The Companies which make up Accounts at their financial year end are able to assess, monitor and control their businesses. Those who have sound management and Accounting systems produce weekly, monthly, or quarterly reports which help in monitoring process and even in planning ahead before the end of the financial year
By Nwokolo Charles Ike.
Most companies including Small and Medium sized Enterprises have their Accounting year ending December 31st. This means that their Accounting year start from January 1st to December. Many other Enterprises have their accounting year ending 31st march, June 30 or 31 at July depending on their policies and date of commencement of business. For the Companies or Enterprises which financial years ended December 31st 2025, it is a time of reckoning and time to take stock to see how far the businesses have been for the past year.
At the end of the financial year they write their books and produce report of their operations. The report will provide information such as:
•The performance, financial position and Cash flows of the enterprises.
• Providing evidence of stewardship of management on how resources entrusted to them are used.
• Insights gained to help in planning and controlling of operations to prevent or minimize risks and uncertainties arising within the country’s macroeconomic environment.
• Helping to identify and highlight various sources of revenue.
Some Small and Medium sized Enterprises (SMEs) do not write their Books. At the end of their financial year, they use the size of their Bank Account to determine their progress, success or failures. They do not have long term goals except to meet their basic financial needs. It is not surprising that some of these enterprises struggle to survive due to poor or lack of vision, deliberate plans to achieve growth and profitability.
The Companies which make up Accounts at their financial year end are able to assess, monitor and control their businesses. Those who have sound management and Accounting systems produce weekly, monthly, or quarterly reports which help in monitoring process and even in planning ahead before the end of the financial year. Analysis of report and data generated involve seeking answers to the following questions:
• Is the business making the desired profit?
• Does the Company have adequate financial resources to meet its daily operating needs?
• Where is the business headed?
From the analyses of the actual achieved, plans are made to improve operations or correct whatever weaknesses found in their processes to ensure that targets are met. Such plans will take into consideration the Government macro-economic and fiscal policies, economic outlook and the implications of the Federal Government budget to project the business activities for the year. They set new targets and objectives and put workable plans and measures towards meeting the objectives.
Such plans are usually expressed in a clearly defined budget objectives, targets, requirements and the coordination of activities to monitor and control progress and make informed economic decisions.
•Nwokolo Charles is a Consultant. He helps individuals and Entrepreneurs to plan and set financial goals that fit their needs. He can be reached at cinwokolo@gmail.com, 08030599774.
