acconting & finance ps
During my school years, the company I kept had quite a few students of Accounting. When I asked them the reason for choosing the field, there answers varied between “Because my father said so”, “Because im not good at science” or “I’ve heard the pay is really good”. None of them showed any passion for it and all unanimously agreed that it was really dull. The only professional I came across, was mind numbingly lifeless. Later on I would find out that my friends’ opinions were an indication of their inexperience and the man was an exception.
My journey into the realm of accountancy began with my brief internship at a reputable firm in Islamabad. Due to my amateurish nature my activities were restricted to studying material given to me by my mentor. I was familiar of the all pervasive nature of accounting, but during these study sessions and my brief (and ongoing) stint in ACCA, I realized that what I was familiar with was a small part of a wider presence.
Anyone with a basic knowledge of accountancy can to some extent indentify the role Financial Accountancy plays in our daily life; but it requires a somewhat deeper understanding to distinguish the role of Managerial Accountancy. Consider an everyday decision of the need for a housekeeper. Can Management Accounting concept such as ‘Zero Based Budgeting’ be applied to such a situation?
Before making a decision you’ll probably go through the following steps:
1. First off the following questions have to be answered:
• Is a housekeeper really required?
• What would be the consequence of not hiring one?
• Is there an alternative way of getting the job done?
• How much am I willing to pay?
• Will the services received be worth the cost?
This is similar to the development of a questioning attitude which is of great importance in any budgeting process and need to be developed by all those involved.
2. Then you would go through the choices available.
• Hire fulltime help, provide provisions and abode at a cost of Rs 6,000 per month.
• Hire part time help, who works for 5 days a week for Rs 1,500 per month.
This step is similar to the first step for the basic approach to the application of ZBB Defining decision packages, and the two choices an example of mutually exclusive packages i.e. two alternative methods of getting the same job done.
3. Now you may decide that although you may have greater control over a fulltime housekeeper, the difference is not worth the extra Rs 3,500, and thus you’ll go with the part time help. In other words you decided on a package after conducting a cost-benefit analysis yet another important step in the implementation of ZBB
4. With hiring part time help you may get options of;
• Hiring two people and dividing the job between them, and paying apportioning the Rs 4,500 relative to the amount of services they provide.
• Hiring two people, dividing the job between them but accruing an extra Rs 500, justified by better quality of service.
These options are “dividing one aspect of an activity into different levels of effort”; the definition of incremental packages. These together with the base package (package requiring the least effort) in this case the original preference must be considered in reaching the outcome; which again is following the approach of ZBB.
5. And finally you will set aside the required amount from your available funds or in technical terms ‘allocate resources in the budget according to funds available’.
So how does a degree in Accounting and Finance fit in with my ambition?
I wouldn’t mind working for prestigious organization as an Accounts Executive or a Financial Advisor, but what I want is to play a role in the future policies of my country. For this purpose I would like to join the District Management Group (DMG) of the Civil Services of Pakistan.DMG officers occupy core administrative assignments in sub-divisions, districts or provincial governments. An important part of good administration is having a good perception of Accounting principles and practices and the relevant skills in Planning, Control and Decision making; all pertinent to the degree.
Why would I choose LUMS, an institute of the highest standards, to fulfill a minimum requirement for sitting for the CSS examination, when there a numerous easier alternative available; institutions a lot easier to get in and a lot easier to get through?
The answer lies in what LUMS has to offer and what I can gain from LUMS. Apart from the obvious tangible (a degree which will go a long way in insuring a safe and successful future, opening new opportunities if one fails), are the copious intangibles I can benefit from.
One inconsistency which I would not like to be associated with is what my father describes as “the lack of biting force”. LUMS provides an atmosphere of intense competition, and standing out in LUMS means taking the initiative, getting heard and being creative, or in the words my father “growing some canines”.
Many of the greatest minds of Pakistan roam the corridors of LUMS, and walking with them means expanding your intellectual horizons. Developing new interest, interacting with versatile individuals and engaging in insightful discussions all play a role in evolving a mind frame necessary for success in the dynamic world today.
LUMS has its own culture, its own legacy; it makes those within feel that they are part of something important, a cohesive unit. It is this physical and mental integration which motivates those fortunate enough to become a part of it to make a lasting contribution to LUMS and for LUMS.
