Ben marks Mackay supported the client in evaluating and responding to a proposal to releverage the balance sheet, stop paying dividends, and significantly increase the size of the share-buyback program.
An engineers role for financial decision makingabdus sobhan
The creation of a broad statement about the company’s values, purpose, and future direction is the first step in the strategic-planning process.
An effective mission statement conveys eight key components about the firm: target customers and markets; main products and services; geographic domain; core technologies; commitment to survival, growth, and profitability; philosophy; self-concept; and desired public image.
Financial metrics have long been the standard for assessing a firm’s performance. The BSC supports the role of finance in establishing and monitoring specific and measurable financial strategic goals on a coordinated, integrated basis, thus enabling the firm to operate efficiently and effectively.
Step 1 through 5 outline the steps in performing accounting analysis. Step 4 evaluates the quality of disclosure by companies, determining if they adequately explain business strategy, accounting policies, and current performance. Step 5 identifies potential red flags in a company's accounting, such as unexplained transactions, unusual increases in inventory/receivables, and gaps between net income and cash flows.
This document discusses factors to consider when evaluating a business venture for purposes such as buying or selling a business, establishing an employee stock option plan, determining estate tax liability, or structuring a buy/sell agreement. It outlines assessing the business environment, financials, assets, competition, licenses, capital needs, management, controls, and projections. The document also covers underlying buyer and seller goals and emotions, and different valuation methods including adjusted tangible book value, price/earnings ratios, and discounted earnings.
The document discusses the roles and responsibilities of finance teams in modern organizations. It describes how the CFO now plays a strategic role similar to the CEO in driving growth and shareholder value. The controller takes on operational finance responsibilities. Typical teams include the controller, corporate development, investor relations, and transaction processing. Key priorities for large finance teams include invoicing, management reporting, and collection despite many competing projects. Standardizing processes and using integrated systems can help address challenges.
The document discusses value creation from both a theoretical and practical perspective. It defines value creation as earning economic profits that exceed the cost of capital. From a theoretical standpoint, it discusses using capital budgeting techniques to evaluate existing operations and identify opportunities to improve returns, grow profits, fix underperformers, or exit businesses. Practically, it outlines a five-step process to apply value creation analysis: 1) model company operations, 2) prioritize key value drivers, 3) evaluate opportunities, 4) implement changes, and 5) measure results and revise the analysis over time on a continual basis. The goal is to ensure economic profits exceed costs to maximize value creation.
This document discusses the importance of management accounting in both personal and professional life. It begins by outlining how management accounting is applied in various service organizations, non-profits, and government agencies to evaluate organizational performance, compare actual results to expectations, and assess possible courses of action to solve problems. It then discusses how management accounting helps with decisions related to costs and whether to take special offers, buy new machines, make or buy products, and add or drop segments. The document also touches on how management accounting aids professional decision making through cost-benefit analyses and variance comparisons. Finally, it notes how management accounting principles can optimize costs and decision making for personal finances and purchases.
This document discusses finance transformation and becoming a strategic business partner. It provides an overview of finance challenges, objectives of high-performing finance organizations, and a maturity model assessment tool. The key aspects of a successful transformation include having a clear business case, executive support, program management, addressing cultural issues, and effective communication throughout the process. The payoff is shifting from transactional to more analytical/strategic work, optimizing resources, and enhancing business competitiveness over time.
An engineers role for financial decision makingabdus sobhan
The creation of a broad statement about the company’s values, purpose, and future direction is the first step in the strategic-planning process.
An effective mission statement conveys eight key components about the firm: target customers and markets; main products and services; geographic domain; core technologies; commitment to survival, growth, and profitability; philosophy; self-concept; and desired public image.
Financial metrics have long been the standard for assessing a firm’s performance. The BSC supports the role of finance in establishing and monitoring specific and measurable financial strategic goals on a coordinated, integrated basis, thus enabling the firm to operate efficiently and effectively.
Step 1 through 5 outline the steps in performing accounting analysis. Step 4 evaluates the quality of disclosure by companies, determining if they adequately explain business strategy, accounting policies, and current performance. Step 5 identifies potential red flags in a company's accounting, such as unexplained transactions, unusual increases in inventory/receivables, and gaps between net income and cash flows.
