From the budget to the investment
Understanding the principles of finance management is a key to the
success of a company. It is important to know about the relationship
between risk assessment and cash flow, and know the principles of
budgeting and cash management. Financial management is a very
complex area of business. That is the reason why I have organized
this information into several parts.
The first part describes the basics of budgeting; this also includes an
introduction to the management of budgets and performance.
The second part is about the principles of cash management and cash
flow management, the handling of investments and available cash.
The third part is the most important in this book. Finance
management is more than just understanding the sources of funds. It
is important to know how you can affect the cash flow with debt
financing and understand the meaning of the numbers of the reports
and to analyze the impact.
Part four describes the term of the investment using formulas and
explains how the numbers or the Net Present Value Internal Rate of
Return. If you are not familiar with these numbers, it is easy to
understand and you will see the influence of these values on your
business. In this part, there is also an introduction to corporate
restructuring and anti- takeover measures
In the fifth part of the overall risk and the nature of the risk is
described. You get a view of a WBS (Work Breakdown Structure)
and a description of the tools and techniques for risk assessment.