Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers
As an IT manager, you're expected to make key decisions and recommend major investments. And that means understanding your decisions' financial impact on your company. But if you're like many information technology practitioners, you may feel uncomfortable incorporating the financials into your day-to-day work.

Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for IT experts.

Drawing on their work training tens of thousands of managers and employees at leading organizations worldwide, the authors illuminate the basics of financial management and measurement and provide hands-on activities for practicing what you are reading. You'll discover:

· Why the assumptions behind financial data matter
· What your company's income statement, balance sheet, and cash flow statement reveal
· How to use ratios to assess your company's financial health
· How to calculate return on IT investments
· Ways to use financial information to support your company's business units and do your own job better
· How to instill financial intelligence throughout your team

Authoritative and accessible, Financial Intelligence for IT Professionals empowers you to "talk numbers" confidently with your boss, colleagues, and direct reports -- and understand how the financials affect your part of the business.
1111956000
Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers
As an IT manager, you're expected to make key decisions and recommend major investments. And that means understanding your decisions' financial impact on your company. But if you're like many information technology practitioners, you may feel uncomfortable incorporating the financials into your day-to-day work.

Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for IT experts.

Drawing on their work training tens of thousands of managers and employees at leading organizations worldwide, the authors illuminate the basics of financial management and measurement and provide hands-on activities for practicing what you are reading. You'll discover:

· Why the assumptions behind financial data matter
· What your company's income statement, balance sheet, and cash flow statement reveal
· How to use ratios to assess your company's financial health
· How to calculate return on IT investments
· Ways to use financial information to support your company's business units and do your own job better
· How to instill financial intelligence throughout your team

Authoritative and accessible, Financial Intelligence for IT Professionals empowers you to "talk numbers" confidently with your boss, colleagues, and direct reports -- and understand how the financials affect your part of the business.
29.99 In Stock
Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

Financial Intelligence for IT Professionals: What You Really Need to Know About the Numbers

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Overview

As an IT manager, you're expected to make key decisions and recommend major investments. And that means understanding your decisions' financial impact on your company. But if you're like many information technology practitioners, you may feel uncomfortable incorporating the financials into your day-to-day work.

Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for IT experts.

Drawing on their work training tens of thousands of managers and employees at leading organizations worldwide, the authors illuminate the basics of financial management and measurement and provide hands-on activities for practicing what you are reading. You'll discover:

· Why the assumptions behind financial data matter
· What your company's income statement, balance sheet, and cash flow statement reveal
· How to use ratios to assess your company's financial health
· How to calculate return on IT investments
· Ways to use financial information to support your company's business units and do your own job better
· How to instill financial intelligence throughout your team

Authoritative and accessible, Financial Intelligence for IT Professionals empowers you to "talk numbers" confidently with your boss, colleagues, and direct reports -- and understand how the financials affect your part of the business.

Product Details

ISBN-13: 9781422131817
Publisher: Harvard Business Review Press
Publication date: 04/07/2008
Sold by: Barnes & Noble
Format: eBook
Pages: 296
File size: 3 MB

About the Author

Karen Berman and Joe Knight founded the Business Literacy Institute. They train managers at some of America's biggest and best-known companies. John Case has written or collaborated on several successful books. He has also written for Inc., Harvard Business Review, and other business publications.

Table of Contents


Preface: What Is Financial Intelligence?     xi
The Art of Finance (and Why It Matters to It)
You Can't Always Trust the Numbers     3
Spotting Assumptions, Estimates, and Biases     10
Why Increase Your Financial Intelligence?     17
Part One Toolbox     28
Getting what you want
The players and what they do
The (Many) Peculiarities of the Income Statement
Profit Is an Estimate     33
Cracking the Code of the Income Statement     39
Revenue: The Issue Is Recognition     47
Costs and Expenses: No Hard-and-Fast Rules     53
The Many Forms of Profit     65
Part Two Toolbox     71
Variance; Percent calculations; Line of sight
The Balance Sheet Reveals the Most
Understanding Balance Sheet Basics     77
Assets: More Estimates and Assumptions (Except for Cash)     83
On the Other Side: Liabilities and Equity     93
Why the Balance Sheet Balances     98
The Income Statement Affects the Balance Sheet     101
Part Three Toolbox     106
Employees as assets
Expenses versus capital expenditures
Cash is King
Cash Is a Reality Check     111
Profit [not equal] Cash (and You Need Both)     115
The Language of Cash Flow     122
How Cash Connects with Everything Else     126
Why Cash Matters     134
Part Four Toolbox     138
Free cash flow
Ratios: Learning What the Numbers are Really Telling You
The Power of Ratios     143
Profitability Ratios: The Higher the Better (Mostly)     149
Leverage Ratios: The Balancing Act     155
Liquidity Ratios: Can We Pay Our Bills?     159
Efficiency Ratios: Making the Most of Your Assets     162
Part Five Toolbox     168
Ratios for the business; Ratios for IT
Leading versus lagging indicators
Percent-of-sales analysis; Ratio relationships
How to Calculate (and Really Understand) Return on Investment
The Building Blocks of ROI     175
Figuring ROI: The Nitty-Gritty     182
Part Six Toolbox     193
ROI of an IT Project
Applied Financial Intelligence: Working Capital Management
The Magic of Managing the Balance Sheet     203
Your Balance Sheet Levers     206
Homing In on Cash Conversion     212
Part Seven Toolbox     216
Understanding accounts-receivable aging
Creating a Financially Intelligent It Department (and Organization)
Financial Literacy, Transparency, and Corporate Performance     219
Financial Literacy Strategies     225
Part Eight Toolbox      231
Understanding Sarbanes-Oxley
Sample Financials     235
Exercises to Build Your Financial Intelligence-Income Statement, Balance Sheet, Cash Flow Statement, Ratios     239
Kimberly-Clark and FedEx Financial Statements     267
Notes     275
Acknowledgments     277
Index     281
About the Authors     297
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