Financial Intelligence for IT Professionals: The Story of the Numbers

Description

There are many books written for the accounting and finance community. However, there are very few books written to help the non-financial career professionals who still need to understand the conceptual fundamentals of accounting and finance. In twenty years of teaching this material to non-financial professionals, Dr. Bonner has perfected a teaching approach that works to help the non-financial professional engage with the material to use financial information in leveraging their career without becoming overloaded with information that is not helpful to them. Learning this material takes repetition, application, and building the thinking processes necessary for effectiveness. Many think the challenge with finance is the math, but as this book will demonstrate, it is a conceptual problem. If you understand the conceptual framework, you will understand the math. Cover Half Title Title Page Copyright Page Dedication Table of Contents List of Figures and Tables Preface Acknowledgments List of Abbreviations Definitions Part One: Why Being Financially Savvy Matters Topic 1: How Financial Clarity Gives You Professional Leverage Do You Know If Your Employer Could Be in Trouble Financially? Do You Want to Start Your Own Business? Do You Want to Grow Your Business or Otherwise Invest in Other Businesses? Do You Desire to Obtain a Managerial, Directorial, or Executive Position? Topic 2: How Understanding the Numbers Gives You an Edge The Difference between Finance and Accounting Utilizing Your Financial Resources Effectively Break Down Silos Understanding Financial Decisions and the Connection to Financial Performance Assess Promotional Opportunities Topic 3: Why Numbers and Accounting Can Be Confusing Myth #1 : “ I Cannot Learn This Subject Because It Is Math-Based” Myth #2: “I Cannot Learn This Subject Because I Am Not Smart” Myth #3: “I Cannot Learn This Subject Because It Is BORING!” The Truth of Why Accounting and Finance Can Be Challenging to Learn Bottom Line Topic 4: How the Book Is Arranged for Your Learning Journey Regarding Readers in Different Countries Relating Personal Finance to Corporate Finance What to Watch Out For Examples Context Exercises How to Learn Tools for Your Learning Other Resources Departmental Learning Groups or Study Groups Part One: Exercises, Practice, and Resources Notes Part Two: Revenue and Expense: The Basics of Income Statements Translating This Information Topic 5: Profit and Cash Are NOT the Same Why Profit and Cash Are Not the Same? Procurement to Payment Cycle Order to Cash Cycle Topic 6: Overview of Profit and Loss Statement Reporting Periods Fiscal Years Periods of Time Be Aware! Major Sections of the Profit and Loss Statement Revenue Cost of Goods Sold Gross Margin Operating Expenses Operating Income Net Profit Topic 7: Breaking Down the Profit and Loss Statement Revenue Recognition and Timing Issues Deeper Dive into Cost of Goods Sold Part Two: What to Watch Out For Part Two: Exercises, Practice, and Resources Notes Part Three: Assets, Liabilities, and Equity: Understanding the Balance Sheet Periods of Time Translating This Information Topic 8: Short Term versus Long Term Topic 9: Assets Current Asset: Cash Current Asset: Accounts Receivable Current Asset: Inventory Long-Term Asset: Property, Plant, and Equipment Depreciation Amortization Topic 10: Liabilities Current Liability: Accounts Payable Long-Term Liabilities Topic 11: Equity Retained Earnings Part Three: What to Watch Out For Part Three: Exercises, Practice, and Resources Notes Part Four: Cash Flow Statements Topic 12: How Profit and Cash Are Related to Financial Statements Topic 13: Operating, Financing, and Investing Activities Cash Generated or Used from Operating Activities Cash Generated or Used from Investing Activities Cash Generated or Used from Financing Activities Topic 14: How All Financial Statements Fit Together Income Statement to Balance Sheet Revenue to Assets Expenses to Liabilities Net Income to Equity Income Statement to Cash Flow Statement Balance Sheet to Cash Flow Statement Topic 15: Working Capital Management Accounts Receivable Inventory Accounts Payable Part Four: What to Watch Out For Part Four: Exercises, Practice, and Resources Notes Part Five: The Power of Financial Ratios Topic 16: Profitability Ratios Gross Profit Margin Net Profit Margin Connecting Back to the 10-k Topic 17: Solvency Ratios Debt to Assets Equity to Assets Debt to Equity Zoom Results LogMeIn Results Connecting Back to the 10-k More about Developing a “Gut Feel” Topic 18: Liquidity Ratios Current Ratio Quick Ratio Zoom Results LogMeIn Results Connecting Back to the 10-k Topic 19: Efficiency or Activity Ratios Inventory Turnover Ratio Days Sales in Inventory Accounts Receivable Turnover Days Sales Outstanding Accounts Payable Turnover Days Payable Outstanding Cash Conversion Cycle Connecting Back to the 10-k Ties to Cash Flow and Working Capital Management Topic 20: Other Financial Formulas of Interest EBITDA Free Cash Flow Horizontal Analysis Part Five: What to Watch Out For Part Five: Exercises, Practice, and Resources Notes Part Six: Special Topics Topic 21: Internal Controls Segregation of Duties Asset and System Access Controls Physical Counts of Assets Cycle Counting Reconciliations Approval Authority Procedures and Audits Problem 1: Accessing File Content Problem 2: Erasing Content in a Cell Problem 3: Consistency in Data Entry Problem 4: Audit and Informational Tabs Problem 5: Embedded Calculation Factors Topic 22: Protecting Financial Information in Excel Topic 23: Budgeting and Variances Budgeting Historical Averages Trendline Analysis Cost Drivers Variance Analysis Topic 24: Contractor or Full-Time Employee? Reasons for Contracting Labor Modeling Analysis Topic 25: Small Business Overall Business Resources Reports QuickBooks and Software Financial Data Analysis Pricing Products and Services Business Plans Business versus Personal Receipts and Documentation Taxes Social Security and Medicare Payroll Taxes Other Tax Demands Financial Human Resources Bookkeeper/Accountant CPA CFO Personal Finance/Wealth Advisor Bank Reconciliations Contractor Payments Funding Clarity of the Business Model Do the Numbers Make Sense? Part Six: Exercises, Practice, and Resources Notes Appendices Appendix A – Ratio Analysis Recap Gross Profit Margin Net Profit Margin Solvency Ratios Appendix B – Learning Plan Appendix C – Nomenclature Table Appendix D – Personal and Corporate Finance Appendix E – Utilizing a Book Group Facilitation Company Selections Organizing the Sessions Index