An Accountant for President

What we need in Kenya for a good leader is a good manager. To work towards positioning Kenya on the road to economic prosperity etc etc.
It is debatable of course, but to my mind accountants make excellent managers!
So elect an accountant as the next president and sit back and watch . .
Then after that our next president can be anyone, maybe a social scientist – heck! even a musician or a comedian, anyone who can relate to Kenyan from all walks of life.
His/her task? To bring all Kenyans together; to think of their tribes only as a source of their beautiful traditions and cultures
. . . . . and thus to live and enjoy life . . . .

Too Many Wires

My desktop computer in the office contributes a total of about ten unwieldy cables to my work environment. One comes from the power point to the UPS, another from the UPS to the CPU, another from the UPS to the VDU, another from the CPU to the VDU, another for my key board, another for the mouse, another for the printer, another power cable from the UPS to the printer, another for the network connection.
Most of these wire are extra long, and bulky.
In contrast, my laptop has only three.
Why do we need more wires for the desktop? Is anyone working at reducing them?
A starting point would be to have one power cable for the CPU and the VDU. The cable from the CPU to the VDU should double as the power cable for the VDU.
Next would be to have built in UPS/ batteries for the desktops. If we can squeeze in a battery on a laptop, shouldn't it be much easier to fit in one on a desktop?
Just like the laptop, we can have a mouse thing on the keyboard with of course an option to fix the traditional one for the conservatives.
On the extreme we can have the option of wireless mouse and keyboards and Internet connection.
Where we cannot do away with the wires completely (yet), someone should apply their brains to making the cables less bulky without compromising safety, durability and performance and then by perfecting retraction technology, ensure that any unwanted length of wire is tucked away neatly out of sight.
Of course, the technology already exists to do away with a large number of wires on the standard desktops, but my big question is - how long or what will it take to make 'wirelessness' the norm rather than the exception?

Corruption*?!$#&!@#$

Ask anyone (well, maybe not everyone and maybe they would have to think it over for a bit) and they will tell you that they would expect the accountant today to be at the forefront in the fight against corruption. Some will go even further as to lay a significant portion of blame for the current level of corruption on accountants.

Their argument would go something like this; the accountants have failed in the first instance to put in place good systems to keep graft at bay. In the second instance they have failed in detection of corrupt practices and bringing to book corrupt officials or that they are necessarily implicated whenever there have been cases of corrupt practices.

You see, to the man in the street a most apparent and significant form of graft is one involving fraudulent or unfair monetary gain to the perpetrators. To the man in the streets again whenever you mention money, particularly institutional money, you are talking about accountants. To the man in the streets therefore, for an institution to lose (or for that matter gain) money through corrupt practices an accountant or a person with an accounting role needs necessarily to have been implicated compromised or side stepped. In other words, the institution’s accounting function failed in some way - probably because either the institution lacked qualified accountants or the accountant were themselves corrupt or ineffective.

Further, it can be argued that, accountants are already among the best-equipped group of professionals through their training and experience to participate in a major way in the fight against corruption. As Accountants, auditors or consultants they are trained to put in place good (internal control) systems to prevent corrupt practices and to detect weakness in existing systems. Further, their training can come in hardy in giving early warning of corrupt dealings in organisations and also in following audit trails to uncover corrupt deals and to catch the perpetrators.

What it all boils down to is that however much we might want to pretend otherwise, accountants are right in the middle of the corruption saga; either in what they have actually done or failed to do or in what the man in the streets perceives them to have done or failed to do.

In view of the foregoing the accountants, possibly through professional bodies, must strive to put the accountant at the frontline of the fight against corruption.

At the risk of being branded an opportunist, I am of the opinion that, accountants can even turn the whole thing to their advantage; they can style themselves as the ultimate anti-corruption professionals; the people to call when faced with corruption problems. That is to fend off corruption or to investigate cases of corruption. To my mind, top-notch accountants should be heading the anti-corruption out-fits alongside the lawyers!

Seriously though, the accounting bodies need to take deliberate steps to address corruption. Such steps include but are not limited to

• Working towards making it mandatory for public companies and the government to hire only qualified and registered accountants to head accounting functions of these institutions,
• Castigating or suspending Accountants implicated in corrupt practices,
• Demanding explanations from accountants whose organisations are involved in corrupt practices while under their watch whether such accountants were directly involved or not,
• Putting together a code of best practice (manual or standards) as a guide in procedures most abused by corrupt officials.
• Including work ethics as an examinable part of the CPA syllabus
  

In wrapping up, whatever road the accountants through the accounting bodies may choose to take, what is clearly apparent is that they are not and cannot be bystanders in the fight against corruption.

