Financial Management Presentation

Financial Management Presentation Tips and strategies for effectively budgeting, saving, investing, and managing money. Introduction to Financial Management Cash flow Capital budgeting Financial analysis Understanding sources and uses of cash over time Evaluating potential investments and projects 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 $100 billion. Known as the 'Oracle of Omaha,' Buffett is admired for his adherence to value investing principles and philanthropy. Our Financial Management Team John Doe Jane Smith Bob Johnson Chief Financial Officer Controller Senior Accountant ABC Company A retail company selling fashion accessories and clothing in the United States Key Financial Ratios Bar graph showing increasing ROI Line graph of EPS over time Pie chart of revenue by segment Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. Earnings Per Share (EPS) is calculated as a company's net income divided by the number of shares outstanding. Revenue mix shows the percentage of total revenue generated from different business segments or product lines. Comparing Financial Performance Revenue ($M) Profit Margin (%) 125 10 150 12 *Data sourced from company annual reports Our Clients The Budgeting Process Determine what you want to accomplish financially during the budget period. Define goals and objectives Draft budget Create a budget draft detailing income, expenses, and budgeted amounts for each line item. Collect information on income, expenses, debts and assets relevant to the budget. Review previous budget and spending patterns. Identify areas to reduce spending. Estimate income and expenses. Account for anticipated changes from previous budget. Gather data Analyze current budget Make projections Review and revise Finalize budget Track and monitor Examine the draft budget. Make adjustments as needed to achieve financial goals. Formally approve and adopt the final budget. Compare actual spending to the budget. Analyze variances and adjust as needed. Types of Financial Statements Balance Sheet Cash Flow Statement A summary of a company's assets and liabilities at a specific point in time. Tracks how cash flows in and out of a business over a period of time. Income Statement Statement of Changes in Equity Reports a company's revenues, expenses, and profit or loss over a period of time. Shows changes in equity accounts like retained earnings over a period. Comparing Accounting Methods Accounting methods compared by percentage of companies using each method 62% 25% 10% GAAP IFRS Cash Basis 3% Tax Basis 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 Budgeting Investing Saving The process of creating a plan to spend money and track expenses Putting money into assets like stocks, bonds, mutual funds with the goal of generating income or growing over time. Setting aside money for future use instead of spending it now. Emergency Fund Retirement Planning Insurance Money set aside to cover unexpected expenses and financial emergencies. Strategies and saving to have enough money to live comfortably after retiring f rom work. Financial products to provide protection against risks like illness, disability, death, property damage. Revenue growth Key Performance Indicators New customer acquisition Customer retention The Sales Funnel 1 2 3 4 5 6 Generate leads through marketing and outreach Qualify leads based on criteria like need, budget, authority Present product demo to qualified leads Address concerns and objections during demo Close sale by asking for purchase order or contract Onboard new customer with product training and support