1. practical explanation of finance without mentioning double entry accounting system 2. art of finance: based on estimates and assumptions depending on the personality or opinion 3. finance=analyzing numbers and using historical information to make decisions, accounting=taking transactions and figuring out how to create historical information 4. shared the number with employees, psychic ownership 5. finance needs to be universally understood cause finance=score in a business=game general employees need to understand key metrics or numbers that will drive success in business 6. two key metrics for project-based businesses: percentage of our labor that's directly applied to projects (percentage of labor direct ) & the dollars we generate for every direct hour we spend (gross profit per hour) 7. everyone should be involved in numbers to prevent fraud 8. difficult to raise cash especially for small businesses. profit=/cash flow 9. transparency
You can use double entry accounting system to explain a financial result. You simply need to imagine a mini scenario with virtual transactions where double entry accounting system that allow to establish a mini balance sheet and mini income statement by simply showing the link between a given double entry transaction and the financial result by drawing T accounts, you will make things clear and simple. And the historical information are mainly accounting information. Financial statements called balance sheet, Income Statements, are made of the debit and credit transactions recorded during the given period. Thus if you understand debit, credit you can understand where a given transaction you are recording will end up, in the balance sheet or in another statement according to the nature of the debit and credit. You can use
Thank you for the useful information. I've seen directors of companies just agree blindly to the numbers, oh they may ask a few questions to seem educated but on the whole the finance team are in charge. I've also seen the finance team massage the numbers to make them fit.
Going into FIU as a Finance Major,and this video is very interesting! Its true,if you dont understand every aspect of your business,even including employees,it may lead to a very difficult business!
That's good information that various levels of any organization should be privy to certain financial information and more specifically in how that information pertains to their job functions.
This was right on point .I work for a publicly traded fortune 500 company and transparency is very important as well as knowing the numbers.This has inspired me to come up with some incentive for my team that are suppose to order pick 250 units per hour. some do most dont.What type of incentive could i use to drive my productivity?
Good Solid Historical Acct. Sys.- Integrity & Competency Accurate-Consistent-Considerable Applied. Key Metrics that can bring awards thru Bonuses! - Great Idea! I'm A Fresh Accountant- but these Vids are GREAT! I've watched this 1 for 3 days strait now.. lol
i like his idea about the non-profit organization..they should called non-taxed organization instead of non-profit organization as they are also have to make profit to remain survive in whatever they do..
what is confusing, is that when we compare the roles of bookkeeper and an accountant, we are told, that bookkeeper is responsible for registering transactions and keeping books accurate and consistent. So, they focus on recording the financial historical data of the company. Whilst accountants read those data, compile financial statements and advise the businesses on ways to improve its financial position and performance. I beleive many accountants are involved in creating those metrics as well as budgets and forecasting necessary for strategic planning and execution. Since the last is done by accountants, I can't really make a line between accountancy and finance. interestingly, in Russian and probably in other languages, you don't have different terms for each bookkeeping and accountancy, it's one word. In small firms, the person that does bookkeeping, will also do budgeting, forecasting, creating financial statements and other finance related stuff. I would financists are people that don't have to understand accounting on very techncal basis, but can read the numbers and make valuable recommendations to companies directors, managers. but still, this could also be done by a qualified accountant.
These days, CFOs are looking to transform their GLOBAL finance function from being a reporting function to taking on an analytical, pricing and planning role. From an organizational development (OD) perspective, this is challenging but very fulfilling work.
The information on gross profit per hour are necessarily the outcomes of information on transactions regarding debit and credit. If you understand credit and debit, how they are recorded you can better understand gross profit. Because you can imagine. you can have the picture of how the figure you have in front of you has come about. For instance in saying profit you mean a difference between sell and cost of production or cost of purchase. By knowing about debit and credit you can try to reconstruct the process. Because you know that sell mean an account of income statement which start by number 7, an account of class 7 which an account of credit, in other words, it increases at credit, you see a transaction that has led to benefit at the credit side or the right side of that account. Since you know as long as there is a credit there must be at least one debit that correspond to that credit, you can be deduction say that sell has led to payment. The money received is likely in the bank, then you know you need an account of class 5 which is a debit account in your books and a balance sheet account, etc by knowing how debit and credit function can make things easier.
