THE EXTENT OF RELIANCE ON ACCOUNTING INFORMATION FOR EFFECTIVE BUSINESS AND FINANCIAL DECISION IN CORPORATE ORGANISATION

THE EXTENT OF RELIANCE ON ACCOUNTING INFORMATION FOR EFFECTIVE BUSINESS AND FINANCIAL DECISION IN CORPORATE ORGANISATION

CHAPTER ONE
INTRODUCTION
1.1.    BACKGROUND TO THE STUDY
Accounting information is an ingredient in most, if not all, financial managerial decisions. In developed economies, these decisions are worth billions of dollars each year. In some cases, the decisions are lacking in quality. Consequently, if researches can improve decision making through improved information, society will benefit.
As we all know, accounting speaks the language of business as it records all transactions of an individual firm or other bodies that can be expressed in monetary terms.  Predicated on the going concept, accounting is the scheme and art of collecting, classifying, summarizing and communicating data of financial nature required to make economic decisions in a corporate organization.
Accounting information can be used to translate these different dimensions into a common financial dimension. Accounting information uses formalized categories for collecting and reporting information that creates a common language with which members of the organization can communicate. Formalization permits the transmission of information with fewer symbols and this facilitates the coordination between different functions that need to provide input to the decision-making process. However, accounting information is also an imperfect representation of the underlying decision problem, since not all aspects involved can be quantified perfectly in financial numbers (Galbraith, 1973).
Accounting information may help managers to understand their tasks more clearly and reduce uncertainty before making their decisions (Chong,1996). We talk about uncertainty as a lack of information compared to what a decision-maker needs to make a decision (Galbraith, 1973), and the less managers are able to predict the outcomes from their actions, the more uncertainty there is.
According to Ademola et al (2012), accounting information is essential to business management. It involves identification, classification, storage and protection, receipt and transmission, retention and disposal of records for preparation of financial statements.
Accounting information serves as a critical tool for recording, analyzing, monitoring and evaluating the financial condition of companies, preparation of documents necessary for tax purposes, providing information support to many other organizational functions,(Amidu et al., 2011). In the context of corporate organisation, accounting information is important as it can help the firms manage their short-term problems in critical areas like costing, expenditure and cashflow, by providing information to support monitoring and control.
 The range of accounting information users is a broad one, and it has different information needs, but the same quality requirements in terms of accounting information contained in the financial statements. Even if a number of criticisms and limitations can be brought and attributed to accounting information, it remains the most important substantiation source of financial decisions for most corporate organizations.
Finally, accounting information is an ingredient in most, if not all, financial managerial decisions. In developed economies, these decisions are worth billions of dollars each year. In some cases, the decisions are lacking in quality. Consequently, if researches can improve decision making through improved information, society will benefit, it also produces results which enhances decision making in the organisation. Hence, it can safely be concluded that Accounting information is not an end in itself but a means to an end .i.e. decision making to improve corporate performance, and also produces detailed and comprehensible accounting information which are invaluable basis for decision making in a corporate organization.

