3. Leader’s Primer To Finance &
Accounting for Non-CPA’s
Understanding, Integrating
Accounting, Controlling, and
Financial Planning and Analsis

4. Percentage of Completion Method
• How Do Percentage-of-Completion Adjustments Bring Sanity to Your Results?
• To make the POC adjustment, do the following:Compare this job’s actual cost to date (as
shown on your job cost report) against your estimated costs and compute the cost booked
as a percentage of estimated cost
• .Multiply that percentage against your estimated income to match income proportionally
to costs.
• Make a temporary entry to adjust your income up (or down) to keep your income aligned
with costs.
http://www.remodeling.hw.net/accounting/percentage-of-completion-accounting-whats-it-all-about.aspx

5. Things Leaders Need to Know
• The Accounting Equation
• The Accounting Equation Basics

6. Accounting Cycle

7. Balance Sheet

8. Income Statement

9. Key Terms
Accounting Dictionary

10. Financial Analysis

11. Ratio Analysis

12. Breakeven Analysis

13. Time Line Probability Analysis
Formula for Time Line Probability Click Here

14. Pro Forma Analysis
Pro forma analysis typically includes sections that forecast operating expenses, forecasts any
changes in total assets, changes in total equities and analyzes the cost of financing versus the
long-term financial reward (or loss) of the proposed change. A pro forma analysis concludes
with forecast income statements and forecast balance sheets that incorporates changes in taxes
and interest.

15. Capital Budgeting

16. Charge Risk Analysis

17. Fraud / Embezzlement Detection
The specific steps in detection areThe specific steps in detection are a matter of judgment, based on factors such as which assets are likely to be
susceptible, the type of business, and the facts known about the business and its current situation. The process normally involves the following
steps:
a. Identify embezzlement exposures. b. Look for symptoms of embezzlement in the exposure areas. c. Consider pressures and
motivations to commit embezzlement. This step might be combined with one of the other two steps.Identifying specific embezzlement
exposures involves looking at factors that make certain assets more vulnerable than others. Internal control weaknesses in certain aspects of the
business will become evident as an investigation or analysis progresses.As to symptoms of embezzlement, different symptoms apply to different
types of embezzlement. Examples of embezzlement symptoms include:a. Analytical symptoms, such as unusual changes in gross profit
percentages. b. Employee symptoms, such as unusual changes in an employee’s lifestyle or attitude. c. Tips and complaints, such as
comments from employees, customers, or vendors.amatter of judgment, based on factors such as which assets are likely to be susceptible, the
type of business, and the facts known about the business and its current situation. The process normally involves the following
steps:a. Identify embezzlement exposures. b. Look for symptoms of embezzlement in the exposure areas. c. Consider pressures and
motivations to commit embezzlement. This step might be combined with one of the other two steps.Identifying specific embezzlement
exposures involves looking at factors that make certain assets more vulnerable than others. Internal control weaknesses in certain aspects of the
business will become evident as an investigation or analysis progresses.As to symptoms of embezzlement, different symptoms apply to different
types of embezzlement. Examples of embezzlement symptoms include:a. Analytical symptoms, such as unusual changes in gross profit
percentages. b. Employee symptoms, such as unusual changes in an employee’s lifestyle or attitude. c. Tips and complaints, such as
comments from employees, customers, or vendors.
In most small companies, fraud and, in particular, embezzlement can be prevented to a great extent when owners are committed to the internal
control process. This includes monitoring the flow of paperwork, subtly noting the activities and attitudes of personnel, and reading and acting
on financial reports. Determining if misappropriation of assets is occurring or has occurred requires writing a program of procedures, which
includes reviewing the relevant internal control procedures, identifying weaknesses, listing all of the possible symptoms, noticing which
symptoms exist, investigating, and evaluating the information on a step by step basis. The investigation program will change at a particular
juncture when necessary, that is, when a lead is not producing results or when a new lead surfaces.