Cover image for The definitive guide to managing the numbers : the executive's fast-track to mastering spreadsheets, budgets, forecasts, investment metrics--
The definitive guide to managing the numbers : the executive's fast-track to mastering spreadsheets, budgets, forecasts, investment metrics--
Stutely, Richard, 1955-
Personal Author:
Publication Information:
Harlow : Financial Times Prentice Hall, [2003]

Physical Description:
xvii, 412 pages : illustrations ; 24 cm
Format :


Call Number
Material Type
Home Location
Item Holds
HG4026 .S78 2003 Adult Non-Fiction Non-Fiction Area

On Order



They made you a manager because you're good at what you do. What you don't do is numbers. Until now. From now on, the numbers matter - they're what you'll be judged by. Understand the numbers and you'll be a more effective manager.

Author Notes

Richard has been managing the numbers throughout his career, which has
spanned banking and finance, government, and business in Europe, North
America, the Middle East and Asia-Pacific.

As a manager at all levels and a director, he has produced, managed and
analyzed hundreds of project plans, departmental and enterprise budgets,
cash flow statements, income accounts and balance sheets.

Richard received a solid grounding in finance and accounting with NatWest
and went on to become an investment analyst and chief economist with top
investment banks. He was formerly a member of the London International Stock Exchange
and has worked at HM Treasury, the British Finance Ministry.

As executive vice president of a multinational software company, Richard
developed and directly managed financial reporting and analysis for
subsidiaries in several countries. In addition, Richard developed one of the
world's first PC spreadsheet applications.

Richard has written several books including the international bestseller The Definitive Business Plan .

When Richard is not writing books or managing a multinational software
company, he runs seminars and lectures to MBA students and corporate

Reviews 1

Choice Review

Stutely draws upon his vast experiences in international business and government service to provide a unique handbook of quantitative methods in financial planning and control. After a brief, well-written introduction to the use of personal computers and Excel as contemporary tools of financial analysis, the book covers topics such as cash flow, budgetary control, business forecasting, financial statement analysis, project appraisal, interest and present value, statistical inference, and the use of graphics to supplement management reports. Excellent examples and illustrations enhance the presentation. The author's Web site contains supplemental materials for the registered purchaser of the book. A glossary and a topic index complete the book. Although the chapters are well organized and easy to read, a familiarity with accounting, finance, and general business practices is a prerequisite to a thorough understanding of the materials. Students and practitioners alike will find this practical guide a welcome addition to their desktop reference materials. ^BSumming Up: Highly recommended. Upper-division undergraduate through professional collections. S. R. Kahn University of Cincinnati

