2. What is Financial Management? Translation of numbers into words; numbers record transactions; words communicate the story and an understanding of the story enables us to attain results. Financial Management Guidelines for the Start–Up Company.
3. Accounting Basics Assets = Liabilities + Equity Balance Sheet Income Statement Statement of Cash Flow ONE pretty simple equation and THREE Statements (Reports) Financial Management Guidelines for the Start–Up Company.
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Editor's Notes
The focus of financial management should be on communication and the direction should be forward looking.
Accounting is merely a component of financial management. Pretty simple concept because it is all based on one equation and has three “scorekeeping” reports.
So let’s take a step back and look at the practical aspects of financial management and establish a basic framework in terms of FOUR guidelines.
Know where you are going and put in place the systems that will get you there.
Be very aware that.......................the devil is in the details. So pay careful attention to the details
Remember that Cash is KING Surprises are for Birthday parties NOT your Start-Up company.
Not enough financial managers do this.............................
Remember the old days.......................the three P’s of management success Then there became six requirements for management success TWO P’s and FOUR E’s Because execution is TWICE as important as planning
And finally...............................Guideline number FOUR Maybe the first among equals. Requires a clear focus on what will be coupled with strong people skills.............. It clearly recognized change, albeit incremental change as a major constant over the evolution of the emerging company.
And this has much broader applications................................
