Learn with NirmalAryal/Arthabichar Nepal - Guide to Entrepreneurs, Startups, and Business Enthusiast

Hey fellow entrepreneurs! Ever heard of FP&A and wondered what it means for your business?  FP&A stands for Financial Planning & Analysis. It's basically like having a financial GPS for your business. ️ It helps you: ** Plan your future:** Set realistic goals and budgets. Forecast revenue and expenses. Identify potential risks and opportunities. ** Analyze your performance:** Track your progress towards goals. Identify areas for improvement. Make data-driven decisions. ** Optimize your finances:** Allocate resources efficiently. Manage cash flow effectively. Maximize profitability. So, how does this benefit you as a founder? Peace of mind: You'll have a clear understanding of your financial health and future prospects. Better decision-making: You'll be able to make informed decisions based on data, not just gut feeling. Increased efficiency: You'll be able to allocate resources more effectively and avoid costly mistakes. Improved performa

It is true that we cannot always stick to what has been planned or budgeted. There are instances where printers breakdown all of a sudden which now requires immediate repair. As a business, you must have budgeted for it but what happens if the printer becomes unrepairable. It might not be feasible for you to go to stationery shops to get the printouts and you won't be left with an option other than to buy a new one. But, the question is how?  And, believe me! A month doesn't pass by where such unforeseen expense requests/invoices do not appear on your desk for approval. As a business, we should always be ready to manage these. Here's what we suggest: 1) Establish a CONTINGENCY FUND: You can decide the % considering the past trends but we would recommend it be around 2-5% of the total monthly income. Ensure that it is kept separately in the reserve account so that you don't have to borrow or take a loan from the bank to meet the immediate needs. 2) Add a 5-10% buffer/cus

Statement of Accounting Policies and Notes to Financial Statements are an integral element of the financial statements.  All the accounting policies, assumptions, estimates, and caveats used in the preparation of the financial statements are part of this document. As such, it helps users to read the financial statement properly. The objective is to disclose the accounting events that cannot be displayed in the body of the financial statements that exert significant influence or are necessary for an understanding of the financial statements. It also helps users in predicting the entity's future cash flows and, in particular, their timing and certainty. What does it normally contain? Introduction of the non-profit organization (NPO) and its activities The accounting policies adopted by non-profit organizations (including revenue recognition criteria for assets, liabilities, income, and expenses) Nature of the organization The contents of the cash and cash equivalents Hi

Here's the recommended financial statement template by Nepal Accounting Standard (NAS) for Not for Profit Organizations (NGOs and INGOs) that you can download and modify to meet your requirements. These are developed to meet the common minimum information required of NPOs. Users can add additional information to ensure financial transparency and provide relevant information to different stakeholders. Nepal Accounting Standard board believes that by adopting the following template, users can easily understand the financial statements and also,  be able to compare with other NPOs. Model Financial Statement for NPOs (Based on NAS for NPOs) is given below: You can also download the template from the link below: Click Here

Not for Profit Organizations (NPOs) are also often referred to as Voluntary Organizations, Civil Society Organizations  Non-Governmental Organizations  Non-Profit Organizations Charities, and Other similar terms The requirement to register under a statute may apply to all charities and humanitarian agencies. Non Profit Organizations includes entities that: 1) are registered under the Associations Registration Act, 2034 (1977) or other appropriate Act with objectives that are carrying out social, religious, charitable, philanthropic and communities contribution activities. These registered organizations are generally affiliated with the Social Welfare Council for different social or communities or philanthropic activities in the jurisdiction of Nepal and hence those entities are known as NGOs, clubs, Ethnical Institutions, Political Institutions, Scientific Institutions, religious institutions, Cultural Charitable Institutions, Philanthropic Institutions. 2) are

Effective Date: Nepal Accounting Standard Board has published an Accounting Standard for Not for Profit Organizations in November 2019 effective Fiscal Year 2077/78 (July 16 2020, and onwards). Any organization adopting it to prior to the date above shall disclose the fact. Applicable Organization: NAS is applicable to all not for profit organization registered with the Social Welfare Council or working in Nepal under a general agreement, or project offices working under the bilateral agreement with Nepal Government and Foreign Government Purpose: Guide Not for Profit Organizations to prepare the general purpose financial statement to the entire non-profit organization as a single reporting entity . Improve the quality of the data to provide adequate information to the users of the financial statements Reduce the diversity that exists among NPOs in accounting practice and presentation We should note that NAS is based on the Going Concern assumption and the concep

We all know importance of skilled human resource for imparting quality service. Nepal has seen lot of changes in the past decade with the establishment of the Institute of Chartered Accountants of Nepal (ICAN). It has been able to produce finest professionals trained in Nepalese business environment although other professional bodies like ICAI and ACCA were also contributing even before ICAN.  Members from these professional institutes have to go through rigorous syllabus and practical training making them high level professionals. They mostly get absorbed into corporate as managers.  Demand for these professionals is still high in the market.  I am, personally, not worried about Chartered Accountants (CA) or similar high level professionals but more about mid and entry level accountants. These days, semi-qualified CA, have been major player as mid-level accountants along with Accounting Technicians (AT). Semi Qualified CA are professionals who have completed practical trai

International Forum of Accounting Standard Setters (IFASS) Not-for-Profit Working Group by CIPFA, Chartered Institute of Public Finance and Accountancy, has developed   the The   International Not-for-Profit Platform designed to bring together national guidance on financial reporting standards in one place. It is an online resource which allows approaches to not-for-profit accounting and reporting across different countries to be compared directly for the first time. Countries included   are:   Australia, Canada, Colombia, NewZealand, United Kingdom and   United   States of America. The resource will also enable users to determine how best to account for similar transactions, which, in the absence of specific international standards for not-for-profit financial reporting, should help improve best practice and enhance understanding of reporting practices in different jurisdictions. You can visit the website at   http://www.cipfa.org/policy-and-guidance/standards/internation