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N-Power: How to benefit from FG Empowerment Program





N-Power: How to benefit from FG Empowerment Program

Nigeria has been grappling with the menace of unemployment for ages. Protracted joblessness is pushing many a youths to depression and crimes making some to resort to armed robbery, kidnapping and ritualism.

According to the National Bureau of Statistics, Nigeria’s unemployment figures jumped by 30% in 2018 to over 20 million people by the end of the year. It says less than 40% of the nation’s nearly 200 million people are fully employed. Nigeria overtook India last year as having the largest number of people living in extreme poverty — 87 million — according to the Washington-based Brookings Institution. It moved out of its worst recession in almost 30 years in September 2017 and made bouts of economic growth.

However unemployment and poverty have yet to see a positive impact. Youth unemployment has been increasing because most graduates lack relevant marketable skills. The Federal government recently acknowledged that about 80% of Nigeria’s youth are unemployed while 10% are underemployed.

It’s on the basis of this that the Muhammadu Buhari led Federal Government introduced the N-Power programme on the 8th of June 2016, one year after it came into power. The program is an initiative designed to train, grant certification and provide jobs for young unemployed Nigerians for a two year period. The government says it aims to engage and train qualified young unemployed Nigerians who meet the required criteria, in order to build a new crop of skilled and highly competent workforce of technicians, artisans and service professionals.

The program is arguably the most popular social intervention and investment initiative of the President Muhammadu Buhari’s Government. Nigerians between the ages of 18-35 among other criteria are eligible to apply. The N-Power programme helps beneficiaries in acquiring relevant skills to become primary players in the domestic market and solution providers within their communities. Every month, the federal government spends about N15 billion as stipends on 500,000 volunteers of the N-Power scheme. The government avers that despite the current high level of unemployment, harnessing Nigeria’s young demography through appropriate skill development efforts provides an opportunity to achieve inclusion and productivity within the country.

In the first year of the N-Power scheme, it recorded 200,000 beneficiaries and now has 300,000 young Nigerians in paid work. No doubt it has transformed many youthful lives by better positioning them in the labour market. Large-scale skill development is the main policy thrust of the programme.

According to Stears Business blog, “N-Power strives to improve the quality of labour supply by training youths, but cannot affect the demand for labour in the economy. So, perversely, creating better-skilled workers without a corresponding increase in modest employment and thereby leaving the economy with highly skilled but unemployed youth.”

N-Power which has categories for graduates and non graduates applicants, is also linked to the Federal Government’s policies in the economic, employment and social development arena. Each participant stays on the scheme for two years before they are retired. The logic is to make way for a new crop to benefit from the scheme as opposed to keeping the same set of individuals within the system. Ideally, more people are reached, and those retired from the system are better equipped to gain meaningful (self) employment.

N-Power Graduates Category
The N-Power Graduate category also known as N-Power Volunteer Corps is a post-tertiary engagement initiative and it’s paid volunteering programme for 2-year duration. The graduates will undertake their primary tasks in identified public services within their proximate communities. All N-Power Volunteers are entitled to computing devices that will contain information necessary for their specific engagement, as well as information for their continuous training and development. N-Power volunteers provide teaching, instructional and advisory solutions in 4 key areas which include;

1. N-Power Agro. These volunteers provide advisory services to farmers across the country. They will disseminate the knowledge that has been aggregated by the Federal Ministry of Agriculture and Rural Development in the area of extension services.

2. N-Power Health: Volunteers under this scheme help improve and promote preventive healthcare in their communities to vulnerable members of the society including pregnant women and children and to families and individuals.

3. N-Power Teach: Volunteers here help improve basic education delivery in Nigeria. They are deployed as teaching assistants in primary schools around Nigeria.

4. N-Power Tax: These volunteers are selected to work as Community Tax Liaison Officers in their states of residence with the state’s tax authorities. The N-Power community tax liaison officers will have responsibilities which will include answering online inquiries, customer management, creating awareness of tax compliance.

N-Power Non-Graduate Category
The N-Power Non-Graduate category is designed to train and empower non-graduates with skills that they can use for the betterment of themselves and the economy at large. The programme offers training and certification programme for all successful candidates.

