How Do I Learn Financial Management?

Illustrate the latest, most complete, and most realistic financial operation process of the company. Comprehensively present a financial improvement method that is both provincial and profitable. Assess the authenticity of the operation, find hidden mine stocks, and secure the benefits to help you cut costs, reduce risks, and double the benefits Seeing and learning financial management skills makes financial management a "stethoscope" for enterprises
Understand the most realistic operating conditions of the enterprise

Learn financial management from scratch

Illustrate the latest, most complete, and most realistic financial operation process of the company. Comprehensively present a financial improvement method that is both provincial and profitable. Assess the authenticity of the operation, find hidden mine stocks, and secure the benefits to help you cut costs, reduce risks, and double the benefits Seeing and learning financial management skills makes financial management a "stethoscope" for enterprises
Understand the most realistic operating conditions of the enterprise

Chapter 1 Introduction to Financial Statements Chapter 1 What Are Financial Statements 1.1 Contents of Financial Statements 3
1.1.1 Notes to the financial statements 3
1.1.2 Financial Fact Sheet 3
1.2 Classification of financial statements 4
1.2.1 Classification by economic content reflected in accounting statements 4
1.2.2 Different classifications according to the objects reported in the financial statements 4
1.2.3 Different classification according to the time of preparation of accounting statements 5
1.2.4 Classification of Units Prepared by Accounting Statements 5
1.3 Users of financial statements 5
1.3.1 Shareholders 6
1.3.2 Internal management and corporate employees 6
1.3.3 Customers and suppliers 6
1.3.4 Loan Providers 6
1.3.5 Government Departments 7
1.4 The role of financial statements 7
1.4.1 Understand the operating status of the enterprise 7
1.4.2 Providing financial information for investors and creditors to make investment decisions 8
1.4.3 Help government regulators understand corporate information, implement regulation and management 8
Chapter 2 Balance Sheet 2.1 Main Contents and Significance of the Balance Sheet 10
2.1.1 Main contents of the balance sheet 10
2.1.2 Meaning of the balance sheet 10
2.2 Format of the balance sheet 10
2.2.1 Account-based Balance Sheet 11
2.2.2 Reported Balance Sheet 12
Chapter 3 Income Statement 3.1 Content and Significance of Income Statement 14
3.1.1 Content of the income statement 14
3.1.2 Meaning of the income statement 14
3.2 Structure of the income statement 15
3.2.1 Single-step profit statement 15
3.2.2 Multi-step profit statement 16
Chapter 4 Cash Flow Statement 4.1 Content and Significance of the Cash Flow Statement 19
4.1.1 Contents of the cash flow statement 19
4.1.2 Significance of the cash flow statement 19
4.2 Structure of the cash flow statement 19
4.2.1 Main Statement of Cash Flow Statement 20
4.2.2 Supplementary Information to the Cash Flow Statement 21
Chapter 5 Table of Changes in Owner's Equity 5.1 Content and Significance of Table of Changes in Owner's Equity 24
5.1.1 Contents of the statement of changes in owner's equity 24
5.1.2 Significance of the statement of changes in owner's equity 24
5.2 Structure of the statement of changes in owner's equity 25
Chapter 2 Financial Analysis Chapter 6 False Information in Zero-based Resolution Statements 6.1 Causes of Errors in Report Data 29
