Introduction
Welcome to the Business Money Management book! This book is designed to help you learn the essential skills and strategies needed to effectively manage your business’s finances. You will gain an understanding of key financial concepts, develop a budgeting plan, and explore ways to reduce costs and increase profits. Throughout this book, you will get an in-depth look at how best to monitor spending, plan for the future, and make smart decisions about taxes, investments, and more. With this knowledge and the tools provided, you will be well-prepared to successfully manage your business’s money now and into the future.
Objectives
- Learn how to develop sound financial goals and objectives for a business.
- Develop the skills necessary for best practices in successful Money Management Principles.
- Understand the importance of budgeting and cash flow management within a business environment.
- Identify key techniques to monitor and evaluate business performance related to money management decisions made.
- Learn effective strategies for managing debt and utilizing equity financing within a business context.
- Recognize the importance of using financial reports as an analysis tool in making sound money management decisions by owners/managers/stakeholders.
Table of Contents
Module 1. Introduction to Business Money Management
-Introduces the concepts of financial management
– An overview of financial management principles
-Key financial concepts
– Develop sound financial goals and objectives for a business
-Identifying the primary functions of financial management
-Provides a framework for understanding how to effectively manage money in a business context
-Analysing and evaluating sources of capital
-Setting up an effective bookkeeping system
-Understanding interest rates, inflation, and taxation
-Creating a budgeting plan.
-Develop a budgeting plan
-Ways to reduce costs and increase profits.
– The importance of budgeting and cash flow management within a business environment
– Key techniques to monitor and evaluate business performance related to money management decisions made.
– Skills necessary for best practices in successful Money Management Principles
-Best to monitor spending, plan for the future, and make smart decisions about taxes, investments
Module 2. Account Reconciliation
-Manual versus computerized accounting systems
-Recording journal entries accurately
-Creating fiscal year end closing activities
Reconciling bank statements with inventory and payroll records
-Preparing monthly reports
-Administering payroll taxes
-Reconciling payments made/received with accounts receivable/payable records.
-How to reconcile accounts such as sales, collections, payments made and received, inventory and payroll.
-Understanding the importance of account reconciliation in detecting errors or discrepancies in financial transactions.
Module 3. Financial Planning & Risk Management
-Strategies for effective financial planning
-Forecasting future cash flow needs to be strategizing for growth through investments
– As well as managing risk associated with potential fluctuations in currency markets or other external events.
-Reading annual reports to identify potential areas for improvement or expansion
-Exploring stock market investments for long-term growth opportunities using fundamentals-based analysis techniques (e.g., P/E ratios)
-Developing policies regarding credit lines paid off on time versus those extended into delinquency status -Assessing the impact of international economics on local markets e.g., imports/exports).
Module 4. Cash Flow & Debt Management
-Projecting cash flow is an important element of successful business money management
– Enables businesses to anticipate when they will have enough liquidity cushion available to make necessary purchases on credits terms
-When do businesses need to borrow more funds or reduce expenses accordingly so that expenditures do not exceed expected income levels at any given time during their operating cycle period?
-Various methods of debt repayment that can help maximize returns while minimizing costs associated with carrying high levels of short-term debt (thus day loans)
-Various methods of debt repayment that can help maximize returns while minimizing costs associated with carrying high levels of over longer periods
-Practice various approaches, including acceleration methods (e, lump sums) versus instalment plans for paying off principal plus interest amounts over set intervals (monthly, quarterly etc.).
Module 5. Tax Planning & Reporting Strategies
-Tax rules
-Tax preparation services.
-Gain an understanding of how different incomes affect tax liabilities
-How taxes are calculated
-when different forms taxes must be filed
-Which Taxes deductions are valid
-Common Taxes filing deadlines.
– Effective strategies for managing debt and utilizing equity financing within a business context
– The importance of using financial reports as an analysis tool in making sound money management decisions by owners/managers/stakeholders
Module 6: Exams
Reviews
There are no reviews yet.