We all read about the obnoxious salaries and bonuses that Investment Bankers, Hedge Fund Managers and Portfolio Managers earn. Their salaries combined with their bonuses run into Millions of Dollars and some top investors of the World earn more than a Billion Dollars per annum. How does this happen? Why do some people earn so much? The reason is simple – their ability to invest and multiply an organization’s or an investor’s funds rapidly. It is this ability that gets them the multi million Dollar bonuses. So what sets them apart from the rest?

It is their knowledge and knowledge alone. Their knowledge about taxes, ability to read financial statements, balance sheets and accounting is what sets them apart. They are able to read financial statements and judge whether these companies or industries are worth investing in. More importantly, some investors don’t just buy stocks in a company to sell when the price rises, they take control of the company and run it. They buy a majority stake in it and wish to turn the company around as they believe the company has the underlying structure in place to succeed.

Most senior executives and investors keep investing their time and money in different courses and trainings that help them stay in touch with the latest taxation and accounting standards. The best example for this is the recently passed GST act that has changed the entire taxation system of India. BSE Institute Ltd offers multiple short term courses for students and working professionals to gain from. This helps everyone to gain knowledge and network at the centre of India’s financial district.

99% of the times, it is a person with a strong grip on finance who is appointed to lead the company. The reason is that any new investor may have to pump in money into the company or ensure that the company manages to raise funds. Having an executive who has the ability to manage funds, raise them and spend them wisely will ensure that the company does not waste funds and is able to quickly turn itself around.

Any financial statement revolves around the funds that come into the company and the funds that go out. Accouting lets one know where exactly are funds being spent and the person who understands this well is able to control any company and succeed in any business environment. A person with the knowledge of Financial and Corporate Accounting will be a vauable and an irreplacable resource.

 

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