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Finance & Fintech

Integrating Risk Management into Corporate Governance Frameworks

Posted on by Imarticus Learning

Corporate governance isn’t just boardroom jargon anymore. It’s at the core of every business that hopes to grow sustainably, act responsibly, and build trust—not just with investors but with society. 

In today’s world, where uncertainty is the only constant, integrating risk management into corporate governance frameworks has become not just smart but essential. 

Some companies, despite having strong products and skilled teams, have faced setbacks because they didn’t take the time to identify and prepare for potential risks. From data breaches to supply chain breakdowns, the risks are real—and often avoidable.

Understanding What Corporate Governance Means

Let’s break it down. So, what is corporate governance?

Writers define, describe, or interpret “corporate governance” in various ways, depending on their purpose. 

It refers to the rules, systems, and processes that dictate how you direct and control a company. But in practice, it’s about creating checks and balances so that no single entity within the business has unchecked power. 

The principles of corporate governance—accountability, fairness, responsibility, and transparency—are the pillars that hold the organisation steady in turbulent times.

Why Risk Management Cannot Be an Afterthought

Many companies still view risk management as a compliance checkbox or something handled by the audit team once a year. That mindset needs to change.

When we talk about risk management in corporate governance, we’re talking about proactively identifying what could go wrong before it does—and having a plan to deal with it. 

Here’s a quick story. A mid-sized Indian manufacturing firm once consulted had a habit of brushing off minor supplier delays. During one monsoon season, multiple vendors missed deadlines, production halted, and they couldn’t fulfill contracts. It led to losses and damaged relationships. 

Steps to Weave Risk Management into Your Governance Fabric

So, how do we actually integrate risk management into principles of corporate governance frameworks? 

Many companies are now using AI to save money, improve customer service, and explore new ways of doing business. Leaders are focusing on AI projects that can show results quickly. Almost half say one of their main goals with AI is to stand out from the competition by making their products and services better.

It’s not about creating new silos—it’s about realigning what you already have.

1. Start with Culture

If your board sees risk only as a threat, you’ve already lost. The goal is to build a risk-aware culture from top to bottom. When leadership views risks as opportunities for resilience and growth, that mindset trickles down.

Encourage departments to bring forward potential issues early. Celebrate transparency, not just wins.

2. Get the Board on Board

Too often, risk delegates to internal teams while the board stays focused on strategy. This creates blind spots. The board should regularly review risk reports and include risk assessments in strategic decision-making.

Appointing a Risk and Governance Committee can create a stronger line of sight.

3. Define and Communicate Risk Appetite

Every company has a different tolerance for risk. A fintech firm might be open to tech innovations but averse to data privacy threats. Define your risk appetite, document it clearly, and ensure every decision aligns with it.

4. Connect the Dots with Strategy

Risk isn’t a separate department—it’s a filter through which every business plan should pass. Before approving a new product line or expansion, evaluate the strategic risks involved: regulatory changes, talent shortages, and global instability.

Use scenario planning to prepare for best, average, and worst-case outcomes.

5. Monitor. Refine. Repeat.

Governance is dynamic. The risks you faced in 2023 won’t be the same in 2025. Build mechanisms for regular risk reviews and adjust your framework accordingly. Use dashboards, risk heat maps, and quarterly updates.

Step Focus
1. Start with Culture Build a risk-aware mindset.
2. Get the Board on Board Involve the board in risk management.
3. Define Risk Appetite Clarify how much risk the company is willing to take
4. Connect Risk with Strategy Make risk part of every strategic decision
5. Monitor. Refine. Repeat. Continuously review and improve risk governance.

Integrating Risk Management into Governance

[Start] 

   |

[1. Build a Risk-Aware Culture]

   – Shift mindset: risk = opportunity

   – Encourage early issue reporting

   – Promote transparency

   |

[2. Engage the Board Actively]

   – Involve the board in regular risk reviews

   – Link risk to strategic decisions

   – Form Risk & Governance Committee

   |

[3. Define Risk Appetite]

   – Identify acceptable vs. unacceptable risks

   – Document and communicate clearly

   – Align decision-making with risk appetite

   |

[4. Align Risk with Strategy]

   – Evaluate risks in new initiatives

   – Use scenario planning

   – Integrate risk review in planning stages

   |

[5. Continuous Monitoring & Improvement]

   – Set up risk dashboards and heat maps

   – Schedule regular updates and reviews

   – Adapt to emerging risks and trends

   |

[End – Embedded Risk Governance Framework]

A Closer Look at Risk Governance in Action

Let’s consider two Indian firms that took different approaches:

Case 1: Ignoring the Storm

A well-known logistics startup expanded aggressively without fully understanding fuel price volatility and driver attrition risks. Within 18 months, rising costs and a PR crisis related to delivery failures pushed them into consolidation.

Case 2: Governance with Foresight

In contrast, a healthcare chain that embedded risk management into its governance evaluated everything—from vendor contracts to patient data policies—through a risk lens. Not only did they avoid a cyberattack that affected competitors, but they also gained investor confidence, helping them scale.

How Education Bridges the Gap

Finance and management professionals often find themselves learning about risk the hard way—on the job. But there’s a better path. The US CMA course gives future leaders the analytical tools and strategic frameworks to anticipate risks, not just react to them.

Offered by Imarticus Learning, the US CMA course equips learners to understand the broader financial picture, including how risk intersects with reporting, compliance, and strategy. If you’re aiming to work with global MNCs or lead governance functions, this course offers the technical depth and credibility you’ll need.

Unlock Global Career Opportunities with the US CMA Programme from Imarticus Learning

The Certified Management Accountant (CMA) programme equips aspiring professionals with the knowledge, skills, and global recognition needed to thrive in today’s financial landscape.

CMA learners regularly secure top placements across Fortune 500 companies and reputed multinational corporations. With the right foundation, you’ll be ready to take on global opportunities in accounting, finance, consulting, and management roles across various industries.

The programme also includes guaranteed interview opportunities. You’ll benefit from a full-fledged pre-placement boot camp, CV-building sessions, interview preparation, and soft skills training—ensuring you step into the corporate world with confidence.

Students gain unlimited access to comprehensive study materials, including CMA textbooks, practice papers, MCQs, flashcards, revision tools, and live classes. What truly sets Imarticus apart is our expert mentoring. 

Faculty includes highly qualified professionals—CMA, CA, CFA, and CPA holders—who offer hands-on guidance, personalised support, and industry insights to help you succeed at every step.

Join the US CMA programme at Imarticus Learning today and take the first step towards becoming a future-ready finance leader.

FAQ

  1. What is corporate governance?

Company governance creates specific rules and practices to protect responsible business activities that promote stakeholder interests in addition to transparency. 

  1. How does risk management in corporate governance add value?

Through risk management, companies can detect approaching threats by implementing protective measures and making well-informed decisions that preserve stakeholder faith, especially during challenging circumstances.

  1. Why should risk management be part of the governance structure?

Risk assessment involves all decision-making processes, from product development to partnership formation, which results in better decisions with increased stability.

  1. Can education help in understanding this integration?

Yes. Programmes like the US CMA course by Imarticus Learning provide the financial, ethical, and analytical tools to bridge governance and risk management effectively.

  1. Who benefits the most from integrating risk into governance?

Everyone—shareholders, employees, customers, and leaders. The integration between operational stability and reputation produces long-term profitability benefits.

  1. What’s an example of a risk management framework used in governance?

Entities frequently utilise risk heat maps to visualise their organisational risks by placing them into likelihood-and-impact-based categories, which enables leadership to make strategic decisions.

Navigating the Product Life Cycle: Strategies for Every Stage

Posted on by Imarticus Learning

Have you ever wondered why some products thrive for decades while others vanish within a year? 

The answer often lies not in the product itself but in how businesses handle each stage of the product life cycle. It’s one of those concepts that looks deceptively simple but holds immense power in shaping a brand’s journey—from launch to legacy.

Whether you’re an entrepreneur launching a startup in Mumbai or a marketing executive eyeing a promotion, understanding the product life cycle isn’t just textbook knowledge—it’s business survival. In this guide, let’s break it down stage by stage, talk about real-world relevance, and offer strategic moves you can use.

What is Product Life Cycle, and why does it matter?

Before we go deeper, let’s take a moment to clarify: what is product life cycle?

Product lifecycle management (PLM) refers to managing a product’s entire lifecycle—from its inception and engineering through to design, manufacturing, service, and eventual disposal.