The N-Power Non-Graduate category provides training and certifications in 2 key areas which include;

N-Power Knowledge: The N-Power Knowledge programme is the Federal Government’s first step towards diversifying to a knowledge economy. This programme work alongside the planned eight innovation hubs across the country to provide incubation and acceleration of the technology and creative industries. The programme is a ‘Training to Jobs’ initiative, essentially ensuring that participants can get engaged in the marketplace in an outsourcing capacity, as freelancers, as employees, and as entrepreneurs.

N-Power Build: This is an accelerated training and certification (Skills to Job) programme that will engage and train 75,000 young unemployed Nigerians in order to build a new crop of a skilled and highly competent workforce of technicians, artisans and service professionals.

How To Apply For N-Power
To apply for the N-Power program, you will need to meet the minimum requirements (if any) for your respective programme. Generally, the selection is based on expression of a genuine interest in whichever area the applicant decides, passing the relevant tests, willingness to push oneself beyond one’s comfort zone; and the ability to show a flair to develop skills needed to make the applicant achieve his potentials.

For registration, applicants need to provide BVN No, CV, NYSC certificate and number, Passport photographs, ND and NCE degree certificate and the e-mail address on the N-Power porter.

The current n-power application form is only for undergraduates position. If you have your SSCE result, then pick it up now and apply for npower via www.portal.npower.gov.ng online.

After the online registration, you’ll be shortlisted for screening, interview, if you are successfully shortlisted, you’ll undergo n-power posting and n-power deployment.

it’s believed that over 500,000 qualified Nigerians are presently enrolled in the programme, with a steady flow of stipends without any interference. Many have built entrepreneurship, acquired skills, such that even after the expiration of their tenure in the scheme, they hopefully should be able to sustain a continuous inflow of income.

In an article published in Daily Trust in January 6, it ask, ”Does the (N-Power) scheme solve the unemployment cum poverty problem (of Nigeria)? The answer is a definite no. However, it has cushioned the effect of the two and it’s important this fact is highlighted.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Goods can no longer enter Nigeria through land borders





Goods can no longer enter Nigeria through land borders

The Nigerian Customs Service (NCS) says no item can be imported or exported through the nation’s land borders.

Hameed Ali, comptroller-general of NCS, said this at a press conference in Abuja on Monday.

He said the measure would enable security agencies to be able to scan the goods entering the country.

Ali said for now, goods can only enter the country through the air and sea ports, where they can undergo thorough scanning and certified fit for consumption.

“We hope that by the time we get to the end of this exercise, we would have agreed with our neighbours on the type of goods that should enter and exit our country,” he said.

“For now, all goods, whether illicit or non-illicit, are banned from going and coming into Nigeria.

“Let me add that for the avoidance of doubt that we included all goods because all goods can equally come through our seaports.

“For that reason, we have deemed it necessary for now that importers of such goods should go through our controlled boarders where we have scanners to verify the kind of goods and how healthy to our people can be conducted.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Points To Note When Fixing Prices For Your Products, Services

Points To Note When Fixing Prices For Your Products, Services

Fixing prices is very important because it determines the contribution and profit of a firm.

There are 3 approaches to pricing:

1. Demand/ Customer based approach- This reflects customers perception of the benefits they will enjoy from purchasing the product e.g. convenience, status, etc.

2. Cost based approach- Cost here could mean actual cost, standard cost, marginal cost, relevant cost or full cost. Usually a chosen mark up or margin is added to determine selling price.

3. Competition based approach- Involves setting a price based on the prices of competing products.
Customer and competition based pricing are more likely to maximize profits since they take into account the behaviour of customers and competitors as well as the need to recover costs.

Cost based pricing in contrast simply reflects the objective of cost recovery or achieving a margin on sales and ignores the potential to exploit the level of customers’ interest in the product or the strength of the product in the market relative to competition.

Procedure for establishing the optimum price of a product include:

Step 1- Establish the linear relationship between price (P) and quantity demanded (Q). The equation will take the form: P = a – bQ, Where
a = intercept i.e. the maximum theoretical price at which demand will fall to zero.
b = the gradient of the line i.e. the amount the price has to change to change the demand by one unit.

Step 2- Double the gradient to find the marginal revenue MR= a – 2bQ

Step 3- Establish the marginal cost MC. This is normally the variable cost per unit.

Step 4- To maximize profit equate MC and MR and solve to find Q.

Step 5- Substitute this value of Q into the price equation to find the optimum price.