This document discusses factors to consider when evaluating a business venture for purposes such as buying or selling a business, establishing an employee stock option plan, determining estate tax liability, or structuring a buy/sell agreement. It outlines assessing the business environment, financials, assets, competition, licenses, capital needs, management, controls, and projections. The document also covers underlying buyer and seller goals and emotions, and different valuation methods including adjusted tangible book value, price/earnings ratios, and discounted earnings.
The document discusses the roles and responsibilities of finance teams in modern organizations. It describes how the CFO now plays a strategic role similar to the CEO in driving growth and shareholder value. The controller takes on operational finance responsibilities. Typical teams include the controller, corporate development, investor relations, and transaction processing. Key priorities for large finance teams include invoicing, management reporting, and collection despite many competing projects. Standardizing processes and using integrated systems can help address challenges.
The document discusses value creation from both a theoretical and practical perspective. It defines value creation as earning economic profits that exceed the cost of capital. From a theoretical standpoint, it discusses using capital budgeting techniques to evaluate existing operations and identify opportunities to improve returns, grow profits, fix underperformers, or exit businesses. Practically, it outlines a five-step process to apply value creation analysis: 1) model company operations, 2) prioritize key value drivers, 3) evaluate opportunities, 4) implement changes, and 5) measure results and revise the analysis over time on a continual basis. The goal is to ensure economic profits exceed costs to maximize value creation.
This document discusses the importance of management accounting in both personal and professional life. It begins by outlining how management accounting is applied in various service organizations, non-profits, and government agencies to evaluate organizational performance, compare actual results to expectations, and assess possible courses of action to solve problems. It then discusses how management accounting helps with decisions related to costs and whether to take special offers, buy new machines, make or buy products, and add or drop segments. The document also touches on how management accounting aids professional decision making through cost-benefit analyses and variance comparisons. Finally, it notes how management accounting principles can optimize costs and decision making for personal finances and purchases.
This document discusses finance transformation and becoming a strategic business partner. It provides an overview of finance challenges, objectives of high-performing finance organizations, and a maturity model assessment tool. The key aspects of a successful transformation include having a clear business case, executive support, program management, addressing cultural issues, and effective communication throughout the process. The payoff is shifting from transactional to more analytical/strategic work, optimizing resources, and enhancing business competitiveness over time.
Managing cash flow is not rocket science. Find out simple things you can do and understand why you should do them. Then download a free app to keep you on track.
This document discusses finance transformation, including what it means and how to achieve it. Finance transformation refers to making finance more effective and efficient through real-time information, quality processes, and cost reductions. Key enablers include management buy-in, standard systems and processes, and a culture of continuous improvement. Successful companies have leadership driving transformation from the top down and treating it as an ongoing effort rather than just addressing symptoms. Finance must be structured as an internal business focused on supporting company growth through business partnering, accounting, and specialist finance functions.
The document outlines 20 steps to ensure success for a finance transformation project. It recommends appointing a project sponsor and steering committee to oversee the project. A project manager should be appointed to lead the assembly of a project team to gather requirements, select software, and produce key documents like a project charter and system design document. Other steps include purchasing technology, configuring software, user acceptance testing, training, migrating data, going live, and celebrating project completion. The overall goal is the successful delivery of a new finance system to meet changing business needs through a rigorous project process.
Business Transformation - Finance Transformation using SAP Solutionsvenunala
The document discusses strategies for business and finance transformation at a consumer packaged goods company. It recommends leveraging SAP solutions to achieve integrated end-to-end business processes, gain insights from data analytics, streamline applications, and ensure strategic initiatives are aligned with business goals. Key focus areas include supply chain optimization, working capital management, consumer insights, mobility, and leveraging existing SAP investments to transform processes and systems.
White Paper: IT budgets Custom Software Application Development, Custom Appli...ISHIR
Making the Right IT Budget Cut In times of economic uncertainty organizations have two fundamental choices: hunker down or strengthen their strategic positions. What is the winning strategy? High performance businesses invest to strengthen their position through mergers and acquisitions, product innovation and market expansion—even in a downturn. They support their efforts by strategically reducing costs to create cash flow. Rather than make arbitrary cost reductions, these winners develop cost management measures. Those responsible for IT budgets can expect to receive mandates from senior executives to cut IT costs as part of an enterprise wide cost-cutting program. Begin establishing ground rules for complying with a cost-cutting mandate.