The product life cycle (PLC) refers to the stages a product passes through: Introduction, Growth, Maturity, & Decline. 

          ┌───────────────────────┐

          │   INTRODUCTION                                 │

          └───────────────────────┘

                     │

                     ▼

          ┌───────────────────────┐

          │      GROWTH                                           │

          └───────────────────────┘

                     │

                     ▼

          ┌───────────────────────┐

          │     MATURITY                                         │

          └───────────────────────┘

                     │

                     ▼

          ┌───────────────────────┐

          │      DECLINE                                            │

          └───────────────────────┘

Each phase demands a unique strategy. Think of it like a human life—what works for a toddler won’t work for a teenager, and definitely not for a retiree. Products behave the same way.

Stage 1: Introduction 

Challenges:

  • Low sales
  • High investment
  • Limited customer awareness

Strategy:

This stage is all about education and awareness. Your goal isn’t profit—it’s visibility. Focus on storytelling, problem-solving, and positioning your product as the answer. Tap into influencers early adopters, and use content-led campaigns.

If you’re a learner taking the US CMA course, imagine launching your own financial consulting firm. The intro stage would be where you establish credibility and let potential clients know how you solve their accounting woes.

Stage 2: Growth – When the Market Starts to Listen

Challenges:

  • Competitors start entering
  • Scaling without compromising quality
  • Customer support pressure

Strategy:

Speed is the name of the game. Now that the market is responding, you must:

  • Strengthen your USPs (unique selling propositions)
  • Optimise operations
  • Improve product features based on feedback

Stage 3: Maturity – Holding Your Ground

Challenges:

  • Market saturation
  • Slowing sales
  • Price wars

Strategy:

Time to maximise profitability. You’re no longer “new.” You’re “established.” Now, protect market share with loyalty programmes, bundled offerings, or refreshed product lines.

You might not be making headlines now, but this is where the money’s made.

Stage 4: Decline – When It’s Time to Pivot or Exit

Challenges:

  • Sales drop
  • Tech obsolescence
  • Shifting consumer behaviour

Strategy:

This is the hardest pill to swallow. But smart businesses plan for it. You’ve got two paths:

  1. Reinvent – Find a niche or reposition the product.
  2. Exit – Retire the product and focus resources on more promising ventures.

One iconic Indian FMCG brand revived its Ayurvedic soap by repositioning it as a skincare essential. Smart play during the decline stage of its product life cycle.

Quick Recap: 

Strategies at a Glance

Stage Objective Key Focus Areas
Introduction Create awareness Education, storytelling, branding
Growth Accelerate sales Scaling, optimisation, marketing
Maturity Maximise profits Loyalty, innovation, cost efficiency
Decline Manage exits or reinvention Rebranding, diversification

Why Knowing the Product Life Cycle Matters in Finance & Business

You may ask—what does this have to do with a US CMA course or business education?

Whether you’re managing products, portfolios, or people, the product life cycle stages offer a lens to assess performance and plan action. 

In financial management, this helps:

  • Forecast revenues
  • Allocate budgets wisely
  • Time investments and exits smartly

The product lifecycle management (PLM) market has shown remarkable growth in recent years. With a projected CAGR of 9.5%, the market demonstrates robust and sustained growth potential through 2029.

The US CMA course covers managerial accounting, strategic planning, and performance management—every skill needed to understand each stage of the product life cycle like a pro.

Advantages and Disadvantages of the Product Life Cycle

Advantages Disadvantages
Helps businesses clarify and manage their portfolio of offerings It may not suit every industry or product type
Enables better resource allocation across product stages Legal or trademark restrictions may limit the strategy
Contributes to economic growth by driving demand and efficiency Planned obsolescence may raise ethical concerns
Encourages innovation to remain competitive This can lead to unnecessary product or resource waste if mismanaged.

Tips to Apply Product Life Cycle Strategies in Real-Life

  • For Entrepreneurs

Start small but stay scalable. During introduction, test heavily; during growth, double down on what works. Don’t fall in love with the idea—fall in love with adaptation.

  • For Marketers

Keep a close eye on user feedback. Your campaigns must evolve. A campaign that worked in the growth stage might fall flat in maturity.

  • For Finance Professionals

Use cost-volume-profit analysis and break-even points during growth and maturity. Your job is to maintain financial health across the cycle.

Just as we evolve in life—from learning to building to reflecting—so do products. The smartest professionals aren’t the ones who hustle endlessly; they’re the ones who know when to scale when to pause, and when to change lanes.

If you’re planning to enter the world of business, finance, or marketing, make sure your learning journey teaches you to master this cycle. That’s why programmes like the US CMA course at Imarticus Learning go beyond theory. They prepare you for real decisions, strategic moves, and long-term wins.

Become a Globally Recognised CMA with Imarticus Learning

At Imarticus Learning, we empower aspiring finance professionals to lead the world of accounting with our industry-aligned Certified Management Accountant (CMA) programme. Global success prepares learners through this programme, which unites theoretical knowledge with real-world business expertise to create complete readiness for success.

The programme teaches students to reach management positions that require both strategic mindsets and technical abilities combined with leadership capabilities. To further support your career journey, Imarticus Learning provides a comprehensive pre-placement bootcamp covering CV writing, interview preparation, and soft skills training. 

The institution’s committed placement assistance service guarantees job interviews with major businesses that will lead to high-growth career opportunities domestically and worldwide.

Enrol in the CMA programme at Imarticus Learning today and take your first step towards becoming a world-class accounting leader.

FAQ

  • What is product life cycle, and why is it important in business?

The product life cycle refers to the four stages a product goes through—Introduction, Growth, Maturity, and Decline. Knowledge of this operational pattern assists organisations with optimising marketing decisions, pricing and manufacturing activities, and growth plans at respective stages.

  • What are the four main product life cycle stages?

The four product life cycle stages are:

  1. The product launches at its introductory phase.
  2. Growth – when sales and demand increase.
  3. The product achieves maximum operational capability during maturity.
  4. Product sales begin to decrease when a market achieves saturation levels or when new innovative products enter the market.
  5. How do businesses adapt their strategies at each product life cycle stage?

Companies direct their awareness investments during the introduction phase while maintaining customer loyalty and maximising profits during maturity.

  1. How is the product life cycle used in financial planning or US CMA course content?

In the US CMA course, learners study how the product life cycle influences financial decisions such as budgeting, forecasting, break-even analysis, and investment timing—skills essential for strategic business planning.

  1. Why do some products skip stages in the product life cycle?

Every product develops through its stages in a unique way. Some innovations may leap from introduction to maturity due to viral demand, while others may fail early if they don’t meet market needs, making the product life cycle more dynamic in practice.

Break-Even Analysis: Determining Your Business’s Profitability Threshold

Posted on by Imarticus Learning

There’s a moment every entrepreneur quietly waits for—that point when the business finally stops just surviving and starts earning. 

That moment is your break-even point, and knowing how to calculate it is more than a financial exercise—it’s clarity, strategy, and confidence rolled into one. 

For anyone starting a business, managing finances, or pursuing the US CMA course, understanding break-even analysis is a must. And if you’re learning with Imarticus Learning, you’re already on the right track.

What Is Break-Even Analysis?

Break-even analysis helps you identify the sales volume at which your total revenue equals your total costs—no profit, but no loss either. That point is basically known as the break-even point. It’s the line you need to cross before your business starts generating real profit.

The break-even point is when a business earns just enough money to cover all its costs. In simple terms, it’s the point where income and expenses are equal—so there’s no profit but no loss either. Everything the business makes goes into paying off its costs.

Understanding Fixed and Variable Costs in Break-Even Analysis

Break-even analysis compares fixed costs with the profit made from each additional unit sold. It helps determine the point at which your business starts to cover its costs and move toward profitability.

A business with lower fixed costs reaches its break-even point more quickly. In fact, if a company had zero fixed costs—and provided that variable costs stay below the selling price—it would break even with the sale of its very first product.

Fixed costs do not change, no matter how many units you sell. In contrast, variable costs increase as production goes up.

Here are some common examples:

  • Fixed Costs: Rent, taxes, insurance, wages or salaries
  • Variable Costs: Raw materials, production supplies, utilities, packaging
A graph with a green line AI-generated content may be incorrect.

It shows:

  • Revenue Line (in green): Your income as sales increase.
  • Total Cost Line (in red dashed): How your total cost grows with production.
  • Break-Even Point (blue vertical line): Where revenue equals total costs.

Why Every Business Needs Break-Even Analysis

You need to know your financial limits before pushing growth targets. 

