PROJECT TOPIC- ACCOUNTING SKILLS REQUIRED BY ENTRY – LEVEL MANAGERS IN BUSINESS ORGANISATIONS IN KOGI – STATE
Over the years businessmen make some mistakes without knowing the consequences on business. Goods may not be priced accurately and a lot of unnecessary expenditure may be incurred on the false assumption of profits. Needles, Anderson and Caldwell (1984) observed that to measure a business transaction, the accountant is faced with three major problems of’ recognition, valuation and classification. The recognition problem is the difficulty of deciding when a business transaction occurs. The valuation problem has to do with the difficulty of assigning a value to a business transaction. The classification problem is that of assigning all the transactions in which a business will engage to the appropriate accounts. Agbobu (!992) suggested that accounting enables a business to know how much it owns, owes and how much profit it has made and its financial position at a given time. This study, therefore,.was designed to investigate accounting skills required by entry-level managers in business organizations. To carry out the study, five research questions and three hypotheses were formulated while literature was reviewed accordingly.
Questionnaire was used to collect relevant data from a sample of 150 managers selected from a total population of’ 215 managers in business organizations in Kogi State. Frequencies and mean were used to answer the research questions, while t-test statistics was employed to test the null hypothesis one, and Chi- Square (x2) was used for hypotheses two and three at the 0.05 level of significance. The study among other things, revealed that preparing a balance sheet, ‘maintaining cost control, recognizing estimation cost, scheduling and maintaining quality, caring for over trading were viewed as accounting skills required by entry-level managers. Recommendations made based on the findings were that there should be training of entry-level managers. Training is a means of preparing entry-level managers for the ultimate aim of making them good so as to make them better performers in business organizations. Entrylevel managers should be made to work. The skill of any manager is judged by the efficiency of its work. Lastly, it was recommended that job enlargement should be emphasized in business organizations where entry-level managers practice.
BACKGROUND TO THE STUDY:
In every establishment, be it government offices, parastatals, private companies, banks and other financial institutions there exists an accounting system. According to Umunnah (1992), the American Institute of Certified Accountants defined accounting as the art of recording, classifymg, in a significant manner and in terms of money, transactions and events which are in part, at least, of financial character and interpreting the results thereof. In the b ‘ i business world, an average businessman has to keep records of his activities to enable him give! an accurate report of the results of his enterprise. However, accounting extends far beyond the actual making of records.
Accounting is concerned with the use to which these records ate put, into their analysis and interpretation.Accounting deals with the need of business to know how much it owes, how much it owns, how much profit it has made and what is its flnmcid position at a given time. Highlighting on the importance of accounting to business orgarnizations, Agbobu (1992) &o observed th& accounting records me indispensable aa a means of providing the management of business enterprises and other organizations with the financial information neceasarg for the oper&ion.s of the business.
Only thro’ugh flnancial records is the management able to obtaln an over view of the tot& opera;tiom of the business. For this reason, ‘ aiccounting records are referred to as the eyes of business and accounting is &led the language of business.
Recognizing the importance of amounting, Onyekwa ( 1998) also stated that accounting sems aa a guidance sgstem which tries to effectively guide and direct the organization. As a guidance system, it points to their direction the organhatiion in going. When there is any deviation, management takes corrective action to bring the orgaaization back on course. In this way, amounting serves as an aid to planning and controlling.
Schermerhorn 8996) – ( – defined a manager as a person. in an organizaAion who is responsible for the work performance of one or more other persons. A manager is therefore a person who organizes the resources at, his disposal for the achievement of some defhed objectives.
The manager’s job is to help the organization achieve a high level of material resources. Most simply, a manager’s job is to get things done through other people. A manager is accountable for the work of others as well as his own.
Classifying different types of managers in business organization$, scherrnerhorn ( 1996) noted that there me various levels of managers
in an organiz&ion. Top rnmeers ensure th& goals are set and accomplished in with tihe organiz&ion8s purpose, and they monitor the enviponmem iden- potential problems and opportdties associated with thfs purpose. This group includes chief executive offlced; chief operating officer, president and vlce t, president. Middle managers constitute tbe second or third level in organization’s hierarchy of authority. They report to managers at the top level, while lower level managers report to them. Examples of middle managers include departmental heads in a hospital, deans in a University, and division managers, or personnel directors in a business.
Describing middle level managers, Koontz, 0′ Donne11 and Weihrich (1983) pointed that they are crucial to organizations. They interpret
directions set by higher into plans and action guideline for lower level personnel. In turn, they are conduits through which information flows
upwards in the hierarchy to keep top managers informed about lower level . concerns. This middle level responsibility is a testing ground from which many organizations .fill top management appointments.
