine tasks? Make an effort to focus on higher-level advisory work. Delegate routine tasks to your team, or use automation tools to streamline your workflow. Find ways to use your expertise to bring more value to your clients. Your clients will appreciate it, and so will you.

What’s the difference between CMA USA and CPA USA? Here is the difference👇 ⭐️The main difference between CMA and CPA is that CMA (Certified Management Accountant) focuses on management accounting and financial management skills, while CPA (Certified Public Accountant) focuses on accounting, auditing, and taxation. Other key differences between CMA and CPA include: 1. Scope of Work: CMA professionals are primarily involved in strategic management, financial analysis, and decision-making within an organization. They are responsible for the planning, budgeting, and forecasting of an organization's financial activities. On the other hand, CPAs are involved in accounting and financial reporting, tax preparation and planning, and auditing for both public and private companies. 2. Requirements: CMA certification requires a bachelor's degree, two years of relevant work experience, and passing a two-part exam. CPAs also require a bachelor's degree, but the work experience requirement may vary depending on the state. They also need to pass a four-part exam known as the Uniform CPA Examination. 3. Career Opportunities: CMAs can work in various industries, including manufacturing, healthcare, and consulting firms, as well as government agencies. They can hold positions such as financial analyst, budget analyst, or cost accountant. CPAs have a wider range of career opportunities, including working in public accounting firms, private companies, government agencies, or as self-employed professionals. 4. Focus on Ethics: Ethics and integrity are a significant part of both CMA and CPA certifications. However, CPAs are required to pass an ethics exam and fulfill annual ethics training requirements to maintain their certification. Overall, CMA is more focused on management accounting and financial management, while CPA is generally considered a broader and more versatile certification in the field of accounting. The choice between the two certifications ultimately depends on an individual's career goals and interests. If you have any questions, please do let me know! 😊 Follow Kartik Dargar, CMA® for more content like this!🙌🏻

7 Best Practices to Implement Resource Planning in the Audit and Accounting Industry

Looking to make the most money as an accountant? Explore the realm of accounting specializations and discover the most lucrative pathways for career success and high earning potential. 👉 https://lnkd.in/eCwTAnNb #accounting #lucrative #money

DECIPHERING THE DEPTHS OF INTERMEDIATE ACCOUNTING: A CONVERSATION WITH TERRY D. WARFIELD Mike interviews Terry D. Warfield. In our latest dive into the world of finance, We had the honour of engaging in a riveting conversation with Terry D. Warfield, an esteemed authority in the realm of accounting. Our dialogue traversed the intricate landscape of intermediate accounting, illuminating its pivotal role in the business sphere and tracing its evolution throughout the years. SUMMARY Terry Warfield commenced our discussion by outlining the three fundamental accounting disciplines: financial, tax, and managerial accounting. While financial accounting revolves around external reporting, tax accounting deals with taxation matters. However, managerial accounting truly captivated our attention – the internal accounting realm pertinent to organizational decision-making. Managerial accounting is about deciphering the cost of goods sold and product costs, offering invaluable insights for decision-making processes. From computing material and labour costs to factoring in overhead expenses, Terry underscored the necessity of a standardized framework for ascertaining the comprehensive cost of a product. And let’s not overlook opportunity costs – a pivotal facet of managerial accounting enabling businesses to gauge the potential returns of diverse decisions. @milliondollarbookman @thedreamstarter https://lnkd.in/dG7ZCDim

Tips to become a better accounting professional. Becoming a better accounting professional requires a combination of technical skills, soft skills, continuous learning, and professional development. Here are some tips to help you enhance your accounting expertise and excel in your career: 1. Stay Updated with Accounting Standards and Regulations: Keep abreast of changes in accounting principles, standards, and regulations, such as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Stay informed about updates from regulatory bodies like the Financial Accounting Standards Board (FASB) or the International Accounting Standards Board (IASB). 2. Invest in Continuous Learning: Pursue ongoing professional development opportunities such as workshops, seminars, webinars, and conferences related to accounting and finance. Consider obtaining relevant certifications such as Certified Public Accountant (CPA), Chartered Accountant (CA), Certified Management Accountant (CMA), or Certified Internal Auditor (CIA) to enhance your credentials and expertise. 3. Develop Strong Analytical Skills: Cultivate strong analytical skills to interpret financial data, identify trends, analyze variances, and derive meaningful insights. Learn to use financial analysis tools and techniques to make informed decisions, solve complex problems, and support strategic planning and decision-making processes. 4. Enhance Communication Skills: Effective communication is essential for accounting professionals to convey financial information clearly and concisely to stakeholders, including colleagues, clients, management, and regulatory authorities. Work on improving your written and verbal communication skills, including the ability to explain financial concepts to non-financial stakeholders. 5. Attention to Detail: Develop a keen eye for detail and accuracy in financial reporting and analysis. Pay attention to nuances in financial statements, reconcile discrepancies, and ensure compliance with accounting standards and regulatory requirements. Thoroughness and precision are critical for maintaining the integrity and reliability of financial information.

The Many Hats of a Small Business Accountant (And Why It Matters) Did you know there are many different areas of accounting? Here are 7 key types every small business accountant should know about: Management 🗂️ Financial 📊 Forensic 🔍 Project 📑 Public 🌐 Cost 💰 Tax 🧾 Big companies can afford to have multiple talents for each type. But SME accountants often have to do a little bit of everything. It can be like being a one-person band, juggling different tasks at once! This can be tough because each type of accounting is a bit different. It then becomes easy to mix things up. Blurred lines lead to poor planning, incorrect reporting and missed opportunities. The two types that often get mixed up are Financial and Management Accounting. ↳ Financial Accounting tracks past financial performance ↳ Management Accounting uses current data to inform future decisions. Mixing them up can be messy. It’s like putting ketchup on your cereal—sure, you can eat it, but should you? Financial Accounting data alone can't tell you where to go next. Management Accounting data does not work for external reporting. So, as an SME accountant, You're not just tracking numbers. You’re setting the course for your business. So, take a step back, understand the role you're playing, and handle it with clarity. Know: 1. When to analyze past performance. 2. When to use data to make informed business decisions Still unsure? I’m running a masterclass that can help make sense of it all and show you how to use each type of accounting properly. #myCFOng 𝘗.𝘚. 𝘞𝘩𝘢𝘵'𝘴 𝘵𝘩𝘦 𝘮𝘰𝘴𝘵 𝘪𝘯𝘵𝘦𝘳𝘦𝘴𝘵𝘪𝘯𝘨 𝘵𝘺𝘱𝘦 𝘰𝘧 𝘢𝘤𝘤𝘰𝘶𝘯𝘵𝘪𝘯𝘨 𝘵𝘰 𝘺𝘰𝘶?