6.1.1 What are accounting mistakes?
6.1.2 How to Avoid Accounting Mistakes 29
6.1.3 What is accounting fraud 30
6.1.4 Conventional methods of accounting fraud 31
6.2 Where is the error performance of accounting statements 33
6.2.1 Table does not match 33
6.2.2 False reporting of profits and losses 34
6.2.3 Mismatches in Statements 35
6.2.4 Statement notes are not true 35
6.2.5 Falsification in the preparation of consolidated statements 36
6.2.6 Main Features of False Information in Listed Company Statements 36
6.3 How to identify false accounting statement information 39
6.3.1 Main forms and identification methods of inflated profits 39
6.3.2 Main forms of concealment of profit and review methods 42
Chapter 7 How to Avoid False Information in Financial Statements 7.1 Strengthen Financial Management 45
7.1.1 Establish a rigorous accounting post system 45
7.1.2 Develop a strict financial system 46
7.1.3 Regular audits 47
7.2 Strengthening the control of monetary funds 47
7.2.1 Strengthening cash management 48
7.2.2 Strengthening Bank Deposit Management 49
7.3 Preventing Inventory Distortion
7.3.1 Missing Inventory Data
7.3.2 Mistakes in the inventory accounting process 50
7.3.3 Mistakes in Inventory Sending and Receiving Processes
7.3.4 Preventing Fake Stock Information
7.3.5 Preventing fake inventory information from entering the warehouse 52
7.3.6 Preventing Fake Stock Information
7.4 Preventing distortion of fixed assets 53
7.4.1 Finding Missing Data in the Purchase and Construction of Fixed Assets 53
7.4.2 Finding Missing Data in Depreciation of Fixed Assets 54
7.4.3 Finding Missing Data in the Cleanup of Fixed Assets 54
7.5 Preventing income distortions 55
7.5.1 Forms of income fraud 55
7.5.2 Preventing fake income information 55
7.6 Preventing Cost Distortions 56
7.6.1 Cost fraud
7.6.2 Preventing Cost Information Fraud 56
Chapter 8 Preparations Before Analysis 8.1 Purpose of Financial Analysis 59
8.1.1 Purpose of financial analysis from the perspective of the operator 59
8.1.2 Financial Analysis Purposes from an Investor's Perspective 59
8.1.3 Purpose of Financial Analysis from the Creditor's Perspective 59
8.2 Sources of Financial Analysis 60
8.2.1 Financial Report of the Enterprise 60
8.2.2 Audit report 60
8.2.3 Industry Standards
8.3 Basic Procedures and Steps of Financial Analysis 61
8.3.1 Enterprise Strategy Analysis 61
8.3.2 Financial Report Analysis 62
8.3.3 Financial Efficiency Analysis 62
8.3.4 Comprehensive Financial Analysis 63
Chapter 9 Basic Methods of Financial Analysis 9.1 Trend Analysis 65
9.2 Ratio Analysis 66
9.3 Factor Analysis
9.3.1 Serial Substitution
9.3.2 Difference Calculation Method 68
Chapter 10 Financial Report Analysis 10.1 Balance Sheet Analysis 70
10.1.1 Trend Analysis
10.1.2 Composition Analysis
10.1.3 Analysis of Key Projects 74
10.2 Income Statement Analysis 75
10.2.1 Analysis of Changes in Profit Amount 76
10.2.2 Analysis of Profit Structure Changes 77
10.3 Cash Flow Statement Analysis 78
10.3.1 Level Analysis 78
10.3.2 Composition Analysis
10.3.3 Analysis of Key Projects 82
Chapter 11 Profitability Analysis 11.1 Capital and Asset Management Profitability Analysis 85
11.1.1 Return on Net Assets 85
11.1.2 Return on Total Assets 86
11.2 Analysis of Commodity Operating Profitability 86
11.2.1 Net Sales Margin 86
11.2.2 Operating Cost Margin 87
11.3 Profitability Analysis of Listed Companies 88
11.3.1 Earnings per share 88
11.3.2 Dividend payout ratio 88
11.3.3 Price-earnings ratio 89
Chapter 12 Solvency Analysis 12.1 Short-term Solvency Analysis 91
12.1.1 Working Capital 91
12.1.2 Current ratio 92
12.1.3 Quick ratio 92
12.1.4 Cash Ratio 93
12.1.5 Cash Flow Ratio 94
12.1.6 Cash to Debt Ratio 94
12.2 Analysis of long-term solvency
12.2.1 Asset-liability ratio 95
12.2.2 Equity Multiplier 96
12.2.3 Interest coverage multiples 96
Chapter 13 Operational Capacity Analysis 13.1 Total Asset Turnover Rate 101