Grouping the last level of managers, Shermerhorn (1996) pointed that lower level managers implement the plans and directives of middle and
upper management le& on a day-to-day basis. Job titles such as supervisors, unit head, team leader, and foreman are common to persons at
the first lbe or supervisory level of management These are the people to whom operating employees report.
According to Tonne, Popham and Freeman (1985), skill is a level of mastery. A skill has been achieved when an action can be exercised although something is upper most in the mind. To Schermerhorn ( l996), a skill is an ability to translate knowledge into action that results in the desired performance. Truly important, skills for managers are those that help them to help others become productive in their’work. The field of management offers a knowledge base for the initial development of these managerial skllls.
Katz (1974) classified the essentid skiU of managers into three categories – technicd, human and conceptuaJ. A technic& skill is aa ability to use special proficiency or expertise relating to a method, process or procedure. Ac c o u n ~ t se, ngineers and ahtorneys, for exmple, possess technical skills quired through fo- education.
Human skill is the ability to work well in cooperation with other persona. It emerges as a spirit of trust, enthusiasm, and genuine involvement In interpersonal relationship. A person with good human skills will have a high degree of self awaseneas and a capacity to understand or emphasize with the feeling of others. Given the highly interpersomd name of managerial work, human skills me crucial for aJl managers.
All good managers ultimately have the ability to hew the organizatdon or situation as awhole and solve problems to the benefits of eyerip one concerned. ‘This is a conceptual skill that draws heavily on one’s a;na;lytical and diagnostic capacities to identw problems and opportunities, gabher and interpret relevant information, and make good problem solving decisions that a e m the organization’s purpose.
Although all three skills me essentid at each managerial level, their relative impo&mce tenda to vazy arrro~s levels. TechnicaJ skills are
relatively more important ah lower managerid levels where supervisors me dealing with’concrete problem. Odoom ( 1988) described business as
employment, thaA is the trade or profession out of which an individual earns a living. He also explained that business may be viewed as a
cornmercid or industrial concern in which people have invested money.
Onyekwa (1988) however stated that an accountant views business fkom a broader perspective. He sees business as a place where conversion and reconversion of resources take place. A business usua,lly is brought
into existence with some form of resources. These resources rnw be in form of money or otherwise. For proper organizaion of business resources, the entry-level managers need some skills that is why there is a need for the study.
PROJECT TOPIC- ACCOUNTING SKILLS REQUIRED BY ENTRY – LEVEL MANAGERS IN BUSINESS ORGANISATIONS IN KOGI – STATE
STATEMENT OF THE PROBLEM.
Boston (1996) attached much importance to skills needed by entrylevel managers in business organizations with seriousness. He observed
that over the years businessmen make some mistakes without knowing- the consequences on business. He also noted that, goods may not be priced accurately and a lot of unnecessary expenditure may be incurred on the false assumption of profits.
Similarly, Agbobu (1992), supported that many businesses have failed because of poor accounting knowledge possessed by managers, poor
record-keeping technique displayed by managers and indiscriminate spending by managers. Agbobu also noted that accounting is an aid to
fl planning, a tool for control, a proof of financial position, learning the technique of financial forecasting, sources and proper application of fund,
and stock control should be a must for every citizen in Nigeria.
However, Osuala (1 995) attributed the failure of business organizations to under capitalization. He opined that because of high mortality rate of new small businesses, financial institutions are unwilling to lend or to invest in these new ventures. This inaccessibility to start -up capital leaves the new business on a weak financial foundation, vulnerable to the causes of business failures. Needles, Anderson and Caldwell (1984) emphasized three major problems accountant faced in measuring a business transaction, to be recognition, valuation, and classification. Recognition problem is the difficulty of deciding when a business transaction occurs. Often the facts of a situation are known, but there is a disagreement as to when the events should be recorded. The valuation problem is perhaps the most controversial issue in accounting. It has to do with the difficulty of assigning a value to business transaction. The classification problem is I b ‘ that of assigning all the transactions in which a business will engage to the M appropriate accounts.
However, the above problems therefore, call for entry – level managers to possess the necessary accounting skills required for success in business
PURPOSE OF THE STUDY:
The main purpose of this study was to determine accounting skills required by entry – level managers in business organizations in Kogi-State.
Specifically, the study was intended to:-
1. identify book-keeping skills required by entry – level managers in business organisations:
2. determine accounting skills required by entry – level managers in mmcid amounting:
3. ascertain accounting skills required by entry – level managers in cost accounting:
4. determine accounting skills required by entry – level managers in managerial accounting: .
5. identify auditing skills required by entry – level managers In business organisations.