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

1. Finance For Non-Financial Personnel Part 6
Business Driven Finance Insights For Laymen
Estimation

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The Structure of Finance
For Non-Financial Personnel
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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.

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Estimation Beyond
Financial Information
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Why we need
to estimate?
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Only One
Answer:
“Because we
don’t know the
future!”
If we already know the future, there isn’t any need to estimate at all!

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Complete Piece of Information
for Decision Making
Objectives
Strategies
Impacts
Financial & non-
financial numbers
Perceive
Solely rely on financial information
to make decision is dangerous
Good Information: “timely; reliable; relevant; fit for purpose; cost; complete ”
Source: From Presentation Part 4

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To estimate accurately is
one of the greatest assets
in the world! Financial data
play an important role for
estimation, however ...
Rule from complete
piece of information:
We must include
financial information
in each estimation
but other information
also very important.

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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
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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
Source: From Presentation Part 3

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Modelling is getting information
about how something will behave without
actually testing it in real life
Extrapolation beyond the
original observation range, the value of a
variable on the basis of its relationship
with another variable.
Regression a statistical
process for estimating the
relationships among variables.
Wild Guess to arrive at an
opinion about (something) without
having sufficient evidence to
support the opinion fully
Logic Reasoning the system
or principles of reasoning applicable when
estimating
Value/ Religion Guides
collection of beliefs, cultural systems, and
worldviews that relate humanity to an
order of existence.
Here are some
methods to estimate
financial numbers

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What Would You
Like to Estimate?
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● Recruit new employee
● Working on budgeting
● To plan an event or project
● Plan for resource allocation
● Predict what to do next
● React to complex environment
● Detect possible failure earlier
for good risk management
TO NAME A FEW

10. £ ¥ € ₳ ₨$
Example: Recruit New Employee
The Case: customer service manager wanted to
recruit a customer service officer and approach to HR
manager to advise on costing and HR matter. He also
turns to finance manager to advise on the finance impact.
Finance Impact:
Profit
lesser?
Increase one
more headcount
as orders
increase
S/T Costs
increase >
sales
increase
Expect
increase
in assets
Cash
conversion
more
important
Are the
orders
L/T or
S/T?
Modelling
Regression
Extrapolation
Value/Religion Guides
Logic Reasoning
Wild Guess
educational: free distribution

11. £ ¥ € ₳ ₨$
Example: Recruit New Employee
The Case: customer service manager wanted to
recruit a customer service officer and approach to HR
manager to advise on costing and HR matter. He also
turns to finance manager to advise on the finance impact.
Finance Impact:
Profit
lesser?
Increase one
more headcount
as orders
increase
S/T Costs
increase >
sales
increase
The cash
conversion
rate
reduce to
20%
Expect
increase
in assets
Cash
conversion
more
important
Are the
orders
L/T or
S/T?
Modelling
Regression
Extrapolation
Value/Religion Guides
Logic Reasoning
Wild Guess
educational: free distribution

12. £ ¥ € ₳ ₨$
Example: Recruit New Employee
The Case: customer service manager wanted to
recruit a customer service officer and approach to HR
manager to advise on costing and HR matter. He also
turns to finance manager to advise on the finance impact.
Finance Impact:
Profit
lesser?
Increase one
more headcount
as orders
increase
S/T Costs
increase >
sales
increase
The cash
conversion
rate
reduce to
20%
Expect
increase
in assets Yes,
orders
increase
5 times
in L/T
GREAT!
L/T net
benefits >
than now.
Cash
conversion
more
important
Are the
orders
L/T or
S/T?
Modelling
Regression
Extrapolation
Value/Religion Guides
Logic Reasoning
Wild Guess
educational: free distribution

13. £ ¥ € ₳ ₨$
Example: Recruit New Employee
The Case: customer service manager wanted to
recruit a customer service officer and approach to HR
manager to advise on costing and HR matter. He also
turns to finance manager to advise on the finance impact.
Finance Impact:
Profit
lesser?
Increase one
more headcount
as orders
increase
S/T Costs
increase >
sales
increase
The cash
conversion
rate
reduce to
20%
Expect
increase
in assets Yes,
orders
increase
5 times
in L/T
GREAT!
L/T net
benefits >
than now.
Cash
conversion
more
important
Are the
orders
L/T or
S/T?
Modelling
Regression
Extrapolation
Value/Religion Guides
Logic Reasoning
Wild Guess
educational: free distribution
Modelling suggests
while S/T suffers a bit
L/T gain much more. Is
the market still the
same in longer term? I
need to estimate
consumers’ behaviours.

14. £ ¥ € ₳ ₨$
● You know how to use financial information for estimation
● You understand financial information is critical but you
also know that you need to depend on other information
● You know how to use different methods to estimate
financial numbers
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Are You On Track?
Look For Next Presentation:
Finance For Non-Financial
Personnel - Part 7

15. £ ¥ € ₳ ₨$
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care@3cthinktank.com
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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.