SlideShare a Scribd company logo
Lessons Learned

   Accounting
Disclaimer
This is not intended to be a condensed outline of the course,
but simply what I took as key takeaways. In some courses
there are many areas discussed that aren’t contained in these
slides, as they are items I was already familiar with and didn’t
feel the need to document or felt they wouldn’t be useful to me
in my current career. I think of these as my “cheat sheet” of
material that can help me in my current & future roles and are
DRAFT…like Google’s Beta are subject to change – Matt
Crane

Ballou, Brian & Heitger, Dan. (2009). Course presented on
Accounting for Managers. Miami University, Oxford &
Cincinnati, OH.
Economic Profit (EVA)
• Considers cost of capital
• Better profit indicator than profit/GM/etc
• Need to consider non-financial measures
  as well (BSC)
Business Continuity
• Crisis = low probability x high magnitude
  of loss
• Plan:
  – Avoid
  – Prepare to manage crisis
  – Recognize the crisis
  – Contain
  – Resolve
  – Learn & Profit from
Key Financial Ratios
•   ROA = NI/assets                •   Current = curr assets/curr liab.

•   ROE = NI/equity                •   Debt ratio = debt/assets

•   GM = sales – COGS/sales        •   Debt-Equity = debt/SH equity

•   AR period = 365 x AR/sales     •   Divident payout = dividends/NI

•   Inv turns = COGS/avg inv (in
    days) 365/inv turns

•   AP period = 365 x AP/COGS
Costs
• Don’t forget to include Indirect costs with
  Direct costs (use appropriate allocation)
  Total Costs
• When evaluating options: consider direct,
  indirect, and opportunity costs
• Also consider break-even analysis

More Related Content

Similar to Lessons learned accounting - s1

Case: apply Agile principles to front office credit analyst activity
Case: apply Agile principles to front office credit analyst activityCase: apply Agile principles to front office credit analyst activity
Case: apply Agile principles to front office credit analyst activity
Jean-François Nguyen
 
Lessons learned finance - s2
Lessons learned   finance - s2Lessons learned   finance - s2
Lessons learned finance - s2
Matt Crane
 
Project Management as Municipal Counsel - A Clio Webinar
Project Management as Municipal Counsel - A Clio WebinarProject Management as Municipal Counsel - A Clio Webinar
Project Management as Municipal Counsel - A Clio Webinar
Clio - Cloud-Based Legal Technology
 
Budgeting Strategies for Non Profits
Budgeting Strategies for Non ProfitsBudgeting Strategies for Non Profits
Budgeting Strategies for Non Profits
Tate & Tryon - Nonprofit CPA Firm
 
financial statements_EPGP.pptx
financial statements_EPGP.pptxfinancial statements_EPGP.pptx
financial statements_EPGP.pptx
RajeshPathak83
 
Why worry about revenue and expense recognition Why not j.docx
Why worry about revenue and expense recognition Why not j.docxWhy worry about revenue and expense recognition Why not j.docx
Why worry about revenue and expense recognition Why not j.docx
gauthierleppington
 
Working capital management
Working capital managementWorking capital management
Working capital management
Kapp Edge Solutions Pvt Ltd
 
Managing through growth
Managing through growthManaging through growth
Managing through growth
Doeren Mayhew
 
Ch-2.pptx cost and accounting management
Ch-2.pptx cost and accounting managementCh-2.pptx cost and accounting management
Ch-2.pptx cost and accounting management
BirukFantahun
 
Budgeting
BudgetingBudgeting
Budgeting
Visakhapatnam
 
Know your numbers
Know your numbersKnow your numbers
Know your numbers
The Capital Network
 
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptxFINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
MuyangaMark1
 
Year- End Audit Preparation
Year- End Audit Preparation Year- End Audit Preparation
Year- End Audit Preparation
CBIZ, Inc.
 
Job Costing - An Execution Guide for Operations NSCA Best Practices Conference
Job Costing - An Execution Guide for Operations NSCA Best Practices ConferenceJob Costing - An Execution Guide for Operations NSCA Best Practices Conference
Job Costing - An Execution Guide for Operations NSCA Best Practices Conference
John Graham
 
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Peter Kos, Jr.
 
