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)