13.2 Turnover rate of current assets 101
13.2.1 Inventory turnover rate 102
13.2.2 Accounts receivable turnover rate 102
Chapter 14 Growth Capability Analysis 14.1 Equity Growth Rate 105
14.2 Asset Growth 105
14.3 Sales Revenue Growth 106
14.4 Profit Growth 107
Chapter 15 Comprehensive Financial Analysis 15.1 DuPont Financial Analysis System 110
15.2 Pallip Financial Analysis System 112
Chapter 3 Financial Management Chapter 16 Introduction to Financial Management 16.1 Risks and Rewards 117
16.2 Time Value 119
16.2.1 Compound Interest Final Value 119
16.2.2 Compound Interest Present Value 119
16.2.3 Final Annuity Value 120
16.2.4 Present Value of Ordinary Annuities
16.3 Cost of capital
16.3.1 Long-term borrowing costs 122
16.3.2 Bond Costs
16.3.3 Cost of Preferred Stock 123
16.3.4 Cost of common stock 124
16.3.5 Retained Revenue Costs
16.3.6 Weighted average cost of capital 124
Chapter 17 Funding Decisions and Optimal Capital Structure 17.1 Equity Capital Financing 127
17.1.1 Absorbing Direct Investment 127
17.1.2 Issuance of Shares
17.2 Debt Capital Financing
17.2.1 Long-term loans
17.2.2 Issuing Common Bonds
17.2.3 Corporate Bond Announcement 130
17.2.4 Bond Rating 131
17.3 Optimal Capital Structure
17.3.1 Earnings per share analysis
17.3.2 Comparative Cost of Capital Approach
Chapter 18 Dividend Distribution 18.1 Procedure for Dividend Distribution 139
18.2 Dividend Distribution Policy
18.2.1 Residual Dividend Policy
18.2.2 Fixed Dividend Payment Policy
18.2.3 Fixed Dividend Payout Policy
18.2.4 Normal Dividend and Extra Dividend Policy
18.2.5 Factors Affecting Dividend Policy
18.3 Stock Dividends, Stock Splits and Repurchases
18.3.1 Stock Dividends
18.3.2 Stock Splits
18.3.3 Stock Repurchase
Chapter 19 Long-Term Investment Decisions 19.1 The Investment Decision Process 147
19.1.1 Investigations
19.1.2 Analysis and Forecasting
19.1.3 Choosing an Investment Plan
19.1.4 Supervision during events 148
19.1.5 Post hoc evaluations
19.2 Cash Flows
19.2.1 Cash Flow of Project Initial Investment 149
19.2.2 Operating Cash Flows in Project Operations
19.2.3 Cash Flows from Project Termination
19.3 Non-discounted Analysis
19.3.1 Accounting Rate of Return
19.3.2 Payback Period
19.4 Discounted Analysis
19.4.1 Net Present Value Method
19.4.2 Present Value Index Method
19.4.3 Embedded Rate of Return Method
Chapter 20 Cash and Securities Management 20.1 Motivation and Management Objectives for Cash 156
20.1.1 Transaction Motivation
20.1.2 Preventing Motivation
20.1.3 Investment Motors 156
20.2 Cash Management Strategies
20.2.1 Accelerated Collection 157
20.2.2 Making Full Use of Cash Float 158
20.2.3 Efforts to Synchronize Cash Revenue and Expenditure 158
20.3 Best Cash Holdings 159
20.3.1 Cost Analysis Models
20.3.2 Inventory Models
20.3.3 Cash flow model 161
Chapter 21 Accounts Receivable Management 21.1 Credit Standards 164
21.1.1 Quality 165
21.1.2 Capabilities
21.1.3 Capital 165
21.1.4 Mortgage 165
21.1.5 Condition 165
21.2 Credit Conditions
21.2.1 Credit Term
21.2.2 Cash discounts and discount periods 167
21.3 Collection Policy
21.3.1 Collection fees 169
21.3.2 Collection procedures
Chapter 22 Inventory Management 22.1 Overview of Inventory Management 172
22.1.1 Purpose of Holding Inventory 172
22.1.2 Inventory Management Objectives
22.1.3 Common Problems in Inventory Management
22.2 Daily Stock Management Methods 173
22.2.1 ABC Classification Management
22.2.2 Economic Bulk Ordering Model
22.2.3 Zero Inventory Management
Chapter 4 Budget and Management Accounting Chapter 23 Overview of Comprehensive Budget Management 23.1 Overview of Comprehensive Budget 181
23.1.1 Meaning of Budgets
23.1.2 Classification of Budgets
23.2 The Role of Budget Management
23.2.1 Clear Objectives of Production and Operation Activities 183
23.2.2 Coordinating the work of functional departments 183
23.2.3 Control of Daily Economic Activities 183
23.2.4 Evaluation of Actual Work Performance 183
