1. Financial Management System Lindsay Wallace, Kyle Wilson, Joe Soukup

2. What is Financial Management? The process you use to put your numbers to work, to make your business more successful.

3. A Good Financial Managemenet System Tells you how your business is doing and why Tells you how your business is doing and why Bookkeeping: Body of Car Bookkeeping: Body of Car Financial Management System: Engine Financial Management System: Engine

4. Why is Financial Management Important? Accomplish Big Picture & Daily Objectives Accomplish Big Picture & Daily Objectives You become a better Micromanager by enabling you to… You become a better Micromanager by enabling you to…

5. Advantages of Good Financial Management 1. Manage proactively v. reactively 2. Borrow $ more easily 3. Provide financial planning info. for investors 4. Make your operation more profitable and efficient 5. Access a great decision making tool for key financial considerations

6. 6. Avoid investing too much money fixed assets 7. Maintain short-term working capital needs to support accounts receivable and inventory more efficiently 8. Set sales goals 9. Improve gross profit margin by pricing your services more effectively or by reducing supplier prices, direct labor, etc.

7. 10. Operate your business more effectively by keeping, selling, and general and administrative expenses down more effectively. 11. Perform Tax Planning 12. Plan ahead for employee benefits 13. Perform sensitivity analysis with the different financial variables involved

8. Financial Statements 1 st Step: Plan to generate a statement on a monthly basis 1 st Step: Plan to generate a statement on a monthly basis 2 nd Step: Include… 2 nd Step: Include… Income Statement Income Statement Balance Statement Balance Statement Cash Flow Statement Cash Flow Statement

9. Automated Accounting Software: Most Companies Use the following to make accounting for finances easier to manage: Most Companies Use the following to make accounting for finances easier to manage: ExpenseWatch: Budget Control System ExpenseWatch: Budget Control System ExpenseWatch: Budget Control System ExpenseWatch: Budget Control System NterGlobal: Merchant Accounts NterGlobal: Merchant Accounts NterGlobal: Merchant Accounts NterGlobal: Merchant Accounts Clarity Systems: Performance Management Clarity Systems: Performance Management Clarity Systems: Performance Management Clarity Systems: Performance Management Manual Bookkeeping Systems Manual Bookkeeping Systems

10. Sources Retailing: Chapter 8 Retailing: Chapter 8 “Financial Management: A Good Financial Management System” “Financial Management: A Good Financial Management System” http://www.entrepreneur.com/art icle/0,4621,265219,00.html http://www.entrepreneur.com/art icle/0,4621,265219,00.html

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