Financial Management System

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Financial Management System

• Lindsay Wallace, Kyle Wilson, Joe Soukup

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What is Financial Management?

• The process you use to put your numbers to work,
  to make your business more successful.

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A Good Financial Managemenet System

• Tells you how your business is doing and why
• Bookkeeping Body of Car
• Financial Management System Engine

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Why is Financial Management Important?

• Accomplish Big Picture Daily Objectives
• You become a better Micromanager by enabling you
  to

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Advantages of Good Financial Management

• Manage proactively v. reactively
• Borrow more easily
• Provide financial planning info. for investors
• Make your operation more profitable and efficient
• Access a great decision making tool for key
  financial considerations

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

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

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Financial Statements

• 1st Step Plan to generate a statement on a
  monthly basis
• 2nd Step Include
• Income Statement
• Balance Statement
• Cash Flow Statement

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Automated Accounting Software

• Most Companies Use the following to make
  accounting for finances easier to manage
• ExpenseWatch Budget Control System
• NterGlobal Merchant Accounts
• Clarity Systems Performance Management
• Manual Bookkeeping Systems

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Sources

• Retailing Chapter 8
• Financial Management A Good Financial
  Management System
• http//www.entrepreneur.com/article/0,4621,265219
  ,00.html

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