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Finance for non financial personnel - part 3

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Many non-financial personnel find finance is mystical and somehow cannot comprehend financial information.

The 8 parts of the presentation are designed to help the non-financial personnel to look at finance from their own view point. Instead of learn finance from finance perspective, we learn our own perspective.

This is because your goal is to improve your current work not to become a qualified accountant. Crash courses usually can’t provide sufficient knowledge for you to understand finance.

Designed from business’s viewpoint, different from other approaches found in the market. Hopefully, we can equip non-financial personnel with business driven financial knowledge.

By end of the 8 presentation:
1. You can create your value to increase financial value
2. You can interpret financial reports to make decisions
3. You know how to work on budget
4.You can propose your ideas in terms of dollars & cents
5. You produce the financial numbers that your boss likes
6. You can communicate well with finance department
7. You make collaboration with accountant possible instead of just for the sake of formality

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Finance for non financial personnel - part 3

  1. 1. Finance For Non-Financial Personnel Part 3 Business Driven Finance Insights For Laymen How To Record Accounting Information
  2. 2. £ ¥ € ₳ ₨$ The Structure of Finance For Non-Financial Personnel educational: free distribution Part 1 Part 2 Part 3 Part 4 Introduction and explain the importance of learning business driven finance Misconceptions - to describe the common misread of the laymen about the accounting department and it practise. Fundamentals of financial knowledge-set your perspective. Records - understand the principles that used in recording transactions & how your activities related to them. Very important but have been ignore by many. Reports- learn evaluate financial information, perform critical ratios analysis, and read different reports. From your perspective, how to use the reports in the best way. 8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request
  3. 3. £ ¥ € ₳ ₨$ How to record accounting information? educational: free distribution
  4. 4. £ ¥ € ₳ ₨$ Principle 1 Each financial record reflects two aspects: 1) source of fund, and 2) how the fund is applied Debit: Fund applied Credit: Source of fund Show off to your Chartered Accountant Remove mystery of double-entry system educational: free distribution
  5. 5. £ ¥ € ₳ ₨$ Principle 1 Each financial record reflects two aspects: 1) source of fund, and 2) how the fund is applied Sell Computer In Credit Term Remove mystery of double-entry system educational: free distribution Debit: Debtor Debtor formed where fund applied, i.e. buy debtor at this point of time. Debit: Fund applied Credit: Source of fund Credit: Sales As not yet receive money at this time, source of fund come from the sales.
  6. 6. £ ¥ € ₳ ₨$ Principle 2 Types of input data for Accounting information: 1. Historical 2. Estimate Historical => Actual Estimate => Budget/ forecast/ plan Only these two. Not that much right? Do you estimate? Record history to appraise results educational: free distribution
  7. 7. £ ¥ € ₳ ₨$ Principle 2 Types of input data for Accounting information: 1. Historical 2. Estimate Only these two. Not that much right? Do you estimate? Record history to appraise results educational: free distribution Actual: What had happen Budget: What had committed Forecast: What I think will happen Plan: What I hope to happen Historical => Actual Estimate => Budget/ forecast/ plan
  8. 8. £ ¥ € ₳ ₨$ Principle 3 Transaction types: 1. Cash 2. Sales 3. Purchase 4. Others (catch-all) All transactions MUST fall within these types Cash Any record touch on cash Sales Record Sales Others Notional; adjustment ; allocation Purchase Record Purchases To remove myth, you need to see big picture. educational: free distribution
  9. 9. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term educational: free distribution
  10. 10. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term Try to relate: Cash sales, cash purchase, traveling & entertainment & claim … educational: free distribution
  11. 11. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term Can you relate your CRM, Sales funnels, and invoicing to the credit sales numbers? educational: free distribution
  12. 12. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term Relate from your SCM, PO issue to vendor invoice recording to approving payment educational: free distribution
  13. 13. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term Most laymen confuse here. As a manager, you need to know what affect the presentation of your department’s performance educational: free distribution
  14. 14. £ ¥ € ₳ ₨$ Cash Any record touch on cash Sales Sales with credit term Others Notional; adjustment ; allocation Purchase Purchase with credit term Can you relate your CRM, Sales funnels, and invoicing to the credit sales numbers? Try to relate: Cash sales, cash purchase, traveling & entertainment & claim … From your SCM, PO issue to vendor invoice recording to approving payment Most laymen confuse here. As a manager, you need to know what affect the presentation of your department’s performance educational: free distribution
  15. 15. £ ¥ € ₳ ₨$ ● You know the principles behind your activities recorded ● You can relate your activities to the transaction types ● You can visualize why your activities affects the finance department’s operations educational: free distribution Are You On Track? Look For Next Presentation: Finance For Non-Financial Personnel - Part 4
  16. 16. £ ¥ € ₳ ₨$ educational: free distribution care@3cthinktank.com 3CTT is a management consultant who advise and run projects for holistic business solutions, usually end-to-end, to improve business and make achievements. They cover all business functions with unique IT enhancements to increase companies’ competitive advantages, maximizing revenue, liquidity, & profit while designing highly effective organization. We had been recognised by many as Trusted Advisor, Growth Driver, Turnaround Expert, Exceptional Motivator, Strategist, Business Designer, and Dynamic Change Agent For more information: www.3cthinktank.com 8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request All the 8 presentations are the overview, PLEASE email us if you like to get more benefits from them.

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