Many organizations lack solid financial management practices due to a single focus on accounting information only. Good financial management requires that we go beyond traditional accounting. A "basic" level of finance will usually involve some understanding of how to evaluate and measure value. This basic level of finance applies to all types of organizations, including non-profit and non-governmental organizations. The goal of Basic Financial Management is to make sure you are creating value within your organization. Value is creating by generating free cash flows over the life of the organization and benchmarking your investments in relation to your cost of capital.

Some Minimum Criteria

In order to have a solid level of finance in place, you may need to consider:

• Financial Performance Evaluation: A set of standard procedures to monitor the financial performance of your organization, including economic based measurements.
• Cost of Capital: An estimate of your cost of capital so you can determine if you are creating or destroying value when you invest in projects or assets.
• Capital Budgeting: A process for evaluating how to invest in long-term assets or projects.
• Budgets Linked to Strategic Plans: A policy for building your strategies first and then putting budgets in place to meet your strategies. Budgets without strategies tend to be non-value added.
• Cash Flow Management: Forecasting procedures to better manage your cash inflows and outflows.
• Working Capital Management: A set of guidelines to direct the financing of your assets.
• Capital Structure Management: Establishing target ratios to help you find the right mix of capital that minimizes your costs and maximizes value creation.
• Risk Management: Identifying risks, measuring the financial impact on your business, and implementing procedures to reduce significant risks.

My services can address these issues as well as unique financial circumstances confronting your organization.

A basic level of finance doesn't stop with managing your working capital and creating cash flows. It requires that we fine tune certain aspects of financial management so that real value is created within your organization. For example, creating value through financial management may involve:

• Capital budgeting decisions which includes attribute analysis, option pricing, and calculation of expected values.
• Investment decisions which use appropriate criteria, such as Modified Internal Rate of Return and Net Present Value.
• Cost of Capital based on current market conditions with the risk free rate matching the period of cash flows.
• Valuations based on free cash flow; without false economic assumptions such as EBITDA (Earnings Before Interest Taxes Depreciation Amortization).

Partnerships

In order to provide a full range of services to meet your needs, I may partner with other consulting firms, such as Resources Global and the Alliance for Corporate Wealth.

Questions

If you need more information about my services, then give me a call at 1-877-807-8756 or submit the feedback form. You can also download the following information:

• Click Here to download an Introductory Packet for Prospective Clients
• Click Here for a quick 2-Page Flier on Basic Finance
• Click Here for billing rate information