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THE EFFECT OF ACCOUNTING TECHNIQUES ON SMALL BUSINESS PERFORMANCES

THE EFFECT OF ACCOUNTING TECHNIQUES ON SMALL BUSINESS PERFORMANCESCHAPTER ONE
INTRODUCTION
1.1.          BACKGROUND TO THE STUDY
The Small and medium scale enterprises  sector has been recognized worldwide for its role in economic advancement through ways various like; wealth generation, employment creation, and poverty reduction (Kithae, Gakure, & Munyao, 2012). Small and medium scale enterprises are a fundamental part of the economic fabric in most developing countries, and they play a very important role in furthering growth, innovation and prosperity. Although smaller in size, they are the most important enterprises in the economy due to the fact that when all theindividual effects are aggregated, they surpass that of the larger companies. The social and economic advantages of small and medium scale enterprises cannot be overstated.
 SMEs are defined as non- subsidiary, independent firms which employ less than a given number of employees, this number varies across national systems, other parameters other than the number of employees are used in categorizing businesses as SMEs.
As per the time of the new millennium SMES accounted for 95% of firms and 60-70% of employment creation in majority countries in the world (OECD, 2000). Small and Medium Scale Enterprises are mostly found in the service sector of various economies which in most countries account for two-thirds of employment levels.Being highly innovative, they lead to the utilization of our natural resources which in turn translates to increasing the country’s wealth through higher productivity. Small and medium scale enterprises have undoubtedly improved the standard of living of so many people especially those in the rural areas (Ariyo, 2005).
Accountingtechniques serves as a critical tool for recording, analyzing, monitoring and evaluating the financial condition of organizations,preparation of documents necessary for tax purposes, providing information support to many otherorganizational functions, (Amidu et al., 2011). In the context of SMEs, accounting techniques is important as itcan help the firms manage their short-term problems in critical areas like costing, expenditure and cashflow, byproviding information to support monitoring and control.
Many small business owners are daunted by the mere idea of accounting techniques and bookkeeping. But in reality, both are pretty simple. Keep in mind that bookkeeping and accounting techniques shares two basic goals: to keep track of income and expenses, which improves chances of making a profit, and to collect the financial information necessary for filing various tax returns. There is no requirement that records be kept in any particular way. As long as records accurately reflect the business’s income and expenses, there is a requirement, however, that some businesses use a certain techniques of crediting their accounts: the cash method or accrual method. Depending on the size of the business and amount of sales, one can create own ledgers and reports, or rely on accounting (Williams et al 1999). Elements of financial position, including property, money received, or money spent, are assigned to one of the primary groups, that is, assets, liabilities, and equity. Within these primary groups each distinctive asset, liability, income and expense is represented by respective “account”. An account is simply a record of financial inflows and outflows in relation to the respective asset, liability, income or expense. Income and expense accounts are considered temporary accounts, since they represent only the inflows and outflows absorbed in the financial-position elements on completion of the time period.
Furthermore, nurturing of the small to medium size enterprises (SMEs) is being hailed for their pivotal role in promoting grassroots economic growth and equitable sustainable development, this nurturing has resulted in increased entrepreneur activities in the SMEs sector in developing countries (OECD, 2000). SMEs play a key role in transition and developing countries These firms, constitute a major source of employment and generate significant domestic and export earnings, thus SME development emerges as a key instrument in poverty reduction efforts and their advancement is key to sustained economic growth, for they are an integral part of a country’s economic fabric and their success affects the well being of the society as engines of job creation, economic growth and innovation.
However, the mortality rate of these small firms is very high. According to the Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN) Nigeria, 80% of SMEs die before their 5th anniversary, another smaller percentage goes into extinction between the sixth and tenth year thus only about five to ten percent of young SMEs survive, thrive and grow to maturity. This implies that, the survival rate of SMEs in Nigeria is less than 5% in the first five years of existence. This also suggests that, SMEs in Nigeria have not been able to contribute to development. Among the factors responsible for these untimely close-ups are poor accountingtechniques,lack of concrete record keeping, inadequate accounting information and procedures,lack of finance, weak institutional capacity, lack of managerial skills and training of small-scale enterprises,and tax related issues.
Against the backdrop, maintenance of proper accounting records and techniques is a pre-requisite for the success of every business or enterprise, this involves documenting all transactions of business entities includes assets, liabilities and capital (liquidity). In other to solve limitations such as lack of finance, weak institutional capacity, lack of managerial skills and training of small-scale enterprises, there is need for relevant business and management expertise to manage properly the finance, purchasing, selling, production, and human resources aspect of the business. According to Jones (2012), accounting is important in that, it allow businesses or organizations to understand their financial perspective, and moreso,in order to develop the small business enterprises properly; there is the need for them to adopt proper accounting techniques.
SMEs are also require adequate and also sophisticated accounting techniques and systems to better manage scarce resources and enhance customer and owner/manager values, assist them in controlling costs, measuring and improving productivity and thus ensure the achievement of the business goals.

COMPLETE THESIS - THE EFFECT OF ACCOUNTING TECHNIQUES ON SMALL BUSINESS PERFORMANCES.

