Documente Academic
Documente Profesional
Documente Cultură
22 October 2012
CONTENTS
1. 2. 3. 4. 5.
What is Financial Management? My experiences of the challenges faced by SMEs Whose responsibility is Financial Management? Jargon Buster How to improve Financial Management?
Financial Management means planning, organizing, directing and controlling the utilization of the firms resources.
DO YOU KNOW
Who are your most and least profitable clients? What are your most and least profitable products or services? What value of sales did you generate last month? What value of profits did you generate last month? How much cash did you generate last month? What caused the difference between your profits and your cash position that month?
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Income statement (P&L): Income less costs = net income (profit) Cash flow statement: Cash in less cash out = net cash
JARGON BUSTER
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JARGON BUSTER
Prepayments
Depreciation
Accruals Inventory
Matching - ensures the Income statement accurately reflects the results of the business activity for the period Cash flow statement - explains the movement in cash in a period
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Entrepreneurs too proud to let on they dont understand the information Accountants more interested in adding up the numbers than interpreting the information Financial management information is not user friendly Accountant is not user friendly talking to them is hard work Entrepreneur doesnt have the time to interpret the information Entrepreneur doesnt want to interpret the numbers / spoil the dream No one has visibility of the information/ business is driving blind Every month predictable and often avoidable cash or profit shortages come as a surprise
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Entrepreneurs too proud to let on they dont understand the information Accountants more interested in adding up the numbers than interpreting the information Financial management information is not user friendly Accountant is not user friendly talking to them is hard work Entrepreneur doesnt have the time to interpret the information Entrepreneur doesnt want to interpret the information/ spoil the dream No one has visibility of the information/ business is driving blind Every month predictable and often avoidable cash or profit shortages come as a surprise
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Financial Controls
All support planning, organizing, directing and controlling the utilization of the firms resources.
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TAKEAWAYS
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TAKEAWAYS
There a variety of reasons for the poor financial management in SMEs Financial management is necessary for survival and maximizing returns You cant delegate financial management to your accountant There are grants available for us to help you
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Mazars LLP 133 Cecil Street #15-02 Keck Seng Tower Singapore 069535 Tel: +65 6224 4022 Fax: +65 6225 3974
www.mazars.sg
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