Accountant versus Business Consultant

This is the second article in our business face-off series. Previously, we have brought vis-à-vis the entrepreneur and the employee. This time we will bring face to face the two professionals who play very important roles in business life cycle. Accountants, as we usually know, are responsible for recording, analyzing, summarizing and reporting an entity’s economic transactions. On the other hand, business consultants are the ones who analyze an entity to search for business flaws or rooms for improvements. To better distinguish the two, let’s now start our business face-off. Read more

The Importance and Uses of Notes to the Financial Statements

The complete set of financial statements include the balance sheet, income statement, statement of changes in equity, cash flow statement and notes to the financial statements. If you will read the first four financial statements mentioned above, you will see notes referring to numbers after each accounts in those financial statements. At the footer of the balance sheet, income statement, statement of changes in equity and cash flow statement, you will see a phrase saying “see accompanying notes to the financial statements” or “the accompanying notes are integral parts of these financial statements”. The first four financial statements are linked to the notes to the financial statements to provide clearer and complete financial information to the users of financial statements. Read more