THE EFECT OF INFORMATION COMMUNICATION TECHNOLOGY (ICT) ON DEPOSIT MOBILIZATION ANDPROFITABILITY    -

This research work focuses on the Effect ofInformation Communication Technology (ICT) on deposit mobilization andprofitability of banks in Nigeria. It also revealed how computer technology is being used in taking strategic decisions in an organization, with the usage of computer technology. It helps to discover how efficiently and effectively the bank(s) are performing as regards deposit mobilization and trend(s) in profitability. Some research instrument(s) were used in this continuous writing were: Interview, Questionnaire and Observations which were illustrated with charts and (Chi-square). It starts with background of the study up to final recommendation to the higher

THE ROLE OF ACCOUNTANT IN A CORPORATE FINANCIAL ORGANISATION

1.1.          BACKGROUND TO THE STUDY

Corporate Financial organizations are setup with the principal objective of creating wealth for their shareholders. Corporate Financial organizations are increasingly becoming more complex (and in many cases global) thereby engendering the need for complete, transparent, reliable and accurate information that can be accessed quickly. This is particularly germane as the gulf between ownership and management has grown wider in line with global best practices and most large business organizations are owned by a broad and disparate set of shareholders.

Businesses in much of the 18th and 19th centuries according for Fowokan (1997) were small, with restricted owner-manager teams as capital was produced by a tightly-knit family of investors, and management was carried out solely by owners. In such a setting, there was no external pressure to increase the quantity and quality of corporate reports.

However, as businesses grew, widely dispersed number of small time owners pooled resources for investment, and delegated management to a professional crop of experts. The need to report to the owners became a necessity and an indispensable requirement for remaining in business. Such reports are usually rendered by book-keepers. However at the onset of the 20th century’, according to Onukagha (1993) a number of interrelated factors sped forth rapid development in corporate reporting, as a result of which the business community accepted, the need for some basic and common accounting and reporting standards. Hence, the emergence of Accountant.

Accountant occupies a very unique position in any Corporate Financial organization as, he is always referred to as thelife-wire of his establishment. Accounting as a profession has come of age and currentdevelopments demand of Accountant to go an extra mile before he could be adjudged as an achiever. However, since the Accountant does not operate in a vacuum, he has several forces to contend with if only he is to succeed in this environment that is saddled with political and economic manipulations, moreso, several developments within the profession coupled with the ever- changing environment in which the Accountant operates has brought to light that, there is more to it than that. This is because there are lots of refinements and sophistication which the Accountant has to contend with in the  daily performance of his duties.

According to Susan Davis (2015), an accountant is a person who performs financial functions related to the collection, accuracy, recording, analysis and presentation of a business, organization or company's financial operations. The accountant usually has a variety of administrative roles within a company's operations. In a smaller business, an accountant's role may consist of primarily financial data collection, entry and report generation. Middle to larger sized companies may utilize an accountant as an adviser and financial interpreter, who may present the company's financial data to people within and outside of the business. Generally, the accountant can also deal with third parties, such as vendors, customers and financial institutions.

Out of all the known professionals, the Accountant seems the most mobile as he is unavoidable in almost all the facets of human endeavours. While most of the other professionals are restricted to their areas of operations such that, the Medical Doctor is found in the hospital, the Lawyer in the Chamber or Court, and the Engineer in the factory or workshop. In the case of the Accountant, he is everywhere and hence we have, hospital Accountant, factory/workshop Accountant, Accountant in government service, industry, academia and of course consultancy and professional services. It is no gainsaying that, what blood is to the body is what money is to business and by inference what the Accountant (the custodian of money) is to his organisation and indeed, the Nation.

While it is widely believed that the accountant in any corporate financial institution can serve many roles, from overseeing the preparation of all financial documents related to the company to implementing financial strategies created by management or making investment decisions for the organisation. As a chief accountant in the accounting department, you may sit on the upper management team to play an integral part in developing long-term goals. In a larger business, you might also supervise a team of financial professionals.

Indeed, the modern business environment has changed drastically in a short time. Business technology has advanced business functions and operations to levels not previously believed possible. The role of accounting and business is perhaps one of the most reliable functions in any business organisations.

While a few basic procedures or methods have changed, the purpose of accounting remains the same. Business owners often use accounting to measure the financial performance of their companies and make business decisions. (Vitez2015).

For the enhancement of the performance of his duties according to Edet (2001), Accountant has to undertake the followings: record keeping (book keeping); cost accumulation for decision making (performance evaluation, control, predictions and crises management); auditing and investigation: tax management and other management advisory services such as: liquidation, acquisition and mergers, privatization and commercialization. In conducting or performing those duties, the profession is governed by rules of conduct which include: independence; prudence; consistency and objectivity.

As a result of this, this study intends to explore more on the artificial and natural roles of Accountant in a corporate financial organisation.

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