Home page - descriptionWelcome to a ‘Simplified Financial Accounting and Management’ blog. The aim of the blog is to  provide information that helps most small business owners or managers find it simple to make sound financial decisions based on analysis of their financial statements and also, investing their money in better projects. The content of this blog increases with time as I am constantly busy working upon putting more valuable content to viewers. Therefore, as a reader, you might not find what you are really looking for, kindly visit again next time or e-mail me for the specific required material. However, for the time being, enjoy reading the articles on the right column of this page.

Let me start by a brief background of myself perhaps it will clear off all assumptions that would be made as a result of reading the blog without an understanding of what drives me for the content I write about. I am an Entrepreneur, Researcher (to be), Educator and a tertiary level Student at the same time. I may be described with many words I selected these for the purpose of the justification of the content on this blog. This will, perhaps, help readers understand what motivates me on putting information on this blog. Surely, identifying myself by a mere name seems to be meaningless as some of us have names that are not popular hence saying ‘My name is Lucky Sibanda’ would seem to be weird more of like reading Greek words because it might be your first time reading about myself.

I always find myself loving knowing a lot of things. At one time, I was a bit confused on why I do not have one specific field of interest like most and I realised how different I am from the rest. I do not do what most people do such as watching movies or sport even watching TV. I realised that my background counts a lot to this. I value time like I have no tomorrow; enjoy multi-tasking; listen to music 24/7; read on news which I believe I should know (from the internet) [I chose not to know other news such as Olympic Games . . . etc. . ] and always strive to increase my knowledge base every second I breathe. With that, it has been a challenge to decide on a specific topic to specialise on this blog. I have to be frank to you that at one time I found myself as a person who gets along easily in various disciplines and my interests have been so high in the provision of information.  However, I did my level best to narrow down to minimum.

This blog has been specifically created to provide a clear understanding of Financial Management to the basics. However, for me, separating it from entrepreneurship, career guidance and business consultancy has proved to be a challenge beyond my reach. I have noted that the more I read, the more I increase my knowledge base; the more I post, the more I increase my writing and typing skills. This further helps in the creation of my own compiled database of articles in five years’ time for example. This has been purely the source of motivation towards my blogging life.

In all my articles presented on this blog, my own opinion is used where necessary. I also, where possible, include my life experiences on some articles to present what I believe works for me, and possibly for others. You are therefore welcome to comment in anyhow, I understand individual differences.


The subject of Career Guidance Consultancy has been identified to be worth pursuing after combining my life experiences towards enjoying life through one’s work. It is simple I believe: “At times in life, we do have limited choices to choose from for our career path depending on a combination of factors. As a result, we are then forced to follow what is present or what we afford instead of going for what we have to do with the utilisation of natural abilities.” However, some have, at their disposal, everything to help they choose the right career hence early self-actualisation. Understanding this provides a clear view of how one’s career would have been influenced by various factors hence it helps to map the future extending an element of control over it. As a result, a career could be revised to suit one’s natural abilities to enhance self-actualisation stage.

The subject of Entrepreneurship is a necessity to me especially when the global population is increasing, with high levels of unemployment and poverty. A need of a generation with a shift of mind towards becoming job creators is necessary. Creating one job means a lot to an economy. In line with this, my blog contains articles that aim to instill an entrepreneurial mind with an understanding that entrepreneurship is a discipline that can be learned like any other disciplines. With the development of the right needed attitude, seeking of the required resources (though scarce at times), and practicing what learnt would probably have a positive influence of individuals towards entrepreneurship. Therefore, I present articles that show how different entrepreneurs made it to where they are with an insight of all that influenced them and affected them and on anything that could encourage anyone to think of an idea to translate it to a profitable business.


I enjoy dealing with numbers, graphs and analysing them to recommend for informed decisions. With that, I feel I can provide a comprehensive platform which I share on what I naturally enjoy doing. An understanding of what is meant by financial management would be ideal to start with. According to Fabozzi and Petersen (2003) financial management is defined as an area of finance that is primarily concerned with financial decision making in a business entity. Since it is described as part of finance, a definition of finance is a pre-requisite therefore once again. The author further defines the field of finance as the ‘application of economic principles and concepts to business decision making and problem solving’. Areas or subsections of financial management include the following: risk and expected return; the cost of capital; working capital management; capital budgeting; methods of financing a business; and principles of valuation (Flynn, 2009).

Out of interest sake, the blog shall also look at some elements of Financial Accounting (basic recording and processing of financial data, and financial analysis). This is the part which has some financial statements and the analysis to make appropriate decisions.

According to the author, finance has three categories and these are: financial management, investments and financial institutions on which Brigham and Houston (2003:4) concur with. As mentioned above, this blog mainly focuses on the area of ‘financial management’. Since financial management is all about financial decision making, asking ‘what are these financial decisions’ becomes an area of concern. Fabozzi and Peterson states that financial management decisions include the following: maintaining cash balances, extending credit, acquiring other firms, borrowing from banks and issuing bonds and stocks. However, this is typical of large businesses whereas some of the above mentioned decisions are not applicable to small businesses which are not listed in stock exchange for instance.

Explanation of the presentation above

The presentation above shows what this blog focuses on. Financial Management could be better understood by using a holistic approach. Although it can be a special function, knowing how it relates to other department is very crucial to understand. There is a direct link between Financial Accounting and Financial Management. The former deals with the gathering of accounting data from various sources, organising and processing them, presenting the information in the form of Financial Statements and analysing them (adhering to all the international standards where required). On the other hand, Financial Management investigates on the investment opportunities (opening new outlets or purchasing additional machinery) as in Flynn and Koonrhof (2005).

A great understanding of the principles is needed which helps to identify the errors that may be made during the financial accounting process. The decisions made from financial accounting are purely based on the quality of information from the financial accounting process. Therefore, the more accuracy the information, the valid the financial decisions to be made; otherwise, decisions made might be misleading.

As shown on the presentation, Financial Accounting and Management need an understanding of financial and accounting terms. The Financial Statements may be used differently depending on the decisions to be made and the types of business: Income Statement; Balance Sheet; Cash flow statement; and Statement of changes in equity.

The financial decisions made are not limited to the following: budgeting, financing, strategy formulation, and performance measurement. Budgeting deals with the future financial commitment of a business in line with the overall organisation strategy at times basing on the previous financial years or in comparison with the competitors or as per growth strategy. Budgeting also helps the business to maximise its financial resource on projects that shows a better return on investment (mostly known as Capital Budgeting). Financing decisions prompts the analyses of the business on its ability to execute its business operations from its resources with an option to find on how to sources additional funds. With an understanding of the financial muscle of a business, a business strategy may be formulated to pave for a desirable future. This could be a sustainable growth strategy or an exit strategy that could be made. Any business does not exist in a vacuum. There are competitors hence performance of the business should be made in line with the industry norms. This would also help a business to realise on the areas to concentrate on. More information to ensure a clear understanding of these shall be presented through various articles on this blog.

NB: The information presented on this blog is original, written by me without copying from any other sources. However, different sources have been consulted, summarised coupled with my general understanding and experiences hence the meaning could be related to other articles. Please feel free to contact me where you feel the content has to be modified or removed”.



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