SMEs Accounting Tips

Generally, SMEs appear to appreciate the least the need for good accounting system.

One of the reasons frequently cited is that qualified accountants and the elaborate structures which go with them are far too costly; that the costs outstrip the benefits.

SMEs also fear that the greater transparency resulting from good accounting systems will expose them to higher tax liabilities.

The fact is SMEs need good accounting systems probably even more desperately than the bigger organizations due to inherent risks arising from (among other causes);

• Lack of separation of ownership and management
• Blurred lines between family and business relationships
• Existence of informal governance practices
• Impracticability of elaborate framework for controls and reporting e.g. segregation of duties.

To counter these risks SMEs should strive to

• Separate the business assets from own assets particularly so the business cash
• Operate a separate business bank account.
• Always bank cash takings and whenever possible settle all bills by cheque. This shifts some of the accounting responsibilities to the bank.
• Where major bills have to be paid or purchases made for cash, draw exact cash from the bank for the particular purpose.
• Otherwise to operate a petty cash system to meet daily expenses. Every coin taken from cash box to be accounted for and receipts filed ASAP latest by the next business working day
• Account for all inputs i.e. investments into the business
• As much as possible, assign a cost to all resources put into the business including own time, that of spouse and other family members, rent for part of home used for business, maintenance and fuel for personal motor vehicle used for business etc.
• Account for all drawings, whether cash or in kind
• Put in place a formal structure if only to clarify custodial responsibilities for the organizations assets for instance and most importantly cash.

It is vital that SMEs recognize accounting as their invaluable management tool. It is essential for safeguarding of the organization’s asset, and for ensuring their efficiency and effectiveness in utilizing resources.

In turn, this enhances the SMEs’ competitive edge in order to survive and to compete with the large corporates who have more going for them in terms of economies of scale, ability to raise capital and to recruit highly qualified staff.

On Accountants and ICT

At the beginning of the ICT (Information & Communications Technology) revolution, every one feared they were going to be replaced by computers and robots at their work place. Accountants were particularly acutely aware of this possibility.

A particular school of thought was that with development of ICT, the Accountant would eventually become irrelevant as there would be no sales and purchases day books and cash books for him to write up. The argument was that everyone and anyone would be able to keep their own books and get all sorts of reports at a click of a button.

Today however, one might be inclined to think, that these fears were unfounded since the Accountant is as relevant as he has ever been if not more so.

Personally, I attribute the accountant's survival partly to the fact that, on a professional level, he has made conscious efforts to keep himself relevant.

This he has done by keeping abreast with ICT developments. By being pro-active has transformed himself from merely writing–up books to becoming a consultant on financial and other information systems. A quick look around will vouch for me. The accountant has succeeded in turning ICT to his advantage. It has become his tool and works for him. Contrary to earlier fears it actually keeps him on the payroll!

On an individual level, you, the accountant, must do your bit to ensure your survival. In the information age, for a finance person to be of use to his employer or clients, he needs to thoroughly understand the Information Systems in place that will enable him to glean any morsel of information that might be of use. In addition, he must use said information appropriately including presenting it to other decision makers in the best way possible. He needs also to know what other good ICT tools are out there in the market for his own use, and for his employer or clients.

Therefore, the present day successful accountant must have the relevant ICT skills at his finger tips for broadly two reasons:

• To give advice on and participate in putting in place good ICT systems for his employer/clients for their own use
  
  
• To be able to use such systems to his best advantage in order to churn out relevant information for his own consumption and for other decision makers to make informed and timely decisions

For my part, I make a special effort to keep up with the times...and I am not regretting it one bit. I guess the old saying, "use it or lose it" applies here.

Right? :-)

Welcome to my blog

Hi there!

Thanks for visiting my new blog here in cyber space.I plan to write on topics relating to Accounting, ICT, and any other stuff that's of interest to me at the moment. However, if you have a particular aspect of accounting (as it relates to ICT) that you would like me to cover, please don't hesitate to post a comment below. I will do my best to accomodate you. By the way, this blogging thing is new to me, so please be patient.

On another note, please say hello to the newest addition to our wonderful family. When we got Alexa about a week ago, she was the weakest kitten in her litter and nobody knew if she was going to make it. But now, look at her! She's made a remarkable recovery and now, happily, gets herself in trouble around the house. :-)Enjoy.