But only the skilled or talentid manag,s can figuer out the key drives to motivate your employers to scale up thier perfourmence once they know the numbers and factors of what they 've done that gives them the spirite to adopt the succes of thier orginisation
13dankster, everything he talks about are basic principles taught in first-year business school. How can "upper management" not already know all of this??? What type of business are you in where the so-called "upper management" is so uneducated?
Yes, 13dankster, I AM a genius. You, obviously, are not. Look, if you never went to college and have a low IQ, then I'm sure his book might be helpful to you. For a financial illiterate, he can help you understand cash-flow management. Dr. Seus is very useful for 5 year old children too. Every book has its right audience and its natural target market. For guys like you, maybe his book is actually helpful, but for the rest of us this is really basic stuff.
1. practical explanation of finance without mentioning double entry accounting system
2. art of finance: based on estimates and assumptions depending on the personality or opinion
3. finance=analyzing numbers and using historical information to make decisions,
accounting=taking transactions and figuring out how to create historical information
4. shared the number with employees, psychic ownership
5. finance needs to be universally understood cause finance=score in a business=game
general employees need to understand key metrics or numbers that will drive success in business
6. two key metrics for project-based businesses: percentage of our labor that's directly applied to projects (percentage of labor direct ) & the dollars we generate for every direct hour we spend (gross profit per hour)
7. everyone should be involved in numbers to prevent fraud
8. difficult to raise cash especially for small businesses. profit=/cash flow
9. transparency
Ttfreuwee
Thank you
You can use double entry accounting system to explain a financial result. You simply need to imagine a mini scenario with virtual transactions where double entry accounting system that allow to establish a mini balance sheet and mini income statement by simply showing the link between a given double entry transaction and the financial result by drawing T accounts, you will make things clear and simple.
And the historical information are mainly accounting information. Financial statements called balance sheet, Income Statements, are made of the debit and credit transactions recorded during the given period. Thus if you understand debit, credit you can understand where a given transaction you are recording will end up, in the balance sheet or in another statement according to the nature of the debit and credit.
You can use
Thank you for the useful information.
I've seen directors of companies just agree blindly to the numbers, oh they may ask a few questions to seem educated but on the whole the finance team are in charge.
I've also seen the finance team massage the numbers to make them fit.
The idea of ownership of the job makes a huge difference to the company's culture. Great video!
Amit Gandhi .
Amit Gandhi
Great views shared by Joe. Absolutely makes sense how his course is for people more from the technical background.
I like your talk in financial perspective. Thanks very much
A different perspective for finance... Really nice and useful info...
Going into FIU as a Finance Major,and this video is very interesting! Its true,if you dont understand every aspect of your business,even including employees,it may lead to a very difficult business!
It is a very interesting video and Joe knight an intelingent man. I love the topic!
Short and effective advice.
i like this idea : accounting is based on estimate and assumption (personal), finance who drive the company from my perspective.😍
That's good information that various levels of any organization should be privy to certain financial information and more specifically in how that information pertains to their job functions.
Really helpful tips.... the way he present, even better;-)
This was right on point .I work for a publicly traded fortune 500 company and transparency is very important as well as knowing the numbers.This has inspired me to come up with some incentive for my team that are suppose to order pick 250 units per hour. some do most dont.What type of incentive could i use to drive my productivity?
Steve thanks for demystify this for me.
this video raise my capability , really support me by very useful information
Good Solid Historical Acct. Sys.- Integrity & Competency
Accurate-Consistent-Considerable Applied.
Key Metrics that can bring awards thru Bonuses! - Great Idea!
I'm A Fresh Accountant- but these Vids are GREAT!
I've watched this 1 for 3 days strait now.. lol
great interview! 5 stars!
That is true and so important to know indeed , thank you Harvard and nice to see you Sarah :)
i like his idea about the non-profit organization..they should called non-taxed organization instead of non-profit organization as they are also have to make profit to remain survive in whatever they do..
So true. I used to work for a non-for profit for 4 years. The CFO and I both determined that there was no such thing as a non-profit.
The proper terminology is “not for profit” as it is not operated primarily to earn a profit.