Cima transforming the role of finance into a strategic business partner irela...Irelan Tam
The document discusses the evolving role of finance from a focus on cost efficiencies and controls to becoming a strategic business partner focused on value creation. It outlines how finance professionals can transform by embracing business analytics to support decision making and growth strategies. The challenges of business partnering are also examined, particularly for small and medium enterprises.
Rajesh Kumar Mishra has over 15 years of experience as a CFO and financial executive, with expertise in strategic financial planning, budgeting, fundraising, and managing global teams. He is currently the Vice President of Finance and CFO at XBT Holding & Datacenter.com, where he oversees all financial operations. Prior to his current role, he held senior financial roles at several technology and manufacturing companies.
The document discusses building an organization for growth and outlines the entrepreneurial stages of a startup. It describes setting up a chief executive officer and board of directors to oversee management, strategic planning, major investments, policy, compliance, and financing. A board of advisors is also recommended to provide support through advice and networking. The stages include generating an idea, confirming viability, preparing a business plan, hiring a management team, seeking seed capital, additional capital, product launch, working capital raises, and potential merger or IPO. Risks include lack of realism, leaks, lack of funding or capital, competition, running out of money, poor market acceptance, and counteroffers.
Why cash flow statements are importantShweta Johri
The cash flow statement provides important information about a company's cash flows from operating, investing, and financing activities. It complements the income statement and balance sheet by showing how changes in balance sheet accounts affect cash flow. The cash flow from operations section indicates whether a company is generating enough cash internally and is a key metric to evaluate sustainability and quality of earnings. The cash flow statement also provides insights into how management is allocating cash flows across investing and financing activities. Key metrics like free cash flow derived from the cash flow statement help assess a company's liquidity and ability to operate over the long run.
The document discusses Sanjay's services for improving underperforming companies. He offers a "temporary COO" approach to address issues like vanishing revenue, poor collections, and inefficiency. His services include analyzing finances, reviewing operations and management, creating strategies, and communicating with investors/lenders. Past clients included companies in radio, retail, wireless, and film. Sanjay has investment banking experience from firms like Ramius, Dresdner Kleinwort Wasserstein, and Lazard Freres.
The document discusses corporate governance and IT governance. It states that corporate governance principles are the same even if models vary, with the board responsible for protecting shareholder rights. IT governance focuses on using IT to support top-line growth while reducing costs. The value of IT investments is not just financial but also comes from supporting strategic goals. Signs of bad IT governance include projects running over budget and benefits not being tracked. Good IT governance provides strategic alignment, visibility of benefits, and efficient control to maximize future cash flows and deliver shareholder value.
Using Portfolio Management to Improve Business InvestmentCarolyn Reid
Structured Portfolio Management is very valuable to businesses in maximizing their Return on Investment. Portfolio Management ties investments to strategy to ensure the organization is realizing it's expected benefits and achieving it's strategy.
This document discusses investment centers and methods for measuring assets employed and business unit performance. An investment center compares profit to the assets used to generate that profit. Measuring assets employed and return on investment (ROI) provides information for decision making and motivates managers. ROI is profit divided by assets employed. Economic value added (EVA) measures wealth creation by subtracting a capital charge from net operating profit after taxes. EVA attempts to capture true economic profit by considering the cost of capital.
Performance management includes activities that ensure organizational goals are met efficiently and effectively. An IBM view is that performance data should be transformed into insights to improve decision making and link measures to strategy. There is a growing need for self-service financial performance management applications to give leaders visibility and control as data volumes grow across disconnected systems. Enterprise performance management provides a framework to translate strategy into actions through initiatives that identify opportunities and concerns.
Keith turner quick silver funding solutions the role of finance in the stra...keithturnerquicksilverfun
Keith Turner discusses the role of finance in strategic planning and decision making. He outlines the strategic planning process and emphasizes that financial goals and metrics are critical to translating vision into action. Specifically, he discusses 8 key financial metrics that should be established based on benchmarks and industry standards to monitor strategy implementation: free cash flow, economic value-added, asset management, financing decisions, profitability ratios, growth indices, risk assessment, and tax optimization. Establishing measurable financial goals in these areas helps firms execute strategies effectively and create long-term value for stakeholders.
Wal-Mart discovered through data mining that sales of diapers and beer were correlated on Friday nights. It found men were being asked to pick up diapers on their way home from work. On Fridays, men would buy beer for the trouble of getting diapers. By moving diapers and beer closer together in stores, Wal-Mart saw significantly increased sales of both products.
