improving the financial management
TRANSCRIPT
Management’s biggest challenge?
Ensuring their strategies positively impact: Profitability Growth Cash flow …..
However strategies are realised by people.
So the key is to develop employees’ understanding of business and the basis on which it operates i.e.
- To develop a business mindset
What if every team member understood:
• The key financial drivers,
• How the Business is performing,
• What key ratios the Business measures and why, and
• How they can positively influence the financial situation of the Business?
Our Vision of Success.........
Traditional reports create more confusion than understanding for most employees.
1 YTD, DECActual 2005
FULL YEARFC1 2006
FULL YEARIAS Restated
Budget2006
FULL YEARIAS Rest.
Actual2005
Tangible non current assets 265 411 524 222 245 222 4 535Goodwill 421 456 866 455Other intangible assets 345 533 453 533 556 666 33 535Deferred income tax assets 435 43 53 453Shares in subsidaries 453 89 5 654 565Other long non-intb rcvbls, external 5 656 56 4 888 533Long intb rcvbls, externalFinancial assets 23 455 3 566 565 5 577Non-current assets 3 452 453 3 557 667 867 867 8 687 666
Stock 87 687 786 8 967 6 786Work in progress 456 456 456 64 363 644 534Work in progress 455 435 4 568 768 46 555 465 786Adv. from Customers, 56Work in progress 65 645 4 565 544 456 456 541Accounts rcvbls Gross, external 456 546 453 533 487 893 453 455Accounts rcvbls Gross, internal 16 541 456 379 78 222Accounts rcvbls, Provisions 4 565 678 645 645 456 87 788Accounts receivable 4 565 45 378 156 548 728Other prepaid cost and accrude rev, ext 456 645 6 789 456 556 789 889Other prepaid cost and accrude rev 455 566 7898 78 789Prepaid costs and accrued revenues 789 456 45 645 789 668Current income tax receivables 789 7 898 876 789 788Current non-intb rcvbls, external 897 888 9 789 998 546 544 232 131Current non-intb rcvbls, 42 342 23 123 12 312 3 322Group contribution rcvbls,Other non-interest bearing current rcvbl 54 645 2 312 213 123 123Non-interest bearing current assets 12 323 333 2 123 11 233 412 324
Current intb rcvbls 5 464 12 312 123 213 12 323Other financial assets 3 123 12333 656 225 545Short term investments, Cash Pool receivable, 456 232 1 232 333 232 321 45 654 123Cash and bank deposit 11 165 45 654 56 556 456 564Cash and cash equivalents 2 313 456 1 233 125 4 655 456Total current assets 4 565 656 32 123 123 456 456 123 46 545 343 123Total assets 123 456 796 3 123 456 734 4 246 554 678 4 565 465
Retirement benefit obligations 5 484 163 86 351 851 6 515 484 5
Deferred income tax liabilities 84 855 8 484 515 84 415
Total deferred income tax liabilities 184 8 451 8 451 8 451
Long-term provisions 84 451 584 151 84 548
Total long term liabilities
Total non-current liabilities 54 654 654 561 56 464 65 464
Advances from Customers, 654 654 654 645879/7 64 684 436
Work in progress,
Advances from Customers 64 575 87 55 64
A/c payable to suppliers, external 546 846 874 684 684 654 64 894
A/c payable to suppliers, 64 5 654 6 548 468 4 684
A/c payable to suppliers, 6 465 6 874 684 68 468 484
Accounts payable 68 464 6 846 4 684 68434519/
Current income tax liabilities 641 6 846 5 454 6 516 116
Current non-intb liabilities, external 664 846 384 96 876 614 561
Current non-intb liabilities, 54 654 654 654 161 61 681 681
Current non-intb, diff 61 684 5 641 684 1 684 51 641
Group contribution liabilities, 65 864 5 616 548 641
Group contribution, diff 54 651 64 654 56 161 6 654
Other non-interest bearing liabilities 654 6 516 856 31 968 468 1 651
Short-term provisions 6 165 165 1 684 651 698 465
Prepaid revenues, 4 651 684 164 651 6 161 61
Accrued interest cost external 6 516 841 51 681 66 816 586 1 681
Accrued interest cost 6 545 631 651 61 651 561 684
Accrued personnel cost 19 864 1 635 198 641 684 6 316 874
Other accrued cost and prepaid rev, ext 635 468 4 165 168 4 635 4 681
Other accrued cost and prepaid rev, 68 165 168 1 681 68 161
Accrued costs and prepaid revenues 681 681 68 681 681 681 668
Non-interest bearing current liabilities 6 161 6 816 6 816 868 464 616
Short-term borrowings, external 468 6 546 5 456 321 651
Current intb liabilities, 961 6 516 84 6 519 641
Current intb, diff 641 614 6 948 6 541 651
Short-term borrowings 6 841 65 146 54 64
Total current liabilities 6 516 51 6 849 684 93
TOTAL SHAREHOLDERS' EQUITY & LIABS 65 416 876 5 146 46 549 846 41
Control line to be 0 6 465 684 64 684 687 6 848
The Solution? - Communicate finance and business using shapes and colours
Profit & Loss account
Expense
Balance sheet
AssetsShareholders funds& Liabilities Income
Good business…
…increases financial strength!!
Our Experience
We have been running this approach in Australia since 2005.
It has been delivered to over 230,000 participants worldwide!
Typical feedback –
“Fun and Interactive....Loved the Game... Never thought finance could be this much fun!!”
For more information..
Visit www.financialtrainingaustralia.comOr
Call 03 9510 9401