Short Articles (PDF) - Excellence in Financial Management

More documents

Recommendations

Info

Month 5: Finalize historical financial statements. Start preparing interim (stub) financial statements for current period. Month 4: Finalize pro forma and interim financial statements. Make revisions to draft prospectus. Month 3: Convene new board of directors. Audit of interim financials should be complete. Month 2: Outside auditors opinion is issued. Membership with stock exchange is complete. Month 1: File prospectus with SEC (Securities Exchange Commission). Issue press release and sell the company to investors. Before the IPO Process is complete, it is essential to implement all of the necessary controls, procedures, and systems that will now be required within "public life." Staff changes must be made, new financial systems tested, functions like human resources must be managed, etc. The entire IPO process is much more involved than most people realize. A great IPO team and proper planning are the key to a smooth IPO process. Before considering an IPO, remember some of the key disadvantages. Once public, your company will be operating in a fish tank, much more visible to outsiders. This will require servicing investors, the SEC, and other interested parties. And don't forget you will have to pay at least $ 500,000 per year in accounting and director liability insurance fees. Going public has got to fit with your strategic plan for growth if you expect the benefits to outweigh the costs. Don't overlook the single biggest source of money, investments made by other companies in emerging, high-growth companies. For many companies, the IPO process is a grueling and wrenching process that fails to meet expectations. Planning well in advance is the key to a successful IPO. 10
Budgeting & Forecasting Financial Forecasting Using % of Sales Financial forecasting often begins with a forecast of future sales. The Sales Forecast serves as the basis for estimating future expenses, assets, and liabilities. Many of these accounts vary with changes in sales. Therefore, using a percent (%) of sales can be very useful for forecasting a Balance Sheet. The following steps can be used to prepare a forecasted (pro-forma) Balance Sheet based on the % of Sales Method: 1. Determine which Balance Sheet accounts vary with Sales (such as accounts receivable). Calculate the % of sales for each account that varies with sales. 2. For accounts that do not vary with sales (such as long-term debt and equity), simply list the current balances from the last Balance Sheet. 3. Calculate the future Retained Earnings balance by adding projected net income and subtracting any future dividends from the Beginning Balance for Retained Earnings. Don't forget to calculate a % of sales for Net Income and Dividends. 4. Add up your assets to determine total projected assets. Now add up your liabilities and equity to determine the financing of assets. If total assets are greater than total liabilities and equity, then you will need to raise additional capital. Please note that the % of Sales Method is based on the assumption that you are operating at full capacity. Also, you will need to prepare a Cash Budget for a more accurate estimate of financing requirements. Improving the Budgeting Process One of the most non-value-added activities within financial management is budgeting. Budgets are prepared to allocate and control how resources will be used in the future. Unfortunately, the future is hard to predict and upper-level management doesn't always communicate with people who prepare budgets. Because of poor communication, budgeting becomes an exercise in futility. Some of the main problems associated with budgeting are: - Poor communication from decision-makers. - Too many people involved in the process. - Budgets don't help manage our business. 11
Page 1 and 2: Excellence in Financial Management
Page 3 and 4: Cash Flow Management Basic Cash Flo
Page 5 and 6: Basic Accounts Receivable Managemen
Page 7 and 8: Financing What are Effective Intere
Page 9: Companies like GE (General Electric
Page 13 and 14: Customer C owes $ 30,000, there is