This document discusses various aspects of business strategy including:
1. Translating the strategy into operational terms and making it an ongoing process.
2. Aligning the organization to the strategy and mobilizing change through executive leadership.
3. Using management control systems and strategic management systems to translate visions into plans, budgets, and incentives to communicate and link all parts of the organization.
4. Focusing on turning around declining organizations by implementing new controls quickly, focusing on reasons for decline, and responding quickly and creatively to events.
Financial statement analysis is important for (1) projecting future earnings and cash flow, (2) evaluating a firm's flexibility, and (3) assessing management's performance. Financial statements are analyzed by both internal users like managers and external users like creditors and investors. Common methods of financial analysis include horizontal analysis, vertical analysis, trend percentages, and ratio analysis. These methods are used to evaluate a company's past performance, current financial position, and future profitability and solvency.
Present.profitability analytics framework ima san antonio finalFernando Pico
The Profitability Analytics Center of Excellence (PACE) promotes a framework for profitability analytics that incorporates causal modeling. The framework includes revenue, cost, and investment models that quantify relationships between key elements based on causal factors rather than just correlations. By embedding causality into strategic planning, forecasting, and decision-making, management can better understand economic realities and manage the business toward strategic goals.
The document discusses balanced scorecards and how they can be used with IT. It provides the following key points:
1. A balanced scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
2. It measures an organization's performance across four perspectives: financial, customer, internal business processes, and learning and growth.
3. An example is provided of how Taco Bell uses the four perspectives in its balanced scorecard.
4. IT governance is also discussed as distinguishing governance from IT management and using a matrix to map how key IT decisions are made.
What influences working capital managementSachin Karpe
Applying an effective funds control system is an excellent way for many companies to improve their returns. Funds management ensures a company has sufficient proceeds to meet its short-term debt debts and operating expenses
What Are Financial Statements?
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. For-profit primary financial statements include the balance sheet, income statement, statement of cash flow, and statement of changes in equity. Nonprofit entities use a similar but different set of financial statements.
Managing cash flow is not rocket science. Find out simple things you can do and understand why you should do them. Then download a free app to keep you on track.
This document discusses finance transformation, including what it means and how to achieve it. Finance transformation refers to making finance more effective and efficient through real-time information, quality processes, and cost reductions. Key enablers include management buy-in, standard systems and processes, and a culture of continuous improvement. Successful companies have leadership driving transformation from the top down and treating it as an ongoing effort rather than just addressing symptoms. Finance must be structured as an internal business focused on supporting company growth through business partnering, accounting, and specialist finance functions.
The document outlines 20 steps to ensure success for a finance transformation project. It recommends appointing a project sponsor and steering committee to oversee the project. A project manager should be appointed to lead the assembly of a project team to gather requirements, select software, and produce key documents like a project charter and system design document. Other steps include purchasing technology, configuring software, user acceptance testing, training, migrating data, going live, and celebrating project completion. The overall goal is the successful delivery of a new finance system to meet changing business needs through a rigorous project process.
Business Transformation - Finance Transformation using SAP Solutionsvenunala
The document discusses strategies for business and finance transformation at a consumer packaged goods company. It recommends leveraging SAP solutions to achieve integrated end-to-end business processes, gain insights from data analytics, streamline applications, and ensure strategic initiatives are aligned with business goals. Key focus areas include supply chain optimization, working capital management, consumer insights, mobility, and leveraging existing SAP investments to transform processes and systems.
White Paper: IT budgets Custom Software Application Development, Custom Appli...ISHIR
Making the Right IT Budget Cut In times of economic uncertainty organizations have two fundamental choices: hunker down or strengthen their strategic positions. What is the winning strategy? High performance businesses invest to strengthen their position through mergers and acquisitions, product innovation and market expansion—even in a downturn. They support their efforts by strategically reducing costs to create cash flow. Rather than make arbitrary cost reductions, these winners develop cost management measures. Those responsible for IT budgets can expect to receive mandates from senior executives to cut IT costs as part of an enterprise wide cost-cutting program. Begin establishing ground rules for complying with a cost-cutting mandate.
