Company Auditors
Company Auditors: Who are They and What do They do?

Section 717 of the Companies Act 2015 states that an auditor in a private company must be appointed for each financial year unless the company’s directors resolve otherwise that an audited financial statement will be required. According to the Act, failure to appoint a company auditor must be reported to the Cabinet Secretary within 7 days. Failure to give this notice is a criminal offence. Company audits are an integral part of a company’s management process. Audits provide credibility to a set of financial statements and they give both the shareholders as well as the government confidence that the accounts are legitimate and fair. Audits also help to improve a company’s internal systems and controls. In this article we’ll look at some of the duties of company auditors and why company audits are so important.

  1. REPORT ON A COMPANY’S ACCOUNTS

Company auditors must give a true view of the company’s state of affairs and profit or loss of the company for that financial year. In their reports auditors must disclose whether the annual financial statements have been prepared using the relevant frameworks. They must also give a report of whether the company’s financial reports have been prepared in accordance with the requirements of the Companies Act 2015.

  1. ENSURE PROPER COMPANY DOCUMENTATION

When making their reports, company auditors must ensure that their reports contain statements of whether they obtained all the information necessary for the audit. They must also keep true and proper books of a company’s accounts. This means that they must ensure that the balance sheets as well as the profit and loss accounts are in accordance with the books of accounts and that they are true and accurate representation of a company’s state of affairs.

There are numerous reasons why company auditors play a major role in ensuring that a company’s internal systems are legal and in compliance with the set laws. Company auditors are important for the following reasons:

  1. DETECT AND PREVENT FRAUD

Recurring annual analysis of a company’s financial operations as well as maintaining strict internal control systems play a major role in the detection of fraud and irregularities. Auditors help companies with the modification of their internal control systems which keep companies in check in order to avoid a world of legal trouble. In addition, companies that are known to have diligent and rigorous audit systems deter potential acts of company fraud by employees or partners.

  1. ENABLES COMPANIES TO FULFIL THEIR BUSINESS OBJECTIVES

Companies with effective audit systems are able to pursue and obtain their various corporate objectives. When a company’s internal processes are under constant surveillance and monitoring, it is easy to maintain adequate records. These well-kept records promote operational productivity and helps companies to improve their function in the areas that may not be doing well.

  1. RISK ASSESSMENT

Auditors are tasked with calculating the possible risks of the mismanagement and misstatement of a company’s financial records. Lack of a proper system of internal controls such as an audit system can prevent interfere with a company’s financial reports. This would make it difficult for a company to adequately allocate resources to its various departments making it difficult to accurately determine how well the company is doing. Lack of proper auditing leaves the company vulnerable to legal and financial problems which would otherwise be prevented by having proper control systems.

6 Tips for Young Entrepreneurs
6 TIPS FOR YOUNG ENTREPRENUERS

Today, many young people are turning to business and entrepreneurship as a means of achieving financial independence. Now that we are well into the digital age, entrepreneurship is more accessible than ever and it is far easier for up and coming business owners to achieve success. Everyday more and more individuals are starting businesses on social media and offline. In this article we’ll look at some business tips for young, up and coming entrepreneurs.

  1. HOLD ON TO YOUR DAY JOB

When most young people begin their entrepreneurial journey, they are often eager to dive head first into the field, leaving everything behind for their new venture. For some this can even mean quitting their current jobs or even dropping out of school. As exciting as it may seem, it is not the best idea when one is just breaking ground on their business. The business economy can be highly unpredictable because trends change and evolve very quickly. It is safe to keep your current job while working on your business so that you can have an income to rely on and something to fall back on should things not work out as you expected. As an added bonus, funding is a main component in setting up and running  business. While receiving an income, you can fully focus on building financial structures and re-investing in your new business without withdrawing incoming revenue.

  1. PREPARE FOR LONG HOURS

Before you reap the benefits of a successful business venture, you must be prepared to put in the work. This means having to work harder than you’ve ever had to. Studies show that most business owners on average work twice as much as their employees. This means taking time to learn about the market you’re venturing into, the do’s and don’ts while, learning how to successfully manage a business. You could even sign up for short business courses to give you an extra advantage.

  1. FIND YOUR TARGET CUSTOMER BASE

When starting a business, it is essential to know your target customer demographic. This will enable you to effectively advertise your business. You can do this is by sending out surveys and questionnaires and  collect data about what your customer like, how you can better appeal to them. This way, you will be able to acquire valuable feedback and restructure your business goals accordingly.

