Budgetary control involves comparing actual expenses and revenues to the budgeted figures and taking the necessary action to correct any variances. This enables business owners to manage and monitor spending, making it easier to stick to the budget and correct variances in good time.
The finance function is an important part of any business/organization that seeks to ensure efficient management of financial resources and maintain sustainable and viable growth in the long run.
Mergers and Acquisitions (M&A) have become a popular strategy for business growth and success as they offer diversification and market positioning. Most small and medium-sized companies opt for M&A due to the stiff competition they face in the marketplace from big companies that have control in the industry.
“Venturing out of your comfort zone to trade internationally may make your business stronger, more successful, and more profitable”. Bruna Martinuzzi
In business, management and other employees need to act under the highest ethical standards i.e., act with honesty and integrity, no conflicts of interest, accuracy etc.; in all financial activities.
Filing tax returns in Kenya is a mandatory obligation for every registered taxpayer. Section 52B of the Income Tax Act stipulates that income tax accrued in or was derived from Kenya shall be subjected to income tax, regardless of whether an individual is resident or non-resident.
Financial risk is a situation where a business loses money or is unable to meet its financial obligations as a result of poor cash flow management, high levels of debt, changes in exchange or interest rates, and market transactions or investments with a high level of vulnerability.
Accounting and Finance is a vital function in any organization as it has the potential to improve profitability and cash flows. Accounting is a backward-looking function responsible for recording and reporting the cash flow transactions of an organization, while finance is a forward-looking function that advises on the use and mobilization of financial resources to meet the organization’s growth objectives and to maximize shareholder return.
Kenya, like most modern economies, is making use of technology to better streamline its VAT administration. In line with this, Kenya Revenue Authority (KRA) has introduced an electronic Tax Invoice Management System (TIMS) to standardize, validate, and transmit invoices on real time or near real time basis to KRA.
Did You Know? The first accounting software was developed in 1978 when Visicalc and Peachtree Software were introduced. Visicalc was the first spreadsheet software that enabled financial modeling on the computer, while Peachtree Software was an accounting software package for the early personal computer.