Here’s why:

  • Reduces risk: Know exactly how much you need to sell to cover your costs.
  • Improves pricing decisions: Adjust product prices to meet profitability goals.
  • Informs marketing strategy: Align sales goals with your break-even point.
  • Assists funding discussions: Lenders and investors understand numbers that make sense.

Benefits of a Break-Even Analysis

Doing a break-even analysis can help your business in more ways than one. It gives you a clear picture of your costs, helps you plan better, and reduces financial risk.

BenefitHow It Helps
Smarter PricingHelps you set prices that cover your costs and ensure you stay profitable.
Set Sales GoalsShows exactly how much you need to sell to make a profit.
Better DecisionsEncourages fact-based decisions instead of relying on emotions.
Lower RiskHelps avoid bad business ideas by testing if they’re financially viable.
Plan for FundingGives a clear financial picture, which is useful when seeking loans or investments.

The Break-Even Analysis Formula 

The most common break-even analysis formula is:

Fixed Costs are your consistent monthly costs (e.g., rent, salaries).

  • Variable Costs change depending on how much you produce (e.g., materials).
  • Selling Price is what you charge per product or service.
  • Fixed Costs are your consistent monthly costs (e.g., rent, salaries).
  • Variable Costs change depending on how much you produce (e.g., materials).

For example consider your fixed costs are ₹5,00,000, your product sells at ₹500, and the variable cost per unit is ₹300:

Break-Even Units = 5,00,000 / (500 – 300) = 2,500 units

That’s how many units you need to sell before seeing a profit.

Break-Even Analysis Chart: Making it Visual

A chart helps bring this concept to life. 

Here’s a quick breakdown:

Sample Chart

Sales Volume (Units)Revenue (₹)Total Costs (₹)
1,0005,00,0008,00,000
2,500 (Break-even)12,50,00012,50,000
4,00020,00,00017,00,000

The point where revenue and total costs intersect is your break-even analysis chart in action. Beyond that point, your business starts to earn.

Common Mistakes to Avoid

Here are a few pitfalls to watch for:

  • Ignoring indirect costs like insurance or office supplies
  • Overestimating revenue or underestimating expenses
  • Not updating figures as your business grows

Break-even is not a one-time calculation; it’s a moving target. 

Who Should Use Break-Even Analysis?

This isn’t just for accountants or finance professionals. It’s for:

  • Entrepreneurs launching new products
  • Sales managers set monthly targets
  • Finance students want hands-on learning
  • Retail owners making pricing decisions

Beyond Profit: Other Uses of Break-Even Analysis

Break-even isn’t just about crossing a line. It also helps:

  • Test the viability of new business ideas
  • Prepare for tough economic conditions
  • Justify spending on marketing or hiring

It’s a versatile tool that every serious business owner should keep in their financial toolkit.

Master Global Finance with the CMA Course from Imarticus Learning

The Certified Management Accountant (CMA) accreditation serves as a global entry ticket to reach success in accounting and finance. Imarticus Learning provides ambitious professionals with the CMA course, which transforms learners into strategic decision-makers who can take leadership positions in multinationals and worldwide financial institutions.

Online live sessions deliver this structured programme for 6 to 8 months, during which students retain flexibility in their schedule. Students who join Imarticus Learning obtain internationally acclaimed knowledge alongside complete resources and mentorship support from subject experts.

 The learning pathway starts with fundamental accounting principles and then progresses to elevated CMA material, which prepares students for international financial roles. The training provides direct tool experience in MS Excel and Advanced Excel that prepare students for both professional certification exams and actual professional work.

The students achieve preferred employment roles at well-known companies, including Fortune 500 organisations, along with respected accounting brands in consulting and financial services.

Join the CMA course at Imarticus Learning and take the initial step toward a rewarding global career in finance. 

FAQ

1. What is break-even analysis in simple terms?
The analysis demonstrates the number of items you need to sell to reach operation profitability.

2. What is the break-even analysis formula?
Break-even = Fixed Costs / (Selling Price – Variable Cost per Unit).

3. Why is break-even analysis important for small businesses?

Small businesses will minimise losses by understanding the sales volume needed to turn a profit.

4. How often should I update my break-even analysis?
You should examine this document either quarterly or at any moment when major expenses or prices undergo significant changes.

5. Is break-even analysis part of the US CMA course?
Yes, it is a key topic taught in the US CMA course at Imarticus Learning.

6. How does a break-even analysis chart help?
It visually shows where your business moves from loss to profit, helping with decision-making.7. Can I use break-even analysis for services, too?
Yes. It works for both product and service-based businesses.

The Importance of the Trial Balance in Financial Accounting

Posted on by Imarticus Learning

Ask any accountant what keeps their books in line, and chances are, they’ll point to the trial balance. It’s not just a checklist or a table of numbers; it’s a gatekeeper—a vital tool that ensures the foundation of your financial reporting remains strong. 

So, whether you’re a business owner in Pune, an ACCA aspirant, or simply someone curious about the inner workings of accounting, understanding the trial balance is non-negotiable.

What Is a Trial Balance and Why Does It Matter?

A financial report that lists all the balances from your ledger accounts. A trial balance is an internal report that shows the closing balances of general ledger accounts—both income and capital—on a specific date.

Think of it as your accounting health check. It helps ensure your debits and credits are equal, which is the basic rule of double-entry bookkeeping. When they match, you breathe easy; when they don’t, it signals something’s gone off track.

But it’s not just about checking for errors. The trial balance in accounting is the first step in preparing more detailed reports like the income statement and balance sheet. It tells you if your books are in order before you move forward. And honestly, it feels like finishing a jigsaw puzzle—everything clicks into place.

The trial balance format is pretty simple. You’ll have account names in one column, debit balances in another, and credit balances opposite. It’s clean, simple, and remarkably effective.

Types of Trial Balance

There are three types of trial balance:

  • Unadjusted Trial Balance
  • Adjusted Trial Balance
  • Post-Closing Trial Balance

Each type follows the same format but serves a slightly different purpose.

Businesses prepare the unadjusted trial balance before making any adjusting journal entries. It reflects the day-to-day transactions and helps accountants spot discrepancies by checking the ledger balances.

A trial balance includes the following key details:

  • A full list of all general ledger account totals
  • Each account’s number, name, and final debit or credit balance
  • The closing date of the accounting period

A trial balance checks whether the total debits match the total credits in a company’s accounts. If both sides are equal, it confirms that the books are arithmetically accurate before preparing financial statements.

After completing all necessary adjustments, accountants draw up the adjusted trial balance. This version includes finalised figures for each account and forms the basis for preparing financial statements.

The post-closing trial balance comes after you record all entries. It contains only the balance sheet accounts and serves as the opening trial balance for the next financial year.

The Role of Trial Balance in Accounting

When a company shares its financials, whether with investors, banks, or regulators, those numbers need to be accurate, and that accuracy starts with a well-prepared trial balance.

A trial balance offers:

  • Error Detection: Catch wrong entries before they escalate.
  • Foundation for Reports: Supports P&L statements, balance sheets, and cash flow statements.
  • Confidence: Builds credibility in front of stakeholders.

If you’re preparing for an ACCA course or pursuing a career in finance, mastering the trial balance in accounting is a must. 

Trial Balance vs Financial Statements

Think of the trial balance as a rehearsal before the final show. It’s where you check if all the lights work and the actors are in place. If everything looks good, you go on to prepare your main performance—the financial statements.

Here’s how they relate:

  • Trial Balance: Checks if debits = credits
  • Financial Statements: Tell the story of your business performance

In simpler words, you can’t cook a meal without tasting it first. The trial balance is your taste test. One of the earliest modules focuses on the trial balance because it’s such an essential building block.

Visualising the Trial Balance

Let’s consider this sample breakdown:

Example Trial Balance Overview 

Account Debit (₹) Credit (₹)
Cash 250
Sales Revenue 800
Purchases 400
Rent Expense 100
Accounts Payable 300
Capital 350
Total 750 1450

Oops—doesn’t match? That’s exactly what a trial balance helps you detect before it turns into a bigger problem.

The trial balance format allows even small business owners to gain control of their numbers without needing complex systems. Many Indian entrepreneurs now opt for cloud-based accounting tools, but the trial balance remains a key part of every system.

Your First Financial Safety

So, what is trial balance really? It’s your safety net. It ensures your accounts are accurate before you face auditors, investors or make big decisions.

