1. Finance for Non-Financial Managers
Your Name

2. Objectives At the end of this session you will be able to:
Explain your impact on organisational finances and interpret key facts
Understand financial terms and confidently discuss issues that affect company finance
Interpret the three key financial statements – Profit & Loss, Balance Sheets and Cash Flow
Plan, Implement and Monitor a Budget

3. Your Impact on Finances
Upset Customer
Good Advice
Good Business
Poor Management
Poor Decision

4. Accounting Groups
Revenue
Expenses
Capital
Assets
Liabilities

5. 3 Key Financial Statements
Balance Sheet
Profit & Loss
Cash Flow

6. The Cash Flow Cycle Cash Assets Credit Purchase of Goods Sales
Collection of Money

7. Who is a cash flow statement important to?
Executives
Investors
Shareholders
Suppliers
Employees

8. Operating Activities Investing Activities Financing Activities
Cash Flow Categories
Operating Activities
Investing Activities
Financing Activities

9. Budgeting – Questions to Ask Yourself
Could we have spent less last year and still achieved the same results, or better?
Have we wasted money in the past? If so, can we avoid doing so in the future?

10. Planning Cycle Review Past Review Objectives Prepare Operational Plans
Assess Resources & Estimate Costs
Discuss, Amend and Finalise Budget
Implement Plans, Monitor & Adjust

11. Budget Methods
Previous Year
Coming Year
Blank Page

12. Budget Options
Minimum
Target
Stretch

13. Budget Information
Categories in a budget are broken down into ‘budget line items’
There is a column for amounts budgeted for each line item
There is a column for amounts actually spent for each line item
There could be a column for budget deviation
There might be a column for the previous years’ budget information for each line item
It’s wise to make notes next to items

14. Monitoring the Budget Monitor against targets Report financial data
Do cash flow projections
Make financial decisions

15. Objectives At the end of this session you will be able to:
Explain your impact on organisational finances and interpret key facts
Understand financial terms and confidently discuss issues that affect company finance
Interpret the three key financial statements – Profit & Loss, Balance Sheets and Cash Flow
Plan, Implement and Monitor a Budget