Cima transforming the role of finance into a strategic business partner irela...Irelan Tam
The document discusses the evolving role of finance from a focus on cost efficiencies and controls to becoming a strategic business partner focused on value creation. It outlines how finance professionals can transform by embracing business analytics to support decision making and growth strategies. The challenges of business partnering are also examined, particularly for small and medium enterprises.
Rajesh Kumar Mishra has over 15 years of experience as a CFO and financial executive, with expertise in strategic financial planning, budgeting, fundraising, and managing global teams. He is currently the Vice President of Finance and CFO at XBT Holding & Datacenter.com, where he oversees all financial operations. Prior to his current role, he held senior financial roles at several technology and manufacturing companies.
The document discusses building an organization for growth and outlines the entrepreneurial stages of a startup. It describes setting up a chief executive officer and board of directors to oversee management, strategic planning, major investments, policy, compliance, and financing. A board of advisors is also recommended to provide support through advice and networking. The stages include generating an idea, confirming viability, preparing a business plan, hiring a management team, seeking seed capital, additional capital, product launch, working capital raises, and potential merger or IPO. Risks include lack of realism, leaks, lack of funding or capital, competition, running out of money, poor market acceptance, and counteroffers.
Why cash flow statements are importantShweta Johri
The cash flow statement provides important information about a company's cash flows from operating, investing, and financing activities. It complements the income statement and balance sheet by showing how changes in balance sheet accounts affect cash flow. The cash flow from operations section indicates whether a company is generating enough cash internally and is a key metric to evaluate sustainability and quality of earnings. The cash flow statement also provides insights into how management is allocating cash flows across investing and financing activities. Key metrics like free cash flow derived from the cash flow statement help assess a company's liquidity and ability to operate over the long run.
The document discusses Sanjay's services for improving underperforming companies. He offers a "temporary COO" approach to address issues like vanishing revenue, poor collections, and inefficiency. His services include analyzing finances, reviewing operations and management, creating strategies, and communicating with investors/lenders. Past clients included companies in radio, retail, wireless, and film. Sanjay has investment banking experience from firms like Ramius, Dresdner Kleinwort Wasserstein, and Lazard Freres.
The document discusses corporate governance and IT governance. It states that corporate governance principles are the same even if models vary, with the board responsible for protecting shareholder rights. IT governance focuses on using IT to support top-line growth while reducing costs. The value of IT investments is not just financial but also comes from supporting strategic goals. Signs of bad IT governance include projects running over budget and benefits not being tracked. Good IT governance provides strategic alignment, visibility of benefits, and efficient control to maximize future cash flows and deliver shareholder value.
Using Portfolio Management to Improve Business InvestmentCarolyn Reid
Structured Portfolio Management is very valuable to businesses in maximizing their Return on Investment. Portfolio Management ties investments to strategy to ensure the organization is realizing it's expected benefits and achieving it's strategy.
This document discusses investment centers and methods for measuring assets employed and business unit performance. An investment center compares profit to the assets used to generate that profit. Measuring assets employed and return on investment (ROI) provides information for decision making and motivates managers. ROI is profit divided by assets employed. Economic value added (EVA) measures wealth creation by subtracting a capital charge from net operating profit after taxes. EVA attempts to capture true economic profit by considering the cost of capital.
Performance management includes activities that ensure organizational goals are met efficiently and effectively. An IBM view is that performance data should be transformed into insights to improve decision making and link measures to strategy. There is a growing need for self-service financial performance management applications to give leaders visibility and control as data volumes grow across disconnected systems. Enterprise performance management provides a framework to translate strategy into actions through initiatives that identify opportunities and concerns.
Keith turner quick silver funding solutions the role of finance in the stra...keithturnerquicksilverfun
Keith Turner discusses the role of finance in strategic planning and decision making. He outlines the strategic planning process and emphasizes that financial goals and metrics are critical to translating vision into action. Specifically, he discusses 8 key financial metrics that should be established based on benchmarks and industry standards to monitor strategy implementation: free cash flow, economic value-added, asset management, financing decisions, profitability ratios, growth indices, risk assessment, and tax optimization. Establishing measurable financial goals in these areas helps firms execute strategies effectively and create long-term value for stakeholders.
Wal-Mart discovered through data mining that sales of diapers and beer were correlated on Friday nights. It found men were being asked to pick up diapers on their way home from work. On Fridays, men would buy beer for the trouble of getting diapers. By moving diapers and beer closer together in stores, Wal-Mart saw significantly increased sales of both products.
