FINANCE DESK BOOK
CONTENTS
SECTION 1
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTINGIntroduction 1-2
1-2Understanding Financial Statements1-2
1-2Rules of Debit & Credit 1-9
1-9Accounting Methods 1-10
1-10Inventory Methods 1-11
1-11Chart of Accounts 1-11
1-11Accounting Quality Assurance 1-21
1-21Common Reporting Errors, Causes and Cures 1-22
1-22Accounting Practices & Policies1-28
1-28Certified Public Accountants 1-37
1-37Types of Statements and Levels of Service 1-37
1-37Selecting a CPA 1-38
1-38Internal Controls 1-39
1-39SECTION 2 MANAGERIAL ACCOUNTING
Financial Statement Analysis and Interpretation 2-2
2-2Financial Modeling and Forecasting 2-39
2-39Cost Analysis 2-52
2-52How to Perform ABC 2-55
2-55Business Valuation 2-64
2-64SECTION 3 FINANCIAL MANAGEMENT
Cash Flow Management 3-2
3-2Budgeting 3-17
3-17Capital Acquisition 3-19
3-19Financial Best Practices 3-52
3-52SECTION 4 GROWTH MANAGEMENT
Sustainable Growth 4-2
4-2Growth by Market Penetration 4-4
4-4Growth by Geographic Expansion 4-6
4-6Growth by Line Expansion 4-6
4-6Growth by Acquisition 4-6
4-6Shopping for the Business 4-11
4-11The Initial Assessment 4-12
4-12Valuation 4-14
4-14Letter of Intent 4-14
4-14Contract 4-18
4-18Due Diligence 4-18
4-18SECTION 5 MANAGING TAX MANAGEMENT
Tax Management 5-2
5-2SECTION 6 DEVELOPING FINANCIAL STRATEGIES
Introduction 6-2
6-2Statement of Objectives 6-2
6-2Situation Analysis 6-3
6-3Goals 6-10
6-10Strategies & Tactics 6-10
6-10Testing with ProForma Financial Statements 6-11
6-11Execution 6-13
6-13EXHIBITS, CHECKLISTS & FORMS
Exhibit 1HME Business Income Statement 1-6
HME Business Income Statement 1-6Exhibit 2HME Business Balance Sheet 1-7
HME Business Balance Sheet 1-7Exhibit 3HME Business Statement of Cash Flows 1-8
HME Business Statement of Cash Flows 1-8Exhibit 4Balance Sheet and Income Statement Accounts 1-9
Balance Sheet and Income Statement Accounts 1-9Exhibit 5Classification of Accounts 1-13
Classification of Accounts 1-13Exhibit 6Chart of Accounts 1-15
Chart of Accounts 1-15Exhibit 7IRS Form 4562 1-33
IRS Form 4562 1-33Exhibit 8Financial Norms 2-8
Financial Norms 2-8Exhibit 9Trend Analysis Report 2-15
Trend Analysis Report 2-15Exhibit 10 Common Size Income Statement
And Balance Sheet 2-17Exhibit 11Profit-Volume Chart 2-21
Profit-Volume Chart 2-21Exhibit 12Subsidiary Forecast 2-49
Subsidiary Forecast 2-49Exhibit 13Forecast Income Statement 2-50
Forecast Income Statement 2-50Exhibit 14Forecast Balance Sheet 2-51
Forecast Balance Sheet 2-51Exhibit 15Identifying Activities 2-56
Identifying Activities 2-56Exhibit 16Where did the money go? 3-2
Where did the money go? 3-2Exhibit 17Cash Flow Basics 3-3
Cash Flow Basics 3-3Exhibit 18Credit Memo 3-34
Credit Memo 3-34Exhibit 19Loan Proposal Documents 3-38
Loan Proposal Documents 3-38Exhibit 20Sample Loan Proposal 3-39
Sample Loan Proposal 3-39Exhibit 21Letter of Intent 4-15
Letter of Intent 4-15Exhibit 22Statement of Assumptions 6-12
Statement of Assumptions 6-12Exhibit 23Implementation Schedule 6-15
Implementation Schedule 6-15Checklist 1Transaction Analysis 1-9
Transaction Analysis 1-9Checklist 2Pre-Issue Review of Financial Statements 1-21
Pre-Issue Review of Financial Statements 1-21Checklist 3Qualitative Review of Financial Statements 2-31
Qualitative Review of Financial Statements 2-31Checklist 4Loan Proposal Checklist 3-37
Loan Proposal Checklist 3-37Form 1Petty Cash Reconcilliation 1-23
Petty Cash Reconcilliation 1-23Form 2Journal Entry Worksheet 1-36
Journal Entry Worksheet 1-36Form 3Evaluation of Internal Controls 1-41
Evaluation of Internal Controls 1-41Form 4Financial Impact Analysis 2-23
Financial Impact Analysis 2-23Form 5Activity Information Worksheet 2-61
Activity Information Worksheet 2-61Form 6Activity Accounting Worksheeet 2-63
Activity Accounting Worksheeet 2-63Form 7Credit Application 3-8
Credit Application 3-8Form 8Request for Credit Reference 3-9
Request for Credit Reference 3-9Form 9Initial Assessment 4-13
Initial Assessment 4-13Form 10Due Diligence Checklist 4-19
Due Diligence Checklist 4-19
