Training Needs Analysis (TNA)

Training Needs Analysis by Faculty of Financial Management HIPA

In order to ascertain the training needs, a specific form was designed and circulated among the participants. "I would request you to kindly fill your responses to a few questions designed to know training needs. The responses can easily be filled with sparing approximate time of 5-10 minutes after clicking the following link:

https://forms.gle/SmPgBe5CFFEUgpku9

The responses can be changed even after submission. I will consider the responses in designing my future courses at Gurugram, Panchkula, Hisar, and Rohtak. For any assistance, feel free to contact me at 9416382720 or email me at lalits.hipa@nic.in".

I have received 123 filled forms from the participants and the results of the same are shared with you all in this group.

On the basis of the results, I will do the following for my participants:

1. Most of the courses with 5-Days and 3-days will be organized during 2019-20. 32% agreed for five days and 19% agreed for 3-days courses. The two week courses got 25% but such courses will be organized after getting demand from the competent authorities. It is the norm of HIPA.

2. For location, most of the courses will be organized at Rohtak and Hisar, a few at Panchkula as the responses are 27, 23, and 14%. The courses with demand from the competent authorities will be organized at Gurgaon because that location is usually booked by HIPA authorities for induction courses through out the year.

3. The topics which will specifically be focused are:

Out of 123 responses, the following topics received more than 20% weightage: 

1. Issues related to Income Tax and Goods & Services Tax
2. Human Resource Management System (HRMS)
3. Maintenance of Stock Registrer & Service Book
4. Condemnation of Articles
5. e-Tendering
6. Leave Rules
7. Medical Reimbursement
8. Duties and responsibilities of DDOs
9. Cash Book Maintenance
10. Noting and Drafting including e-Office
11. Preparing Budget estimates
12. Spreadsheet Modelling
13. Computerized Accounting
14. Purchase Procedures
15. Group Insurance Scheme
16. e-TDS using Treasuries portal
17. Audit Sensitization
18. Right to Information Act 
19. Internal Audit
20. National Pension System (NPS)
21. e-Billing
22. Disciplinary Proceedings
23. Personality Development
24. e-Challan
25. Stress Management
26. Government Accounting
27. Conduct Rules
28. Financial Management (Core basic issues)
29. Loans and Advances

I especially thank all 123  participants to guide me in selecting appropriate topics and taking decisions with regard to next year courses. Those who wish to submit their response, can submit whenever possible; the form will remain active for forever.

On basis of the responses 29 topics received more than 20% weightage and the same will be planned for the next year courses.

Managerial Finance and Control Mechanisms

Managerial Finance and Control Mechanisms

By Dr. Lalit Kumar Setia |  @drlalitsetia  |  drlalitsetia@gmail.com  |  October 10, 2018 6:15 p.m. IST

Purpose:

The main objective of the above course was to build the capacity of officers to manage funds by enforcing proper compliance of control mechanisms as provided in financial rules.

Who participated in the course?

The course was successfully organized and 25 officers participated in the course including District Fisheries Officers, Executive Engineers, Sub-Divisional Officers, Associate Professors, Assistant Professors, and Assistant Employment Officers. The greater emphasis is provided upon the concept of finance in management and how it influences each decision of the management.

What has been covered in this course:

At the end of the course, the participants became able to (i) describe the finance function and role of finance in proper utilization of resources, (ii) describe the control mechanisms including Budgetary Control, Audit Mechanisms, and Accounting in financial administration, (iii) use Integrated Financial Management Information System including Online Budgeting, e-Billing, and e-Challan, (iv) use MS-Excel software in managing financial operations in their offices.

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved.

Basic concepts of Financial Accounting {Part-5}

The article explains the basic concepts of financial accounting. The accounting can be understood only after understanding its base.

Basic concepts of Financial Accounting {Part-5}

-Dr. Lalit Kumar Setia*

Previous....

Accounting cycle:

Accounting cycle is a series of steps in recording an accounting event from the time a transaction occurs to its reflection in the financial statements, also called bookkeeping cycle. The order of the steps in the accounting cycle is: recording in the journal, posting to the ledger, preparing a trial balance, and preparing the financial statements. The complete cycle of the accounting involves the following steps[3]:

(1) The balances of accounting; from opening balance sheet and day-to-day business transactions of the accounting year are first recorded in a book known as Journal. (2) Periodically these transactions are transferred to concerned accounts, known as ledger accounts. (3) At the end of every accounting year these accounts are balanced and a trial balance is prepared. (4) Then the final accounts such as Trading and profit & loss accounts are prepared. (5) Finally a Balance Sheet is made which gives the financial position of the business at the end of the period.

To have a focus on all the steps of accounting cycle, we will proceed through a series of steps one by one:

(i)    Source documents

(ii)  Journal

(iii)  Ledger accounts

(iv) Trial balance

(v)  Final accounts

(i)            Source documents:

Source documents are the documents which contain financial records and can be used as evidence of the transactions such as Cash Memo, Vouchers, Debit note, Credit note, Pay in Slips and any other documentary proof of the occurrence of the financial transaction.