At Imarticus Learning, students learn the significance of the trial balance from day one. With their industry-led approach and expert guidance, future accountants and finance professionals don’t just pass exams—they build confidence.

Whether you’re new to finance or planning your next professional milestone, let the trial balance be the cornerstone of your accounting knowledge.

Accelerate Your Global Accounting Career with ACCA and Imarticus Learning

The Association of Chartered Certified Accountants, based in the United Kingdom, is one of the largest and most respected accountancy membership bodies in the world. For Indian learners aiming to build an international career in finance, Imarticus Learning offers an industry-aligned ACCA course designed to meet global standards.

What makes the experience even more unique is the Passing Guarantee. The comprehensive ACCA curriculum may seem intense, but Imarticus Learning makes it approachable and student-friendly. You’ll receive unlimited access to coaching and can repeat the programme or any session until you pass—all at no extra cost.

At the Professional level, Imarticus Learning also includes a hands-on Placement Bootcamp. This covers everything from CV building and interview preparation to soft skills training and personality development workshops. Learners benefit from exclusive access to internships with top firms, giving them a practical edge as they step into the industry.

Join the ACCA course at Imarticus Learning today and benefit from a guaranteed path to professional success.

FAQ

  1. What is trial balance, and why is it important?
    A summary of all ledger account balances. It makes sure that total debits equal total credits, which helps identify errors in bookkeeping.
  2. How often should I prepare a trial balance?
    Most businesses prepare it monthly or quarterly, but it depends on your business size and reporting needs.
  3. What is the correct trial balance format?
    When recording trial balance information, one should use a basic three-column table presenting Account Name next to Debit Amount and Credit Amount.
  4. Why should I learn trial balance in an ACCA course?
    Students who wish to succeed in the ACCA programme must master trial balance fundamentals to build reliable financial statements.
  5. How does Imarticus Learning teach trial balance concepts?
    Imarticus Learning uses real-world examples, interactive sessions, and revision support to make trial balance concepts simple and practical.
  6. Is the trial balance only useful for large businesses?
    Not at all. Small businesses benefit greatly from using trial balance to monitor their financial health and avoid costly mistakes.
  7. Can trial balance detect all accounting errors?
    It can catch many errors, especially mathematical ones, but may not spot misclassifications or missing entries.

Understanding the Accounting Cycle: Journal, Ledger, and Trial Balance

Posted on by Imarticus Learning

Do you ever feel like accounting terms are just a blur of jargon? 

Journal, ledger, trial balance—they sound daunting, don’t they? 

But things begin to click once you understand how these puzzle pieces fit together in the accounting cycle. Whether you’re an aspiring accountant, a business owner, or preparing for an ACCA course, understanding these basics isn’t just useful—it’s essential. 

What Is Accounting Cycle?

The accounting cycle is a process that accountants follow in recording, classifying, and summarising financial transactions. It ensures accuracy and consistency when preparing financial statements. 

But let’s not just settle for definitions. Imagine you run a shop in Mumbai and record every sale, expense, and refund. Without a structured cycle, chaos would ensue.

Accountants record and process information about economic entities, such as businesses and corporations — a practice known as accountancy. The accounting cycle does one thing brilliantly: it turns everyday business transactions into understandable and trustworthy financial reports.

Accounting Cycle Steps:

Here are the accounting cycle steps you must know:

  1. Identifying Transactions – Recognising every financial activity.
  2. Journal Entries – Recording transactions chronologically.
  3. Posting to Ledger – Sorting the data into accounts.
  4. Trial Balance Preparation – Checking if debit = credit.
  5. Adjustments – Accounting for accruals and deferrals.
  6. Adjusted Trial Balance – Double-check before final statements.
  7. Financial Statements – Creating balance sheets, P&Ls, etc.
  8. Closing the Books – Resetting for the next cycle.

Missing one of these, you might end up with misleading results.

Journal, Ledger, and Trial Balance: The Core Trio

Let’s break this down. 

Think of these three as a story:

  • The journal is your diary.
  • The ledger is your organised notebook.
  • The trial balance is your reality check.

Journal: The First Draft

It all begins with the journal. Each transaction is recorded with the date, account affected, amount, and a brief description. This is often called the book of original entries. It’s like jotting down every sale or expense before anything gets formal.

Ledger: Sorting the Chaos

After recording everything in the journal, you transfer the entries to the ledger—this step is generally called posting. In the ledger, you group all related entries together. For example, you list all sales under the Sales Account. This helps you track balances easily.

A clean ledger helps you quickly answer questions like, “How much did we spend on office rent last year?”

Trial Balance

Now, how to prepare trial balance? 

Simple:

  • Add up all ledger balances.
  • Split them into debit and credit columns.
  • Total them. If both sides match, your accounts are balanced.

This step checks the arithmetic accuracy of your entries.

Basics of Financial Accounting: Why It Matters

The basics of financial accounting go beyond textbooks. It teaches discipline, attention to detail, and structured thinking. These principles underpin every business decision—from funding to expansion.

According to a report by Accounting Today, 58% of organisations have recognised the advantages of moving to the cloud and now use cloud-based accounting systems. This highlights the growing significance of cloud technology in the accounting sector.

Concept What It Means
Recording Transactions Writing down every financial activity, like income or expenses.
Double-Entry System Every transaction gets recorded twice – once as a debit and once as a credit.
Journal You write all transactions like a daily financial diary.
Ledger Organised record of transactions, sorted by category (e.g., rent, sales).
Trial Balance A quick check to make sure total debits and credits match.

Fixed Income Securities in the Accounting Context

While mastering journal-to-trial balance, it’s also vital to grasp fixed income securities. These instruments, like bonds and debentures, generate consistent returns. They often appear in company portfolios and affect journal entries.

What Are Fixed Income Securities?

Fixed-income securities are investment tools that offer fixed returns over time. This includes government bonds, corporate debentures, and more. Understanding them is key to asset management and long-term planning.

Fixed Income Securities in India

In India, fixed income securities are popular among conservative investors. Government bonds, PPFs, and NCDs are common choices. Accountants must know how to record these and adjust for interest earnings.

Types of Bonds and Debentures

  • Government Bonds: Safe but lower returns
  • Corporate Bonds: Higher risk, higher reward
  • Convertible Debentures: Convert into equity shares

If you’re pursuing a banking and finance course, this knowledge is indispensable. Every accounting professional must link journal ledger trial balance to business decisions. Imagine you’re presenting a budget to stakeholders. If your trial balance is off, your credibility is at risk.

Understanding the accounting cycle doesn’t have to feel overwhelming. With the right guidance, clear steps, and real-world examples, you can master even the most technical aspects, like journal ledger trial balance or fixed income securities in India. 

Whether you’re pursuing a professional banking and finance course, brushing up on the basics of financial accounting, or enrolling in the ACCA course at Imarticus Learning, you’re investing in clarity, confidence, and career readiness.

Advance Your Global Accounting Career with ACCA at Imarticus Learning

The Association of Chartered Certified Accountants UK is one of the world’s most prestigious and recognised accountancy bodies. This structured accounting programme is the oldest in the world since it progresses through three stages, from knowledge development to skill acquisition and ending with professional competence.

The educational support at Imarticus Learning extends to unlimited examination passes for students. ACCA learners can repeat the complete course and all its sessions free of charge until they successfully pass the syllabus. The institute places students at the center of its teaching methodology as it demonstrates trust in its educational standards and student assistance programmes.

The professional level of students receives special placement training through a bootcamp programme. The institution provides job placement assistance to students through comprehensive services that address curriculum vitae building, teach essential competencies, organise training for examining interviews, and teach personal development techniques. The programme grants participants valuable internship experiences at highly regarded corporations to develop their professional abilities beyond exam success into real finance career success.

Enrol in the ACCA course at Imarticus Learning today and secure your future with guaranteed success.

FAQ

  1. What is accounting cycle, and why is it important?
    The accounting cycle is a step-by-step process for recording and summarising financial transactions. It ensures accuracy and consistency in reports.
  1. What are the key accounting cycle steps?
    Steps include identifying transactions, journalising, posting to the ledger, preparing trial balances, making adjustments, and generating financial statements.
  2. How are journal, ledger, and trial balance connected?
    Entries go from journal (initial record) to ledger (classified) to trial balance (accuracy check). Each step builds on the last.
  3. How to prepare trial balance in accounting?
    It verifies that total debits equal credits, confirming accuracy before preparing financial statements.
  4. What are common fixed income securities in India?
    Examples include government bonds, PPFs, and corporate NCDs—essential for conservative portfolios.
  5. Why are journal ledger trial balance steps critical?
    They form the backbone of financial reporting. Skipping any step risks errors and misstatements.
  6. Can Imarticus Learning help with accounting basics?
    Yes. The banking and finance course and ACCA course cover these topics thoroughly with industry-relevant examples.