  1. NETWORK

No man is an island; the saying is especially true when it comes to successfully starting and running a business because it provides an avenue to exchange ideas and learn from those who have managed to pull of this great feat. In addition, networking can open up more opportunities for growth and collaboration with other likeminded individuals.

  1. MANAGE YOUR FINANCES

Poor financial planning is one of the leading causes of business failure. This can easily happen when staring a new business due to the high cost of starting expenses. Of course you must spend money to make money when you first venture in to the business arena however, you must not let your spending get out of control. The last thing you want is to launch your business and have a tonne of debt. One way to avoid this is by raising funds before you begin or even asking friends and family to invest in your business to give you a leg up.

  1. CAPITALLISE ON YOUR PASSIONS

The fact of the matter is that the entrepreneurship journey is not easy because it is so challenging and you are likely to encounter many setbacks on your way to the top.  This is why it is so important for you to actually love what you’re doing. Focussing on your passions and areas of interest to start a business is the best motivator to keep you going despite the ups and downs. For instance, if you’re keen on environmental issues and climate change, starting an eco-friendly company would ensure that your passion for saving the environment motivates your success.  When starting you’re a small business, you want to ensure that your products are passion based as well as meeting the demands of the current market. As the saying goes when you do something you love, then you’ll never work a day in your life.

https://businessteaching.net/tips-for-young-entrepreneurs/

https://www.forbes.com/sites/forbeslacouncil/2019/08/12/five-tips-for-young-aspiring-entrepreneurs/?sh=23d4179d155c

Setting and sticking to new year resolutions
SET AND STICK TO YOUR NEW YEAR RESOLUTIONS

It is an ‘unspoken’ tradition at the beginning of every year to come up with a set of New Year resolutions. We sit down, take note of and, examine our lives. We think about what we’d like to change and improve so, we set ambitious goals we hope to achieve at the end of the year. Naturally, the same goes for business owners, company heads and entrepreneurs. These goals often sound like “this is the year my business will take off”, “this is the year we hit that financial goal”, “this is the year we expand”. However, by the time the end of the year rolls around, we look back and we have barely accomplished these goals. Thus re-starting the cycle of putting these goals off for the next year. The thing about goals is that they are just a list of wishes that can only be realised when matched with effort, time and hard work. In this article we’ll look at some of the ways in which you can stay on track and stick to your business and career goals.

  1. BE REALISTIC

Every business owner wants to achieve various financial goals and bring in money from their business. Most especially you want to grow and branch out. You must remember to remain realistic so as to avoid disappointment and quit your race. For instance, set a financial goal based off the profits you made in the previous years and aim to do better. If you’re an entrepreneur just breaking into the business, you could begin by setting small monthly goals that you keep up with. Remember the smaller and more realistic the goal is, the more likely you are to achieve it. The more goals you achieve, the bigger

  1. KEEP TABS ON YOUR GOALS

After setting your business goals, it is important that you keep referring back to them to ensure that you’re still on track. One way to do this is by taking some time during company meetings to address these goals and find out where everyone is in relation to the set goals. This mission driven stratiegy will motivate everyone to work hard towards achieving these goals. Ensure that all your activities are in alignment with your goals and take small steps each day to make sure you follow through. When you make decisions and take action based on your goals, you are more likely to ‘fail forward’.

  1. SHARE YOUR GOALS

Sometimes setting goals and actually following through on them can be very difficult especially if we have no one to hold us accountable. Sharing your goals with a trusted individual(s) with a great work ethic and mind-set can be very helpful in this case. This could be family members, friend(s) or even trusted colleague(s). Sharing your goals creates another level of accountability and expectations. The knowledge that other people are aware of your intentions and are there to help you allows you to stay focused on the actions steps. While this trick can be effective, remember you’re the most important componenent. Don’t saddle yourself down with judgements and fears of disappointing your accountability partner. You can’t shame yourself into your dream life!  

  1. DELEGATE TASKS

When running a business, it often feels like you have to carry the all the weight of ensuring that goals are met. This is not the case. Business or company goals are a team effort. Delegate responsibility to other members of your team and staff – have them set goals based on the main business goal.  You’re more likely to achieve goals by properly delegating tasks in addition, it promotes employee satisfaction by promoting a sense of purpose.

  1. GIVE YOURSELF A PAT ON THE BACK

When you finally accomplish your goals – especially the small ones, be sure to treat yourself. Celebrating yourself and your milestones is an important aspect of achieving goals. It boosts your confidence and encourages you to set even more ambitious goals. Motivate yourself by celebrating your journey forward. Making resolutions and sticking to them is no easy feat and so it is essential you appreciate the effort you’re making.

