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Finance Techniques

View our library of finance management techniques

Accounting Distortions

Don't get caught out by poor accounting practices that could impact your profits down the line

Accounting Rate of Return

Know whether a project is right to invest in - make smart decisions that will drive business growth

Activity Based Costing

Be profitable by really understanding your costs

Activity Value Analysis

Understand which of your activities add most, and least, financial value

Aggregate Demand

Train your managers to understand the wider economic situation - know when falling incomes could affect your sales

Allocative Efficiency

Learn about the optimal price that consumers are willing to pay - and why

Asset Building to Support Innovation Opportunity

Don't leave innovation to chance - be more profitable by putting the right people and resources in place

Backsourcing

Find out how bringing services back in-house can save money.

Balance Sheet

An instant snapshot of the health and position of your business and essential to understand

Balanced Scorecard

Get a rounded view of performance, not just the financial numbers

Bayesian Analysis

A statistical approach to making sales improvement decisions

Bookkeeping

Keep your house in order

Break-Even Analysis

Don't just think you are going to make profit. Know it

Budgeting Processes

Good budgeting can be the difference between losing money and increasing value by up to 149%

Business Cycle

Are boom and bust inevitable?

Business Valuation

There are several key techniques that are used to value a business. It is critical to be aware of them

Capital Asset Pricing Model

How do you make sure your portfolio matches your risk appetite?

Cash Flow Forecasting

Cash is the single most important thing to the survival of your business

Cash Flow Statement and Management

Discounts can be negotiated and margins increased by 5%-10% with effective invoicing and payment flow

Cash Management

Manage your cash flow effectively and efficiently

Coase Theorem

Understand how to reach efficient outcomes when disputes arise that could disrupt your business operations and profits

Coefficient of Elasticity

Learn how demand and price works in the market - position your business for growth and profitability

Collaborative Planning, Forecasting and Replenishment

Reduce lead times by 18% by working collaboratively with your trading partners

Competitive Advantage

Understand what makes you better than your competition and turn it into business results

Competitive Intelligence

Keep your friends close, but keep your enemies closer? Keep one step ahead by knowing what your competitors are doing

Consolidated Accounting

Understand your company grup's financial position and health - know how you're performing

Consumer Price Index

Train your managers to undertand key economic trends - make even smarter decisions about your business and its future

Consumption Expenditure

Be informed about consumer spending to make quicker, better business decisions

Continuous Improvement

If you are not doing things better your competition will be. You can lose at least 20% sales if you do not keep offering more to your customers

Corporate Audits

Learn how to conduct robust corporate audits - start operating more efficiently and effectively

Cost-Benefit Analysis

Use this technique to make better choices about what your business does, and where you invest

Cost-to-Serve Model

Add 1.7% to your margin by understanding your most and least profitable customers

Cost-Volume-Profit Analysis

Assess your fixed and variable costs to know what sales you really need to break even

Costing Techniques

Analysing your costs in the right way can show inefficiencies and cost saving opportunities

Countertrade

Credit Analysis

Potential lenders will need to understand any potential risks to extending finance. Understand the principles

Crisis Management

Before catastrophe strikes, know your Business Continuity Plan

Cross-Elasticity of Demand

Your competitors' products can affect demand and interest for your products - know why this could happen

Cross-Functional Supply Management

Improve your responsiveness to customers by joining up your internal teams

Customer Centric International Shared Services

Maximise customer centricity - co-design services with key stakeholders to achieve excellence in service provision across international boundaries.

Data Warehousing and Data Mining in Business

Get new insights into your customers and make smarter business decisions.

Database Systems and Management

Manage your databases to get deeper insights into your staff and customers.

Demand Curve

Be more profitable and grow your business - make sure your products are in demand and that customers pay the best price

Demand-pull Inflation

Learn why demand for your goods and services can outstrip supply - and what it means for your business

Discounted Cash Flow

Take a hard headed look at the real value of your potential investments

Due Diligence

Know what you are really buying or selling, and with who, with due diligence

Economic Value Added

EVA gives you an investor's view of the profit and value in your business

Empowering Employees

Your staff will work harder and be more loyal if they feel trusted and able to make some of their own decisions

Financial Management in Procurement

Make sure your business has accurate financial management in the purchasing function an control costs

Financial Planning and Forecasting

If you fail to plan, you plan to fail. Knowing your finances ahead of time is critical to success and survival

Financial Ratio Analysis

Use the key figures to show where your business inefficiencies might be occurring

Financial Reporting Requirements

Make sure that your financial reports follow all current rules and regulations

Financial Statement Analysis

The different financial statements provide some very relevant information. It is important to know how to analyse them

Forecasting

Accurate forecasting is essential and will focus your business on achieving its potential

Foreign Direct Investment

Win-win: take advantage of profitable expansion abroad, or build profitable relationships with investors at home.

Gearing Ratio

Learn how to grow your business for the long-term by maximising profit and minimising risk.

