Financial Management

Controlling Costs

Material Management

Workflow

Workforce

Facilities Maintenance

Utilities Maintenance

Risk Management

negotiating good prices

specification

using a prime vendor

group purchases

just-in-time delivery

keeping up-to-date inventory records

POS system

Secure receiving, storage, work areas

measure&improve productivity

monitor work hrs/avoid overtime

schedule emp. for appropriate tasks

prevention

mission

customer service

gas $ vs electric $$$

Insulation for equip/windows

Automatic lights/LEDs

Water-conserving equips

reuse/reduce/recycle/repurpose

Idle equip. not in use

minimize liability

work-related illness

job-induced injury/illness

food safety

appropriate pt care

products that fails to meet standars

smooth forward workflow

layout & design

economies of scale

quality control

Financial Reports

Operating Statement

Variance Analysis

Profits & Loss Statement (P & L)

Inventory

Indirect labor costs

Overhead

Depreciation

Taxes

Balanced Sheet

Assets

Liabilities

Equity

Current Assets

Fixed Assets

Current liabilities

Accounts Payable

Payroll Liabiity

Accrued Liability

Unlearned Revenue

Long-term Debt

Other liabilities

Ownership Equity

Stockholders' Equity

Cash Handling

Checks & Balances

Security

Petty Cash

Cash on Hand

Corporate credit card

AKA "performance report"

@ the end of an accounting period

compares actual fiscal performance to budget

prepared by accounting department

accounts for deviation from budget

Identify variances on Operating Statement & investigate causes

Managers responsible for identifying causes & making changes

list all actual date within an accounting period

Controllable & uncontrollable revenues & expenses

Net profits or losses

Multiple years = Consolidated P & L

Higher inventory value = expenses appear higher

Lower inventory value: profits appear higher

May not appear in budget, but included in P & L

May not appear in operating budget, but included in P & L

Calculated by dividing the purchase of an item by its expected lifetime

Income taxes, not sales taxes

Taxes on employee wages are reported as indirect labor costs

checking/savings/real estate/inventories/equip.

snapshot of the org. financial status at a specific point in time

Must be balanced; assets = liabilities

debts

Cash & all assets readily available (has liquidity)

prepaid expenses (ex. insurance)

Accounts Receivable

non-liquid, tangible goods (land, building, equip, improvements such as new carpeting, paint jobs, security sys)

Short-term debt

money owed

salaries/wages owed

from advanced payments for products yet delievered

payment to be made in the future (ex. PTO & income taxes)

any debt that becomes payable after a year (ex. mortgages, long-term lease, warranties, goods sold)

post-retirement benefits

potential liability from pending lawsuits

owner's net investment in a business after paying off everything

Asset>Liability = Equity is HIGH

Asset</=Liability = Equity is LOW

ownership equity of a corporation (more than one owner/stockholders)