Managing budgets and other financials

What you will learn in this chapter

  • The basics of good budgeting and forecasting
  • How to read a P&L in management accounts
  • Popular financial measures you need to know
  • Balance sheet basics

Unless you are a technology or design genius, you are unlikely to progress too far in management without a firm grasp of finance. The fact that 52 out of 100 FTSE CEOs are ex-CFOs or accountants should tell you something. (By the way, arguably this is why we have too much focus on cost cutting and short-term profits and not enough on growth, job creation and innovation – but that is another story.) My advice is to always lobby for ‘P&L’ (profit and loss) responsibility at some point in your career if you aspire to ...

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