Accounting, Auditing, Valuation and Human Resources
Now you know the basic structure of the type of company you want to lead, you need to understand accounting integration.
Accounting: a multi-dimensional analysis tool you probably have no idea how to use
Not only will you study the General Ledger structure and how it all relates to reporting and auditing, tomorrow's accounting methods, even if not instituted in your current company need studying. This includes Zero-based-budgeting, program management, creating the vision cube, and, very important, how to manage people resistant to the new accounting.
You'll learn how accounting can be used to distort profits and how to establish credibility of your accounting with company boards and investors.
Nothing is simple in accounting. A careful and often reviewed general ledger accounts and how they are used is important.
Financial Auditing by Auditing Firm
This audit is required by law and basically looks for fraud, such as collusion between a person in a supplier and your purchasing person. It checks inventory to make sure what is supposed to be there is there. Of course, this is all done through financials and inspection of the transactions.
Although many companies have a small group regularly checking services. You will want to audit your phone system, for example. Or how your bank treats your company. If you buy assemblies from third party sources you may want to audit their ISO certificates. How about auditing your plant maintenance? Is your insurance correct? You may not know unless auditing your policies carefully.
You will run across these non-financial audits in hopefully all the companies you intern, and hopefully you will find methods finding "free" money not being wasted by overhead.
Valuation of your company
How's a tangle of best guesses you need to learn. By working at many companies you may find a useful method. Or you may learn what is missing.
For instance: If electrical generation is leaving coal behind and your company's cash flow is coal based how much will your valuation decline due to industry changes. The future and your estimates of how your company is affected changes your honest valuations.
Don't forget to take into account the quality of your workforce.
We hope you learn enough parameters in the intern program to create honest valuations for your stockholders.
An important department that may not run as you would like. Here's the inside scoop: HR people are not necessarily the most straight forward people with whom you need to work. They may feel they are protecting the employees instead of the company. They may not have easy answers for your hiring requirements.
Are they handling the training? Do they have an adequate budget to evaluate the employment candidates? Spend some time talking to them about their issues and the executives that need to interact with HR.