debits are toward the window. how to communicate with non-it finance folks about it finance
TRANSCRIPT
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Debits Are Toward the Window
How to Communicate with Non-IT Finance Folks About IT Finance
Sandy Sears
04/15/2015
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
• Three financial perspectives
• The stock of wealth
• The flow of wealth
• Decision-making
• Confusing concepts
• Project Accounting
• Scorekeeping
• Gifts From My Friends in Finance
Agenda
2
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
Buried in the Balance Sheet (the stock of wealth)
3
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
Drowning in the Income Statement (the flow of wealth)
4
Where’s thewindow?
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
Arising to Become a Decision-Maker
5
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
• Debits and credits
• Debit – I spent something
• Credit – I got paid something
• Allocation of expenses / cost allocation
• Capital budgeting
Confusing Concepts (if you are not a finance geek)
6
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
• Cash flow
• Categorization
• Budget alignment
Confusing Concepts (if you are not a finance geek)
7
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The NUMBER – A Mythological Creature
8
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Vendor Purchases
9
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
Project Accounting
10
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
Scorekeeping
11
Confidential and Proprietary ©2015 Robbins-Gioia, LLC
• Keep it simple – very, very simple!
• What does this really mean?
• Can I relate this to my everyday life somehow?
• What can I change or control?
• What can I ignore?
• When am I in trouble?
• How can I use this information to make a decision?
• ALWAYS check my math! (ummm . . . arithmetic)
• You are from Finance, and you really are here to help!
Gifts From My Friends in Finance
12
Confidential and Proprietary ©2015 Robbins-Gioia, LLC13
Thank you!