Chapter 24 Process of Comprehensive Budget Management 24.1 Budgeting 186
24.2 Budget Execution
24.3 Budget Adjustments
24.4 Budget Analysis
24.5 Budget Evaluation 188
Chapter 25 Basics of a Comprehensive Budget 25.1 Business Budget 190
25.1.1 Sales Budget 190
25.1.2 Production Budget 190
25.1.3 Budget for Direct Materials Procurement 191
25.1.4 Direct Labor Budget 191
25.1.5 Manufacturing Cost Budget 191
25.1.6 End-of-period Finished Product Inventory Budget 192
25.2 Special Decision Budgets
25.2.1 Capital Expenditure Budget 193
25.2.2 Example of Capital Expenditure Budgeting 193
25.3 Financial Budgets 193
25.4 The Relationship Between the Basics of a Comprehensive Budget
Chapter 26 Main Methods of Comprehensive Budget Preparation 26.1 Fixed Budget Method 196
26.1.1 Advantages and Disadvantages of the Fixed Budget Method 196
26.1.2 Examples of Preparation of the Fixed Budget Method 196
26.2 The Flexible Budget Method
26.2.1 Steps in preparing a flexible budget 197
26.2.2 Advantages and Limitations of Flexible Budgeting 198
26.2.3 Examples of Flexible Budgeting 198
26.3 Zero-Based Budgeting 199
26.3.1 Pros and Cons of Zero-Based Budgeting 199
26.3.2 Steps in preparing a zero-based budget 200
26.3.3 Example of Compiling a Zero-Based Budget 200
26.4 Rolling Budget Method 201
26.5 Probabilistic Budgeting
Chapter 27 Examples of Budgeting 27.1 Sales Forecast and Sales Budget 206
27.1.1 Sales Forecasts 206
27.1.2 Sales Budget 206
27.2 Production Budgets
27.3 Direct Material Budget 208
27.4 Direct Labor Budgets
27.5 Manufacturing Expenditure Budget 209
27.6 Product Cost Budgets 211
27.7 Sales Expenses and Management Expenses 211
27.8 Capital expenditure budget 212
27.9 Cash Budget 213
27.10 Estimated Income Statement 215
27.11 Estimated Balance Sheet 215
Chapter 28 Cost Behavior and Cost-volume-profit Analysis 28.1 Cost Behavior Division 218
28.1.1 Fixed costs 218
28.1.2 Variable costs 219
28.1.3 Mixed Costs 220
28.2 Cost-volume-profit analysis 221
28.2.1 Contribution to gross profit 221
28.2.2 Single product breakeven point 223
28.2.3 Breakeven operating rate 224
28.2.4 Margin of Safety
28.2.5 Poly Point 225
28.3 Multi-Product Breakeven Point 225
28.4 Sensitive Analysis
Chapter 5 Internal Control Chapter 29 Overview of Enterprise Internal Control 29.1 Types of Internal Control 231
29.1.1 Internal Accounting Controls
29.1.2 Internal Management Control
29.2 The Role of Internal Control
29.2.1. Ensuring the Reliability and Credibility of Accounting Information
29.2.2 Ensuring the safety and integrity of corporate property 232
29.2.3 Ensuring the normal conduct of production and operation activities 232
29.3 Design Principles of the Internal Control System
29.3.1 Principle of caution 233
29.3.2 Timeliness Principles 233
29.3.3 Independence Principles
29.4 Components of Internal Control 233
29.4.1 Control Environment
29.4.2 Risk Assessment Process
29.4.3 Information Systems and Communication
29.4.4 Control Activities
29.4.5 Supervision of control activities
Chapter 30 Internal Control of Monetary Funds 30.1 Internal Environment of Monetary Funds 237
30.1.1 Organizational Environment
30.1.2 Personal Environment
30.2 Risk Assessment of Monetary Funds
30.3 Information and Communication of Monetary Funds 238
30.4 Control measures for monetary funds 239
30.4.1 Control of Division of Duties 239
30.4.2 Authorization Control
30.4.3 Cash and Bank Deposit Control 241
30.4.4 Fixed Reserve Control 242
30.4.5 Control of notes and related seals 243
30.5 Supervision and Inspection of Currency Funds
Chapter 31 Internal Control of Inventory 31.1 Post Division and Authorization Approval 246
31.1.1 Division of Work 246
31.1.2 Authorization approval 246
31.2 Inventory Procurement and Custody Control 247
31.2.1 Procurement Control
31.2.2 Custody Control
31.3 Control of Issuance and Disposal of Inventories 248
31.3.1 Control of Inventory Issues 248
