Basic Course on Financial Intelligence

If you want to grow in business, also working hard and focused on the same but still not getting desired results, then there is lack of FINANCIAL INTELLIGENCE and adequate planning Here are certain tips and guidelines.

Know the meaning, importance and relevance of various financial statements such as Profit & Loss Account, Balance sheet, Cash flow statement etc. that enables you to ascertain a business house. While going through ‘CHANAKYA NITI’ we can learn about the various financial tools that enables you to run the business smoothly like Budgetary control and applications of various ratios that enables you to take financially intelligent decisions.

Know the meaning and relevance of various business and accounting terms such as Financial Statement, Financial Accounting, Income Statement, Revenue, Assets, Liabilities, Investment, Partnership, Sole proprietorship and many more definitions that are important to run a business.

Know how to read financial statement – Income statement how it is different from Net Profit, little depth knowledge of profits, dividend and retained earnings. Over view of personal income and its allocation as per Chanakya.

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As an investor we must have in-depth knowledge of Balance sheet, Income Statement and Cash flow statement and also how they are differ with each other. Balance sheet indicates that at a given point, of time what are various sources of funds and where and how they are applied in the interest of the organization. Income Statement indicates the various sources of income during a given period and it is on accrual bases. Cash Flow statement shows head wise inflow and out flow of funds. We must not forget to refer to “Notes to Financial Statement” in which certain additional and important information’s such as ratio calculations and procedures are mentioned.

People face various types of financial challenges such as cash crunch, Salaries payable, Rentals, etc. It is very crucial for business to overcome such challenges.

Four Components of Financial Planning are as important as Pillars of the any Building and are required to plan the things well.

Financial intelligence is a critical subject for us irrespective of the fact whether we are running a business as CEO or leading a finance department as CFO or working as an employee of the company or even in day to day activity in our personal life when we spend money to fulfil our daily needs. As an employee we need to see how maximum we can contribute in achieving the objective of the company. As an individual we can efficiently prioritize and manage our day to day expenses and save money.

It is important, before we start a work, we should examine all the opportunities available for us otherwise we may suffer a loss. For example as Product Manager we must know what are the profit margins in the other products in the company before fixing a price of the product.

Although the objective of making the finance statement is to give the true picture of the business entity, there are certain points where the statements go wrong or misleading to the users.

Ø Only those receipts or payments should be treated as revenues or expenses respectively, those belong to that particular period for which the statement is being made.

Ø While recording the transaction one must keep in mind that business has the separate legal entity than that of proprietor or the owners of the business.,

As per the accepted principle the expenses are incurred in order to generate the revenue. Hence it is important to synchronize both – Income & expenditure with respect to the period. For example, if we are making Profit & Loss account for 2nd Quarter of FY 2019-20, We must ensure that only those expenses should be considered which are incurred to generate revenue for the 2nd quarter only. This is the essence of matching principle.

Ø In order to give a fair picture of the business entity certain estimations are made with due responsibility. Looking to the future uncertainty, effects are given in the Income & Expenditure by writing down the net assets if the future doesn’t appears to be favourable or writing up the net assets if the future appears to be favourable.

Ø If expenses are incurred but not paid, then they are treated as liability and will be carried forward to the next accounting year where it will be settled. Same way if payment is made but relates to next accounting year, than it is called unexpired expenses and carried forward as an asset to the next accounting year in which the company will receive the services or product for which payment is made.

One is the most important principle which is disclosure. While finalizing the financial statements, one must ensure that all material facts are disclosed through the state of affairs or in the form of “notes to the accounts”. These facts play an important role in taking various decisions such as – For a Bank who is considering a case to give loan to the business entity or Investors who wants to know the correct position before investing in it. These are the parts of honesty and business ethics.

To achieve the Financial objectives, one should also be able to put time lines to achieve them.

Excel File attached for Implementation the learning.

To achieve the objectives, one should be able to set smart goals and then plan of action can be put in place to achieve the objectives

Excel File attached for Implementation the learning.

Mr. Mukesh Aggarwal, Director of Siddhi Cold Chain (P) Ltd. talking about the benefits he has received after attending the program. He has been able to set the goals and how to track them in effective manner to get desired results.

We get what we can visualize in our subconscious mind. Worrying about money is counter productive and on the other side Imaginary feelings of wealth manifest themselves in material form.

Mr. Rahul Jain, Director Bizwiz Learning is sharing his story that Despite series of failures and Physical limitations, how he with his positive attitude did not let negatives take control of his life. From an Average Student, he became mentor to IIM Ahmedabad ( CIIE) by upskilling himself continously. He is now the Director of edutech company Bizwiz learning, LMI -India & SKI Ltd. He is also managing a NGO known as SWT which is working actively in the field of social welfare. In his Professional Journey, He has trained hundreds of Professionals to achieve more in their Personal and Professional lives. He has mentored thousands of business owners, working professionals and students. He is also member of renowned instiutions like CII, AIMA, NHRDN, JITO, JAN etc. He gives credit to the Do1%, 100% Done Success bluprint to achieve sustainable growth. Follow this link to join WhatsApp group: https://chat.whatsapp.com/DfAihU1TlZW... , Visit our blog to have more such resources: http://bizwizlearning.com/blog/.

You can join our One month online premier EPBT program for Sustainable growth. For details see below:

https://bizwizlearning.com/one-month-online-premier-epbt-program-for-sustainable-growth/