Understanding Cost Classifications in Management Accounting

Posted on by Imarticus Learning

Whether it’s a tech start-up in Bengaluru or a manufacturing unit in Pune, cost management lies at the core of every decision. This is where the classification of cost in management accounting becomes not just relevant but critical.

In real-world finance, especially for learners pursuing an ACCA course or professionals aiming for a strategic edge, understanding how you can group, track, and analyse cost is important. 

Let’s decode the subject in a way that’s practical, structured, and tailored to India’s evolving business environment.

What is Cost Classification in Accounting?

The classification of cost accounting refers to the process of grouping costs based on their nature, function, behaviour, and purpose. 

The Institute of Management Accountants defines cost accounting as a systematic process to record and report the costs involved in manufacturing goods and delivering services in detail. It involves identifying, assigning, combining, and reporting these costs and comparing them against standard costs.

From factory floor to boardroom strategy, knowing how to classify costs can help:

  • Plan budgets more effectively
  • Make informed pricing decisions
  • Track performance against goals
  • Improve profit margins

Why Cost Classification Matters in the Real World

By correctly categorising their direct and indirect costs, you can clearly see that they have lumped packaging and transport costs into raw materials. 

That’s the power of proper classification of cost. It brings clarity, and with clarity comes control. Getting to know how to group different types of costs can make a big difference in how a business runs. 

Here’s why it’s so important:

1. It Helps You Know What’s Making Money and What’s Not

Track spending clearly
When you sort out costs by type, it becomes easier to see how much it costs to make each product or provide each service.

Spot profit and loss
This helps businesses know which products are earning money and which ones are draining it. Once they know that, they can make smart changes.

Plan better
You also get a clearer view of where the money’s going. This helps you make stronger budgets and plan better for what’s ahead.

2. It Supports Smarter Business Decisions

Set prices wisely
When you understand what it costs to produce something, you can set prices that are fair and still make a profit.

Use your resources better.
It also helps you choose where to use your time, money, and people so that you get the most out of them.

Plan production with care
If you know how much each process costs, you can decide which way of working gives you the best value.

3. It Makes Cost Control Easier

Cut down waste
By knowing the cost of each part of the business, you can find where you might be spending too much. Then you can work on cutting those costs.

Improve your budget and forecasts.
Cost classification helps you build better budgets and plan more accurately for the future.

Track how well things work.
You can use the numbers to check how well different parts of the business are doing and where things could run more smoothly.

4. It Supports Clear Reporting and Builds Trust

Reports for managers
When costs are clearly grouped, it becomes easier to make reports for leaders in the business. They can use these to understand how the business is performing.

Reports for outsiders
Accounting rules (like GAAP) need you to show your costs in specific ways. Clear classification helps meet those rules and ensures that reports are correct and fair.

Benefits of Cost Classification

Benefit Area Key Actions 
Know What’s Making Money Track spending clearly, spot profit and loss, and plan better budgets and forecasts.
Smarter Business Decisions Set fair and profitable prices, allocate resources wisely, and plan production efficiently.
Easier Cost Control Identify and cut waste, improve financial forecasts, and monitor operational efficiency.
Clear Reporting and Trust Prepare detailed reports for managers, comply with GAAP standards, and build investor trust.

Types of Costs in Accounting: The Four Primary Classifications

The Indian government has projected a nominal GDP growth rate of 10.1% for the financial year 2025–26, which includes both real economic growth and the impact of inflation. 

Let’s break down the types of costs in accounting:

  1. Based on Nature
  • Direct Costs: Directly traceable to the product (e.g., raw materials, direct labour)
  • Indirect Costs: Not directly linked to the product but essential (e.g., rent, admin expenses)

Understanding direct and indirect costs is the first step in identifying what really drives your product pricing.

  1. Based on Function
  • Manufacturing Costs: Incurred during production
  • Administrative Costs: Related to business management
  • Selling & Distribution Costs: Expenses to market and deliver the product
  1. Based on Behaviour
  • Fixed Costs: Stay constant regardless of output (e.g. rent)
  • Variable Costs: Change with production levels (e.g. raw materials)
  • Semi-variable Costs: Contain both fixed and variable components (e.g., electricity bills)
  1. Based on Time or Relevance
  • Historical Costs: Incurred in the past
  • Relevant Costs: Affect current decision-making
  • Irrelevant Costs: Do not impact the decision at hand

Classification of Cost Accounting in the Indian Context

In India, where cost sensitivity is high, and competition is fierce, the ability to assign expenses accurately can give companies a critical edge. 

For example:

  • In e-commerce, knowing the direct and indirect costs helps optimise delivery charges
  • In manufacturing, types of costs in accounting guide machinery vs labour allocation
  • In IT services, indirect costs like employee benefits must be carefully traced to project costs

That’s why institutions like Imarticus Learning include the classification of cost accounting deeply within their ACCA course modules—because theory without real-world context won’t cut it in today’s job market.

Practical Application: Cost Classification for Strategic Planning

Let’s consider a bakery expanding into online deliveries.

Direct Costs: Flour, eggs, wages for bakers
Indirect Costs: Rent, delivery vehicle maintenance
Fixed Costs: Salaries, insurance
Variable Costs: Ingredients, packaging

By using cost classification, the business can:

  • Calculate the breakeven point
  • Set competitive prices
  • Evaluate which products bring higher margins
  • Justify investments in automation

Understanding the classification of cost is not just an exam requirement—it’s a job requirement. This is foundational knowledge, whether pursuing an ACCA course or entering the finance world through another route.

Build a Global Career in Finance with the ACCA Course at Imarticus Learning

The Association of Chartered Certified Accountants (ACCA) is one of the world’s largest and most respected accountancy bodies. The ACCA course goes beyond standard classroom training. From day one, students benefit from a guaranteed placement or internship offer upon completing even the first two levels—making it a risk-free career investment. 

Imarticus Learning also provides a unique passing guarantee: learners can retake the programme and repeat sessions without additional cost until they clear their ACCA exams. To ensure you’re industry-ready, the course includes a thorough pre-placement bootcamp. This phase covers CV building, mock interviews, personality development, and soft skills training. 

The course also features essential add-ons such as fundamentals in business and accounting, MS Excel, and advanced Excel, giving learners a strong practical foundation alongside their academic training.

Enrol in the ACCA course at Imarticus Learning and gain guaranteed placement, exam support, and world-class training from India’s most trusted finance education provider.

FAQ

  1. What is the classification of cost in management accounting?
    It’s the process of grouping costs based on characteristics such as nature, function, behaviour, and relevance to help in planning, budgeting, and decision-making.
  2. Why are direct and indirect costs important?
    They help businesses assign costs accurately and manage pricing, budgeting, and profitability more effectively.
  3. What are the main types of costs in accounting?
    They include direct, indirect, fixed, variable, historical, and relevant costs, each offering insights into different business functions.
  4. Can I learn this as part of an ACCA course?
    Yes, the ACCA course covers cost classification in detail, and learning through Imarticus Learning makes it even more application-focused.
  5. How is cost classification applied in real Indian businesses?
    From start-ups to corporates, correct cost classification aids in tax planning, cost control, and strategic pricing.
  6. Does cost classification help with GST or financial reporting?
    Yes. It streamlines input credit calculations and ensures accurate financial disclosures.
  7. How often should businesses review their cost classifications?
    At least quarterly, especially when launching new products, changing vendors, or scaling operations.
  8. What’s the best way to get started with cost accounting?
    Begin with structured learning through a certified course—like the one offered by Imarticus Learning—to build a solid foundation.

Fixed Income Securities: A Guide to Bonds and Debentures

Posted on by Imarticus Learning

Most people initially link investing to ownership of stocks combined with mutual funds and gold, but this approach may not provide the best balance of safety and steady returns. But if you’re looking for something that balances safety, fixed income securities could be the hidden gem in your portfolio. 

People frequently select more attention-grabbing high-risk investments instead of these stable income-generating assets, which remain vital to India’s progressing financial structures.

Whether you’re just starting out or preparing for a career in financial services, understanding what are fixed income securities, how they work and how to make the most of them can be a major advantage. And if you’re pursuing a banking and finance course, you’ll quickly realise how essential this topic is.