This document discusses various aspects of business strategy including:
1. Translating the strategy into operational terms and making it an ongoing process.
2. Aligning the organization to the strategy and mobilizing change through executive leadership.
3. Using management control systems and strategic management systems to translate visions into plans, budgets, and incentives to communicate and link all parts of the organization.
4. Focusing on turning around declining organizations by implementing new controls quickly, focusing on reasons for decline, and responding quickly and creatively to events.
Financial statement analysis is important for (1) projecting future earnings and cash flow, (2) evaluating a firm's flexibility, and (3) assessing management's performance. Financial statements are analyzed by both internal users like managers and external users like creditors and investors. Common methods of financial analysis include horizontal analysis, vertical analysis, trend percentages, and ratio analysis. These methods are used to evaluate a company's past performance, current financial position, and future profitability and solvency.
Present.profitability analytics framework ima san antonio finalFernando Pico
The Profitability Analytics Center of Excellence (PACE) promotes a framework for profitability analytics that incorporates causal modeling. The framework includes revenue, cost, and investment models that quantify relationships between key elements based on causal factors rather than just correlations. By embedding causality into strategic planning, forecasting, and decision-making, management can better understand economic realities and manage the business toward strategic goals.
The document discusses balanced scorecards and how they can be used with IT. It provides the following key points:
1. A balanced scorecard is a strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
2. It measures an organization's performance across four perspectives: financial, customer, internal business processes, and learning and growth.
3. An example is provided of how Taco Bell uses the four perspectives in its balanced scorecard.
4. IT governance is also discussed as distinguishing governance from IT management and using a matrix to map how key IT decisions are made.
What influences working capital managementSachin Karpe
Applying an effective funds control system is an excellent way for many companies to improve their returns. Funds management ensures a company has sufficient proceeds to meet its short-term debt debts and operating expenses
What Are Financial Statements?
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. For-profit primary financial statements include the balance sheet, income statement, statement of cash flow, and statement of changes in equity. Nonprofit entities use a similar but different set of financial statements.
Analysing Cash Flow Patterns for Improved Financial ManagementAlan Boal
As an accountant, one of the key aspects of financial management is analysing cash flow patterns. By understanding the inflow and outflow of cash in a company, you can make informed decisions and implement strategies to optimise financial performance.
In today's increasingly competitive business environment, organizations are engaged in a rat race to retain customers, build up clientele and simultaneously ensure steady growth. Unfortunately, they often get caught in a web of issues which may not be easily controlled and affect performance. Here comes the play of Financial Accounting. Professional accountants have a vital role in commercial success by using their valuable knowledge to provide their organizations/clients a competitive advantage and an accurate picture of their financial position and performance.
Business valuation is the method involved in deciding the financial worth of an organization. A basic activity includes surveying different variables to show up at a gauge of what the business is worth in the commercial center. Understanding the worth of a business is fundamental for different purposes, including consolidations and acquisitions, raising capital, tax collection, Financial reporting and estate preparation.
Strategic financial management means not only managing a company's finances but managing them with the intention to succeed—that is, to attain the company's goals and objectives and maximize shareholder value over time. However, before a company can manage itself strategically, it first needs to define its objectives precisely, identify and quantify its available and potential resources, and devise a specific plan to use its finances and other capital resources toward achieving its goals.
small business & epreneurship development U4.pdfkittustudy7
Financial management is vital for small businesses. It involves planning, organizing, and controlling financial activities like cash flow, budgets, and financial reporting to achieve business goals. Effective financial management requires skills in bookkeeping, forecasting, risk assessment, and capital structure optimization. Key aspects of financial management for small businesses include cash flow management, budgeting, and analyzing financial performance metrics like profit margins and return on investment. Common challenges include managing budgets, making payroll, paying bills on time, controlling debt, securing financing, and understanding different financing products.
Management Techniques to Increase the Bottom-lineCavendish
This document discusses various management techniques that can help directors and managers improve efficiency and effectiveness. It describes techniques like profitability analysis, ratio analysis, and productivity ratios that systematically analyze financial data. While techniques provide objective analysis, good judgment is also needed. The document recommends an interactive software to help business owners better understand key financial concepts and indicators to make better decisions.
