Financial management tools - Revision history

Designing Buildings at 07:16, 21 October 2020

2020-10-21T07:16:58Z

← Older revision		Revision as of 07:16, 21 October 2020
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	* The Late Payment of Commercial Debts Regulations 2013.		* The Late Payment of Commercial Debts Regulations 2013.

−	[[Category:Articles_needing_more_work]] [[Category:Cost_/_business_planning]]	+	[[Category:Articles_needing_more_work]] [[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Cost_/_business_planning]]

Designing Buildings at 13:58, 6 May 2019

2019-05-06T13:58:34Z

← Older revision		Revision as of 13:58, 6 May 2019
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−	== Financial planning ==	+	= Financial planning =

	Financial planning develops from strategic plans and business plans to identify the financial resources that are needed by a business and to obtain and develop those resources to achieve the business' goals. Typically, financial planning generates relevant and realistic budgets.		Financial planning develops from strategic plans and business plans to identify the financial resources that are needed by a business and to obtain and develop those resources to achieve the business' goals. Typically, financial planning generates relevant and realistic budgets.

−	== Managing cash flow ==	+	= Managing cash flow =

	One of the most important financial statements for a business is the cash flow statement. The overall purpose of managing cash flow is to make sure that a business has enough cash to pay current bills. Businesses can manage cash flow by examining a cash flow statement and cash flow projection (or cash flow forecast). In essence, the cash flow statement presents total cash received minus total cash spent.		One of the most important financial statements for a business is the cash flow statement. The overall purpose of managing cash flow is to make sure that a business has enough cash to pay current bills. Businesses can manage cash flow by examining a cash flow statement and cash flow projection (or cash flow forecast). In essence, the cash flow statement presents total cash received minus total cash spent.

−	== Budgeting and managing a budget ==	+	= Budgeting and managing a budget =

−	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period~~. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs)~~. Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new ~~computers~~, hiring a new ~~employee~~, and so on.	+	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new equipment, hiring new employees, and so on.

	There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.		There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.

−	== Budget deviation analysis ==	+	= Budget deviation analysis =

	Budget deviation analysis regularly compares what the business expected, or planned to earn and spend with what it actually spent and earned. A budget deviation analysis can help assess how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.		Budget deviation analysis regularly compares what the business expected, or planned to earn and spend with what it actually spent and earned. A budget deviation analysis can help assess how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.

−	== Credit and collections ==	+	= Credit and collections =

−	One of the biggest challenges in managing cash flow ~~may~~ be decisions about granting credit to customers or clients, and how to collect payment from them.	+	One of the biggest challenges in managing cash flow can be decisions about granting credit to customers or clients, and how to collect payment from them.

−	== Managing ~~Cash Flow Tools =~~=	+	= Managing cash flow tools =

	Cash flow is the movement of income into and expenditure out of a business over time.		Cash flow is the movement of income into and expenditure out of a business over time.

−	The establishment and maintenance of a robust financial system that projects, monitors and regulates the financial success of a ~~practice~~ is essential. It is critical to agree a cash flow to an agreed programme ~~at the beginning of a project.~~	+	The establishment and maintenance of a robust financial system that projects, monitors and regulates the financial success of a business is essential. It is critical to agree a cash flow to an agreed programme:

−	~~Some practices may wish to appoint their own financial adviser to help establish a financial management process.~~	+	* Set an annual budget of income, expenditure and profit before the beginning of each financial year and then use this to monitor/control expenditure in the practice.
−		+	* Monthly forecasting - this can be used to spot trends and to predict shortfalls in workload and to appropriately allocate resources.
−	Set an annual budget of income, expenditure and profit before the beginning of each financial year and then use this to monitor/control expenditure in the practice.	+	* Weekly monitoring - time sheets for staff members can be used so that performance can be measured in both cost and time.
−		+	* Daily monitoring - records for fee invoices paid, suppliers' invoices settles, fee invoices raised, petty cash utilised.
−	Monthly forecasting - this can be used to spot trends and to predict shortfalls in workload and ~~allow the practice~~ to appropriately allocate resources.	+	* Other reports - annual audited accounts, VAT returns and bank reports.
−		+	* Cash Collection Report - create a full report every month of invoices rendered and when they are/were due for payment. After submitting invoices, send reminders for accounts that have not been settled on time. A number of acceptable debtor days should be agreed, over which more severe action will be taken to recover money due.
−	Weekly monitoring - time sheets for staff members can be used so that performance can be measured in both cost and time ~~terms~~.	+	* Establish financial budgeting and reporting by project - graph reporting can highlight projected fee, actual fee and actual costs.
−		+
−	Daily monitoring - records for fee invoices paid, suppliers' invoices settles, fee invoices raised, petty cash utilised	+
−		+
−	Other reports - annual audited accounts, VAT returns and bank reports	+
−		+
−	Cash Collection Report - create a full report every month of invoices rendered and when they are/were due for payment. After submitting invoices ~~you should then~~ send reminders for accounts that have not been settled on time. A number of acceptable debtor days should be agreed ~~in the practice~~ over which more severe action will be taken to recover money due.	+
−		+
−	~~Raise invoices as they are due.~~	+
−		+
−	Establish financial budgeting and reporting by project - graph reporting can highlight projected fee, actual fee and ~~the~~ actual costs.	+
−		+
−	~~Consider asking for payment upfront if the practice is having to pay suppliers, sub-contractors.~~	+
−		+
−	~~The Codes require architects to manage their resources responsibly.~~	+
−		+
−	~~== Identifying Cash Flow Issues in Practice ==~~	+
−		+
−	~~Fee agreements may be tied to work stages rather than monthly invoicing so there is not a regular income attached to the project.~~	+
−		+
−	~~Not enough 'working capital' in the business - the faster you can be paid the lower this sum of money needs to be. Working capital covers the gap between money coming in and money going out.~~	+
−		+
−	~~The practice may be holding too much 'work in progress' stock that has yet to be invoiced for.~~	+
−		+
−	~~Clients may be slow paying and disputing invoices to delay payment.~~	+
−		+
−	~~The practice may have expanded too quickly, hiring more staff and renting larger offices, without the means to support them.~~	+
−		+
−	Lack of benchmarking used to arrive at fee for project - practices should use data collected from previous projects to inform fee proposals which record information of costs incurred, time and expenses.	+
−		+
−	~~Staff hourly rates should include allowance for practice overheads and non-fee earning time.~~	+
−		+
−	~~== Managing Cash Flow in a New Business ==~~	+
−		+
−	~~A new business will need cash for its establishment costs including premises, equipment, ongoing costs, salaries, lease and other running costs as income is unlikely to be generated for some months.~~	+
−		+
−	~~A well developed business plan will be important to convince tha bank to help with funding as well as projections for income, profits and expenses~~.	+

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

146.90.96.155 at 10:37, 5 May 2019

2019-05-05T10:37:42Z

← Older revision		Revision as of 10:37, 5 May 2019
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	One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.		One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.

−	=== Managing Cash Flow Tools ===	+	== Managing Cash Flow Tools ==

	Cash flow is the movement of income into and expenditure out of a business over time.		Cash flow is the movement of income into and expenditure out of a business over time.
Line 49:		Line 49:
	The Codes require architects to manage their resources responsibly.		The Codes require architects to manage their resources responsibly.

−	=== Identifying Cash Flow Issues in Practice ===	+	== Identifying Cash Flow Issues in Practice ==

	Fee agreements may be tied to work stages rather than monthly invoicing so there is not a regular income attached to the project.		Fee agreements may be tied to work stages rather than monthly invoicing so there is not a regular income attached to the project.
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	Staff hourly rates should include allowance for practice overheads and non-fee earning time.		Staff hourly rates should include allowance for practice overheads and non-fee earning time.

−	=== Managing Cash Flow in a New Business ===	+	== Managing Cash Flow in a New Business ==

	A new business will need cash for its establishment costs including premises, equipment, ongoing costs, salaries, lease and other running costs as income is unlikely to be generated for some months.		A new business will need cash for its establishment costs including premises, equipment, ongoing costs, salaries, lease and other running costs as income is unlikely to be generated for some months.

