God bless the day I made the decision. What decision do I mean! Well, it is the decision to enroll in the EMBA program at the Lagos Business School (LBS).
I am an average Nigerian who operates a company of moderate scale within the field of logistics and freight forwarding. I believed that I possessed comprehensive authority over the business, encompassing all necessary managerial responsibilities and financial matters. Indeed, this expression conveys a sense of resignation or acceptance. Upon commencing my enrolment in the EMBA program at the Lagos Business School and acquiring knowledge in corporate financial accounting (CFA), I became cognizant of the extent of my previously restricted understanding. In my own understanding, corporate financial accounting is an understanding of a company’s financial plan as it relates to structuring its capital usage and investment decisions.
Financial management is a very key component of any enterprise. In order for an individual in a senior management role, such as a chief executive, to effectively oversee a business, it is imperative that they possess a comprehensive understanding of corporate financial management. Otherwise, it becomes a hard nut to crack. The study of corporate financial accounting has taught me a lot about financial management and cost control in these few months of engagement. It has taught me the importance of cash and cash flow in business. The effect of fixed and current assets on the owner’s equity, when to invest and when not to invest in fixed assets, the importance of income and non-income-generating assets, and about liabilities—short-term and long-term liabilities—and how to equate them with current assets
Previously, I thought profit was all it took to succeed in any business venture. No, far from it. Now, let me enlighten you about what CFA has taught me. It has given me insight on the importance of cash flow in any business venture and that profit, which everyone runs after, shouldn’t be the main focus. Yes! Profit is important, but it does not determine the stability of an organization or business. An organization may make a good profit and yet collapse. Liquidity is key. How liquid an organization is determines how well and how fast it can attract investors.
Now, I can pick up an organization’s cash flow statement, statement of financial position, and statement of change in equity, and within seconds, I can analyse if such an organization is doing well or not. I can provide guidance regarding the potential risk of structural collapse.
It is reasonable to assert that I am progressively transitioning into the role of a financial analyst. The credit for my achievements is owed to the Lagos Business School (LBS), the Executive Master of Business Administration (EMBA) program, and the Corporate Financial Accounting (CFA) and its instructors, as well as the decision I made to embark on this journey. This decision ranks among the most significant choices I have made thus far in my life. My experience at Lagos Business School and the study of corporate financial accounting serves as evidence of this assertion.
Written by; Nwaugha Vincent Ugochukwu
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