R12 Session 4

FC 21
Financial Control 21
Financial Summary
How to Prepare & Analyse
Q. Where is the Result ?

Result Exists in Detail

Let’s See in Story

Ram and Shyam : Joined at same post of salesman

………….Story

Ram promoted to Manager

Shyam at Same position
Shyam complain and ready to resign

Boss given Assignment about Watermelon

Is there Watermelon selling outside ?

Shyam Went outside and come back after sometime.
Syam : Yes
Boss : Rate ?
Shyam : Don’t know.
Boss Called and asked Same Question from Ram in presence of Shyam

Ram Went outside and come back after sometime.

Is there Watermelon selling outside ?
Ram : Yes
One person
20/- per kg
If we buy 10 pieces at 18-
340 Inventory
Table 150
Avg. 4 Kg Each
South India recently purchase
3 Day wait : Azapur : 15 per Kg.

Successful People
1. Observe in detail
2. Give Attention to detail
3. Understand that detail
4. Think and find actionable
5. Take Actions and produce result
Financial Summary
How to Prepare & Analyse
Why Financial Summary
1. Don’t know what is my monthly Profit ?
2. I know profit but don’t know how can I increase it ?
3. Where is my Profit ?
4. From where money is coming and where is it going ?
5. I don’t have clear idea how the years look like ? Means what
is my plan and actual Sale and Profit this year and where
will I each ?
6. What is that minimum amount of Sale that I must do in
Business ?
7. How much money my business need and what amount
have I invested in Working Capital ?
8. What is my opening and Closing Cash and Bank Balances
and whether the Books are closed timely ?
9. Am I really running a Profitable & Cash Rich Business ?
Let’s Discuss Some Strategy
 What are Strategies to reduce freight
cost ?
➢ Negotiate with carriers
➢ Optimize shipping schedules
➢ Use technology
○ Transportation management systems can help optimize
shipping routes, track shipments, and provide real-time
visibility into freight expenses.
➢ Optimize packaging
➢ Consider alternative modes of transportation
➢ Reduce freight damage
 What are Strategies to reduce
Packaging Cost ?
➢ Use appropriate packaging materials
➢ Optimize packaging design
➢ Reduce excess packing material
➢ Automate packing processes
○ Automating packing processes can help reduce labor costs.
➢ Train employees
○ Training employees on proper packing procedures
➢ Use recycled or eco-friendly materials
➢ Consider outsourcing packing
○ Access to specialized equipment and expertise, and can also reduce labor costs.
 What are Strategies to reduce
Salary Cost ?

➢ Review your staffing levels

○ you have the right number of employees for your business needs
➢ Consider flexible work arrangements
○ such as remote work or flexible hours
➢ Implement a salary freeze
➢ Use performance-based pay
➢ Outsource certain tasks
 What are Strategies to reduce
Interest Cost ?
➢ Refinance debt
○ when interest rates are low.
➢ Consolidate debt
○ Consolidating debt into a single loan with a lower interest rate
➢ Negotiate with lenders
➢ Accelerate debt payments
○ Making extra payments on debt can help businesses reduce their interest costs
➢ Improve creditworthiness
➢ Consider alternative financing options
○ such as crowdfunding
 What are Strategies to reduce
Selling Cost ?

➢ Use targeted marketing

➢ Leverage social media
➢ Automate sales processes
➢ Offer incentives to customers
➢ Focus on customer retention
➢ Negotiate with suppliers:
○ ultimately reduce selling costs
 What are Strategies to reduce
Travel Cost ?

➢ Use video conferencing

➢ Plan in advance
➢ Utilize travel rewards
➢ Encourage cost-saving behavior
➢ Consider alternative modes of transportation
➢ Implement a travel policy
Financial
Summary
Financial Summary Write Up

Project Profitability
 …...Important aspects

01
Budget
Business is a Number
Game
…...Important aspects

02
Automation

Process

Tally BUSY Others

 …...Important aspects

03
Profitable
Business

Focus
…...Important aspects

04
Cash Rich
Business

Focus
 …...Important aspects

01 02
Budget Automation
Business is a Number
Game Process

03 04
Profitable Cash Rich
Business Business

Focus Focus
Cash Flow Model
How to Prepare & Operate
Cash Flow
Model
Format Write Up
Cash Flow Model

Org Structure of JSA Leverage of Time

 …...Important aspects

01
Cash Reserve
…...Important aspects

02
Priority Mgt.
 …...Important aspects

03
Cash Rich
…...Important aspects

04
Cash Flow
Planning
 …...Important aspects

01 02
Cash Reserve Priority Mgt.

03 04
Cash Rich Cash Flow
Planning
Thanks