What Are Fixed Income Securities?

All financial agreements under the category of fixed income require the issuer or borrower to maintain steady payments according to a predefined payment schedule. Instrumental for investment, they function as security instruments that disburse pre-determined payouts during a decided time span. 

You lend your money to a government, corporation, or organisation—and in return, they pay you interest regularly, plus your initial amount at maturity. They’re predictable. They’re structured. And they form the foundation of any risk-aware portfolio.

The bond investment procedure starts with buying an asset worth ₹1,000, which provides 7% annual interest. The bond issuer will provide you with ₹70 in annual payments and will return your initial ₹1000 after the specified bond maturity, ranging between 5 and 10 years.

Types of Bonds and Debentures You Should Know

1. Government Bonds

Issued by central and state governments. These are the safest, with lower returns but almost zero risk.

2. Corporate Bonds

Issued by companies to raise funds. Corporate bonds offer higher returns than government bonds but may carry credit risk depending on the issuer.

3. Debentures

Companies generally offer long-term debt instruments which normally lack security yet operate under the strength of their business reputation. The underlying nature of debentures defines whether they enable investors to convert them into equity shares or remain non-convertible.

4. Public Provident Fund (PPF)

The government supports PPF through its scheme structure, which also provides tax advantages to users even though it operates differently from tradable bonds. 

5. Tax-Free Bonds

Government-backed entities such as NHAI and RFC distribute these bonds which provide tax-exempt interest benefits suitable for high-income taxpayer groups.

Should You Invest in Fixed Income Securities? 

Advantages

  • Provide a predictable income paid on a fixed schedule
  • Lower volatility and reduced exposure to market swings
  • Enhance diversification in a portfolio
  • Instruments offer tax-saving advantages

Disadvantages

  • Deliver lower returns than equities or high-growth assets
  • Interest rate risk—if rates fall, bond prices tend to rise, reducing yield
  • Inflation can reduce the real value of future interest payments
  • Higher-yield instruments may carry a greater risk of default or poor credit quality

Fixed Income Securities in India: What Makes Them Unique?

The Indian bond market is growing rapidly. According to SEBI data, the corporate bond market alone has more than doubled in the past decade. Meanwhile, RBI continues to promote retail participation in government bonds. 

According to Business Today, we expect additional rate cuts in 2025, which could bring ten-year yields down to the 6.25%–6.50% range within the current calendar year.

So, what are fixed income securities doing in India that’s grabbing attention?

Here’s what stands out:

  • Diversification tool: They balance the volatility of equity markets. 
  • Tax benefits: Certain instruments like PPF or tax-free bonds reduce your taxable income. 
  • Stable retirement planning: Many Indian retirees rely on them for a fixed post-retirement income. 
  • Low entry barriers: Platforms like NSE and RBI Retail Direct have made it easier for everyday investors to access government bonds.

Fixed Income vs Equity: Where Should You Start?

Aspect Fixed Income Securities Equity/Stocks
Returns Fixed, predictable Variable, market-linked
Risk Low to moderate Moderate to high
Ideal for Income-focused, risk-averse Growth-focused, risk-tolerant
Tenure Medium to long-term Varies (short to long-term)
Volatility Minimal High

A good sales strategy for business often blends both, depending on life stage and goals. That’s why most Indian investors are now adopting a hybrid approach.

Why You Should Learn About This Through a Banking and Finance Course

Understanding fixed income securities in India is no longer optional for finance professionals. It’s a core part of portfolio management, risk analysis, and client advisory.

Individual bonds and bond funds both aim to provide diversification and steady income. While individual bonds offer fixed returns and typically involve lower management fees, they require a larger capital outlay to build a well-diversified portfolio. 

Bond funds, in contrast, offer greater liquidity and immediate diversification, but their returns may fluctuate, and they often involve ongoing management fees. Not all fixed income securities come with tax benefits, though certain instruments, such as municipal bonds, are exempt from federal income tax and may also be free from state and local taxes for eligible investors.

This is where Imarticus Learning plays a vital role. Their comprehensive banking and finance course equips learners with both technical know-how and real-world applications—ensuring you’re not just academically prepared but job-ready.

From learning types of bonds and debentures to understanding credit ratings and yield curves, the course offers a deep dive into everything you’ll need on the job.

Kickstart Your Career with the Postgraduate Programme in Banking and Finance

The Postgraduate Programme in Banking and Finance also delivers deep insights into key banking functions such as retail asset and liability products, NRI banking, mutual funds, insurance, equity markets, and fixed income securities. It includes a broad overview of tax planning and personal finance—ensuring you’re job-ready from day one.

As part of this assured placement programme, your role is to upskill, complete the course, and earn your certification—while Imarticus Learning takes care of aligning you with the right job opportunities in the sector. With an interview guarantee, the programme has already placed over 8,000 learners, many of whom have secured up to a 60% salary hike. You’ll be eligible for entry-level roles across leading banks, FinTech companies, NBFCs, and KPOs.

Apply now to the Postgraduate Programme in Banking and Finance with Imarticus Learning and turn your ambition into a guaranteed career opportunity.

FAQ

  1. What are fixed income securities in simple terms?
    Fixed-income securities are investment tools that pay a set return over a fixed time—examples include bonds, debentures, and PPF.
  2. What are the main types of bonds and debentures?
    Government bonds, corporate bonds, and convertible/non-convertible debentures are the most common.
  3. Are fixed income securities in India safe?
     Government bonds are very safe. Corporate bonds carry some risk, but credit ratings help assess that.
  4. How are bonds taxed in India?
     Interest is usually added to your income and taxed as per your slab. But certain bonds, like tax-free bonds, offer exemptions.
  5. Should I invest in bonds or stocks first?
     If you’re just starting and prefer lower risk, fixed income securities are a good starting point.
  6. What is the best tenure for a fixed-income investment?
     It depends on your goal. Short-term bonds (2–3 years) offer liquidity; long-term bonds (10+ years) offer stability.
  7. How do I buy bonds in India?
    You can buy them via stock exchanges, mutual funds, or the RBI’s Retail Direct portal.

Building a Strong Sales Strategy: The Basics You Need to Know

Posted on by Imarticus Learning

Have you ever wondered why some businesses consistently close deals, even in the most competitive markets, while others struggle to hit targets? The difference often lies not in luck or sheer salesmanship—but in a strong, well-planned sales strategy.

Strong business performance in India’s fast-moving market requires the essential skill of developing and modifying strategic sales plans for all business sizes, including small startups and well-established financial institutions. For both start-ups and executive leaders, the fundamental knowledge of sales strategy execution is an absolute business requirement across all sales roles.

This blog offers essential strategy development knowledge through practical examples showing you how to create and enhance your winning plan. 

What is Sales Strategy?

Let’s start with the basics: what is sales strategy?

A sales strategy outlines how a business or individual intends to determine its approach to selling products and ensuring increased profitability. Business leadership teams develop strategic planning by collaborating with personnel from the sales, marketing, and advertising departments.

A strong sales strategy brings clarity to your approach. It helps answer vital questions like:

  • Who are we selling to?

  • What problems are we solving?

  • How are we different from the competition?

  • What channels, tools, and messages will help us close deals?

Whether you’re in B2B, retail, or BFSI, a robust sales strategy and planning process increases the likelihood of consistent, scalable success.

Why Do Sales Strategies Fail?

Before diving into building one, it’s important to understand why so many strategies fall flat:

  • Vague goals or unrealistic targets

  • Lack of understanding of customer needs

  • One-size-fits-all approach

  • Inadequate tools or training

  • Poor alignment with marketing and operations

Everyone had a different script and a different idea of our ideal client. It wasn’t until we created a unified sales strategy for business, with defined buyer personas and a shared pitch, that we began to see results.

Key Elements of a Strong Sales Strategy

Let’s break this into practical, easy-to-follow building blocks.

1. Define Clear Sales Goals

Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). For instance:

  • Increase quarterly revenue by 15%

  • Close 30 new B2B accounts within 6 months

This helps teams stay focused and makes performance measurable.

2. Know Your Target Audience

A powerful sales strategy starts with understanding your ideal customer profile (ICP). 

Ask:

  • What’s their pain point?

  • What does success look like for them?

  • How do they make buying decisions?

3. Map the Sales Process

Break down the customer journey—from awareness to decision. Identify the touchpoints, tools, and messaging needed at each stage.