Step 6- It may be necessary to calculate maximum profit.

Equation for the Total Cost function-

This can be derived using the high /low method and then predictions can be made from the equation derived.

Price Elasticity of Demand
This is the measure of how responsive demand is to a change in price.
PED = % change in demand / % change in price.

Pricing Strategies

Market Skimming- Involves charging high prices when a product is first launched in order to maximize short term profit. Once the market becomes saturated the price can be reduced to attract other parts of the market which remain unexploited.

Penetration Pricing-
Involves charging low prices when a new product is initially launched in order to gain rapid acceptance. Once market share is achieved, prices are increased. It is an alternative to market skimming.

Complimentary Pricing- This strategy is normally used with 2 products e.g. razors and razor blade. If sales of razor increase, more razor blades will be bought.

Product line Pricing- A product line is a range of products that are related to one another.

Product line pricing occurs when setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features and competitor pricing.

Volume Discounting- This is used to increase customer loyalty or attract new customers. It involves offering customers a lower price per unit if they purchase a particular quantity of product.

Price Discrimination- This occurs when a company sells the same product at different prices in different markets for reasons not associated with costs.

Customers may be segregated into different markets and the seller must have some degree of monopoly power. The danger however is that a black market may develop or competitors may join the market and undercut the firm.

Cost Plus Pricing- When using this method, a firm may use Actual cost, Standard cost, Marginal cost or Full cost in addition to a chosen mark up or margin.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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4 Simple Ways To Calculating Depreciation

4 Simple Ways To Calculating Depreciation

Depreciation represents how much of an asset’s value has been used up.

Depreciating assets helps companies earn revenue from an asset while expensing a portion of its cost each year the asset is in use.

An Example – If a delivery van is purchased by a company with a cost of #200,000 and the expected usage of the van is 5 years, the business might depreciate the asset under depreciation expense as #40,000 every year for a period of 5 years.

Methods Of Depreciation

1. Straight-Line Method: This is the simplest method of all. It involves simple allocation of an even rate of depreciation every year over the useful life of the asset.

The formula for straight line depreciation is:

Annual Depreciation expense = (Asset cost – Residual Value) / Useful life of the asset

2. Sum-of-the-Years-Digits Method
Some businesses, though, prefer an accelerated depreciation method that means paying higher expenses early on and diminishes over time.

This may be to their advantage in tax season as they would have a low net income in the first year but make up their loss in taxes later on.

The formula for the sum-of-the-years-digits method:
Depreciation Expense = (Remaining life / Sum of the years digits) x (Cost – Salvage value)

3. Double Declining Method

Compared to other depreciation methods, double-declining-balance depreciation results in a larger amount expensed in the earlier years as opposed to the later years of an asset’s useful life. The method states the fact that assets are typically more productive in their early years than in their later years.

The formular for double-declining balance method:
Periodic Depreciation Expense = Beginning book value x Rate of depreciation

4. Units of Production

This method requires an estimate for the total units an asset will produce over its useful life. Depreciation expense is then calculated per year based on the number of units produced. This method also calculates depreciation expenses based on the depreciable amount.

This is a two-step process, unlike straight line method. Here, equal expense rates are assigned to each unit produced. This assignment makes the method very useful in assembly for production lines.

The formular for Units of Production:

Annual Depreciation=Depreciable Value×Units produced during the yearEstimated total production
Depreciable Value = Original cost – Scrap value

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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How to get quick loans from Gtbank, Zenith, UBA without collateral

Since the Central Bank of Nigeria (CBN) has requested banks to have a minimum loan to deposit ratio, commercial banks in the country have been finding ways to give out loans

to customers. In fact some banks were penalised some weeks ago due to default in this regards.

Some of the banks have now unveiled quick loans and salary advances to their customers mostly secured by their monthly salaries because you do not require any collateral security to get them.

Also some banks like GTB monitors the turnover rate in your current account and even without any specific salary account with them, you can easily access their quick no collateral loans even from the comfort of your house and smart phone.

All you need is to be consistent with your deposits and withdrawals in these banks and like GTB and most others, you will be pre-qualified for a amount depending on your analysed limit.

Good enough, the loans come with single digit interest rate which are quite flexible and easy to repay and there are no need for any guarantors or guarantee. Also you do not need to present post-dated cheques.