Gross Domestic Product

Understand what the most important economic indicator GDP, means for the growth and success of your business.

Hedging

Managing financial risks is key to long-term profit and growth.

Improving Working Capital Management

The lifeblood of your business - keep on top of it at all times

Income Elasticity of Demand

Train your staff to know why changing customer incomes might affect demand for your products or services.

Inflation

Learn how inflation could affect your company's growth and profitability.

Information Management

Be sure your business decisions are based on the right information

Intellectual Property Management

Protecting your big ideas is critical to success. Companies like IBM make up to 3,300% more by managing their Intellectual Property well

Internal Strategic Integration

When all business functions are aligned to the overall strategy the collective results are likely to improve

Just-In-Time

How to manage stock and inventory levels at the absolute minimum to keep working capital free

Lean Manufacturing / Production

Eliminating waste from your organisation can impact on your costs dramatically

Leasing

A cashflow friendly way to getting some key assets for your business

Leveraging

Reduce your risk and leverage the funds effectively and efficiently

Linear Trend Forecasting

Forecasting techniques are critical to understand as you drive your business forwards

Mergers and Acquisitions

One of the fastest routes to expansion. Understand the motivations and what is involved

Minimum Efficient Scale

Scale-up your business operations, be more efficient and more profitable.

Monopolistic Competition

Find opportunities to control prices and enter and exit new markets easily.

Monopoly

Know how to cooperate with powerful businesses to win more business.

Monopsony

Learn how to cooperate with large businesses to grow your sales and win more business.

Monte Carlo Simulation

New Product Development

Know when and how to develop new products to add to your portfolio and drive up revenue

Oligopoly

Compete or cooperate with large businesses to grow your sales and start winning more business and contracts.

Outsourcing

Dramatically cut costs and increase efficiency and learn how to outsource effectively, safely and profitably.

Paradigm and Paradigm Shifting

Pareto Analysis

20 per cent of the efforts of your business generate 80 per cent of the returns according to this principle

Pay-For-Performance

A method of structuring your staff's pay linking it to certain goals or targets: make sure your people are focused on the right things

Portfolio Management

Understand how to manage the portfolio of your business and make sure each one has the right strategy in place

Pricing Decisions

Get this wrong you will sell nothing, get it right you can thrive

Principles of Accounting

Take your professionalism to the next level - develop expertise in the rules and guidelines for reporting financial data.

Production Possibility Frontier

Use all your resources to maximum efficiency - produce even more products to expand your business.

Productive Efficiency

Produce even more goods for sale for the lowest cost possible and know how to do it well.

Real Options Theory

Real options are not just financial instruments - they can involve physical assets too

Return on Capital Employed

Return is the sole aim of an investor and an essential concept to be fully aware of

Sarbanes-Oxley Act 2002

Be sure to understand your business's reporting obligations under the law

Scarcity

Seize opportunities to better meet customers' needs and wants - learn how to spot gaps in the market.

Sensitivity Analysis

Before committing any cash identify the areas that might slip or outperform so your business is fully prepared.

Shared Services

Cut costs and save time - learn how to be more efficient by sharing services

Shared Services Client-Advisor Relationships

To deliver greater value, focus on flexible partnership models responsive to changing business needs and more conducive to building trust.

Shared Services Innovation

Consider your innovation route map - recognise the value of applying innovative thinking to shared services implementation.

Shutdown Point

Avoid costly production shutdowns - keep your business going, keep your business growing.

Spend Analysis

Spending money is easy - know where your business expenses are and get the right price

Strategic Alignment

Learn how to outperform the competition by matching your strategy and resources.

Strategic Business Units

If your business has different product or service lines you could make more money by treating them as separate business units which need their own strategic direction

Strategy Map

Strategy maps are essential roadmaps to achieving growth and profits and to understand all your options and get ahead.

Supply Chain Finance

Unlock the power of your invoices and release cash to help you grow

Supply Chain Integration

Speaking to all of your suppliers regularly may open up collaboration opportunities which can save you money and maybe even open up new money making ventures

Supply-side Policies

Take advantage of reduced income taxes, better education and training, and less red tape.

Theory of Constraints

Uncover the weakest links in your production processes - make more profit by being more efficient

Total Cost of Ownership

The total cost of your goods or services are more than just the production costs. Make sure you understand this before setting your price and you could see profitability soar

Value Analysis

Get to grips with what really drives the cost and value in your product or service

Value Based Pricing

What is the real value add of your business and how much can you charge your customers

Value Chain

Know which areas of your business will set you apart from your competition and use it to sell to get ahead

Value Chain Management

Being able to manage the value chain well will help deliver bottom line performance

Value-Added Network

You could save valuable time and money by using a VAN for much of your supplier related documentation

Variance Analysis

Train your managers in understanding present costs and learn how to control future costs.

Yield Management

Sell the right product to the right customer at the right time and price. Ensure maximum profit.

Zero-based Budgeting

Drive your managers to find cost effective ways to improve operations and reduce wasteful expenditure.