For example:

Stage Sales Action
Awareness Cold email outreach, webinars
Interest Product demo, free trial
Decision Custom pricing, testimonials, follow-up
Retention Onboarding, support calls, renewals

4. Align Sales and Marketing

Your marketing team must support sales goals with relevant content, lead generation, and brand messaging. The smoother the handoff, the higher the close rate.

5. Invest in Sales Enablement

Provide your team with the right tools—CRM systems, proposal templates, competitor battle cards, and pitch decks. Sales without tools are like cricket without a bat.

6. Train Your Team—Continuously

This is where Imarticus Learning plays a major role. Through its Banking and Finance course, learners receive not just technical knowledge but also soft skills and market acumen vital to a high-functioning sales role.

Here’s a simple framework that summarises the process:

Goal → Audience → Process → Tools → Training → Tracking

Sales Strategy and Planning: What You Must Include

A good sales strategy and planning document isn’t a 100-page presentation. It’s actionable, flexible, and clearly owned.

Here’s what to include:

  • Sales goals by segment, region, and product line

  • Team roles and quotas

  • Sales funnel stages with conversion metrics

  • Channel strategy (inbound, outbound, partner)

  • Key accounts and priority verticals

  • Competitive positioning

  • Forecasts and reporting structure

Real-World Sales Strategy for Business: Indian Context

In India, consumer behaviours can change across cities and even within industries. By 2025, 80% of B2B sales interactions will take place through digital channels.

For example:

  • A SaaS firm in Bengaluru may sell via free trials and demo days

  • A BFSI brand in Mumbai might focus on trust and relationship-driven sales.

  • An edtech startup in Pune could win customers through performance metrics and career outcomes.

There’s no single formula. Your sales strategy for business must adapt to your segment and scale. One thing remains true: people buy from people they trust.

Launch Your Banking Career with the Postgraduate Programme in Banking and Finance

Step confidently into the world of retail banking, NBFCs, and FinTech with the Postgraduate Programme in Banking and Finance by Imarticus Learning—a fully structured, 190+ hour certification course designed to equip you with both domain knowledge and workplace-ready skills. 

Delivered through live, expert-led sessions in state-of-the-art classrooms across India, this postgraduate programme in banking and finance ensures you gain in-depth expertise in areas such as retail asset and liability products, NRI banking, mutual funds, insurance, tax planning, and personal finance. You’ll also develop critical soft skills essential for real-world success.

What makes this programme stand out is the interview guarantee. With more than 8,000 learners already placed and an average salary hike of 60%, Imarticus Learning commits to helping you land a role at top banks, NBFCs, FinTechs, and KPOs—as long as you complete the course and meet the certification criteria.

Enrol now with Imarticus Learning and take advantage of an industry-leading course that guarantees interviews, develops practical skills and sets the foundation for long-term success.


FAQ

  1. What is sales strategy, and why is it important?
     A sales strategy is a roadmap that helps businesses sell effectively. It’s key to hitting revenue goals, staying focused, and beating the competition.
  2. How do I start sales strategy and planning?
     Start with clear goals, understand your customers, define your sales steps, align with marketing, and train your team.
  3. Can a sales strategy work for small businesses?
     Absolutely. Whether you’re a startup or a large firm, having a focused sales strategy for business helps you sell smarter.
  4. Why is sales training essential in planning strategy?
     Even a great plan fails without skilled people. Training builds confidence and ensures the team can execute the strategy effectively.
  5. How does Imarticus Learning help in this space?
     Imarticus Learning offers industry-focused programmes like its Banking and Finance course that combine technical and strategic training.
  6. What are common mistakes to avoid in sales strategy?
     Not reviewing regularly, ignoring customer feedback, and poor alignment between teams often lead to missed targets.
  7. Can tech tools improve my sales strategy?
     Yes. CRM systems, automation, and data analytics tools streamline your sales process and improve decision-making.
  8. How often should I update my sales strategy?
    Review it quarterly. Markets change, and so should your approach to stay ahead.

Top Business Etiquette Tips for Successful Interviews

Posted on by Imarticus Learning

Many job seekers have devoted intense effort to their dream interview preparation. The credentials you present, together with your perfect CV and unparalleled experience, stand out. New settings create a feeling of discomfort that emerges the instant you walk through the door or begin the video meeting. 

Some minor errors could emerge during your initial contact through either your manner of speaking or your physical gestures or language selection. Professionals in contemporary business need to pay attention to every small business detail for success. 

The limelight of business etiquette emerges at this point. Dress smartly, check your online setup, and showcase your teamwork and ability to adapt. Ask thoughtful questions, follow up after the interview, and stay strong even if you face rejection.

Today, we’ll explore essential business etiquette for interviews. Freshers or experienced job seekers across Mumbai, Delhi, and Bengaluru must understand these etiquette norms to shine professionally.

What exactly is business etiquette definition? 

Business etiquette refers to the rules that guide how people deal with each other in work settings—be it with clients, vendors, or teams inside or outside the firm.

In professional environments, business etiquette consists of polite conduct and the professional standards that society expects from people. Doing business with etiquette provides the advantage you need to create superior early interactions that will lead to landing your desired job position.

Importance of Business Etiquette for Interviews

People often ask whether formal etiquette really shapes interview outcomes. Absolutely. Interview processes involve more than technical skills evaluation since employers focus on how you present yourself and your comportment and social skills. Your actions, despite what you say, provide employers with a richer understanding of your character. 

Understanding business etiquette definition means recognising its crucial role in conveying respect, professionalism, and confidence. Bearing proper business etiquette can concurrently enhance your personal image and create a positive impression on potential hiring firms.

Let’s delve into essential interview etiquette tips that can transform your interview experience.

Essential Interview Etiquette Tips You Need to Follow

1. Punctuality is Key—Every Second Counts

As Indians, we’ve all heard about IST—Indian Standard Time often joked about as ‘Indian Stretchable Time.’ But let’s be clear—interviews don’t run on IST humour. Arriving late, even by a few minutes, shows a lack of respect and poor planning.

2. Dress for Success—Your Appearance Matters

People develop their initial opinions rapidly when they meet someone for the first time. Dressing smartly and appropriately for your interview reflects your seriousness and understanding of business etiquette for interviews.

3. Mind Your Body Language—Say More Without Words

The physical signals you communicate surpass the meaning of spoken words. Make steady eye contact with a friendly smile while shaking hands based on proper strength—both offering enough pressure to show respect and neither hurting nor being weak. Slouching posture sends two messages to others: your disinterest and your disrespect of the situation.

4. Communication Counts—Listen Actively and Speak Clearly

The practice of listening attentively remains one of the main elements of business etiquette which people most often overlook. Going directly into your response, at first sight, becomes tempting before you make a pause for reflection and then deliver your answer properly.

5. Preparation is Professionalism—Know Your Company

Accompanying a company interview session without previous research about the organisation resembles taking an emergency assessment without studying beforehand. Devote enough time to grasp both the organisational history and cultural atmosphere and current achievements of the company.

Show your genuine interest by asking well-planned questions to the interviewers. This showcases your proactiveness—an essential attribute underlined in the business etiquette definition.

Business Etiquette for Remote Workers

With remote and mixed teams now the norm, business etiquette has taken a new shape. In today’s online world, skill shows through how you deal with emails, phone chats, and video calls.

Let’s break down how to hold high norms of work while at home:

  • Email and Team Communication Etiquette

To write emails or use team tools like Slack or Asana might seem simple, but professional communication is not the same as chatting with friends. 

Follow these key interview etiquette tips:

Proofread Everything
Check your mail each time you hit send. Auto checks help, but a quick read with your own eyes will still do the best job of fixing tone or clear sense faults.

Be Kind and Skilled
 Your tone shows in your words. Use kind, upbeat lines like:
 “I hope this finds you well”,
 “Thank you for your time”,
 “Just a quick note”,
 “Look forward to your reply”.

Reply Fast
 No need to ping back in five minutes, but do try to write back in a day or two. If you’re not free, set an away note so people know when you’ll be back.

Match Tone to Case
 When you ping mates on Slack or Asana, a soft tone works. But for folks who pay or lead, keep a smart and kind tone. That shows you know your business etiquette for interviews and work chats.

  • Phone Etiquette

Calls still play a big part in work life. Be it a workmate or a client, phone conversations must show your best side.

Don’t Call With No Word
 Drop a mail or short ping first to set the time. Cold calls can put people on edge and may hurt your flow.

Speak Well and Calm
 Use a soft, clear tone. Don’t shout or mumble. Think of who you talk to—some parts of the world use tone in a way that means more.

