This is module 7 of 20. Presentation 1 of 2. Finance world can be complex and intimidating. However as entrepreneur you cannot afford to leave it to some expert you have to get on with it. Take one day until you master it. Today i will cover the following : How to transform your life in anything Understand World of Finance - which focuses on financial concepts how they related and work with each other. Identify Factors that influences your decisions which then affect your earnings How Corporate Finance decisions are made - investing, financing and dividends (ROI) What internal and external factors influences these decisions - either macro and micro factors How Financial Management activities work Difference between finance and accounting Role of accountancy & bookkeeping in recording and summarising your earnings Different type of accountancy - to enable you to know basics so you know when someone bullshit you. Learn business language to daily operations. During the session i mentioned this video.. check it out https://www.youtube.com/watch?v=6ExV7... It will cover more detailed on accounting please note it has a series, 2 videos. The next one will look at transactions to financial statements. Get more information on www.financesuccess.co.za Find the presentation on this link https://www.slideshare.net/PreciousMK... You can buy the essential finance handbook on this link https://publisher.co.za/product/the-e... Leave us comments and join our network Twitter: https://twitter.com/PreciousMvulane Linkedin: https://za.linkedin.com/in/precious-m... Facebook: https://web.facebook.com/financehandb... Website: https://preciousmvulane.com Join our What's Up Group to ask weekly questions: https://chat.whatsapp.com/KQNZYJDV5yb...

1. FINANCIAL
CONCEPTS

2. 2
MODULE 7 – FINANCIAL CONCEPTS
COURSE OUTLINE
How to
transform your
life in anything
1
Understand
world of finance
2
Identify
economic
factors
3
How Corporate
Finance
decisions are
made
4
How Financial
Management
activities
5
Role of
accountancy &
bookkeeping
6
Learn business
language to
daily operations.
7

3. Your Financial Destiny is already
set
HOW THE
WORLD/
UNIVERSE
WORKS
MODULE 7 – FINANCIAL CONCEPTS 3

4. 4
MODULE 7 – FINANCIAL CONCEPTS
BREAK OUT FROM YOUR ENVIRONMENT

5. 5
MODULE 7 – FINANCIAL CONCEPTS
BREAK OUT FROM YOUR ENVIRONMENT

6. 1. Basics of the World of Finance
(where it fit?)
© 2014 The Essential Finance
Handbook for entrepreneur

7. 7
MODULE 7 – FINANCIAL CONCEPTS
ECONOMIC FACTORS

8. 8
MODULE 7 – FINANCIAL CONCEPTS
ECONOMIC FACTORS

9. 9
MODULE 7 FINANCIAL CONCEPT
HOW ECONOMIC FACTORS AFFECT YOUR PROFITS

10. Direct and Indirect
HOW
ECONOMIC
FACTORS
AFFECT YOUR
BUSINESS
ENVIRONMENT
MODULE 7 FINANCIAL CONCEPTS 10

11. 11
MODULE 7 – FINANCIAL CONCEPTS
MAKE DECISIONS ON 4 AREAS – PERFORMANCE
Income Expenses

12. 12
MODULE 7 – FINANCIAL CONCEPTS
MAKE DECISIONS ON 4 AREAS – POSITION
Assets Debt - Liabilities

13. Measure of success of the
business
FINANCIAL
STATEMENTS
TEACH A COURSE 13

14. 14
MODULE 7 FINANCIAL CONCEPTS
CORPORATE FINANCE

15. 15
MODULE 7 – FINANCIAL CONCEPTS
CORPORATE FINANCE
It is about 3 decisions that are linked
 Investment - i.e Asset
 Financing – Debt or Equity
 Dividend - Return on Investment - Profits

16. 16
MODULE 7 – FINANCIAL CONCEPTS
CORPORATE FINANCE – INVESTMENT

17. decisi
FACTORS
AFFECTING
INVESTMENT
TEACH A COURSE 17

18. CORPORATE
FINANCE –
FINANCING
Type
 Debt or
 Equity or
 Both
Structure
Cost of Capital
18
MODULE 7 – FINANCIAL CONCEPTS

19. MODULE 7 – FINANCIAL CONCEPTS

20. CORPORATE
FINANCE –
DIVIDEND
Dividend Policy
Retained Earnings
20
MODULE 7 – FINANCIAL CONCEPTS

21. Return on investment - Profit
FACTORS THAT
INFLUENCE
DIVIDEND
DECISIONS
MODULE 7 – FINANCIAL CONCEPTS 21

22. FINANCIAL
MANAGEMENT
 Day to day activities
 Decisions you make in your
business everyday
 Where to spend money
 Who did you sell to and at what
price
 What you sell and when you sell
22
MODULE 7- FINANCIAL CONCEPTS

23. 23
TEACH A COURSE
WHICH DECISIONS ? OR WHICH ACTIVITIES?

24. 24
MODULE 7 FINANCIAL CONCEPTS
PRINCIPLE OF FINANCIAL MANAGEMENT HOW DECISIONS ARE MADE DETERMINE HOW MUCH MONEY YOU WILL ACCUMULATE

25. ACCOUNTING OR ACCOUNTANCY
25
MODULE 7 FINANCIAL CONCEPTS
Summarising the financial decisions

26. YOUR ACCOUNTANT IS
NOT RESPONSIBLE FOR
FINANCE
FINANCE VS
ACCOUNTING
MODULE 7 FINANCIAL CONCEPTS 26

27. ACCOUNTING
MODULE 7 FINANCIAL CONCEPTS 27
Financial
Management
Tax
Cost

28. MODULE 7 FINANCIAL CONCEPTS

29. 29
MODULE 7 FINANCIAL CONCEPTS
BOOKKEEPING RECORDING THE BUSINESS DECISIONS – PAST

30. 30
MODULE 7 – FINANCIAL CONCEPTS
WHAT EXACTLY IS BOOKKEEPING ?

31. TEACH A COURSE 31
BOOKKEEPING
 How you process source
documents
 How documents are managed or
filled
 Organisation of data and
information including security of
such
 Accounting system to record the
entries
 Reading the information at entry
and posting to correct accounts

32. 32
MODULE 7 – FINANCIAL CONCEPTS
FINANCIAL CONCEPTS
Business Language

33. BOOKKEEPING
33
 How you process source
documents
 How documents are managed or
filled
 Accounting systems to record the
entries
 Reading the information at entry
and posting to correct accounts
MODULE 7 FINANCIAL CONCEPTS

34. BUSINESS LANGUAGE
34
 Finance is a language of business,
you cannot ignore it or think you
will delegate to someone.
 Even if you manage to find a
reliable person, you have to know
what they are talking about
MODULE 7 FINANCIAL CONCEPTS

35. 35
MODULE 7 FINANCIAL CONCEPTS
FINANCIAL CONCEPTS
Common Words
 Debt
 Profits
 Sales
 Customers who owe you money
 Suppliers
Business Words
 Liabilities
 Return of Investments
 Revenue
 Debtors or Accounts Receivables
 Accounts Payables

36. No Such thing called stupid
questions!!
QUESTIONS
AND ANSWERS
MODULE 7 FINANCIAL CONCEPTS 36

37. SIYABONGA !
Imfundo iletha ukuphila - Asifunde
and siphile
37
MODULE 7 FINANCIAL CONCEPTS