Importance of Ethics in Business Management Practice

To put in simple words, ethics is the principle of moral values which helps you to take actions that are considered as the right thing to do. However, doing what is ‘right’ is not that straightforward. Since everyone has different backgrounds and cultures, we therefore possess different conceptions and perceptions. This causes complication in the process of understanding the meaning of ethics as each person’s point of view on what is ethical varies significantly.

Ethics is not a set of rules that should be followed inevitably but is a guideline to lead you to behave with integrity. It includes values such as equity, responsibility, honesty, and fairness. The importance of ethics can be seen from the fact that many of what were considered as ethical behaviors in the past has developed into law today. For example, stealing is known as an unethical act and is against the law as it is an infringement of human rights and justice.

Ethics in our daily life and in business management practice is slightly different. The ethics which apply in the business world are not just simply a matter of the fact that lying and stealing is wrong. It helps the organizations to act responsibly to all their stakeholders, including the environment surrounding them. It contributes to the process of decision making, giving a sense of ethical reasoning to the managers and employees how they should act in a situation of dilemma. Being ethical in a business activity may not seem so relevant to the prosperity of the business in the short term however, it brings great long-run benefits to the organization in the end and this is the reason why successful businesses try to act ethically even when the process may turn out to be costly.… Read the rest

The Importance of Corporate Governance in Business

Corporate Governance can be defined as the organizational structure of a company. It encompasses the overall processes, operations and policies by which a company is controlled and functions. Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance.

Within the governing body of a corporation there are various stakeholders. Stakeholders are individuals which are of great importance to the company because they contribute directly or indirectly to its economic activity. Stakeholders retain different degrees of importance within an organization depending on their title or function which are some of the following: shareholders, the board of directors, employees, customers, creditors and suppliers. All together this group of individuals defines a corporate community in which day to day business is conducted and must be sustained in order for the company to survive. Similar to any other community, where there are conflicts of interests, miscommunication, or other organizational problems it affects the entire community and others around it. However is this applicable to the business world? Is corporate governance important for business?

Firstly corporate governance implies the notion of hierarchy. As mentioned above the rights and importance of any stakeholders involved in the economic life of the company varies in function of the roles the individual holds. Following this logic we can identify the key actors within the governing structure of a company: shareholders who own shares of stock and have a right of ownership over the dividends which they receive from their stock and the right to vote on company matters such as electing the board of directors.… Read the rest

How to Boost Productivity In Your Accounts Department

Boosting productivity within the accounts department is no easy feat. After all, such departments are usually pretty relaxed environments and not many accountants have loads of pressure to deal with, apart from in tax season. With that said, accountants still work hard and get their work done, but they can still do more. If you’re looking to boost productivity within your own accounts/finance department, consider the below tips that’ll help you do just that.

Proper Training Is Key

Accountants with a masters in accounting (online MACC) always have the knowledge and experience to propel businesses to the top, but not all accountants have gone down that route. Some accountants have experience of working in other sectors, and they’ve more or less fallen on their feet in an accountancy role. Therefore, it’s imperative your accountants all have their qualifications to help the department flourish.

Automate Fiddley Manual Processes

There’s plenty you can do to automatically undertake those fiddley manual jobs that take time to complete. Using the right accountancy software is a good start, but you can do more when it comes to automatic business processes. By introducing the latest BPMS (Business Process Management Software), you can ensure your accountants aren’t wasting time with the manual processes that can easily be made automatic. Look at the latest BPMS here to see which suits your business needs.

Implement Strict, Short Deadlines

Consider implementing stricter, shorter deadlines to increase productivity. You don’t want to pile too much pressure on your accountants, but you can still get them to dig a little deeper as far as their working efforts are concerned.… Read the rest

The Other Side of Entrepreneurship

People who have opposite opinions against entrepreneurship point out ten potential risks. First is management mistake that is the primary cause of business failure. Sometimes the owner of a small business lacks the leadership ability, sound judgment, and knowledge necessary to make the business work. Second is lack of business experience which indicates that most entrepreneurs tend to be beginners to be easy to make management mistakes in their own businesses.

Third one is poor financial control. Effective managers realize that any successful business venture requires proper financial control. Business success also requires having a sufficient amount of capital on hand at start-up. Under-capitalization is a common cause of business failure because companies run out of capital before they are able to generate positive cash flow. Entrepreneurs tend to be overly optimistic and often misjudge the financial requirements of going into business.

Fourth one is weak marketing efforts that means entrepreneurs tend to misunderstand the marketing efforts. For example, owners of small businesses usually believe their businesses will make a great number of customers automatically, but it almost never happens in reality. Building a growing base of customers requires a sustained and creative marketing effort. Keeping customers coming back requires providing customers with value, quality, convenience, service, and fun.

Fifth thing is failure to develop a strategic plan. Many small business managers ignore the process of strategic planning because they think that is something that benefits only large companies. Without a good defined strategy, a business has no sustainable basis for creating and maintaining a competitive edge in the marketplace.… Read the rest

Risk Management Within an Organization

Risk management is a identification process of upcoming threats and danger to an organization. In an organization risk can enter through many ways, it can come from project failure, financial market, an accident in organisation such as flood, earthquake, cyclone, power failure, public health and safety and legal risk etc. Risk can be low to medium, or medium to high. It is difficult to say that an organisation can solve all the upcoming risks to the organisation like earthquake, we can just assume that earthquake can damage the business, but we cannot say how much, but there are some alternatives of upcoming threats like in power failure we can use generator to keep running the business.

The purpose of risk management within an organization to identify problems before they enter and create problems in the organisation, so that risk management handling process may be planed. It is a continuous looking ahead process so it is an important part of a business. Early detection of risk is important because it is easier, not much expensive, and changes can made easily in the planned process. It is easy to maintain a strategy and solve the risks when they are in early stage. A successful manager can monitor risks before they create problems in a business. The lack of information can is dangerous in a business so the staff of the organisation should be well training so that they can assume the risk when it is in early stage and report to the management as soon as possible.… Read the rest

Why You Should Be Balancing Your Books Every Single Month

Call it a habit or just refer to it as downright procrastination. A lot of business owners, MBA holders and other business professionals only contact their accountants on two occasions: during tax season and when something goes wrong. It’s easy to guess that your business is swimming in money and that all your accounts are paid if you simply glance at your books and balances on occasion. However, only certified accountants or online bachelors of accounting graduates know what is necessary to reconcile all your business accounts and how to maintain a proper paper trail. You may not need to have a company-wide audit, but you should be aware of how all your business funding is being saved, spent, and generated.

Know When Money Goes Missing Immediately

Did you know that a good portion of businesses are being charged for services that they don’t need or never authorized? For example, you could be paying for a business line that was never installed or activated due to a billing error being made by your telephone company. The minute that you have an online bachelors degree in accounting holder balance your books and review all accounts, bills, services, and subscriptions, you can find out if any money is being wasted or has gone missing. This is also helpful for companies that have had trusted employees mismanage funds or steal in the past.

Find Out How to Stop Making Critical Financial Mistakes

You don’t need to be frivolous to waste business earnings on expenses that are completely avoidable.… Read the rest