We all have goals and ambitions we hope to accomplish in this new year and that’s fantastic. At the end of the day however, it is up to you to ensure that you stay focused and disciplined enough to achieve your goals. These tips are to make your strategy  more structured but only if you put in the work as well. Hold yourself accountable and have the end goal in mind and you’ll be sure to see some results at the end of the year.

Mediation and Conflict resolution
Mediation & Conflict Resolution in the Workplace

When working in close proximity with others on a daily basis, disagreements and disputes are expected to come up. Naturally, people with different personalities and different backgrounds will have different ways of handling situations. Disputes usually occur when one or more people fail to come to an acceptable agreement on a matter. In some cases these conflicts are one-time occurrences and resolve themselves however, in other situations intervention is required to prevent the situation from escalating. Every employer has a duty to provide a clear, well written procedure on how to handle disputes. Generally, most companies will have Alternative Dispute Resolution (ADR) as an option before turning to legal solutions. This is because ADR is both cheaper and less time consuming. In this article we’ll look mediation as a mode of resolving office disputes.

WHAT IS MEDIATION

Mediation is the process where a third party i.e. a mediator, essentially, helps parties to settle their disputes by a process of discussion and narrowing differences. The mediator helps the parties to arrive at an agreed solution. In Kenya Mediation is provided for as a mode of dispute resolution under the Mediation Act of 2020.

ADVANTAGES OF MEDIATION

  1. Confidentiality

One of the many advantages of mediation is the benefit of confidentiality. Mediation is a confidential process. Mediators cannot disclose any information revealed during the mediation process. Mediation is a private process and not subject to public knowledge and possible media attention as can be the case with civil litigation. This way matters can be handled privately.

  1. Time & Cost Effective

Mediation is a quick and inexpensive method of dispute resolution. Mediation generally takes less time to complete, allowing parties to find a solution sooner than going to court. This saves the company’s resources and time.

  1. Preserves Working Relationships

Many disputes occur in the context of ongoing work relationships due to various infringements of employees’ rights.  Mediation provides an avenue to address all parties’ interests while also preserving working relationships in ways that would not be possible in a win/lose decision-making procedure i.e. in court proceedings. Mediation can also make the termination of a work relationship more amicable.

  1. Autonomy

Mediation gives parties autonomy over their negotiation process. Parties who negotiate their own settlements have more control over the outcome of their dispute. Parties have an equal say in the process. There is no determination of fault, but rather, the parties reach a mutually agreeable resolution to their conflict.

  1. Focuses on Parties Interests

In court litigation or arbitration, the outcome of a case is determined by the facts of the dispute and the applicable law. In a mediation, the parties can also be guided by their interests. As such, the parties are free to choose an outcome that is oriented as much to the future of their relationship as to their past conduct. When the parties refer to their interests and engage in dialogue, mediation often results in a settlement that creates more value than would have been created if the underlying dispute had not occurred.

As a company it is important to have an established mode of dispute resolution that can be turned to before things escalate and parties end up in court. Should you like to explore your options, the Kenyan Chartered Institute of Arbitrators and the Dispute Resolution Centre and Mediation Training Institute are currently the main bodies that offer

How to Conduct Better Performance Appraisals

Employee performance appraisals are integral part of an organisation’s management system. A performance appraisal is a process that involves the evaluation of an employees’ performance in order to acquire data and provide feedback on how employees have performed in their jobs. Performance appraisals are conducted annually and employees’ performances are evaluated according to a set line of objectives and goals they were required to meet. Performance appraisals are important because, they play a role in determining employee wage raises and promotions. In addition, they help determine employees’ strengths as well as shortcomings to provide steps on how to improve. Finally, appraisals greatly benefit employees as they provide them with feedback and guidance which in turn enable them to further develop their careers. In this article, we’ll look at some of the ways that you can conduct performance appraisals that are beneficial to both management and employees.

  • HAVE A CLEAR OUTLINE

Generally, performance appraisals are usually a bit uncomfortable and slightly stressful for all parties involved. This is primarily becuase the setting is so formal and employees are nervous about finding out how they have performed throughout the year. This discomfort and tension can be eased by having a clear outline of the task at hand. Using a job performance evaluation form will be helpful in preparing for the meeting. It will ensure that all the right questions are asked in order to get the best outline of how an employee has performed.

  • INVOLVE YOUR EMPLOYEES

Employee involvement in their performance appraisals refers to the extent in which employees participate and actively take part in their performance reviews. It’s a fact that appraisals work best when the process is transparent and fair. Involving your employees also provides an opportunity for you as an employer to listen to them and various concerns and ideas they may have. This could be a great opportunity to make improvements in your organisation. Appraisals where employee involvement is ensured, guarantees that employees are more satisfied with their reviews and will therefore work harder to ensure that they improve where they need to.

