Financial Management for Non-financial Managers

by Marsh, Clive

ISBN13: 9780749464677

ISBN10: 0749464674

Format: Paperback

Pub. Date: 2012-06-15

Publisher(s): Kogan Page Ltd

Other versions by this Author

List Price: ~~$39.95~~

Buy New

Usually Ships in 5-7 Business Days

$37.95

Add to Cart

Rent Textbook

Select for Price

Add to Cart

There was a problem. Please try again later.

Rent Digital

Online:1825 Days access
Downloadable:Lifetime Access

$55.19

*To support the delivery of the digital material to you, a non-refundable digital delivery fee of $3.99 will be charged on each digital item.

$55.19*

Add to Cart

Used Textbook

We're Sorry
Sold Out

Summary

Financial Management for Non-Financial Managersis an accessible, practical and easy to understand guide that will allow any manager to gain confidence in understanding financial matters, managing a budget and dealing with bankers, accountants and finance professionals. This book is a source of invaluable expert advice on all the essential aspects of financial management, covering: business structures, accounting and financial statements, analysis and ratios, planning, budgeting, product and service costing, setting selling prices, investment appraisal, finance and working capital, taxation and international transactions. Online spreadsheets and worksheets are included to accompany key skills and practices explained in the book.

Author Biography

Clive Marsh is a Chartered Banker, Fellow of the Chartered Banker Institute, Associate Chartered Accountant (NZ) and Fellow of the Chartered Management Institute. He has held key roles including Head of Finance, Director of Commercial Services and Director of Business Development and has worked for Shell, Mobil, NatWest, DataBank (BNZ), IBM UK, Cap Gemini, Ernst Young and a number of niche strategy consulting firms.