146.90.96.155 at 10:35, 5 May 2019

2019-05-05T10:35:25Z

← Older revision		Revision as of 10:35, 5 May 2019
Line 20:		Line 20:

	One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.		One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.
		+
		+	=== Managing Cash Flow Tools ===
		+
		+	Cash flow is the movement of income into and expenditure out of a business over time.
		+
		+	The establishment and maintenance of a robust financial system that projects, monitors and regulates the financial success of a practice is essential. It is critical to agree a cash flow to an agreed programme at the beginning of a project.
		+
		+	Some practices may wish to appoint their own financial adviser to help establish a financial management process.
		+
		+	Set an annual budget of income, expenditure and profit before the beginning of each financial year and then use this to monitor/control expenditure in the practice.
		+
		+	Monthly forecasting - this can be used to spot trends and to predict shortfalls in workload and allow the practice to appropriately allocate resources.
		+
		+	Weekly monitoring - time sheets for staff members can be used so that performance can be measured in both cost and time terms.
		+
		+	Daily monitoring - records for fee invoices paid, suppliers' invoices settles, fee invoices raised, petty cash utilised
		+
		+	Other reports - annual audited accounts, VAT returns and bank reports
		+
		+	Cash Collection Report - create a full report every month of invoices rendered and when they are/were due for payment. After submitting invoices you should then send reminders for accounts that have not been settled on time. A number of acceptable debtor days should be agreed in the practice over which more severe action will be taken to recover money due.
		+
		+	Raise invoices as they are due.
		+
		+	Establish financial budgeting and reporting by project - graph reporting can highlight projected fee, actual fee and the actual costs.
		+
		+	Consider asking for payment upfront if the practice is having to pay suppliers, sub-contractors.
		+
		+	The Codes require architects to manage their resources responsibly.
		+
		+	=== Identifying Cash Flow Issues in Practice ===
		+
		+	Fee agreements may be tied to work stages rather than monthly invoicing so there is not a regular income attached to the project.
		+
		+	Not enough 'working capital' in the business - the faster you can be paid the lower this sum of money needs to be. Working capital covers the gap between money coming in and money going out.
		+
		+	The practice may be holding too much 'work in progress' stock that has yet to be invoiced for.
		+
		+	Clients may be slow paying and disputing invoices to delay payment.
		+
		+	The practice may have expanded too quickly, hiring more staff and renting larger offices, without the means to support them.
		+
		+	Lack of benchmarking used to arrive at fee for project - practices should use data collected from previous projects to inform fee proposals which record information of costs incurred, time and expenses.
		+
		+	Staff hourly rates should include allowance for practice overheads and non-fee earning time.
		+
		+	=== Managing Cash Flow in a New Business ===
		+
		+	A new business will need cash for its establishment costs including premises, equipment, ongoing costs, salaries, lease and other running costs as income is unlikely to be generated for some months.
		+
		+	A well developed business plan will be important to convince tha bank to help with funding as well as projections for income, profits and expenses.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
Line 37:		Line 87:
	* The Late Payment of Commercial Debts Regulations 2013.		* The Late Payment of Commercial Debts Regulations 2013.

−	[[Category:Cost_/_business_planning]]	+	[[Category:Articles_needing_more_work]] [[Category:Cost_/_business_planning]]

Editor at 16:00, 24 April 2019

2019-04-24T16:00:05Z

← Older revision		Revision as of 16:00, 24 April 2019
Line 21:		Line 21:
	One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.		One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Budget		* Budget
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	* Construction Supply Chain Payment Charter.		* Construction Supply Chain Payment Charter.
	* Fair payment practices for construction.		* Fair payment practices for construction.
		+	* Financial hedging.
	* Housing Grants, Construction and Regeneration Act.		* Housing Grants, Construction and Regeneration Act.
	* Remedies for late payment.		* Remedies for late payment.