  • GIVE FEEDBACK & SET EXPECTATIONS

In most cases, companies wait until the annual performance appraisal to give reviews and feedback to employees. Essentially the performance appraisal should not be the first time that employees hear about how they’ve been performing in their work. This is why it is important to give frequent feedback so that employees have a chance to improve. In addition, always set goals and expectations that employees should meet after their appraisals this will keep them motivated and hold them accountable in future.

  • DOCUMENT THE PROCESS

Keeping proper records of the performance appraisal process is essential for both practical and procedural purposes. From a legal standpoint, documenting appraisals can easily be used as evidence for either the employer or employee in matters to do with wrongful termination or discrimination. In addition, proper documentation provides easy access to the records when they are needed. These records also play a huge role in determining salary, promotions, training as well as identifying an individual’s strengths and weaknesses.

  • DISCIPLINARY MEASURES

Sometimes, even after a performance appraisal and a discussion on set expectations and areas of improvement some employees will continue to perform poorly. In this case, employers must be prepared to take the appropriate measures by having well-defined processes to refer to.

https://blog.vantagecircle.com/performance-appraisal-process/

https://safetyculture.com/topics/how-to-conduct-an-effective-performance-appraisal/ https://www.aafp.org/fpm/2003/0300/p43.html

GREAT MANAGERS
WHAT GREAT MANAGERS DO DIFFERENTLY

Great management skills are an important quality to have as a leader no matter how many people you manage. Research, as well as history proves that great leaders think and act boldly. At some point in our professional lives we’ve experienced a bad manager, an average manager and a great manager. We know how each management style affected the quality of our work and our general attitude towards the company. It is evident that in nearly all dimensions of a  successful business, the manager makes a significant difference. In this article we’ll look at some of the things great managers do differently.

MAXIMISE ON EVERYONE’S TIME

One of the biggest responsibilities managers have is delegating tasks. This requires great skill and organisation to ensure one has the right people on the job. For the most part, a good portion of company executives in Kenya, have humble beginnings and did not start their careers at the top. Many of them have been on the receiving end of some of the roles that they now have the responsibility of delegating. For this reason, it is important to ensure that you make proper use of everyone’s time by assigning meaningful work and maximising on your employees’ skillsets. When assigning tasks ensure that they add value to your employees’ work experience and promotes their learning and career development in the long run.

SHOW APPRECIATION & RECOGNITION FOR WORK WELL DONE

As a manager, it is important to give credit where credit is due. Especially when your employees do exceedingly well at their jobs. Giving recognition for a job well done can be done by giving an award, a promotion, a bonus etc. Showing appreciation on the other hand is about acknowledging your employees’ inherent value and worth as a colleague. As a manager it is important to show your employees that you value them as well as their work. This in turn motivates them to work harder which ensures the success of your company.

OPEN COMMUNICATION &OPEN DOOR POLICY

Open communication is one of the most important aspects of running a successful company. Openly communicatng builds trust and confidence and lets your employees know that you are willing to listen to their ideas and offer constructive feedback. When employees feel like they can freely speak to their higher-ups and contribute in matters that directly affect them, they are more motivated to work towards the success of the company. The open door policy is popular among many workplaces because it bridges the gap between senior management and general employees; It creates a culture of regular communication and trust. Open communication also improves the company’s efficiency as employers and employees are able to freely discuss the status of the company and its future prospects.

BE TRANSPARENT

Being a transparent leader means keeping employees in the know and welcoming honest feedback from them. A transparent leader aims at practicing what they preach and openly and effectively communicates with their employees. Transparency ensures that both employer and employee expectations are clear and that there is no room for false assumptions or expectations. Transparency fosters more genuine connections in the workplace as everyone is clear on what they are supposed to do and work towards a common goal. A company that prioritises transparency are generally faster in responding to new developments.

PROVIDE GROWTH & LEARNING OPPORTUNITIES

Employees work best when they know that their work is in one way or another contributing towards their career growth. A great manager is one who assigns tasks that enable employees to learn new skills and develop problem solving skills. This empowers employees and gives them incentive to work harder and produce quality results.

https://www.inc.com/marcel-schwantes/4-top-executives-share-greatest-advice-they-have-received-in-last-decade.html

https://www.gnapartners.com/resources/articles/7-things-great-managers-do-differently

https://www.gnapartners.com/resources/articles/7-things-great-managers-do-differently

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