1. FINANCIAL MANAGEMENT

2. FINANCIAL MANAGEMENT

3. Three main aspects to financial management:
Quantity
Liquidity
Performance

4. Cost Management Techniques
Capital Expenditure
Cash Flow Budget
Specialist Area Budgets
Sales Budgets
Production Budgets
Operating and Service Budgets .

5. Types of Costs
Fixed Costs
Variable Costs
Direct Costs
Indirect Costs

6. Monitoring Costs
Breakeven Charts
Cash flow
S-curves

7. Breakeven Charts
A visual display of when a business/project will start to make a profit.

8. Breakeven Charts Sales Line Cost (£) Loss Profit Break-even Point
Total Cost Line
20,000
15,000
Fixed Cost Line
10,000
5,000
Unit/Sales

9. Cash Flow
A means of assessing the amount of money coming into and going out of a company over time
Can be a Forecast or Statement.

10. Apr May Jun Total Opening Balance Income Total Income Expenditure
Payment
Total Income
Expenditure
Materials
Labour
Total Exp.
Carried Forward

11. Apr May Jun Total Opening Balance Income Total Income Expenditure
Income
Payment
Total Income
Expenditure
Materials
20,000
Labour
2,000
Total Exp.
22,000
Carried Forward
(22,000)

12. Apr May Jun Total Opening Balance Income Total Income Expenditure
(22,000)
Income
Payment
Total Income
Expenditure
Materials
20,000
15,000
Labour
2,000
Total Exp.
22,000
17,000
Carried Forward
(39,000)

13. Apr May Jun Total Opening Balance Income Total Income Expenditure
(22,000)
(39,000)
Income
Payment
65,000
Total Income
Expenditure
Materials
20,000
15,000
10,000
Labour
2,000
1,000
Total Exp.
22,000
17,000
11,000
Carried Forward

14. Apr May Jun Total Opening Balance Income Total Income Expenditure
(22,000)
(39,000)
Income
Payment
65,000
Total Income
Expenditure
Materials
20,000
15,000
10,000
45,000
Labour
2,000
1,000
5,000
Total Exp.
22,000
17,000
11,000
50,000
Carried Forward

15. S-Curves
A display of cumulative costs, labour hours or other quantities plotted against time.

16. constructionsite
£,000

17. Produced by Gates MacBain Associates ©