EngManagement - Lecture 6.pptx
EngManagement - Lecture 6.pptxEngManagement - Lecture 6.pptx
EngManagement - Lecture 6.pptx
shayanzafar2
 
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Irma Miller
 
The balancesheet
The balancesheetThe balancesheet
The balancesheet
Akshay Samant
 
Are You Running Your Business Or Is Your
Are You Running Your Business Or Is YourAre You Running Your Business Or Is Your
Are You Running Your Business Or Is Your
Rtwilbert
 
Financial projections presentation (Venture Fast Track)
Financial projections presentation (Venture Fast Track)Financial projections presentation (Venture Fast Track)
Financial projections presentation (Venture Fast Track)
The Capital Network
 

Similar to Lessons learned accounting - s1 (20)

Case: apply Agile principles to front office credit analyst activity
Case: apply Agile principles to front office credit analyst activityCase: apply Agile principles to front office credit analyst activity
Case: apply Agile principles to front office credit analyst activity
 
Lessons learned finance - s2
Lessons learned   finance - s2Lessons learned   finance - s2
Lessons learned finance - s2
 
Project Management as Municipal Counsel - A Clio Webinar
Project Management as Municipal Counsel - A Clio WebinarProject Management as Municipal Counsel - A Clio Webinar
Project Management as Municipal Counsel - A Clio Webinar
 
Budgeting Strategies for Non Profits
Budgeting Strategies for Non ProfitsBudgeting Strategies for Non Profits
Budgeting Strategies for Non Profits
 
financial statements_EPGP.pptx
financial statements_EPGP.pptxfinancial statements_EPGP.pptx
financial statements_EPGP.pptx
 
Why worry about revenue and expense recognition Why not j.docx
Why worry about revenue and expense recognition Why not j.docxWhy worry about revenue and expense recognition Why not j.docx
Why worry about revenue and expense recognition Why not j.docx
 
Working capital management
Working capital managementWorking capital management
Working capital management
 
Managing through growth
Managing through growthManaging through growth
Managing through growth
 
Ch-2.pptx cost and accounting management
Ch-2.pptx cost and accounting managementCh-2.pptx cost and accounting management
Ch-2.pptx cost and accounting management
 
Budgeting
BudgetingBudgeting
Budgeting
 
Know your numbers
Know your numbersKnow your numbers
Know your numbers
 
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptxFINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
FINANCE MG'T FOR NON-FINANCE MANAGERS.pptx
 
Year- End Audit Preparation
Year- End Audit Preparation Year- End Audit Preparation
Year- End Audit Preparation
 
Job Costing - An Execution Guide for Operations NSCA Best Practices Conference
Job Costing - An Execution Guide for Operations NSCA Best Practices ConferenceJob Costing - An Execution Guide for Operations NSCA Best Practices Conference
Job Costing - An Execution Guide for Operations NSCA Best Practices Conference
 
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014Accounting 101 for Entrepreneurs - Denver Startup Week 2014
Accounting 101 for Entrepreneurs - Denver Startup Week 2014
 
EngManagement - Lecture 6.pptx
EngManagement - Lecture 6.pptxEngManagement - Lecture 6.pptx
EngManagement - Lecture 6.pptx
 
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
Using Financial Forecasts to Advise Business - Financial Forecasting 101 - Re...
 
The balancesheet
The balancesheetThe balancesheet
The balancesheet
 
Are You Running Your Business Or Is Your
Are You Running Your Business Or Is YourAre You Running Your Business Or Is Your
Are You Running Your Business Or Is Your
 
Financial projections presentation (Venture Fast Track)
Financial projections presentation (Venture Fast Track)Financial projections presentation (Venture Fast Track)
Financial projections presentation (Venture Fast Track)
 

More from Matt Crane

50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
50pct alpha   xavier saa s aggressive growth fund project - prospectus pitch50pct alpha   xavier saa s aggressive growth fund project - prospectus pitch
50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
Matt Crane
 
Lessons learned portfolio and hedge fund constr
Lessons learned   portfolio and hedge fund constrLessons learned   portfolio and hedge fund constr
Lessons learned portfolio and hedge fund constr
Matt Crane
 
Lessons learned supply chain - s3
Lessons learned   supply chain - s3Lessons learned   supply chain - s3
Lessons learned supply chain - s3
Matt Crane
 
Lessons learned strategy - s4
Lessons learned   strategy - s4Lessons learned   strategy - s4
Lessons learned strategy - s4
Matt Crane
 
