Financial Management Presentation Tips and strategies for effectively budgeting, saving, investing, and managing money.
Introduction to Financial Management Cash ﬂow Understanding sources and uses of cash over time Capital budgeting Evaluating potential investments and projects Financial analysis Analyzing ﬁnancial statements and performance Key ﬁnancial management concepts help optimize capital allocation and business performance.
Key Events in the History of Financial Management
“"The most valuable commodity I know of is information."” GORDON GEKKO
Warren Buffett Warren Buffett is an American business magnate and investor who served as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors of all time. Buffett was born in 1930 in Omaha, Nebraska and displayed keen business abilities f rom a young age. He purchased his ﬁrst stock at age 11 and ﬁled his ﬁrst taxes at age 13. He went on to study at Columbia Business School before starting his own investment partnerships. He took control of Berkshire Hathaway in the 1960s and transformed it into a major conglomerate holding company. He became one of the wealthiest people in the world with a net worth of over $100 billion. Known as the 'Oracle of Omaha,' Buffett is admired for his adherence to value investing principles and philanthropy.
Our Financial Management Team Bob Johnson Senior Accountant John Doe Chief Financial Ofﬁcer Jane Smith Controller
ABC Company A retail company selling fashion accessories and clothing in the United States
Key Financial Ratios Bar graph showing increasing ROI Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. Pie chart of revenue by segment Revenue mix shows the percentage of total revenue generated from different business segments or product lines. Line graph of EPS over time Earnings Per Share (EPS) is calculated as a company's net income divided by the number of shares outstanding.
Comparing Financial Performance Revenue ($M) Proﬁt Margin (%) 125 10 150 12 *Data sourced from company annual reports
The Budgeting Process Review previous budget and spending patterns. Identify areas to reduce spending. Analyze current budget Examine the draft budget. Make adjustments as needed to achieve ﬁnancial goals. Review and revise Create a budget draft detailing income, expenses, and budgeted amounts for each line item. Draft budget Estimate income and expenses. Account for anticipated changes from previous budget. Make projections Formally approve and adopt the ﬁnal budget. Finalize budget Determine what you want to accomplish ﬁnancially during the budget period. Deﬁne goals and objectives Compare actual spending to the budget. Analyze variances and adjust as needed. Track and monitor Collect information on income, expenses, debts and assets relevant to the budget. Gather data
Types of Financial Statements Balance Sheet A summary of a company's assets and liabilities at a speciﬁc point in time. Income Statement Reports a company's revenues, expenses, and proﬁt or loss over a period of time. Cash Flow Statement Tracks how cash ﬂows in and out of a business over a period of time. Statement of Changes in Equity Shows changes in equity accounts like retained earnings over a period.
Comparing Accounting Methods Accounting methods compared by percentage of companies using each method 10% Cash Basis 3% Tax Basis 25% IFRS 62% GAAP
Financial Management in the Digital Age In recent years, technology has transformed the way ﬁnancial management is conducted. Digital tools allow for faster and more sophisticated data analysis, automated reporting, and streamlined workﬂows. Cloud computing enables remote collaboration and information sharing. FinTech innovations are disrupting traditional ﬁnancial services. The use of mobile devices provides constant access to ﬁnancial data and transactions.
Financial Planning Concepts Emergency Fund Money set aside to cover unexpected expenses and ﬁnancial emergencies. Budgeting The process of creating a plan to spend money and track expenses Investing Putting money into assets like stocks, bonds, mutual funds with the goal of generating income or growing over time. Saving Setting aside money for future use instead of spending it now. Insurance Financial products to provide protection against risks like illness, disability, death, property damage. Retirement Planning Strategies and saving to have enough money to live comfortably after retiring from work.
Key Performance Indicators Revenue growth New customer acquisition Customer retention
The Sales Funnel 1 Generate leads through marketing and outreach 2 Qualify leads based on criteria like need, budget, authority 3 Present product demo to qualiﬁed leads 4 Address concerns and objections during demo 5 Close sale by asking for purchase order or contract 6 Onboard new customer with product training and support