1. GTB

GTBank launched Quick Credit to provide funds worth up to three months of your salary in less than two minutes. As long as your salary account is domiciled in GTBank, you can get a minimum amount of N10,000 and a maximum of N5million.

Quick Credit gives you funds worth up to three months of your salary at a competitive interest rate of 1.75% per month. There are no hidden charges incurred; it is cheap and readily available. You can open an account with GTB if you don’t have any yet.

Also GTB offers pre-qualified quick credit loan depending on your turnover amount in your account. The amount your pre-qualified depends on the amount of deposit and withdrawals happening in your account overtime. No need for any colateral, guarantees, or paper work.

Quick Credit is available on all GTBank online and mobile banking platforms.

2. Zenith Bank

Zenith Bank offers its customers Salary Advance loan, meant to finance short-term needs or expenses that may come up before the next monthly salary. It is available to confirmed and professional salary account holders of selected companies.

With an interest rate of 26% per annum, which is 2.16% per month, the bank also charges a 1% flat Management Fee subject to a minimum of N5,000.

Nairametrics gave the requirements of Zenith bank salary advance loan:

Salary and allowances of applicant must be domiciled in Zenith Bank.
Indemnity clause giving the bank Right of Set-off in any other bank using BVN.

Applicants are able to borrow 60% of their monthly salaries.

3. UBA

UBA unveiled quick advance loans for its customers. It is a short-term facility that allows you to overdraw a maximum amount of N3 million on your current account for up to six months, according to Nairametrics.

By having to repay 5% every month till the end of the 6 months tenor when you have to repay the total outstanding, you are assisted in managing your finances.

The initiative also gives you the money you need when you do not have sufficient funds in your account with considerate, structured and convenient terms of repayment.

The bank’s target audience are executives, partners and mid-level management staff of reputable organisations in the private or public sector, who are confirmed and earn an after tax annual income of N5 million.

4. Access Bank

Access Bank launches PayDay Loan to aid the bank’s existing and potential depositors’ emergency needs, which may arise before payday, according to Nairametrics.

It is an instant loan product for customers (both salary and non-salary earners). With Payday Loan, you can borrow money at low-interest rates, with no documentation or collateral needed.

Features of loan:
24/7 service that does not require visits to the bank.
No documentation required.
No collateral required.
Up to thirty-one (31) days tenor.
Interested? You can get access to an instant loan via Internet Banking, WhatsApp Banking, Access Mobile App and QuickBucks App.

 

 

Reps, Senators in Liberia Agree to over 30% pay cut





Reps, Senators in Liberia Agree to over 30% pay cut

Members of the house of representatives and senate of Liberia have accepted a pay cut of 31% and 36% respectively in order to fund their budget 2019/2020.

The lawmakers voted to a slash in their monthly earnings by 31 percent and that of the senate by 36 percent.

The lower legislative chamber voted in favour of the cut when it recently passed the country’s draft national budget of $526 million for the 2019/2020 fiscal year.

FrontPageAfrica, a Liberian magazine, reports that the house said it slashed the lawmakers’ salaries and benefits to accommodate the pay of government workers, including about 1,200 health workers.

It said the cut was also to realise its projections, avoid the recurrence of budget shortfall as well as meet the International Monetary Fund (IMF) standards.

The report of the joint committee on ways, means, finance, and public accounts and expenditure also indicate the house removed the $7 million contingent revenue as was initially provided for in the budget.

The report reads:

“By this, the Committees with the mandate of Plenary instituted a national action that led to the proposed reduction of all employees’ salaries by six percent in the Executive excluding teachers, medical and security personnel, and those earning US$500 and below, while members of the National Legislature will have a reduction of 31 percent or US$2,586 (for House of Reps.) and 36 percent or US3,600 (for the Senate) net of monthly income tax for salaries and allowances, and other reductions to include 50 percent cut in gasoline distribution, so as to address compensation gap.”

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Exemption: You shouldn’t be paying VAT on the following 10 commodities





Exemption: You shouldn’t be paying VAT on the following 10 commodities

Following the exemption granted businesses with turnover less than N25million in respect of VAT, other commodities especially food items have also been excluded from VAT payment.

