Scope

• Financial statements
• Business Analysis
• Cash Operating Cycle
• Costing
• Budgeting, Forex and Taxation
• Reporting

Financial statements

Understand the main components of a typical set of financial statements or annual report

Appreciate the key underlying accounting concepts used in the preparation of financial statement

Business Analysis

Know how to interpret financial statements and analyze businesses using the 7-step approach

Cash Operating Cycle

Understand the cash operating cycle and what affects a company’s cash flow  Manage the cash operating cycle.

Costing

Know the different categories of costs which exist and their implication on costing  Understand costing concepts, and apply them in making business decisions

Budgeting, Forex and Taxation

Have an appreciation of budgeting and the effects of foreign exchange movements and taxation on financial decisions .

CONTRACT & PROJECTS

CLIENT INVOICING &  PAYMENT ( ACCOUNT RECEIVABLE FUNCTION)

Inscope ( Based on the contract)

Monthly / Periodic invoice and any supporting documentation is sent to client in accordance with contract terms

Out of scope

(Based on approved quote)

Invoice is sent to client based  on approved quote after job has been completed.

Payment from client

Payment is received from client in accordance  with payment terms agreed with the client.

CASHFLOW & PAYMENT TERMS

Clients’ payment ( Client invoice payment is solely responsible for efficiency in our cash flow levels.

Payment Terms ( The terms agreed with vendors  is a very important factor in the management of cash flow)

Synergy between client payments & vendor payments

MANAGEMENT & FINANCIAL ACCOUNTS/ REPORTS

There are an infinite number of potential management reports a business could choose and examples include:

Profit and loss showing actual versus forecast budget performance including this year versus last year to date

Site profitability report by business unit, product or service or by customer type and or by specific customer.

Receivable Report

Payable Report

With management accounts, it is important that  senior management receive the information they need to run the business in good time and in a useable format

TYPES OF TAXES

• Companies Income Tax (CIT)
• Petroleum Profit Tax(PPT)
• Value Added Tax (VAT)
• Personal Income Tax (PIT)
• Withholding Tax (WHT)
• Educational Tax (EDT)
• Stamp Duties (STD)
• Capital Gains Tax (CGT)

Explanation of taxes

Companies Income Tax (CIT)

Companies Income Tax (CIT) is a tax on the profits of registered companies in Nigeria. It also includes the tax on the profits of foreign companies carrying on any business in Nigeria. The CIT is paid by limited liability companies inclusive of the public limited liability companies. At 30% of annual profit

petroleum profit tax (PPT) is a tax applicable to upstream operations in the oil industry. It is particularly related to rents, royalties, margins and profit sharing elements associated with oil mining, prospecting and exploration leases.

A value–added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production. At 7.5% rate

Pay-As-You-Earn (PAYE) i.e. taxes from employment · Taxes from self employed persons

WHT can only be deducted from income liable to tax, but is available as credit against future tax liability and potentially entitle taxpayer to refund

Education tax is imposed on every Nigerian resident company at the rate of 2% of the assessable profit for each year of assessment

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. Governments impose stamp duties, also known as stamp taxes, on documents that are needed to legally record certain types of transactions

Capital Gains Tax (CGT) is a tax on the profit obtained from disposal or exchange of certain kinds of assets. At 10% rate