8.2 Managerial Accounting Tools for personal and professional achievements

            My personal goal is to be the best person giving as many benefits to humanity as possible. The benefits can be given in the form of sharing knowledge and skills, building career and job opportunities, sharing scholarships information and hunting. To achieve those personal goals, the professional goals of having well reputable social foundations and profit oriented companies need to be achieved.  The future foundations I would like to establish are GUYS ( Galuh's Young Scholar Foundation ), Holy Quran Memorizing Foundation, etc. Some of the foundations i have also need to own good companies such as LC ( Learning Consultants ) Inc., Pilarindo news Inc as an online legal media company, Lutfi Energy Consulting or Lutfi Consulting as a renewable and non-renewable energy consultants, and P.T Lutfi tour and travel as a pilgrim service provider. Those planned future companies should be run by using at least three excellently most beneficial managerial accounting tools which are key financial statements, budgeting, and financial ratios.

            The key financial statements (Lumen, n.d) are statements of cash flow, income statement and balance sheet. Those financial statements are the standardized report for all companies around the world. The standardized financial statements are really important because of the need of all managers and financial users to read, interpret and make decisions based on the company's financial health reported in the financial statements to be further processed in budgeting problems.

            The budgeting problems mainly consisted of master budget creation and methods of capital budgeting decisions. The importance of master budget for all of my planned future companies is that it can be used as a good forecasting and targeting method for determination of how many tickets of my LC (Learning Consultants) that should be sold in each quarter of the four quarters in a year in such a way that cross subsidies for unrich students can be given by students with good economic conditions,  how many subscribers of my Pilarindo news should be achieved so that advertising as non-direct and all buyers or customers who want to daily read or want to post their advertising platforms as the ones generating direct revenues can gain pilarindo's growth. Related to energy consulting, the forecasting is beneficial for determining how many energy plants should be installed until the sale price decision to the public should be determined for at least keeping all company members alive. For the last planned company I have which is the Lutfi Tour and travel of pilgrims, the forecasting should be until the point of determining the personal ticket price in such a way that no one feels expensive, more and more people can have enjoyable spiritual trips to the two holy cities for hajj and umrah, and the company can have well growth incomes. All of the above hopes can be strategically done by giving affordable accessible prices to as many prospective customers. The principle of economy i would like to gain is that Low price with big numbers of customers is better than high price with small numbers or even zero customers (Anonimous, n.d.).

            The importance of the methods for capital budgeting decision is that the choice of spending capital for investments can be mathematically analyzed based on the available cash flow data based on all managerial accounting terms such as initial investments, costs and revenues in such a way that the negative or positive NPV, IRR and how many years of the payback period can be determined in such a way that whether everything for investment will be done or no are based on very well stormed effort of brain. Having good cash flow data of the two previous years of my future planned companies can predict excellent cash flow so that the payback period prediction and profit or loss sharing ratio can be easily determined to apply for the prospective investors. Instead of using the time value of money ( Nurrachmi et al, 2012) resulting in the legal views of interest, my companies choose the economic value of time by proposing selling the product or service / tickets by credit with a higher amount of non credit price.

            Last but not least, the important tools of managerial accounting are financial ratios (Elmerraji, 2021). For the moment of speaking, my future planned companies span any kinds of services ranging from education (LC), news (pilarindo), consulting and spiritual tour and travels all of which rely heavily on non-product /non inventory ratios. The possible ratios can be GPM, current, debt to equity ratios, etc.  The importance of those ratios are to keep my companies strictly tight on the national or even international standard to have globally competitive strength and competencies.

References

Elmerraji, J. (2021, May 19). Analyze investments quickly with ratios. Investopedia. Retrieved October 29, 2021, from https://www.investopedia.com/articles/stocks/06/ratios.asp.

Nurrachmi, R., Fathia, M., Mad-ahdin, A., Radenarmad, N., & Akhtar, R. (2012, March 1). Time value of money in Islamic perspective and the practice in Islamic Banking Implications. Munich Personal RePEc Archive. Retrieved October 29, 2021, from https://mpra.ub.uni-muenchen.de/46818/.

Anonimous. (n.d.). Master budget of non manufacturing organization. Budgeting in nonmanufacturing organizations. Retrieved October 29, 2021, from https://saylordotorg.github.io/text_managerial-accounting/s13-04-budgeting-in-nonmanufacturing-.html.

Lumen, et al. (n.d.). Introduction to business. Lumen. Retrieved October 29, 2021, from https://courses.lumenlearning.com/wmopen-introductiontobusiness/chapter/key-financial-statements/.