(ii)  Journal:

From each and every transaction, two or more than two accounts are affected. First of all we have to identify the accounts which are affected by the transactions. Then see the nature of account i.e. Assets, Liabilities, Capital, Expenses and incomes. Then see which account to be debited and credited? Then pass the journal entry in a formal way.

Dual aspect concept[4] in accounting implies that every accounting transaction would be expressed by a debit amount and an equal and opposite credit amount.

(iii) Ledger accounts:

The first step in the procedure of recording transactions is to journalize and the second step is to post the transactions in the ledger. The statement which records the transactions at one place relating to a particular subject is known as account. The book which contains all the accounts is known as ledger and the procedure of writing up the accounts is known as posting.

(iv) Trail Balance:

On the basis of balances of accounts, they are divided in two parts i.e. accounts having debit balance and accounts having credit balance. Preparing the trial balance is the process of totaling the debits and credits in the chart of accounts, then making sure that the sum of all debits equals the sum of all credits.

(v)  Final Accounts:

After preparation of the trail balance final accounts are prepared on the basis of trail balance. In final accounts, we include two statements: 1. Trading and Profit & Loss Account 2. Balance Sheet.  These are also called the financial statements and represent the financial performance of the organization.

1. Trading and Profit & Loss Account: It shows the gross and net profit of the organization. Trading part shows the gross profit i.e. Sales – Cost of goods sold. Profit and Loss account shows the net profit i.e. Gross Profit – Indirect expenses+incomes.

2. Balance Sheet: A balance sheet may be defined as "a statement prepared with a view to measure the exact financial position of a business on a certain date.”

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. 

You Might Also Be Interested In Reading:1. Basic concepts of Financial Accounting2. Skills for Earning Money3. Tips for Effective Content Writing4. Amazing Tools for Editing Written Content5. Current Affairs Content - Free to prepare for Competitive Examinations6. Wanna to write an eBook for Free

Basic concepts of Financial Accounting {Part-4}

The article explains the basic concepts of financial accounting. The accounting can be understood only after understanding its base.

Basic concepts of Financial Accounting {Part-4}

-Dr. Lalit Kumar Setia*

Previous....

Accounting Equation:

Double-entry bookkeeping is governed by the accounting equation. In all times, even after happening of all types of transactions, accounting equation remains true which states that Assets are always equals to the sum of capital and liablities.

Assets = Capital + Liabilities  

For example, a person started business with cash of Rs. 50,000. The equation will states that

            Assets(cash)= Capital + Liablities

            Rs. 50,000   = Rs.50,000+ Nil liabilities

After a few time, the person purchased furniture of Rs. 10,000 from Ram, on credit. Its financial implication will increase the furniture and a creditor Ram. The equation will be:

Assets             =          Capital             +          Liabilities

 Cash + Furniture         =          Capital +          Creditors(Ram)

            50,000+10,000            =          50,000 +          10,000.

So on all transactions are passed and the effect is entered according to their financial implication in the accounting equation. We see that in all conditions, the accounting equation remains same after a nominal changes in the values of accounts.

After the inclusion of two other elements i.e. income and expenses, the accounting equation can be extended to the following:

Assets = Capital + Liabilities  + (Incomes − expenses) 

This equation must be true, for any time period. If it is, then the accounts are said to be in balance. If the accounts are not in balance, an error has occurred.

Debit and Credit:

On the basis of accounting equation, we can understand the basic and most used terms of Debit and Credit.

Assets =          Capital             +          Liablitities

The left side has debit balances         =          The right side has credit balances

In this way, we can say that Assets has the debit balance and liabilities and capital have the credit balance. The items(assets) having debit balance are debited with an increase in the amount and credited with a decrease in the amount. The items(capital and liabilities) having credit  balance are credited with an increase in the amount and dedited with a decrease in the amount. On the basis of these two rules, we can debit and credit all the items in reation with these three elements of the financial transactions.

After the extension of the accounting equation, the accounting equation will become:

Assets =          Capital             +          Liabilities

Assets =          [Capital+Revenues-Expenses] +Liabilities

Assets +Expenses      =Capital +Revenues+Liabilities

Assets + Expenses     =          [Capital – Drawing] + Revenues +Liabilities

Assets + Expenses + Drawing = Capital + Revenues + Liabilities.

Whether one uses a debit or credit to increase or decrease an account depends on the normal balance of the account. Assets, Expenses, and Drawings accounts (on the left side of the equation) have a normal balance of debit. Liability, Revenue, and Capital accounts (on the right side of the equation) have a normal balance of credit.

Continued....

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. Dr. Lalit Kumar is a free-lance writer with publication of research papers in various esteemed and reputed journals. Presently he is working as Assistant Professor (Faculty of Financial Management), HIPA, Gurugram (Delhi-NCR), India (Asia).

You Might Also Be Interested In Reading:1. Basic concepts of Financial Accounting2. Skills for Earning Money3. Tips for Effective Content Writing4. Amazing Tools for Editing Written Content5. Current Affairs Content - Free to prepare for Competitive Examinations6. Wanna to write an eBook for Free

Basic concepts of Financial Accounting {Part-3}

The article explains the basic concepts of financial accounting. The accounting can be understood only after understanding its base.

