1. © 2010 Neil Denby and David Hamman Finance for larger businesses

2. © 2010 Neil Denby and David Hamman Finance for larger businesses Businesses need a lot of inputs before they can sell finished goods or provide services. These might be mainly machinery Mainly people Mainly raw materials Or a combination of all of these

3. © 2010 Neil Denby and David Hamman Finance for larger businesses What do you think this has to do with finance? What other items must be paid for?

4. © 2010 Neil Denby and David Hamman Finance for larger businesses All of these resources or inputs need to be paid for – along with power, transport, services like computers and communications, postal services, financial services, interest on loans, fuel, wages, taxation…

5. © 2010 Neil Denby and David Hamman Finance for larger businesses So all businesses need to raise finance. Once the business is producing and selling, it also needs to see what money is coming in as well as what is going out. Businesses need both to raise finance and to control its flows.

6. © 2010 Neil Denby and David Hamman Finance for larger businesses Large businesses – that are already trading – raise finance in different ways to small businesses. They can: Borrow money from banks and financial institutions Use past profits Offer shares to the public Sell assets such as production facilities, retail outlets – or even brands

7. © 2010 Neil Denby and David Hamman Finance for larger businesses Who do you think looks after all of these flows of money? Who keeps the records? Who advises businesses what to do in terms of their finances?

8. © 2010 Neil Denby and David Hamman Finance for larger businesses There are two main types of accountant Financial accountants measure flows of income and costs Management accountants use these figures to help manage the business Both of them use accountancy tools.

9. © 2010 Neil Denby and David Hamman Finance for larger businesses The main accountancy tools are: The profit and loss account The balance sheet Statements and forecasts of cash flow Mathematical tools like ratios Can you define what each of these tools does?