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Finance for non financial personnel - part 5

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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 5

  1. 1. Finance For Non-Financial Personnel Part 5 Business Driven Finance Insights For Laymen Accounting System
  2. 2. £ ¥ € ₳ ₨$ The Structure of Finance For Non-Financial Personnel educational: free distribution 8 presentations altogether, if you cannot find all the links, kindly email care@3cthinktank.com to request Part 5 Part 6 Part 7 Part 8 Accounting systems - the systems are not that simple after all and how your own system integrates to them. Accounting systems are not IT systems! Estimation - any activity (you name it) involves estimation, how can you estimate better? Budget/ Forecast/ Plan. How the financial data so important to you? Lean & agile. Valuables take-away - how to work on numbers that please your boss? What numbers must you always look at? The hidden financial formula a boss must have. Decision making - interpret financial information, perform critical ratios analysis, read different reports, and use reports for specific needs. Use management accounting information for your own management needs.
  3. 3. £ ¥ € ₳ ₨$ Accounting System is the skeleton that hold the accounting function educational: free distribution But only part of the whole business system
  4. 4. Operation (Internal) Management (Internal) Financial (External) Reports £ ¥ € ₳ ₨$ educational: free distribution Accounting System Activities, Transactions & Objectives Record & Process Data System Control model Business Transactions Finance Objectives Other Business Objectives R&D Sales Finance Operation Marketing Cash Sales Purchase Others Business Activities
  5. 5. Operation (Internal) Management (Internal) Financial (External) Reports £ ¥ € ₳ ₨$ educational: free distribution Accounting System Activities, Transactions & Objectives Equipping PROCEDURES & POLICIES TRAINING MANUAL ERP/ ACCOUNTING APPLICATION CONTINUOUS LEARNING ACCOUNTING TEAM BUSINESS INTELLIGENCE INTEGRATING TO OTHER SYSTEMS Record & Process Data System Control model Business Transactions Finance Objectives Other Business Objectives R&D Sales Finance Operation Marketing Cash Sales Purchase Others Business Activities
  6. 6. £ ¥ € ₳ ₨$ educational: free distribution In Summary 1. Accounting systems record & manage business transactions to their activities to report their objectives 2. Accounting systems MUST integrate with other business systems to smooth the record function. 3. Enhance the accounting systems by equipping them with methodology, technologies, & guidelines. 4. Systems include upgrading finance members. 5. Accounting systems hold the finance function by: [mindsets-behaviours-treatments-manage information] Accounting System Not IT Solution
  7. 7. £ ¥ € ₳ ₨$ Accounting system Illustration educational: free distribution Inventory Management Goals To Manage Inventory ● Target cash flow, costs, & inventory level ● Track sales and inventory moments ● Understand its position for strategic plan ● Check point to operate efficiently Purpose Of Inventory Reports ● Monitor cash flow, profit, & inventory ● Holding costs, purchase, & obsolete ● Valuation, liquidity, & life-cycle ● Efficient by reorder level & EOQ 1 2
  8. 8. £ ¥ € ₳ ₨$ Accounting system Illustration educational: free distribution Inventory Management Infor. for business activities ● Sale order lead to inventory status check ● Make inventory purchase at reorder level ● Move inventory to and for warehouse ● Stock count and check Source document & Controls ● Filing & matching of document ● Scanned or physical ● Execution procedures & procedures ● Internal audit & Segregation of duties 3 4
  9. 9. £ ¥ € ₳ ₨$ Accounting system Illustration educational: free distribution Inventory Management Input & Process Data ● Input by barcode, keyboard, handwritten ● Manual or computerised storage ● All input data will be stored ● Process or further process -> reports Control & Monitor Business ● Diagnose and interpret the reports ● Response to the results in the reports ● Positive, negative feedback or new goal ● Track progress 5 6 Record Activities by transactions Generate reports Control
  10. 10. £ ¥ € ₳ ₨$ Accounting system Illustration educational: free distribution Inventory Management Equip by way of rules ● Department mission, goals, & strategies ● Accounting policies and core values ● Job design and sharing ● Learning - upgrade & orientate Equip by way of technology ● IT & Non-IT hardware & Infrastructure ● Applications (with/ without integration) ● Internal/ external security ● Level of automation & robot platform 7 8
  11. 11. £ ¥ € ₳ ₨$ Accounting system Illustration educational: free distribution Inventory Management Integration ● Accounting systems facilitate finance department to discharge its duty ● Use $ to interact and communicate to inventory function ● Record data; value stock; formula for reorder, minimum order, Economic order quantity; etc ● Inventory function is a integrator for sales and purchase departments so that the entire supply chain can be establish ● Accounting systems make use of inventory function to integrate with the activities of sales and purchase department 9
  12. 12. £ ¥ € ₳ ₨$ ● You know Accounting System VS IT System ● You appreciate how different systems integrate to the AS ● You know how finance department upgrade their system educational: free distribution Are You On Track? Look For Next Presentation: Finance For Non-Financial Personnel - Part 6
  13. 13. £ ¥ € ₳ ₨$ 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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