Call Back Fast
 If you miss a call or voice note, ping back that day. Be it a colleague or a client, fast calls back show you care—this is key in business etiquette.

  • Video Call Etiquette

Video links let teams talk live. But the rules don’t stop. 

These interview etiquette tips still hold strong:

Mute When Not Speaking
 Noise from your end can mess up the call. Mute your mic when not on. This shows care for the rest of the group.

Don’t Cut In
 It’s tempting to jump in, but overlapping voices can disrupt audio. Wait for your turn or use hand-raise features when available.

Dress Smart
 Just since you work from home, don’t turn up in lounge wear. Even if only your upper half is visible, dress in line with your company’s dress code. Clean and tidy attire reflects effort and respect.

Charting Your Etiquette Success—Interview Dos and Don’ts

DOs DON’Ts
Arrive early Be late
Dress professionally Wear overly casual attire
Maintain good eye contact Avoid eye contact
Listen actively, respond clearly Interrupt the interviewer
Research the company thoroughly Attend unprepared

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What sets this course apart is the 100% job assurance, with seven guaranteed interview opportunities at top financial firms. Learners gain hands-on experience in critical skills such as financial statement analysis, valuation, equity research, transaction execution, and practical tools like Excel and PowerPoint. 

Enrol now in the Postgraduate Financial Analysis Programme at Imarticus Learning and take the next confident step towards a successful finance career—with real skills, real experience, and real job assurance.

FAQ

  1. What is the simplest definition of business etiquette for interviews?
     Business etiquette refers to professional manners and polite behaviour shown during professional interactions like job interviews.
  2. Why are interview etiquette tips crucial for job seekers?
     Interview etiquette tips are vital as they help candidates present themselves professionally, increasing their chances of landing a job.
  3. Can business etiquette affect interview outcomes?
     Yes, practising strong business etiquette can positively influence interview outcomes by creating a favourable impression.
  4. Are there specific business etiquette examples for finance roles?
     Yes, for roles related to financial analysis courses or finance domains, clarity, professionalism, punctuality, and detailed preparation are critical etiquette elements.
  5. How can I improve my business etiquette for interviews quickly?
     Practise punctuality, professional dressing, clear speech, and thorough preparation for your interview role and company background.
  6. How important is body language in interview etiquette?
    Body language is crucial, reflecting confidence, respect, and professional attitude, significantly influencing your interviewer’s impression.

Step-by-Step Guide to Fund Accounting and NAV Calculation

Posted on by Imarticus Learning

If you’ve ever wondered why fund managers and investors obsess over net asset value (NAV), you’re not alone. Understanding fund accounting and NAV calculation isn’t just for portfolio managers—it’s a must for anyone stepping into the world of finance, especially those pursuing an investment banking course.

So, what makes NAV calculation such a core skill? It isn’t just about tallying numbers. It’s about presenting a true, fair, and timely picture of a fund’s performance.

In this blog, we’ll break down what is fund accounting, walk you through each step of NAV calculation, and offer actionable tips you can apply immediately, whether you’re in a classroom or on the job.

What is Fund Accounting?

Fund accounting is a specialised branch of accounting used by investment funds and asset managers to track inflows, outflows, asset purchases, liabilities, and income. Unlike traditional accounting, its focus isn’t on profit and loss—but rather on accountability, transparency, and legal compliance. In the Indian context, fund accounting becomes even more vital due to SEBI regulations, tax implications, and the rising volume of retail participation in mutual funds.

Key Characteristics:

Feature Description
Purpose To provide transparency and regulatory compliance for investors
Common Users Mutual Funds, Hedge Funds, Pension Funds
Focus Net Asset Value (NAV), investor transactions, and fund-specific data
Regulatory Framework (IN) SEBI Mutual Fund Regulations, Income Tax Act

Understanding NAV

Net asset value (NAV) refers to the value of an entity’s assets minus its liabilities. This metric commonly applies to open-ended funds, mutual funds, hedge funds, and venture capital funds.

NAV Calculation Formula:

NAV = (Assets – Liabilities) / Total Number of Outstanding Units

In 2024, the Institutional Limited Partners Association (ILPA) released non-binding guidelines on NAV-based lending, with a focus on improving transparency and managing risk. 

  • The relationship between the portfolio value and NAV is simple:
    • If portfolio value rises ➝ NAV increases
    • If portfolio value falls ➝ NAV decreases
  • However, similar to valuing individual listed shares, remember that a fund’s past performance does not guarantee future results.

Step-by-Step Process of NAV Calculation

1. Valuation of Assets

The fund must mark every security in its portfolio to market at closing prices. Exchanges like NSE or BSE provide these values for listed securities.

  • Equity: Use closing market price
  • Bonds: Use valuation agencies like CRISIL or ICRA
  • Foreign Assets: Apply forex rates for INR conversion

2. Accrual of Income

This includes interest on bonds, dividends received, and any realised gains. Income accruals get added to the asset base.

3. Expense Allocation

The fund calculates operating expenses such as management fees, custodian charges, audit fees, and distribution costs daily and allocates them proportionately.

4. Liability Recognition

The fund subtracts liabilities like pending redemptions, payable management fees, or unsettled trades from its total assets.

5. Units Outstanding

After all adjustments, divide the net asset figure by the number of units to calculate the final NAV.

NAV Calculation Flowchart:

Asset Valuation + Accrued Income

         ↓

    Total Assets

         ↓

– Total Liabilities

         ↓

  Net Asset Value

         ↓

/ Units Outstanding

         ↓

      Final NAV

Common Challenges in NAV Calculation
  • Market Volatility: Sudden fluctuations in asset prices can complicate daily NAV estimates.
  • Late Transactions: Transactions post-cut-off time lead to carry-over mismatches.
  • Currency Conversions: Funds with global exposure face forex translation differences.
  • Human Errors: Even a small typo in the spreadsheet could throw off calculations drastically.

Pro Tip: Automate reconciliations and use robust fund accounting software with audit trails.

Why It Matters for Finance Professionals

Whether you’re an aspiring fund accountant or a professional enrolled in an investment banking course, mastering NAV calculation gives you a competitive edge. Recruiters often test these concepts in interviews because they reflect your attention to detail, understanding of financial instruments, and operational readiness.

Actionable Tips to Master Fund Accounting

  1. Practice Real-World Scenarios: Use dummy portfolios and try calculating NAV manually.
  2. Understand SEBI Guidelines: Keep updated with the latest Indian fund regulations.
  3. Use Excel Smartly: VLOOKUP, INDEX-MATCH, and macros can help you automate checks.
  4. Join an Investment Banking Course: Institutions like Imarticus Learning provide hands-on NAV calculation practice and exposure to fund accounting frameworks.

If you’re still unsure about what is fund accounting, remember—it’s less about memorising formulas and more about understanding the logic.

By understanding fund accounting and mastering the NAV calculation formula, you’re not just learning a concept; you’re preparing yourself for a future in financial services. And if you’re considering an investment banking course, this knowledge will serve as a cornerstone of your career foundation.

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The learning experience at Imarticus Learning provides advanced certification beyond typical standards because it delivers comprehensive transformational education that helps students excel in investment banking operations.

Join Imarticus Learning’s CIBOP™ programme and become job-ready in just a few months. Your future in investment banking starts here!

FAQ

  1. What is fund accounting, and why is it key?

Fund accounting is a type of accounting method used by funds to track cash, debts, gains, and deals. 

  1. How does NAV calculation work in funds?

NAV calculation means you take what a fund owns, take off what it owes, and then split it by the count of units. That gives the net worth per unit.

  1. What is the NAV calculation formula?

The base NAV calculation formula is:

NAV = (Assets – Liabilities) / Total Number of Outstanding Units

This shows what each unit is worth at the day’s end.

  1. Is fund accounting not the same as regular accounting?

Yes, it is not the same. Regular accounting tracks gain or loss, while fund accounting shows a clear, fair view of a fund’s financial health.

  1. Why should I learn NAV calculation in an investment banking course?

NAV calculation is a base skill in fund jobs and stock work. A good investment banking course covers it to prepare students for real-world fund management roles.

  1. Can I do NAV calculation by hand with no tools?

Yes, you can do NAV calculations by hand with a spreadsheet. However, fund accounting software ensures better accuracy, especially with complex portfolios.

  1. Does NAV show how good a fund is?

NAV reflects the per-unit value of a fund but doesn’t alone indicate performance. One must compare historical NAVs, returns, and benchmarks for proper evaluation.