Good fi nancial management is essential for a business to succeed. Many businesses have failed for want of it and, all too often, a career aspiration has faltered, not for lack of effort or ability in a chosen fi eld, but for not being able to understand the fi nancial impacts of decisions and ultimately a failure to "deliver the numbers".
Managers who fi nd themselves in a senior role unable to ask questions of others - which might
imply ignorance - have wished that they had got to grips with fi nancial
matters earlier in their career.
This guide to fi nancial management is designed to take you through
financial principles and illustrate their application, providing a toolkit for
managing fi nancial responsibilities. Each chapter is written from an operational
perspective in establishing and running a business.
Before the index is a glossary of the fi nancial terms used in the book. There is also a list of
companies used in examples. The names are those in existence at the time
of writing; merger and acquisition activity will inevitably change this.
All books are not just the work of the author but the results of contributions
of many others.
I am grateful to clients and colleagues who provided the
opportunity to explore aspects of business, complete research and develop
my thinking. In particular I would like to thank my colleagues at Corporate
Edge, Andrew Needham, Kate Scott, Colin Scott, Dionne Whelan and Paul
Thompson for their insights and contributions, and Mandy Aston for her
patience in typing much of the original script and many of the diagrams;
Mike Samuel for his support and the time he dedicated to reviewing and
commenting upon the drafts; and Profi le Books for the help they gave me,
particularly Stephen Brough, Penny Williams and Jonathan Harley.
Special thanks to my wife, Angela, and my two sons, William and George,
who have supported my enthusiasm for writing, even on holidays. Also
to my parents, particularly my father, a chartered accountant, who always
encouraged my career, and gave me the passion and interest in business.
I would welcome feedback and can be contacted on the following
e-mail address:
John-Tennent@CorporateEdge·co·uk
John Tennent
March 2008