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Finance Lecture Veterinary Managers Congress January 2009

I recently ran a finance lecture for the VPMA in Nottingham which raised some pertinent points and tips for the current climate. The points I raised are appropriate for any business. I hope that you find them useful (a few of the slides below), please feel free to contact me if you need any support with your business.

Understanding the profit and loss within a business and how we can all make a difference

	In most businesses revenue or income is recognised or realised when goods or services are invoiced or sold
	Revenues are therefore matched with the corresponding costs and expenses
	The analysis of successive financial statements is made possible by the fact that there is a consistent approach one period to the next
	They should be timely and accurate
	Managers often require special reports such as cash flow projections, budgets etc

Cash is King!

	A business can be profitable but still run out of cash!
	Cash refers to money on hand and in the bank at a given moment in time
	Cashflow refers to the difference between cash in and cash out
	Shortages will mean the need for financing, which will add cost
	Surpluses can be invested to earn more profit
	Debt collection is critical particularly in the current climate
	Extended credit terms will cripple a successful business

Who is interested in Profit and Loss

	Owners - to see how valuable the company is
	Managers - to see how the company and its parts are performing
	Employees - to see how stable the company is and how they can contribute
	Shareholders - to see how effective management is
	Banks - to see if their money and your account is safe
	Investors - to see if you are worth investing in
	Accountants - to advise
	Auditors - to impartially complete accounts

Lets look at how we can all make a difference

	Increase turnover
	Reduce variable costs (those which vary with sales)
	Consider reducing fixed costs (those which remain the same regardless of sales) as a last resort
	Change suppliers or get a better price
	Share targets with employees

How can employees make a direct financial impact

	Teach them what the P&L means
	Demonstrate how costs savings and increased sales can effect profit
	Explain which costs have to covered each month as a minimum ie: Fixed costs
	Allow them to make suggestions
	Give them key targets they can work on
	Review and trust

The following link will take you directly to an article about the event and the impact the congress made:- Click here for more

Changes to the Discipline and Grievance Procedures April 1st 2009

Now applies to all written and final written warnings and not just dismissals

An employee does not have to raise a grievance prior to brining a tribunal case against the employer

The employer does not have to handle a grievance of an ex employee

If you do not follow the rules you run the risk of having an unfair dismissal claim against you and have to pay 25% more

Employers will be unable to defend claims of unfair dismissal by employees if they do not follow the rules

Six areas to be covered at a disciplinary hearing, employees should be allowed the following:

	To be given advance notice of any witnesses the employer intends to call to the hearing
	State their case and answer allegations
	Ask questions
	Present their own evidence
	Call their own witnesses
	Raise points about any information provided by witnesses

If you need your policies updating or you need advice and training about the new policies then let me know.

Future Courses booked with clients

Time management
Delegation
Employment law
Financial aspects of a business and how employees can help make an impact
Performance Management
Coaching and mentoring
Facilitation

Need help with any of the above give me a call on 01959 565252 or 07710 600852

Novermber 2008 Newsletter