31.3.2 Control of Inventory Disposal and Inventory 249
31.4 Examples of Inventory Internal Control Analysis 249
31.4.1 Case Analysis of Inventory Internal Control 249
31.4.2 Example of Internal Control of an Enterprise's Inventory
Chapter 32 Internal Control of Fixed Assets 32.1 Post Division and Authorization Approval Control 254
32.1.1 Job Division System 254
32.1.2 Authorization and approval system 254
32.2 Procurement and Acceptance Control 255
32.3 Use and Maintenance Control 256
32.3.1 Usage Control
32.3.2 Maintenance Control
32.4 Disposal and transfer control 257
32.5 Examples of Internal Control of Fixed Assets 258
Appendix Annuity Present Value Coefficient Table 262
Annuity final value coefficient table 263
Compound interest present value table 264
Compound interest final value coefficient table 265

Entrepreneurship has become the choice of more and more people. Facing the rapidly changing external environment, how to manage their own business and create greater benefits has become a big challenge for bosses. In order to improve the level of internal management and control the changeable external environment within the controllable range, bosses need to constantly improve their knowledge structure and master richer management tools. Financial management skills are one of them.
In a sense, a job for managers is to identify and resolve problems that arise in business operations. Traditional Chinese medicine pays attention to hearing, hearing, asking, and cutting. Financial management skills and means are the "stethoscope" in the hands of managers, and financial management means can be used to provide a "magic bullet" for the crux of business management. If the boss of the company does not understand the financial knowledge, it is like a blind person trying to grasp the image, it is difficult to grasp the actual situation of the business operation, and it is difficult to prescribe an immediate "prescription". In summing up the lessons of the collapse of the Giant Group, Shi Yuzhu mentioned that the failure to understand finance and strengthen financial management is one of the important reasons for the collapse of the giant. Therefore, in order to survive and continue, the bosses need to take the initiative to learn financial management knowledge.
Like all non-financial people, bosses may think that financial management is bitter, difficult to understand, and difficult to learn. In fact, otherwise, financial management is not virtual, but a reflection of real business operations. This book is to explain the complex financial management knowledge through a more common and plain language, to help bosses quickly master the skills needed. So don't worry, the excitement is about to begin.
Features of this book This book introduces broad financial management knowledge, covering a comprehensive content. It introduces some financial management knowledge necessary for entrepreneurship to entrepreneurs in an easy-to-understand manner. The characteristics of this book are:
The content is comprehensive. The contents covered in this book are all necessary financial management knowledge often used by entrepreneurs, and the content is comprehensive, involving financial analysis, financial management, budget management and internal control, etc., which can well meet the entrepreneurs' knowledge improvement. demand.
Combination of theory and practice. In the explanation of each knowledge point in this book, the method of combining knowledge and case is used to explain, and the financial knowledge is penetrated into all the examples.
The language is plain and easy to understand. The author of this book has limited writing and does not want to turn this book into a jerky theoretical textbook. Therefore, the author uses as much popular language as possible to explain, in an attempt to allow readers to quickly and simply grasp the relevant knowledge of financial management.