Basic concepts of Financial Accounting {Part-3}

-Dr. Lalit Kumar Setia*

Previous.....

Balancing financial transactions:

A basic understanding of accounting principles may be necessary to identify transactions and enter them in the correct accounts. The double entry system balances all the accounts on the basis of specific transactions. Every accounting system whether it is kept manually or in computerized form; operates on the basic rule of the double entry system. It does not matter which system you are using. If it is a hand system, transactions are recorded by pen into physical books, or if it is a computerised accounting system (such as Tally), the transactions are captured or entered into the computerised accounting system. The accounting principles will be the same. For each transaction you will have debit and credit entries, which will be of equal value[1].

Any business activity, which has a financial implication, constitutes a transaction. When a transaction is entered or processed in the accounting system a credit is entered for each debit of equal value, and visa versa. Double entry system balances all the accounts on the basis of accounting equation.

Elements of financial transactions:

The financial transaction affects a business in various ways. The financial implications can be seen on five major elements of accounting. These elements are: Assets, Capital, Liabilities, Income and Expenses. These elements can be detailed as below[2]:

1. Assets: 

An asset is defined as resources controlled by the enterprise as a result of past events and from which economic benefits are expected to flow to the enterprise. In simple terms an asset is defined as something valuable owned by the business. Assets are further subdivided into current and non current. Non current assets are those which are used in conducting business and are held for more than one accounting year with no intention of resale. Examples include Land and Buildings, Vehicles and Machinery. On the other hand current assets are those assets held in form of cash or those which can easily be turned into cash. Examples here include stocks, debtors and cash.

2. Liabilities: 

Liabilities are defined as “entity’s obligation to transfer economic benefits to another enterprise or individual as a result of past transactions or events”. Thus liabilities are amounts which the entity owes other businesses or individuals. Liabilities are classified into current and non-current liabilities. Current liabilities are those amounts which are repayable within a period of less than 12 months while non-current liabilities are those which should be repaid after more than 12 months.

3. Capital: 

Capital represents the amount which owners have invested in the business. Capital will always equal to assets less the liabilities. It should be remembered that the amount of the resources supplied by the owner are called capital while resources that are then in business are called assets. Capital is also referred to as owner’s equity or net worth. It comprises the funds invested in the business by the owner plus any profits retained for use in business less any drawings distributed to the owners.

4. Income: 

Income is a broad term but covers all transactions which will result in gross inflow of benefits to the enterprise. Income is subdivided into revenues and gains. Revenue is the gross inflow in economic benefits in ordinary activities of an enterprise like sales, dividends ,interest, royalties or rent while gains represents other items that meet the definition of income and may, or may not arise in the ordinary course of an enterprise. For example: profit made on the disposal of non current assets. 

5. Expenses: 

Expenses are gross outflow of economic benefits arising in ordinary course of business. Expenses are incurred in order to generate revenue for the enterprise. Any expense to acquire a new asset or enhance the capacity of an existing asset is called capital expenditure and should be included as part of the value of such asset.

Continued....

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved. Dr. Lalit Kumar is a free-lance writer with publication of research papers in various esteemed and reputed journals. Presently he is working as Assistant Professor (Faculty of Financial Management), HIPA, Gurugram (Delhi-NCR), India (Asia).

You Might Also Be Interested In Reading:1. Basic concepts of Financial Accounting2. Skills for Earning Money3. Tips for Effective Content Writing4. Amazing Tools for Editing Written Content5. Current Affairs Content - Free to prepare for Competitive Examinations6. Wanna to write an eBook for Free

Basic concepts of Financial Accounting {Part-2}

The article explains the basic concepts of financial accounting. The accounting can be understood only after understanding its base.

Basic concepts of Financial Accounting {Part-2}

-Dr. Lalit Kumar Setia*

Previous....

Double entry System:

 The double-entry system is the system in which each transaction is recorded in at least two accounts. Each transaction results in at least one account being debited and at least one account being credited, with the total debits of the transaction equal to the total credits. The benefit is that the accuracy of the accounts can be checked quickly - for, when all the accounts that have debit balance are summed, they should equal the sum of all the accounts which have a credit balance. Without the requirement, there would be no quick means to check accuracy. In the normal course of business, source documents are produced whenever a transaction is recorded in the books. Various books are kept to record different type of transactions. Sales and purchases usually have invoices or receipts. Deposit slips are produced when lodgments (deposits) are made to a bank account. Cheques are written to pay money out of the account. Bookkeeping involves recording the details of all of these source documents into multi-column journals (also known as a books of first entry or daybooks). For example, all credit sales are recorded in the Sales Journal, all Cash Payments are recorded in the Cash Payments Journal. Columns in the journal, normally correspond to an account.

In the single entry system, each transaction is recorded only once. Most individuals who balance their cheque-book each month are using such a system, and most personal finance software follows this approach. After a certain period, typically a month, the columns in each journal are each totalled to give a summary for the period.
Continued....

*Copyright © 2018 Dr. Lalit Kumar. All rights reserved.