Finance and Accounting issues
Organization part
Overview of the company
“Academy of business and financial sector” is a legal entity, which is recognized as a Limited Liability Partnership (LLP) and it is a subject of small business, aimed at receiving profit. The organization is accredited by the Ministry of Finance of the Republic of Kazakhstan as an organization for professional certification of accountants.
The Academy provides trainings for various certification programs, training and certification within a program "Professional Accountant of the Republic of Kazakhstan". Also, the Academy conducts training courses for functioning accountants in Kazakhstan, organizes thematic trainings, team buildings, seminars, round tables, etc. Education at the Academy focused on acting accountants interested in improving their professionalism.
Mission of the companyis to develop well-educated and highly qualified certified accountants, therefore to improve the quality of work in the sphere of accounting in the Republic of Kazakhstan.
Objective of the company is
- to attract more new customers in the upcoming years
- to become famous among other organizations with same target
- increase profits
The main business operations of the company
The organization carries out the following activities:
1. Organization of training, retraining and advanced training of professional accountants
2. Development and implementation of comprehensive and corporate training programs
3. Education for national certification
4. Organizing and conducting qualification examinations confirming the level of knowledge in the areas of accounting, taxation and other areas of the financial market
5. The development of manuals and recommendations on accounting and financial reporting
6. Other activities
There are four main disciplines on which the company is focused on:
· Practical use of IFRS
This course will help clients to get a full understanding of IFRS requirements based on simple and clear examples from practice. Also, it will let to master the basic situation of the majority of the currently existing IFRS and to carry out the transformation of financial statements in accordance with IFRS.
· Taxation in Kazakhstan
After the completion of this course, an individual will understand the taxation system in Kazakhstan and learn the algorithm for the calculation and payment of taxes. In addition, he or she will learn how to correctly reflect taxes in accounting and make all forms of tax reporting.
· Financial management
This course is directed on teaching people to deal with the major problems that solve financiers of companies (management of current assets, business financing, and evaluation of investment projects). Moreover, they will be able to improve the assessment of the effectiveness of the key financial indicators of the company.
· Civil Law
Obviously, the course is all about commodity-money relations. Clients usually cover the most important topics from company law and how to properly conduct different types of contracts, their accept, voidance, and so on.
Marketing issues
The target market of the company mainly consists of people with accounting and finance specialization, mostly professional accountants. Even it may seem that the target market is so narrow, but the modern business world cannot exist without accountants.
Current marketing objectives are to expand the business and capture larger market share by implementing effective strategies:
· Business strategies – where to play and how to win?
Since the company is still very young, in terms of geographic area, it has to continue its operations and further improvements in Almaty, because it is a financial center of Kazakhstan. Generally, it is impossible to create some unique features in a certificate, since any company will give the same model, the Academy puts an effort on discounts in order to attract more customers and overcome competitors (discount issues will be discussed ….)
· Operational strategies – which capabilities need to be created and what people should we work with to gain competitive advantage?
As the Academy is the organization which provides services, the very first feature it has to focus on is the impression on clients. Every three years accountants need to pass qualification exams, as it is required by the Ministry of Finance. And this is a key issue, because if customers enjoy the atmosphere, the quality of service, the way the professors teach, they will be more likely to come again.
Simply, the company needs to look for the specialists in the sphere of accounting, taxation and civil law so that clients will be interested in the classes.
Management issues
Typically, really big management issues usually do arise in big companies or corporations. This Academy is the company with only one founder and four employees. What the intern can mention regarding some management issues:
- Workers should have a reason to care about contribution. A salary is not always a reason to care. As an employer, a company must understand how manager wants to be rewarded and what will make him to feel productive. Very often inflows do come not from the beautiful website or advertisements, but from the ability of the managers to build up relationships with customers. For such a small company, this feature is of vital importance
- Here the key issue is not in leadership skills. In a company, with only 5 employees, of which 3 persons can play a role of the manager, they need to communicate and solve issues together.
Finance and Accounting issues
The Academy is operating using IFRS. The company’s major expenses are salary paid to employees and hired lecturers, professors and major cash flow comes from clients to whom services are rendered. Also, since a company’s legal status is LLP, another important figure in terms of expenses appears – Corporate Income Tax.
Due to recent economic crisis in our country caused by devaluation, the company’s current year is not as profitable as in previous years, but it is still in good financial position.
And the company uses Russian terminology in financial reporting and, at the first time it was a bit difficult for intern to properly use terminology, but later both roads converge in one direction.