finance for non financial personnel - part 3
TRANSCRIPT
Finance For Non-Financial Personnel Part 3Business Driven Finance Insights For Laymen
How To Record Accounting Information
£ ¥ € ₳ ₨$The Structure of Finance For Non-Financial Personnel
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Part 1
Part 2
Part 3
Part 4
Introduction and explain the importance of learning business driven finance
Misconceptions - to describe the common misread of the laymen about the accounting department and it practise. Fundamentals of financial knowledge-set your perspective.
Records - understand the principles that used in recording transactions & how your activities related to them. Very important but have been ignore by many.
Reports- learn evaluate financial information, perform critical ratios analysis, and read different reports. From your perspective, how to use the reports in the best way.
8 presentations altogether, if you cannot find all the links, kindly email [email protected] to request
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How to record accounting
information?
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Principle 1Each financial record reflects two aspects: 1) source of fund, and
2) how the fund is applied
Debit: Fund
applied
Credit: Source of
fund
Show off to your Chartered Accountant
Remove mystery of double-entry system
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Principle 1Each financial record reflects two aspects: 1) source of fund, and
2) how the fund is applied
Sell Computer In Credit Term
Remove mystery of double-entry system
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Debit: Debtor Debtor formed
where fund applied, i.e. buy
debtor at this point of time.
Debit: Fund
applied
Credit: Source of
fund
Credit: SalesAs not yet
receive money at this time, source
of fund come from the sales.
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Principle 2Types of input data for Accounting information:
1. Historical2. Estimate
Historical => ActualEstimate => Budget/ forecast/ plan
Only these two. Not that much right?
Do you estimate?
Record history to appraise results
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Principle 2Types of input data for Accounting information:
1. Historical2. Estimate
Only these two. Not that much right?
Do you estimate?
Record history to appraise results
educational: free distribution
Actual: What had happenBudget: What had committedForecast: What I think will happenPlan: What I hope to happen
Historical => ActualEstimate => Budget/ forecast/ plan
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Principle 3Transaction types:
1. Cash2. Sales
3. Purchase4. Others (catch-all)
All transactions MUST fall within these types
Cash Any
record touch on
cash
SalesRecord Sales
Others Notional;
adjustment; allocation
Purchase Record
Purchases
To remove myth, you need to see big picture.
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Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
term
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£ ¥ € ₳ ₨$
Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
term
Try to relate: Cash sales, cash purchase, traveling & entertainment & claim …
educational: free distribution
£ ¥ € ₳ ₨$
Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
term
Can you relate your CRM, Sales funnels, and invoicing to the credit sales numbers?
educational: free distribution
£ ¥ € ₳ ₨$
Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
term
Relate from your SCM, PO issue to vendor invoice recording to approving payment
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£ ¥ € ₳ ₨$
Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
termMost laymen confuse here. As a manager, you need to know what affect the presentation of your department’s performance
educational: free distribution
£ ¥ € ₳ ₨$
Cash Any
record touch on
cash
SalesSales with credit term
Others Notional;
adjustment; allocation
Purchase Purchase with credit
term
Can you relate your CRM, Sales funnels, and invoicing to the credit sales numbers?
Try to relate: Cash sales, cash purchase, traveling & entertainment & claim …
From your SCM, PO issue to vendor invoice recording to approving payment
Most laymen confuse here. As a manager, you need to know what affect the presentation of your department’s performance
educational: free distribution
£ ¥ € ₳ ₨$
● You know the principles behind your activities recorded
● You can relate your activities to the transaction types
● You can visualize why your activities affects the finance
department’s operations
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Are You On Track?
Look For Next Presentation: Finance For Non-Financial
Personnel - Part 4
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8 presentations altogether, if you cannot find all the links, kindly email [email protected] to request
All the 8 presentations are the overview, PLEASE email us if you like to get more benefits from them.