Chapter Name: Basic Financial Management
Description:Introduces fundamental financial concepts such as budgeting, cash flow management, and financial record-keeping.
Purpuse:To ensure learners can manage business finances effectively, ensuring profitability and sustainability.
Rational:Sound financial management is crucial for the survival and growth of small businesses.
Chapters Topics
Basic Financial Management
Fundamentals of managing finances effectively, including budgeting, spending, saving, and investing.
Cash flow management
Monitoring and controlling the inflow and outflow of cash to ensure the business can meet its obligations.
Differences between business finances and personal finances
Distinguishing between personal income/expenses and those of the business to ensure clear financial reporting and accountability.
Types of budgeting methods and projections
Different strategies for planning business finances, such as zero-based budgeting, incremental budgeting, and forecasting.
Analysis of income and expenditure
Evaluating how money is earned and spent to make informed financial decisions.
Salaries or wages
Compensation paid to employees for their work, including how it affects overall expenses.
Bills and taxes
Regular financial obligations such as utility bills, rent, and government taxes.
Profit and loss (income and expenditure)
Tracking business profitability by comparing total income with total costs and expenses.
Break-even point
The level of sales at which total revenue equals total costs—no profit, no loss.
Operating profit
Earnings from core business activities before interest and taxes are deducted.
Accurate financial records (record keeping)
Maintaining complete and organized documentation of all financial transactions for tracking and compliance.
Pricing models such as cost-plus, value-based, and competition-based
Strategies for setting product or service prices based on cost, customer value, or competitor pricing.