Page 15 and 16: Project Evaluations Basic Economics
Page 17 and 18: Using Decision Trees Too often Fina
Page 19 and 20: 1. Determine Market Values for Capi
Page 21 and 22: Finally, how do you measure IC Well
Page 23 and 24: Ratio Analysis Cash Flow Ratios Alt
Page 25 and 26: Another ratio that can be used in m
Page 27 and 28: Measuring Sustainable Growth Is the
Page 29 and 30: Value Based Management Valuations o
Page 31 and 32: Lease Valuations A lease is an agre
Page 33 and 34: categories. Keep in mind that we ar
Page 35 and 36: Lessons from the Entrepreneur Lesso
Page 37 and 38: this new knowledge. Therefore, "int
Page 39 and 40: Intangibles over Tangibles In today
Page 41 and 42: known as the Value Dynamics Framewo
Page 43 and 44: competencies. - Business success is
Page 45 and 46: Understand the Customer: You must u
Page 47 and 48: “For vision and strategy to be mo
Page 49 and 50: involves risk and the acceptance of
Page 51 and 52: (government, interest groups, and t
Page 53 and 54: Value through Marketing For any org
Page 55 and 56: • Accuracy - Some sources of info
Page 57 and 58: Four Steps to Calculating EVA EVA o
Page 59 and 60: Risk Management Step 1 in Risk Mana
Page 61 and 62:
Managing Foreign Exchange Rate Risk
Page 63 and 64:
Why Implement Activity Based Costin
Page 65 and 66:
Design Steps in Building a Performa
Page 67 and 68:
Examples of Key Performance Indicat
Page 69 and 70:
The Power of the Scorecard The Bala
Page 71 and 72:
their scorecards to meet the needs
Page 73 and 74:
Typically a set of performance meas
Page 75 and 76:
Financial measurements will often d
Page 77 and 78:
4. Review the allocation and distri
Page 79 and 80:
- Sets a good personal example - Ac
Page 81 and 82:
Secondary sources of intelligence a
Page 83 and 84:
analysis of differences can be diff
Page 85 and 86:
A final point on leveraging competi
Page 87 and 88:
Reaching for the Six Sigma One of t
Page 89 and 90:
several links, manufacturer to agen
Page 91 and 92:
Another common attribute of process
Page 93 and 94:
then we invariably lower our costs.
Page 95 and 96:
Human Resource Management Metrics f
Page 97 and 98:
Cross Functional Teams Financial ma
Page 99 and 100:
What is Matrix Management As Tom Pe
Page 101 and 102:
Cost => Time => Quantity => Error =
Page 103 and 104:
Control over surveys is low Control
Page 105 and 106:
The role of management is to find w
Page 107 and 108:
Since emotional intelligence is som
Page 109 and 110:
Few, if any educational programs (i
Page 111 and 112:
emphasize the most effective applic
Page 113 and 114:
- Competitive forces - Organization
Page 115 and 116:
to do with recruiting and retaining
Page 117 and 118:
In order for HR to be successful wi
Page 119 and 120:
Coaches are very engaged with their
Page 121 and 122:
The Lombardi Rules - The Winning Mo
Page 123 and 124:
poor position to understand what wo
Page 125 and 126:
6. People can Change - People have
Page 127 and 128:
• Team Building - Encourages and
Page 129 and 130:
Strategic Planning: Your First Step
Page 131 and 132:
5. Create: Provide a strong learnin
Page 133 and 134:
your analysis for more detail audit
Page 135 and 136:
Without name recognition in the mar
Page 137 and 138:
Although game theory has been aroun
Page 139 and 140:
as people share with each other wha
Page 141 and 142:
Is Knowledge Really Power We all re
Page 143 and 144:
almost like wiping the slate clean
Page 145 and 146:
will need a diverse group of people
Page 147 and 148:
There are several approaches to bui
Page 149 and 150:
Even simple task, such as distribut
Page 151 and 152:
Comprehending the IT Challenge For
Page 153 and 154:
Leveraging Knowledge Management It
Page 155 and 156:
when viewing it over the internet;
Page 157 and 158:
materials, products, and systems (a
Page 159 and 160:
interdependencies, you will have to
Page 161 and 162:
Key Elements to Effective Decision
Page 163 and 164:
How to Brainstorm All people and al
Page 165:
analysis - all pre-occupied with tr
show all

Short Articles (PDF) - Excellence in Financial Management

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?