On Thursday, 15th September 2022, BIO Water Accelerator Program held a training program “Finance for Water Operator Business” at Phnom Penh Hotel, led by Mr. Sim Chankiriroth, CEO and Founder Banhji Fintech Co., Ltd
- To gather knowledge, tools, strategies, and procedures in financial management
- To know relationships and how to use financial statements
- To manage financial, capital and cash flow
- To prepare and manage budget plans
Key take aways:
- A statement of financial position, sometimes called a balance sheet, is a statement of the assets, liabilities, and equity of an enterprise at a given date. The four factors that an enterprise should have to ensure the efficiency, quality, and accuracy of financial decisions are:
- Accounting and Financial Reporting Management System.
- Working capital and cash flow management system.
- Budget Management and Financial Analysis System.
- Financial accounting procedures and policies.
- Expenditure is an expense activity to earn income that is paid in cash or supplier debt. Cost analysis can be analyzed on two points:
- Analysis of expenses by category, such as raw material costs, salary costs, etc.
- Functional cost analysis such as cost of sales, administrative activities, etc.
- Balancing Profit and Settlement Properties Business owners need to increase their investment in working capital to maximize profits and ensure adequate cash flow to reduce the risk of cash shortages, especially to avoid challenges in business.
- There are three factors in preparing and managing of budge plan:
- Preparing Budget Plan: Sales forecasts and business expansion strategies, Costs and operating costs, Working capital plan, Cash requirements plan.
- Budget monitoring: The report analyzes the results and financial situation as well as cash flow, Cash flow forecast, Budget Comparison Report and Actual Results.
- Budget plan management: Review and adjust budget plans, Strict monitoring of all expenditures and financial decisions in accordance with the approved budget plan, Principles of decision-making rights and procedures for preparing, monitoring and adjusting budget plans.
- In following a budget plan, you need to understand and have the necessary questions about the gap between the plan and the actual results. There are many reasons for the discrepancy, such as changes in prices, strategies, competitors, economic and political factors, uncontrollable factors such as Covid-19. So, when you analyze the plan gap, you should look at four conditions: (1) The essence of the gap, (2) Enterprise management ability over gaps, (3) The tendency of the gap can give a clue as to the variability of the gaps. (4) Correlation of individual gaps.