This document discusses financial statement analysis for credit decisions. It describes the three main financial statements - the balance sheet, income statement, and cash flow statement. It then discusses different types of financial statement analysis including vertical analysis, horizontal analysis, and ratio analysis. Finally, it discusses analyzing a company's ongoing business concern by examining factors like working capital, cash flow, receivables, inventory, and management skills. The overall goal of financial statement analysis is to assess a company's financial health, performance, and ability to repay debts.
The role of finance in the strategic planning and decision-making processyashikagupta48
The document discusses the role of finance in strategic planning and decision making. It outlines the strategic planning process, which includes creating a vision and mission statement, analyzing strengths/weaknesses/opportunities/threats, formulating a strategy, and implementing and monitoring the strategy. The balanced scorecard approach aligns strategy with financial goals in key areas like free cash flow, economic value added, asset management, profitability, growth, risk management, and tax optimization. Setting measurable financial goals in these areas helps ensure strategies are effectively implemented and monitored.
This document discusses keys to successful working capital management. It begins by explaining that working capital management involves ensuring a company can fund short-term assets with short-term liabilities. However, many CFOs struggle with identifying drivers of working capital and setting the appropriate levels. The document then discusses factors that influence working capital performance, such as external constraints and internal silos. It stresses the importance of cash flow forecasting and considering various scenarios. Finally, it provides several ways companies can improve their working capital position, such as educating personnel, streamlining disputes, and setting achievable targets.
ALL THE DETAILS ARE MENTIONED IN THE DOCUMENT RELATED TO ALL 4 PERSPECTIVES OF BSC.
-REFERRED MAINLY FOR STRATEGIC COST MANAGEMENT.
-INCLUDES ALL THE EXPLANATION WITH APPROPRIATE EXAMPLES & CASE STUDY
Akbar Zareh - Real Estate Management ProcessesAkbar Zareh
Akbar Zareh, as a real estate agent, is responsible for daily operations of Kingsway Real Estate Brokerage located in Mississauga, Richmond Hill, Brampton and 3 other locations in Ontario.
This document discusses controlling as a management function that involves ensuring employee performance aligns with organizational standards through monitoring, comparing, and correcting actions. It describes controlling as both a corrective and foreseeing activity. The document outlines objectives to discuss the nature of controlling, link planning to controlling, and distinguish control methods and systems. It provides definitions for terms like standard and discusses the importance of management control for areas like working capital. The document also describes the typical control process of establishing standards, measuring performance, comparing to standards, and taking corrective action. It discusses accounting tools like the balance sheet, income statement, and cash flow statement that are used for organizational performance control and financial analysis. Finally, it covers quantitative and non-quantitative control
chapter 8Responsibility Concepts and Sound Decision-Maki.docxchristinemaritza
chapter 8
Responsibility Concepts and Sound
Decision-Making Analytics
Learning Objectives
• Understand concepts in responsibility accounting.
• Be able to provide a framework for rational business decision making, and understand
how to apply these concepts for specific types of situations.
• Apply capital budgeting methods and discounted cash flow concepts.
• Know how to make proper long-term investment decisions.
istockphoto
waL80281_08_c08_189-212.indd 1 9/25/12 1:03 PM
CHAPTER 8Section 8.1 Responsibility Accounting Concepts
Chapter Outline
8.1 Responsibility Accounting Concepts
Accumulation of Information to Match Centers
Management by Exception
Rational Decision Making
Sunk Costs
8.2 A General Framework for Making Sound Business Decisions
Applying the General Framework to an Example: Bulk Orders
Applying the General Framework to an Example: Offshoring
8.3 Capital Expenditures
Future Value
Annuity
Present Value
8.4 Making Decisions About Long-Term Investments
Net Present Value
Internal Rate of Return
Simpler Capital Budgeting Methods
Recap of Using Capital Budgeting Tools for Decision Making
8.1 Responsibility Accounting Concepts
In general, managers should be held accountable for the results of their decisions and business execution. Without accountability based on performance-related feedback, the
business will not perform at its best, and areas in need of improvement may not be iden-
tified on a timely basis. Business feedback is often based on financial results. You have
already seen how budgets and variances are used to help identify areas for improvement.
Because managers are accountable for their decisions, actions, and outcomes, their perfor-
mance measures should align around the department, product, division, or other business
for which they are responsible. In other words, the attribution of responsibility tends to
follow the organizational structure of the business.