Online resources	p. ix
Introduction	p. 1
Types of business structure and their finance	p. 4
Sole proprietors	p. 5
Partnerships: general and limited liability	p. 6
Corporations	p. 8
A company limited by shares	p. 8
Limited companies	p. 8
Public limited companies	p. 9
Summary	p. 9
The role of the accounting and finance department	p. 11
Financial accounting, payroll, budgeting, management accounting, taxation, treasury	p. 11
Accounting and finance department relationships	p. 17
Summary	p. 18
Accounting and financial statements	p. 19
Double entry system and ledgers	p. 19
Trial balance	p. 24
Profit-and-loss account	p. 25
Balance sheet	p. 25
Classification of assets and liabilities	p. 26
Source and application of funds statements	p. 27
Principles: matching, accruals, deferrals, consistency, conservatism, accounting periods, materiality, going-concern concept, form and substance, full disclosure and clarity	p. 29
Accounting and the environment	p. 33
Neuroscience and accounting	p. 33
Summary	p. 34
Analysis and financial ratios	p. 35
Ratio analysis	p. 36
Gross profit percentage	p. 38
Net profit percentage	p. 38
Current ratio	p. 39
Liquidity ratio	p. 40
Stock-turnover ratio	p. 40
Debtors' days	p. 41
Fixed assets turnover ratio	p. 42
Gearing ratio	p. 43
Return on capital employed ratio	p. 43
Return on equity: earnings per share	p. 44
The price-earnings ratio (PER)	p. 45
Earnings-yield	p. 45
Dividend cover	p. 45
Dividend yield	p. 46
Summary	p. 46
Planning and budgeting	p. 48
The planning and budgeting process	p. 49
Departmental budgets and variance analysis	p. 51
Key budgets: sales, production, materials, labour, overheads, capital	p. 51
Some key departmental budgets	p. 55
The direct materials budget	p. 59
Capital budgets	p. 64
Capital rationing	p. 67
Summary	p. 69
Product and service costing and pricing	p. 70
Types of cost: fixed, variable, semi-variable	p. 70
Total cost and unit costs	p. 72
Contribution, break-even point and marginal costing	p. 73
Absorption costing - standard costing	p. 78
Activity-based costing (ABC)	p. 83
Selling prices and the sales mix	p. 84
Summary	p. 88
Setting selling prices and marketing strategies	p. 89
Pricing strategies	p. 92
Summary	p. 96
Investment appraisal	p. 98
Relevant cash flow	p. 98
Pay-back period	p. 100
Return on capital	p. 101
Accounting rate of return (ARR)	p. 102
Discounted-cash-flow and net present value	p. 103
The internal rate of return (IRR)	p. 106
Capital rationing	p. 108
Summary	p. 110
Finance, funding and working capital	p. 111
Finance and working capital	p. 111
Short-term funds: overdrafts, short-term loans, invoice finance, trade credit, managing stocks	p. 112
Leases: short term - long term	p. 118
Term funding and long-term finance: optimal gearing, equity funds, ordinary shares, preference shares, debentures, bonds, convertibles, notes, subordinated debt, Eurobonds, commercial mortgages, venture capital, derivatives	p. 123
Export finance: bills of exchange, letters of credit, export credit guarantees	p. 130
Using retained earnings as a source of funds	p. 131
Bank relationships	p. 132
Covenants	p. 135
Financing entrepreneurial thinking and venture capitalists	p. 136
Interest-rate risk	p. 138
Financial markets	p. 140
Summary	p. 141
International transactions and currency risk	p. 142
Buying or selling foreign currency	p. 142
Foreign exchange risks	p. 144
Foreign currency accounts	p. 146
Forward exchange contracts	p. 147
Hedging using the money market	p. 148
Currency futures	p. 148
Currency options	p. 150
Currency swaps	p. 151
Invoicing in domestic currency	p. 153
Advance payment	p. 153
Matching	p. 153
Intra-group trading	p. 154
Export invoice finance	p. 154
Single Euro Payments Area Direct Debit Scheme	p. 154
Summary	p. 155
Company taxation and financial management	p. 156
Direct and indirect taxation	p. 157
Taxes on companies and corporations	p. 159
VAT and GST	p. 160
Taxes on the earnings of employees	p. 162
Global tax planning	p. 163
Double-taxation relief	p. 164
Transfer pricing	p. 164
Bringing taxation into the decision-making process	p. 165
Taxation and the economy: future trends in tax collection	p. 166
Summary	p. 168
The value of a business	p. 169
Building value	p. 169
Methods of valuing a business	p. 171
Summary	p. 179
Financial strategy	p. 180
Elements of a financial strategy	p. 181
Strategic financial management	p. 182
Summary	p. 189
The cost of capital	p. 191
The weighted average cost of capital (WACC)	p. 192
The marginal cost of capital	p. 192
The cost of ordinary share capital	p. 192
Dividend growth model	p. 195
Capital-asset-pricing model (CAPM)	p. 195
Summary	p. 196
Dividend policy	p. 197
Influences in dividend policy	p. 198
Dividend policy theories	p. 199
Ways of paying dividends	p. 200
Summary	p. 202
Case studies	p. 203
Misuse of short-term funds with disastrous consequences	p. 205
Foreign exchange hedging v speculation	p. 207
Stock valuations and profits	p. 209
Bank loans and covenants	p. 211
Separating money transmission from a lending bank	p. 213
Credit ratings and fundamental analysis	p. 215
Advantages and disadvantages of internal charging	p. 217
Marginal costing v full absorption costing	p. 220
Overtrading: profits but no cash	p. 221
Integrating the planning and budgeting process, leading to outsourcing	p. 223
Government deficits and cost cutting	p. 227
A 5 per cent increase in sales is generally worth more than a 5 per cent reduction in costs	p. 229
Large capital projects and cost control: critical path analysis and integration with mainstream accounts	p. 231
A mass of figures just makes life more complicated	p. 233
High levels of fixed costs when income is variable can cause failure	p. 234
Interest rates and inflation	p. 236
Appendices	p. 239
Index	p. 241
Table of Contents provided by Ingram. All Rights Reserved.

Financial Management for Non-financial Managers

Buy New

Rent Textbook

Rent Digital

Used Textbook

Summary

Author Biography

Table of Contents

Digital License