Editor at 14:24, 7 January 2016

2016-01-07T14:24:17Z

← Older revision		Revision as of 14:24, 7 January 2016
Line 1:		Line 1:
−
	== Financial planning ==		== Financial planning ==

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	== Budgeting and managing a budget ==		== Budgeting and managing a budget ==

−	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, and so on.~~<br/>~~	+	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, and so on.

	There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.		There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.
Line 25:		Line 24:

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Budget	+
−	*Business case.	+	* Budget
−	*Business plan	+	* Business case.
−	*Cashflow.	+	* Business plan
−	*Cash flow forecast.~~<br/>~~	+	* Cashflow.
−	*Construction Supply Chain Payment Charter.	+	* Cash flow forecast.
−	*Fair payment practices for construction.~~<br/>~~	+	* Construction loan.
−	*Housing Grants, Construction and Regeneration Act.	+	* Construction Supply Chain Payment Charter.
−	*Remedies for late payment.~~<br/>~~	+	* Fair payment practices for construction.
−	*Scheme for Construction Contracts.	+	* Housing Grants, Construction and Regeneration Act.
−	*The Late Payment of Commercial Debts Regulations 2013.	+	* Remedies for late payment.
		+	* Scheme for Construction Contracts.
		+	* The Late Payment of Commercial Debts Regulations 2013.

	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

Designing Buildings at 07:03, 23 June 2014

2014-06-23T07:03:16Z

← Older revision		Revision as of 07:03, 23 June 2014
Line 32:		Line 32:
	*Construction Supply Chain Payment Charter.		*Construction Supply Chain Payment Charter.
	*Fair payment practices for construction.<br/>		*Fair payment practices for construction.<br/>
−	*Housing Grants, Construction and Regeneration Act.	+	*Housing Grants, Construction and Regeneration Act.
	*Remedies for late payment.<br/>		*Remedies for late payment.<br/>
	*Scheme for Construction Contracts.		*Scheme for Construction Contracts.
−	*Taxation.<br/>
	*The Late Payment of Commercial Debts Regulations 2013.		*The Late Payment of Commercial Debts Regulations 2013.

	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

Designing Buildings at 07:02, 23 June 2014

2014-06-23T07:02:21Z

← Older revision		Revision as of 07:02, 23 June 2014
Line 2:		Line 2:
	== Financial planning ==		== Financial planning ==

−	Financial planning develops from strategic plans and business plans to identify ~~what~~ financial resources are needed and to obtain and develop ~~the~~ resources to achieve the goals. Typically, financial planning generates relevant and realistic budgets.	+	Financial planning develops from strategic plans and business plans to identify the financial resources that are needed by a business and to obtain and develop those resources to achieve the business' goals. Typically, financial planning generates relevant and realistic budgets.

	== Managing cash flow ==		== Managing cash flow ==
Line 10:		Line 10:
	== Budgeting and managing a budget ==		== Budgeting and managing a budget ==

−	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, ~~etc~~.<br/>	+	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, and so on.<br/>

	There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.		There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.
Line 16:		Line 16:
	== Budget deviation analysis ==		== Budget deviation analysis ==

−	Budget deviation analysis regularly compares what the business expected, or planned, to earn and spend with what it actually spent and earned. A budget deviation analysis can help ~~when detecting~~ how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.	+	Budget deviation analysis regularly compares what the business expected, or planned to earn and spend with what it actually spent and earned. A budget deviation analysis can help assess how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.

	== Credit and collections ==		== Credit and collections ==
Line 25:		Line 25:

	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	~~<ul >~~	+	*Budget
−	~~<li>~~Budget~~</li>~~	+	*Business case.
−	~~<li>~~Business case.~~</li>~~	+	*Business plan
−	~~<li>~~Business plan~~</li>~~	+	*Cashflow.
−	~~<li>~~Cashflow.~~</li>~~	+	*Cash flow forecast.<br/>
−	~~<li>~~Cash flow forecast.</li>	+	*Construction Supply Chain Payment Charter.
−	<li>~~Taxation~~.<br/></li>	+	*Fair payment practices for construction.<br/>
−	~~<li>~~The Late Payment of Commercial Debts Regulations 2013.~~</li>~~	+	*Housing Grants, Construction and Regeneration Act.
−	~~</ul>~~	+	*Remedies for late payment.<br/>
		+	*Scheme for Construction Contracts.
		+	*Taxation.<br/>
		+	*The Late Payment of Commercial Debts Regulations 2013.

