Financial Intelligence for IT Professionals: The Story of the Numbers

Cover
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
List of Figures and Tables
Preface
Acknowledgments
List of Abbreviations
Definitions
Part One: Why Being Financially Savvy Matters
	Topic 1: How Financial Clarity Gives You Professional Leverage
		Do You Know If Your Employer Could Be in Trouble Financially?
		Do You Want to Start Your Own Business?
		Do You Want to Grow Your Business or Otherwise Invest in Other Businesses?
		Do You Desire to Obtain a Managerial, Directorial, or Executive Position?
	Topic 2: How Understanding the Numbers Gives You an Edge
		The Difference between Finance and Accounting
		Utilizing Your Financial Resources Effectively
		Break Down Silos
		Understanding Financial Decisions and the Connection to Financial Performance
		Assess Promotional Opportunities
	Topic 3: Why Numbers and Accounting Can Be Confusing
		Myth #1 : “ I Cannot Learn This Subject Because It Is Math-Based”
		Myth #2: “I Cannot Learn This Subject Because I Am Not Smart”
		Myth #3: “I Cannot Learn This Subject Because It Is BORING!”
		The Truth of Why Accounting and Finance Can Be Challenging to Learn
		Bottom Line
	Topic 4: How the Book Is Arranged for Your Learning Journey
		Regarding Readers in Different Countries
		Relating Personal Finance to Corporate Finance
		What to Watch Out For
		Examples
		Context
		Exercises
		How to Learn
		Tools for Your Learning
		Other Resources
		Departmental Learning Groups or Study Groups
	Part One: Exercises, Practice, and Resources
	Notes
Part Two: Revenue and Expense: The Basics of Income Statements
	Translating This Information
	Topic 5: Profit and Cash Are NOT the Same
		Why Profit and Cash Are Not the Same?
		Procurement to Payment Cycle
		Order to Cash Cycle
	Topic 6: Overview of Profit and Loss Statement
		Reporting Periods
		Fiscal Years
		Periods of Time
		Be Aware!
		Major Sections of the Profit and Loss Statement
		Revenue
		Cost of Goods Sold
		Gross Margin
		Operating Expenses
		Operating Income
		Net Profit
	Topic 7: Breaking Down the Profit and Loss Statement
		Revenue Recognition and Timing Issues
		Deeper Dive into Cost of Goods Sold
	Part Two: What to Watch Out For
	Part Two: Exercises, Practice, and Resources
	Notes
Part Three: Assets, Liabilities, and Equity: Understanding the Balance Sheet
	Periods of Time
	Translating This Information
	Topic 8: Short Term versus Long Term
	Topic 9: Assets
		Current Asset: Cash
		Current Asset: Accounts Receivable
		Current Asset: Inventory
		Long-Term Asset: Property, Plant, and Equipment
		Depreciation
		Amortization
	Topic 10: Liabilities
		Current Liability: Accounts Payable
		Long-Term Liabilities
	Topic 11: Equity
		Retained Earnings
	Part Three: What to Watch Out For
	Part Three: Exercises, Practice, and Resources
	Notes
Part Four: Cash Flow Statements
	Topic 12: How Profit and Cash Are Related to Financial Statements
	Topic 13: Operating, Financing, and Investing Activities
		Cash Generated or Used from Operating Activities
		Cash Generated or Used from Investing Activities
		Cash Generated or Used from Financing Activities
	Topic 14: How All Financial Statements Fit Together
		Income Statement to Balance Sheet
			Revenue to Assets
			Expenses to Liabilities
			Net Income to Equity
		Income Statement to Cash Flow Statement
		Balance Sheet to Cash Flow Statement
	Topic 15: Working Capital Management
		Accounts Receivable
		Inventory
		Accounts Payable
	Part Four: What to Watch Out For
	Part Four: Exercises, Practice, and Resources
	Notes
Part Five: The Power of Financial Ratios
	Topic 16: Profitability Ratios
		Gross Profit Margin
		Net Profit Margin
		Connecting Back to the 10-k
	Topic 17: Solvency Ratios
		Debt to Assets
		Equity to Assets
		Debt to Equity
		Zoom Results
		LogMeIn Results
		Connecting Back to the 10-k
		More about Developing a “Gut Feel”
	Topic 18: Liquidity Ratios
		Current Ratio
		Quick Ratio
		Zoom Results
		LogMeIn Results
		Connecting Back to the 10-k
	Topic 19: Efficiency or Activity Ratios
		Inventory Turnover Ratio
		Days Sales in Inventory
		Accounts Receivable Turnover
		Days Sales Outstanding
		Accounts Payable Turnover
		Days Payable Outstanding
		Cash Conversion Cycle
		Connecting Back to the 10-k
		Ties to Cash Flow and Working Capital Management
	Topic 20: Other Financial Formulas of Interest
		EBITDA
		Free Cash Flow
		Horizontal Analysis
	Part Five: What to Watch Out For
	Part Five: Exercises, Practice, and Resources
	Notes
Part Six: Special Topics
	Topic 21: Internal Controls
		Segregation of Duties
		Asset and System Access Controls
		Physical Counts of Assets
		Cycle Counting
		Reconciliations
		Approval Authority
		Procedures and Audits
			Problem 1: Accessing File Content
			Problem 2: Erasing Content in a Cell
			Problem 3: Consistency in Data Entry
			Problem 4: Audit and Informational Tabs
			Problem 5: Embedded Calculation Factors
	Topic 22: Protecting Financial Information in Excel
	Topic 23: Budgeting and Variances
		Budgeting
		Historical Averages
		Trendline Analysis
		Cost Drivers
			Variance Analysis
	Topic 24: Contractor or Full-Time Employee?
		Reasons for Contracting Labor
		Modeling Analysis
	Topic 25: Small Business
		Overall Business Resources
		Reports
		QuickBooks and Software
		Financial Data Analysis
		Pricing Products and Services
		Business Plans
		Business versus Personal
		Receipts and Documentation
		Taxes
			Social Security and Medicare
			Payroll Taxes
			Other Tax Demands
		Financial Human Resources
			Bookkeeper/Accountant
			CPA
			CFO
			Personal Finance/Wealth Advisor
		Bank Reconciliations
		Contractor Payments
		Funding
			Clarity of the Business Model
			Do the Numbers Make Sense?
	Part Six: Exercises, Practice, and Resources
	Notes
Appendices
	Appendix A – Ratio Analysis Recap
		Gross Profit Margin
		Net Profit Margin
		Solvency Ratios
	Appendix B – Learning Plan
	Appendix C – Nomenclature Table
	Appendix D – Personal and Corporate Finance
	Appendix E – Utilizing a Book Group
		Facilitation
		Company Selections
		Organizing the Sessions
Index