1. Introduction to Financial Management

2. Financial Management  Conducting all financial matters of the organization in a way that ensures that funds are used in a proper and efficient manner

3. Financial Management System Budgeting Record Keeping – Accounting Reporting – Income Statement, Balance Sheet, Cash Flow

4. Budget Foundations  strategic plan  numerical representations  benchmark Done on a yearly cycle  Bottom-up/Top Down Budgeting  Coordination/control

5. Methods of Budgeting  (  Program-Planning-Budgeting System (PPBS )   Line Item   Incremental   Zero Based

6. Record Keeping: The General Leger (GL) Purpose:   Income/expenses   sources

7. Components of a General Ledger   Assets   Liability   Revenue   Expense   Gain   Loss

8. General Leger

10. Two Types of Accounting   Management Accounting   Financial Accounting

11. Reports : Financial Accounting Financial reports include the following components:  Balance Sheet  Income Statement  Statement of Retained Earnings  Statement of Changes in Financial Position

12. Balance Sheet  The financial position of an entity  Assets

13. Reporting – Balance Sheet Assets = Liabilities (debt) + Owners Equity Assets (has $ value)Liabilities (debt) Current AssetsCurrent Liabilities Fixed Assets = Long Term Liabilities Other Assets + Equity value of investment of owners plus profit left to accumulate

14. Income Statement  an organization’s operations  personal Income statement

15. Income Statement Sample - Sorority Swimwear Sales Direct (cash) Retail Internet Cost of Goods Sold Royalties Expenses Salaries Payroll Taxes Depreciation on “equipment” Workers Compensation Health Insurance Advertising Office Supplies Rent Utilities Bad debts Travel Miscellaneous Interest Taxes Gross Profit Net Income

16. Statement of Retained Earnings  Net income  Explains the changes.  Breaks down changes.