Success Stories
Turkmenistan

Accountant Helps Employer Increase Revenues and Expand Customer Base

CIPA accounting courses has provided Djahan Saparmurodova, an employee with the printing compay Garant PM, with the knowledge and skills she needed to implement a job-order costing system that resulted in increased business revenue of nearly 10%, reduction in the costs of products and inventory stock on hand, and increased customers for company products.

Ms. Saparmurodova graduated from the Turkmen Polytechnic Institute with a degree in engineering and economics. Before joining the printing company “Garant PM,” Ms. Saparmurodova worked with the Department of Analysis and Industrial Economics at the Ministry of Economy and Finance, and with the accounting department of local agro-production enterprise, Dokunhim.

“I knew that the accounting course I took at the Institute would not be enough to enable me to perform my job effectively, said Ms. Saparmuradova. In early 2004, I decided to participate in the first accounting course of the CIPA program. I found the first course very useful and decided to pursue other courses necessary to obtain CAP status. The approaches I learned have influenced my sense of professionalism and ability to serve my company. Not only has my company benefited on an accounting level, but I now find my work much more rewarding. I can see how my work as an accountant is increasing efficiency of the production process of our company.”

One of the new and effective financial methods that Djahan is implementing at Garant PM is the job-order costing or production order system. This type of costing system is typically utilized in companies associated with printing, aircraft construction, furniture and engineering industries. The premise underlying the system is order-based. In other costing systems, firms generally allocate costs according to basic and auxiliary materials for certain orders. Non-manufacturing expenses (fixed costs as well as sales costs) are not considered when setting prices for product(s). Such systems often lead to inaccurate methodologies for pricing a firm’s product, and do not give management a clear idea of what minimum price has to be set to break-even or gain a profit.

Results stemming from Ms. Saparmuradova initiatives were evident within months. Business revenue increased nearly 10%, the company reduced costs of its products, as well as inventory stock on hand. Reduction of the costs had a positive impact on pricing strategies, which in turn generated additional customers for company products. In sum, costs have been reduced, revenues have increased, and the firm’s customer base has expanded.

“I am urging all my colleagues to attend EDP’s accounting courses,” stated Djahan. In March 2005, Djahan passed “Managerial Accounting 1” exam, thus completing the required courses and examinations to be considered a CAP in Turkmenistan.

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