Sometimes, a business has a highly dispersed design, with decisions nested with lower
level managers. Other businesses generate decisions only at the upper levels, and
lower level personnel are basically charged with execution of defined actions. Proper
implementation of responsibility accounting concepts stipulates that performance mea-
sures be aligned with the business organization structure. In other words, accountability
should map to responsibility. Proper design of performance measurement systems there-
fore requires that the management accountant carefully consider the organizational struc-
ture. Sometimes performance measures are only appropriate on an aggregated basis, such
as where the organization is structured as a top–down, command-and-control, central-
ized decision-making entity. As lower level managers are given increased authority, so
too should the accountability system be modified to provide more disaggregated perfor-
mance measures. Although quite logical, this presents measurement challenges.
waL80281_ ...
CFO Consultant: for Financial Success of a Business | The Enterprise WorldTEWMAGAZINE
Let's explore the various ways in which a CFO consultant can unlock financial success for your business: 1. The role of a CFO consultant in financial success 2. Assessing your business's financial health 3. Developing a financial strategy and action plan 4. Optimizing budgeting and forecasting processes 5. Mitigating financial risks and ensuring compliance
Importance of financial management for managing financial resources effective...Joseph Stone Capital
Joseph Stone Capital financial services take a strategy-first approach by creating a unique and customized plan for each client that utilizes both technical and fundamental analysis. We work through volatile markets and build our relationships by committing ourselves towards achieving our clients’ financial goals.
The document discusses insightful controllership, which aims to provide strategic insight beyond basic financial functions. It argues controllership should provide understanding to support strategic decision making, not just compliance. This requires understanding business operations and gaining strategic insights from financial data. An outsourced controllership model is proposed to focus on decision support and compliance over number crunching, freeing up 20-30% of time for strategic activities. Dedicated teams would provide timely, actionable insights to executives to facilitate strategic decisions.
This document discusses financial statement analysis and its use for corporate finance. It outlines the key types of financial statements - income statement, balance sheet, cash flow statement and statement of retained earnings. It then explains the importance of ratio analysis for evaluating financial performance and identifying strengths and weaknesses. Various liquidity, asset management, debt and profitability ratios are defined. The limitations of financial statement analysis are also noted.
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2. This is a measure of the firm’s financial soundness
and shows how efficiently its financial resources are
being utilized to generate additional cash for future
investments. It represents the net cash available
after deducting the investments and working capital
increases from the firm’s operating cash flow.
Companies should utilize this metric when they
anticipate substantial capital expenditures in the
near future or follow-through for implemented
projects.
3. This is the bottom-line contribution on a risk-
adjusted basis and helps management to make
effective, timely decisions to expand businesses that
increase the firm’s economic value and to implement
corrective actions in those that are destroying its
value. It is determined by deducting the operating
capital cost from the net income.
4. This calls for the efficient management of current
assets (cash, receivables, inventory) and current
liabilities (payables, accruals) turnovers and the
enhanced management of its working capital and
cash conversion cycle. Companies must utilize this
practice when their operating performance falls
behind industry benchmarks or benchmarked
companies.
5. This is a measure of the operational efficiency of a
firm. Profitability ratios also indicate inefficient areas
that require corrective actions by management; they
measure profit relationships with sales, total assets,
and net worth. Companies must set profitability ratio
goals when they need to operate more effectively
and pursue improvements in their value-chain
activities.
6. Growth indices evaluate sales and market share
growth and determine the acceptable trade-off of
growth with respect to reductions in cash flows,
profit margins, and returns on investment. Growth
usually drains cash and reserve borrowing funds, and
sometimes, aggressive asset management is
required to ensure sufficient cash and limited
borrowing.
7. Many functional areas and business units need to
manage the level of tax liability undertaken in
conducting business and to understand that
mitigating risk also reduces expected taxes.
Moreover, new initiatives, acquisitions, and product
development projects must be weighed against their
tax implications and net after-tax contribution to the
firm’s value. In general, performance must,
whenever possible, be measured on an after-tax
basis.
8. The introduction of the balanced scorecard
emphasized financial performance as one of the key
indicators of a firm’s success and helped to link
strategic goals to performance and provide timely,
useful information to facilitate strategic and
operational control decisions. This has led to the role
of finance in the strategic planning process becoming
more relevant than ever.