	[[Category:Cost_/_business_planning]]		[[Category:Cost_/_business_planning]]

Designing Buildings: moved Examples of financial management tools to Financial management tools

2014-06-23T06:45:57Z

moved Examples of financial management tools to Financial management tools

← Older revision

Revision as of 06:45, 23 June 2014

Designing Buildings at 06:45, 23 June 2014

2014-06-23T06:45:44Z

← Older revision		Revision as of 06:45, 23 June 2014
Line 1:		Line 1:

−	== Financial ~~Planning~~ ==	+	== Financial planning ==

	Financial planning develops from strategic plans and business plans to identify what financial resources are needed and to obtain and develop the resources to achieve the goals. Typically, financial planning generates relevant and realistic budgets.		Financial planning develops from strategic plans and business plans to identify what financial resources are needed and to obtain and develop the resources to achieve the goals. Typically, financial planning generates relevant and realistic budgets.

−	== Managing ~~Cash Flow~~ ==	+	== Managing cash flow ==

	One of the most important financial statements for a business is the cash flow statement. The overall purpose of managing cash flow is to make sure that a business has enough cash to pay current bills. Businesses can manage cash flow by examining a cash flow statement and cash flow projection (or cash flow forecast). In essence, the cash flow statement presents total cash received minus total cash spent.		One of the most important financial statements for a business is the cash flow statement. The overall purpose of managing cash flow is to make sure that a business has enough cash to pay current bills. Businesses can manage cash flow by examining a cash flow statement and cash flow projection (or cash flow forecast). In essence, the cash flow statement presents total cash received minus total cash spent.

−	== Budgeting and ~~Managing~~ a ~~Budget~~ ==	+	== Budgeting and managing a budget ==

−	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, etc. <br/>	+	A budget presents what a business expects to spend (expenses) and earn (revenue) over a specific time period. Amounts are categorised according to the type of business activities or accounts (for example, telephone costs). Budgets are useful for planning finances and then tracking whether the business is operating according to plan. They are also useful for projecting how much money will be needed for business initiatives, for example, buying new computers, hiring a new employee, etc.<br/>

	There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.		There are yearly (operating) budgets, project budgets, cash budgets, etc. The overall format of a budget is a record of planned income and planned expenses for a fixed period of time.

−	== Budget deviation ~~Analysis~~ ==	+	== Budget deviation analysis ==

−	~~You learned above that a budget depicts what you expect to spend (expenses) and earn (revenue) over a time period.~~ Budget deviation analysis regularly compares what ~~you~~ expected, or planned, to earn and spend with what ~~you~~ actually spent and earned. ~~The~~ budget deviation analysis can help ~~greatly~~ when detecting how ~~well you're tracking your~~ plans, how much to ~~accurately~~ budget in the future, where there may be upcoming problems in spending, ~~etc~~.	+	Budget deviation analysis regularly compares what the business expected, or planned, to earn and spend with what it actually spent and earned. A budget deviation analysis can help when detecting how closely a business is following its plans, how much to budget in the future, where there may be upcoming problems in spending, and so on.

−	== Credit and ~~Collections~~ ==	+	== Credit and collections ==

−	One of ~~your~~ biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.	+	One of the biggest challenges in managing cash flow may be decisions about granting credit to customers or clients, and how to collect payment from them.

−	[[Category:~~Construction_management~~]]	+	= Find out more =
		+
		+	=== Related articles on Designing Buildings Wiki ===
		+	<ul >
		+	<li>Budget</li>
		+	<li>Business case.</li>
		+	<li>Business plan</li>
		+	<li>Cashflow.</li>
		+	<li>Cash flow forecast.</li>
		+	<li>Taxation.<br/></li>
		+	<li>The Late Payment of Commercial Debts Regulations 2013.</li>
		+	</ul>
		+
		+	[[Category:Cost_/_business_planning]]