Lessons learned mis - s5
Lessons learned   mis - s5Lessons learned   mis - s5
Lessons learned mis - s5
Matt Crane
 
Lessons learned marketing - s2
Lessons learned   marketing - s2Lessons learned   marketing - s2
Lessons learned marketing - s2
Matt Crane
 
Lessons learned management - s3
Lessons learned   management - s3Lessons learned   management - s3
Lessons learned management - s3
Matt Crane
 
Lessons learned investment mgt - s4
Lessons learned   investment mgt - s4Lessons learned   investment mgt - s4
Lessons learned investment mgt - s4
Matt Crane
 
Lessons learned hr - s6
Lessons learned   hr - s6Lessons learned   hr - s6
Lessons learned hr - s6
Matt Crane
 
Lessons learned econ - s1
Lessons learned   econ - s1Lessons learned   econ - s1
Lessons learned econ - s1
Matt Crane
 
Lessons learned corporate finance - s5
Lessons learned   corporate finance - s5Lessons learned   corporate finance - s5
Lessons learned corporate finance - s5
Matt Crane
 

More from Matt Crane (11)

50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
50pct alpha   xavier saa s aggressive growth fund project - prospectus pitch50pct alpha   xavier saa s aggressive growth fund project - prospectus pitch
50pct alpha xavier saa s aggressive growth fund project - prospectus pitch
 
Lessons learned portfolio and hedge fund constr
Lessons learned   portfolio and hedge fund constrLessons learned   portfolio and hedge fund constr
Lessons learned portfolio and hedge fund constr
 
Lessons learned supply chain - s3
Lessons learned   supply chain - s3Lessons learned   supply chain - s3
Lessons learned supply chain - s3
 
Lessons learned strategy - s4
Lessons learned   strategy - s4Lessons learned   strategy - s4
Lessons learned strategy - s4
 
Lessons learned mis - s5
Lessons learned   mis - s5Lessons learned   mis - s5
Lessons learned mis - s5
 
Lessons learned marketing - s2
Lessons learned   marketing - s2Lessons learned   marketing - s2
Lessons learned marketing - s2
 
Lessons learned management - s3
Lessons learned   management - s3Lessons learned   management - s3
Lessons learned management - s3
 
Lessons learned investment mgt - s4
Lessons learned   investment mgt - s4Lessons learned   investment mgt - s4
Lessons learned investment mgt - s4
 
Lessons learned hr - s6
Lessons learned   hr - s6Lessons learned   hr - s6
Lessons learned hr - s6
 
Lessons learned econ - s1
Lessons learned   econ - s1Lessons learned   econ - s1
Lessons learned econ - s1
 
Lessons learned corporate finance - s5
Lessons learned   corporate finance - s5Lessons learned   corporate finance - s5
Lessons learned corporate finance - s5
 

Lessons learned accounting - s1

  • 1. Lessons Learned Accounting
  • 2. Disclaimer This is not intended to be a condensed outline of the course, but simply what I took as key takeaways. In some courses there are many areas discussed that aren’t contained in these slides, as they are items I was already familiar with and didn’t feel the need to document or felt they wouldn’t be useful to me in my current career. I think of these as my “cheat sheet” of material that can help me in my current & future roles and are DRAFT…like Google’s Beta are subject to change – Matt Crane Ballou, Brian & Heitger, Dan. (2009). Course presented on Accounting for Managers. Miami University, Oxford & Cincinnati, OH.
  • 3. Economic Profit (EVA) • Considers cost of capital • Better profit indicator than profit/GM/etc • Need to consider non-financial measures as well (BSC)
  • 4. Business Continuity • Crisis = low probability x high magnitude of loss • Plan: – Avoid – Prepare to manage crisis – Recognize the crisis – Contain – Resolve – Learn & Profit from
  • 5. Key Financial Ratios • ROA = NI/assets • Current = curr assets/curr liab. • ROE = NI/equity • Debt ratio = debt/assets • GM = sales – COGS/sales • Debt-Equity = debt/SH equity • AR period = 365 x AR/sales • Divident payout = dividends/NI • Inv turns = COGS/avg inv (in days) 365/inv turns • AP period = 365 x AP/COGS
  • 6. Costs • Don’t forget to include Indirect costs with Direct costs (use appropriate allocation) Total Costs • When evaluating options: consider direct, indirect, and opportunity costs • Also consider break-even analysis