Nigerian President, Muhammadu Buhari during presentation of the 2020 budget at the National Assembly says VAT exemptions are expanding under section 46 of the Finance Bill, 2019. Pharmaceuticals, educational items and basic commodities are by law exempted from VAT. However more food and beverages items have now been added.

The review, according to the President is such that any fiscal policy adjustments, is moderated, such that the poor and vulnerable, who are at the receiving end, do not bear the brunt of these reforms.

Below is a list of 10 items exempted from the VAT act.

1. Brown and white bread;

2. Cereals including maize, rice, wheat, millet, barley and sorghum;

3. Fish of all kinds;

4. Flour and starch meals;

5. Fruits, nuts, pulses and vegetables of various kinds;

6. Roots such as yam, cocoyam, sweet and Irish potatoes;

7. Meat and poultry products including eggs;

8. Milk;

9. Salt and herbs of various kinds; and

10. Natural water and table water.

The President in his speech added that his proposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for Micro, Small and Medium-sized businesses.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Oil has formally been found in Northeast — NNPC




Oil has formally been found in Northeast — NNPC

This is good news coming from the NNPC as the Oil Corporation has just announced that oil has been found in the Northeast of Nigeria in commercial quantity.

The Nigerian National Petroleum Corporation (NNPC) says oil has been discovered in the north-eastern part of the country.

Samson Makoji, acting group general manager, group public affairs division of the corporation, announced this in a statement on Friday.

He says the discovery of oil and gas in commercial quantity in the Gongola Basin will “attract foreign investment, generate employment for people to earn income and increase government revenues”.

His Word:

“The Nigerian National Petroleum Corporation (NNPC) has announced the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin, in the North-Eastern part of the country,” the statement read.

“It would be recalled that drilling of the Kolmani River II Well was flagged-off in a colourful ceremony by President Muhammadu Buhari on the 2nd of February, 2019.

“Mr. stated that NNPC acquired 435.54km2 of 3D Seismic Data over Kolmani Prospect in the Upper Benue Trough, Gongola Basin. This was to evaluate Shell Nigeria Exploration and Production Company (SNEPCo) Kolmani River 1 Well Discovery of 33 BCF and explore deeper levels.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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Business 101: Charts of Accounts Basics

Business 101: Charts of Accounts Basics

Accounting is the bedrock of any business success and revolves around the entire functions of the organization.

The profession has been in existence for decades now and it is evident it is not about to go into extinction anytime soon.

Accounting has lots of terms and terminologies, and today we will be dealing with Charts of Accounts or what’s traditionally called Ledger Accounts.

Charts of Accounts (COA) is a financial tool that helps to define each class of items for which money or its equivalent is spent or received by creating a list of accounts which includes assets liabilities, revenues, expenses and equity. It is a means of keeping track of the general ledger.

Charts of accounts has a lot of merits in preparation. These includes:

1. It drives consistency of reported information across business units and ensures compatibility.

2. It helps to maintain financial account balances.

3. It reduces reconciliation.

4. It helps to provide a bench mark between units.

With advancement in digital technology, charts of account will help a great deal to help organize the finances and also segregate investments which will help both employees and employer.

Call 0803 239 3958 for free financial consulting advice for your businesses.
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Your Business And Internal Rate Of Return: What You Must Know!

Your Business And Internal Rate Of Return: What You Must Know!

The internal rate of return (IRR) is a criterion used in the financial budgeting of finances in evaluating the profit gotten from prospective investment.

Simple put, it’s the revenue a business owner gets from the sales of a particular product or service.

There are 5 basic Ws that comes up when calculating the rate. They are the What, Why, Who, When and How.

More, one reason why the IRR is essential is that it is used to ascertain and determine the incomes generated by companies or business owners. It gives the guidelines for comparing one expenditure to another measuring how much investment is gotten over a period of time and visualizing the viability of a project. The rate is also used by standard companies, business owners and corporations in capital budgeting.

The IRR can be calculated either monthly or yearly. However, the monthly calculation can only be done with proper documentation of the daily or weekly incomes gotten from the companies, business or corporations. It can as well be calculated in any defined period of time in as much as the accurate IRR is achieved annually.

Finally, the IRR goes a long way in sustaining the durability and longevity of companies or corporations in showing if a particular investment is worth aiming for and income generated.

Call 0803 239 3958 for free financial consulting advice for your businesses.
Send your accounting articles to blog@skytrendconsulting.com.

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