Troy Wiest’s Post

Key Performance Indicators Every CFO should Watch. Ask your bookkeeper or accountant to give you these reports. Not every company has a person with the title of CFO so it lands on business owner to handle with the accounting department. Many small companies are blessed with very smart people who do have the degree or training but they are craving to learn new things.

Fundamentals of Corporate Finance Corporate finance serves as the backbone of every business entity, encompassing a myriad of financial activities and decisions crucial for its operation and growth. Read more here, https://lnkd.in/g4aATYRq Book your free consultation now! https://lnkd.in/gcK4YRF5 #Finance #corporate #santamonica #accounting

Outsourced CFO, a #CapeTown-based #financial #consulting and #accounting firm, is introducing its #FinancialGapAnalysis service, designed to assist #companies in identifying critical financial #discrepancies and formulating #strategic #solutions to achieve long-term #business #success.

There is a thin line that differentiates a financial controller and treasurer. In handling your company's finances, it is important to know the difference. Learn more about their roles, responsibilities, and qualifications in our blog here! https://hubs.ly/Q02RsmjT0 #Finance #Accounting

Business Units and Finance When business units and finance departments clash over accounting methods, it's like we're speaking different languages. These clashes can disrupt daily operations, creating a bit of an office battleground. Business units focus on achieving targets like sales growth and market penetration. They tend to favor accounting methods that immediately showcase their performance in the best possible light, such as recognizing revenue early or deferring costs to later periods. In contrast, the finance department prioritizes accurate, transparent financial reporting that complies with accounting standards. We lean towards more conservative methods, such as spreading out revenue recognition over time or recognizing expenses as soon as they are incurred. While these methods might not show impressive short-term results, they maintain stability and trust in the company's financial reports. This difference in approach can create tension. For example, when a business unit wants to capitalize expenses to enhance profit figures, the finance team might resist to prevent understating future liabilities. These moments can intensify misunderstandings and lead to friction between the teams. People say open communication is the key. But first, I think it is important to "know your stuffs". Knowing why certain approaches are taken and the relevant guidelines or regulations can empower finance professionals to better explain and advise business units on the implications and appropriate methods. Reflecting on my early career as an auditor, I often saw finance teams struggle to assert their expertise, sometimes even using auditor's presence as leverage in discussions with business units or higher management. This seemed to be a lack of trust and respect that made their roles challenging. Then, transitioning to a commercial role as an Assistant Financial Manager (AFM), I was fortunate to work under a great boss who taught me much more than technical skills. He emphasized integrity and accountability. His support gave me confidence to stand firm and advocate for the correct practices.(Thanks, Tian Soo Tan !) Through these experiences, I've learned that disagreements often stem from differing perspectives but can be resolved by understanding the "why" behind each viewpoint and fostering a culture of mutual respect. Open communication, where all parties are well-informed and respected, paves the way for more harmonious and effective solutions. Have you ever encountered the tension between business units and the finance department? What insights have you gained from such experiences?

Outsourced CFO, a #CapeTown-based #financial #consulting and #accounting firm, is introducing its #FinancialGapAnalysis service, designed to assist #companies in identifying critical financial #discrepancies and formulating #strategic #solutions to achieve long-term #business #success.

𝗧𝗵𝗲 𝗕𝗶𝗴 𝗗𝗶𝘃𝗶𝗱𝗲: 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘃𝘀. 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴—𝗪𝗵𝗶𝗰𝗵 𝗦𝗶𝗱𝗲 𝗔𝗿𝗲 𝗬𝗼𝘂 𝗢𝗻? Alright, it’s Day 3, and we’re keeping the momentum going! After tackling the thorny world of taxation, today we’re getting into something that might just spark a little debate—financial accounting versus management accounting. Which side are you on? Let’s get one thing straight: financial accounting and management accounting aren’t just fancy names for the same thing. They’re more like two siblings with completely different personalities—each essential in their own right but with very distinct vibes.🚀 Financial Accounting is the polished, suit-and-tie sibling. It’s all about the big picture—the official story you tell the outside world. This is the stuff that goes into your annual reports, crafted to keep shareholders, creditors, regulators, and the public in the loop. It follows strict rules like IFRS or GAAP, making sure everything is transparent, consistent, and—dare I say—impeccable.🍀🥸 Management Accounting, though, is the cool, laid-back sibling who’s more about getting things done behind the scenes. This is your internal reporting, the stuff that helps management make decisions on the fly. There’s no need to follow rigid guidelines here—management accounting is all about providing relevant, timely insights that can shape a company’s strategy. It’s less about crossing t’s and dotting i’s, and more about diving deep into the nitty-gritty details like cost behavior, budgeting, and forecasting.🎯 So, why does this matter? Because being a great accountant means knowing when to break out the formal financial statements and when to roll up your sleeves with some gritty management reports. It’s about playing both roles effectively, depending on the audience and the goal. 🎯 So, stick around, because tomorrow we’re diving into something truly exciting, and believe me, this is another piece of the mystery you’ll definitely want to catch. Let’s keep the momentum rolling! Drum roll!!!🎺🎺🎺

In the dynamic world of finance, Reporting Accountants play a crucial role in providing assurance on key financial aspects linked to capital market transactions. Ever wondered who they are, why they're essential, and what exactly they do? Let's dive into the world of Reporting Accountants, shedding light on their significance and the standards that guide their activities. Who is a Reporting Accountant? A Reporting Accountant is a financial expert who steps into the spotlight during capital market transactions. Their primary role involves preparing reports for investment circulars, and ensuring compliance with regulatory requirements. These reports may include public opinions mandated by capital market transaction rules. Duties of a Reporting Accountant? One of the key responsibilities of a Reporting Accountant is to meticulously review historical financial statements prepared by the client's auditors. This involves forming an independent view of pre-existing audit work and assessing the accuracy of financial forecasts presented by the client. The Reporting Accountant scrutinizes profit forecasts, ensuring they align with applicable accounting standards, and are consistent with information in the public domain while offering valuable insights into their accuracy and reasonableness. According to our Local Laws, the following are their key responsibilities ( Section 179 Of SEC Rules And Regulations, 2013) (1) Review the audited financial statements or audited statements of the public company and issue a report. In the course of this assignment, he shall: • Review the statutory auditors' work • Review significant trends and investigate unusual variations; • Discuss with the management and auditors, all significant issues • Ascertain that the accounting policies adopted are in compliance with international accounting standards as well as the consistency of their application; (2) Review prospective financial information to be included in the prospectus and issue a report. (3) Prepare his report, addressed jointly to the directors of the public company and the lead manager of the offer and thereafter disclose same in the prospectus. When is a Reporting Accountant Needed? The services of Reporting Accountants are required in various financial transactions, including: • Private companies undergoing an IPO. • Companies issuing debt securities. • Premium listed companies engaged in business acquisitions or disposals etc. Compliance and Standards Beyond local regulations, Reporting Accountants adhere to international standards such as ISAE 3400 and ISRE 2400 (Revised). These standards provide a structured framework for carrying out engagements related to financial transactions, ensuring transparency and reliability. In Conclusion, Reporting Accountants are instrumental in maintaining the integrity and reliability of financial information, offering a shield of assurance in the complex world of capital market transactions.

Do you know the difference between a financial and management accountant? If you’re keen to grow, switching to the benefits of management accounting could have a huge impact on your future destiny. #accounting #managementaccounting #beancounter