Effective Financial Management

by Finch, Brian

• ISBN13: 9780749458782
• ISBN10: 074945878X
• Format: Paperback
• Copyright: 2010-03-28
• Publisher: Kogan Page Ltd

Summary

Financial management comprises more than accounting and reporting. It is crucial at all stages in the business cycle, whatever the state of your business.Though written to help the British entrepreneur,Effective Financial Managementcovers the day to day financial concerns of a business in a practical, common-sense way. It starts with advice on raising money for a business; continues through maintaining investor relationships; includes useful information on accounting, reporting, and communicating effectively with a wide range of stakeholders; gives vital tips on budgeting, forecasting, and managing business costs and cashflow; and explains how to successfully assess projects and buy assets.

Author Biography

Brian Finch has worked as Director of Business Development for large quoted companies and as Fiance Director of a retail and internet bookshop chain, which he co-founded. Also an independent consultant, he has extensive experience of writing and advising on effective business plans.

Table of Contents

Introduction	p. 1
The business plan	p. 3
Review your planning team	p. 3
Revise your business plan	p. 4
Trading results	p. 5
The business strategy in your business plan	p. 11
Risks, contingencies and scenarios	p. 17
Assessing projects	p. 23
Discounted cash flow	p. 25
Other evaluation methods	p. 28
Postscript	p. 30
Business acquisitions	p. 31
The budget process	p. 35
What is a budget and why does a business need one?	p. 35
Explicit assumptions	p. 36
Start with sales	p. 37
Work up the costs	p. 38
The balance sheet and cash flow	p. 38
Reviewing the budget	p. 41
Wishful thinking	p. 42
Cash	p. 45
Manage cash	p. 46
Debt recovery	p. 46
Manage problem accounts	p. 51
Cash forecasting	p. 59
Releasing cash	p. 65
Invoice dates	p. 67
Managing costs	p. 69
Cost reduction	p. 69
Review the business by area	p. 71
Focus on the big costs first	p. 73
Staff costs	p. 76
Outsourcing	p. 81
Supply	p. 85
Security of supply	p. 85
Terms of trade	p. 86
Stock clearances	p. 92
Credit ratings	p. 93
Property	p. 95
Rent	p. 95
Sub-letting	p. 97
Service charges	p. 97
Business rates	p. 99
Buying undervalued assets	p. 101
Negotiating the best deal	p. 102
Buying in a bankruptcy	p. 103
Buy second-hand and from the internet	p. 105
Buying cooperatives	p. 106
Banks and borrowing	p. 107
Personal guarantees	p. 108
Managing your banking relationships	p. 109
Refinancing	p. 111
Leasing	p. 112
Other forms of finance	p. 113
Company accounts	p. 119
Company structure	p. 120
Capital structure and risk	p. 121
To audit or not to audit	p. 123
Accounting policies	p. 124
Issues of fraud	p. 126
Going concern	p. 129
The view when not a going concern	p. 130
Surplus funds	p. 132
Administration as a business tool	p. 135
Administration issues	p. 136
Starting again	p. 140
Use all those free resources	p. 143
Discounts and grants	p. 143
Reclaim taxes	p. 144
Paying taxes	p. 145
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