Great Video!
what is confusing, is that when we compare the roles of bookkeeper and an accountant, we are told, that bookkeeper is responsible for registering transactions and keeping books accurate and consistent. So, they focus on recording the financial historical data of the company. Whilst accountants read those data, compile financial statements and advise the businesses on ways to improve its financial position and performance. I beleive many accountants are involved in creating those metrics as well as budgets and forecasting necessary for strategic planning and execution. Since the last is done by accountants, I can't really make a line between accountancy and finance. interestingly, in Russian and probably in other languages, you don't have different terms for each bookkeeping and accountancy, it's one word. In small firms, the person that does bookkeeping, will also do budgeting, forecasting, creating financial statements and other finance related stuff. I would financists are people that don't have to understand accounting on very techncal basis, but can read the numbers and make valuable recommendations to companies directors, managers. but still, this could also be done by a qualified accountant.
Superb!!
This is a good video to watch to find out about some of the key concepts surrounding the need to become finance literate.
Great!! An effective one
Great information
These days, CFOs are looking to transform their GLOBAL finance function from being a reporting function to taking on an analytical, pricing and planning role.
From an organizational development (OD) perspective, this is challenging but very fulfilling work.
I want so much to take a course with him as my professor =(
What do u mean by key numbers that make a business success ?
superb !!!
The information on gross profit per hour are necessarily the outcomes of information on transactions regarding debit and credit. If you understand credit and debit, how they are recorded you can better understand gross profit. Because you can imagine. you can have the picture of how the figure you have in front of you has come about.
For instance in saying profit you mean a difference between sell and cost of production or cost of purchase. By knowing about debit and credit you can try to reconstruct the process. Because you know that sell mean an account of income statement which start by number 7, an account of class 7 which an account of credit, in other words, it increases at credit, you see a transaction that has led to benefit at the credit side or the right side of that account. Since you know as long as there is a credit there must be at least one debit that correspond to that credit, you can be deduction say that sell has led to payment. The money received is likely in the bank, then you know you need an account of class 5 which is a debit account in your books and a balance sheet account, etc by knowing how debit and credit function can make things easier.
The idea for managers to expose the financial state of company to employees is a fantastic idea. Employees feel like the business is theirs
Good ideas thanks sir🙏 NT
Very interesting!
Cool, that's a lot to think about
Has anyone read his book? I think it could be good but I haven't heard much about it.
short but very effective ..
I love the honest, straight talk
great great great, nothing but great. i want more more more
That was great
basic but good!!!
I Really Like The Video From Your Finance: What Managers Need to Know
If I want to become a financial analyst, what degree would you suggest?😊
CFA
Yes
But only the skilled or talentid manag,s can figuer out the key drives to motivate your employers to scale up thier perfourmence once they know the numbers and factors of what they 've done that gives them the spirite to adopt the succes of thier orginisation
Very good ST 265
NOT BAD!!!
@pegobuilders and that kills innovation.
MMM-2011 - Mavrodi Money Machine! We change the World!
I need a manager.
Simply inform, evaluate, and incentivize gross margin every quarter
@abcsofgas nice
Hay quá
wow
What's with the last 5 comments? I smell SEO...
13dankster, everything he talks about are basic principles taught in first-year business school. How can "upper management" not already know all of this??? What type of business are you in where the so-called "upper management" is so uneducated?
i bet that women was bored asking questions she already know the answer
@Kellysayshello
you're canadian.... You can't be a genius.
omgg
🇦🇺👑👑🇦🇺to whom it may concern 🇬🇧382020🇬🇧prof. santoniyus, arrival julansen. b.sc., h.c., m.b.a., ph. d. in. progress 🇦🇺👑👑🇦🇺
shes cute!
Yes, 13dankster, I AM a genius. You, obviously, are not. Look, if you never went to college and have a low IQ, then I'm sure his book might be helpful to you. For a financial illiterate, he can help you understand cash-flow management. Dr. Seus is very useful for 5 year old children too. Every book has its right audience and its natural target market. For guys like you, maybe his book is actually helpful, but for the rest of us this is really basic stuff.
estoy ya decepcionado con este acento , nose porke no son capaces de pronunciar claro las palabras , joder
Hay quá
Hay quá