Table of Contents

About the authorp. v
Acknowledgementsp. vi
How to use this bookp. xv
Introductionp. xvii
1 The journey starts herep. 1
Chapter survival toolkitp. 2
Start herep. 3
The websitep. 7
Divided by a common languagep. 7
The plan of the bookp. 8
I want to manage betterp. 10
2 Where managers and numbers meetp. 11
Chapter survival toolkitp. 12
Figuring better ways to managep. 13
Reporting responsibilitiesp. 17
Ten hard questions to ask or be askedp. 23
Checklistp. 23
Conclusionp. 24
3 How the finance director thinksp. 25
Chapter survival toolkitp. 26
The second oldest profession?p. 27
Hard questions to ask about your finance departmentp. 37
Conclusionp. 37
4 The financial wizard's toolboxp. 39
Chapter survival toolkitp. 40
Power on your PCp. 41
The power of PCsp. 41
What's in the electronic toolbox?p. 42
So what is this spreadsheet thing?p. 43
What you need to bring to the partyp. 44
No rodentsp. 44
How to excel at numbersp. 45
Your first day at the officep. 48
Ten hard questions to ask or be askedp. 56
Conclusionp. 56
5 Explaining and reportingp. 57
Chapter survival toolkitp. 58
Understand better, report betterp. 59
A picture tells a thousand wordsp. 59
How to cheat with chartsp. 62
Significant accuracyp. 63
When numbers talkp. 66
When it is worth weightingp. 71
Comparisonsp. 72
Ten hard questions to ask or be askedp. 74
What's next?p. 74
6 How money growsp. 75
Chapter survival toolkitp. 76
Investment arithmeticp. 77
Interesting growth ratesp. 78
The time value of moneyp. 81
Bumpy trendsp. 85
Putting it to good usep. 86
Growth and inflationp. 90
Ten hard questions to ask or be askedp. 91
What's next?p. 91
7 Keeping scorep. 93
Chapter survival toolkitp. 94
Managing the numbers--literallyp. 95
First buy some shoesp. 95
The chart of accountsp. 98
Notching the tally stickp. 101
The scorecard revisitedp. 104
Ten hard questions to ask or be askedp. 105
What's next?p. 105
8 Managing moneyp. 107
Chapter survival toolkitp. 108
Balancing the booksp. 109
Reconciling your bankp. 109
Controlling cashp. 111
Managing expenses claimsp. 113
Preventing bad debtsp. 114
Managing cash flowp. 116
Cash versus accruals accountingp. 117
Ten hard questions to ask or be askedp. 120
What's next?p. 120
9 Tracking trendsp. 121
Chapter survival toolkitp. 122
Why analyse trends?p. 123
Pursuing patternsp. 124
Cause and effectp. 136
Ten hard questions to ask or be askedp. 137
Conclusionp. 139
10 How to forecast anythingp. 141
Chapter survival toolkitp. 142
So you need to forecast sales?p. 143
History and knowledgep. 145
Patterns revisitedp. 146
Applied knowledgep. 148
Making the forecastp. 151
Ten hard questions to ask or be askedp. 153
What if?p. 154
Are you sure?p. 155
Conclusionp. 155
11 Counting capitalp. 157
Chapter survival toolkitp. 158
Accounting for the futurep. 159
Fixed asset arithmeticp. 161
Managing capital expenditurep. 163
Ten hard questions to ask or be askedp. 170
Looking aheadp. 173
Conclusionp. 175
12 Controlling costsp. 177
Chapter survival toolkitp. 178
Where the money goesp. 179
Employee costsp. 181
Non-employee costsp. 184
Other income and costsp. 189
Looking ahead: a footnotep. 189
How managers assess costsp. 190
Ten hard questions to ask or be askedp. 191
Conclusionp. 192
13 Getting to gross profitp. 193
Chapter survival toolkitp. 194
The bottom line near the top of the pagep. 195
Sales revisitedp. 195
Cost of salesp. 198
Inventoryp. 202
Looking forwardp. 205
Record keeping for stockholdersp. 207
Ten hard questions to ask or be askedp. 209
Conclusionp. 209
14 Producing a profitp. 211
Chapter survival toolkitp. 212
Producing a profitp. 213
The income statement, or profit and loss accountp. 214
Ten hard questions to ask or be askedp. 220
What's next?p. 220
15 Building balance sheetsp. 221
Chapter survival toolkitp. 222
Balancing actp. 223
Ten hard questions to ask or be askedp. 235
Conclusionp. 235
16 Watching cash flowp. 237
Chapter survival toolkitp. 238
Cash flowp. 239
Ten hard questions to ask or be askedp. 245
Cash flow statements--looking aheadp. 245
There is more...p. 247
17 Reviewing reportsp. 249
Chapter survival toolkitp. 250
Published reportsp. 251
Collect the setp. 251
Financial statements revisitedp. 254
Getting valuep. 258
Ten hard questions to ask or be askedp. 260
What's next?p. 260
18 Figuring financialsp. 261
Chapter survival toolkitp. 262
Analysing the financialsp. 263
New ways of looking at the figuresp. 264
Some key indicatorsp. 275
Ten hard questions to ask or be askedp. 279
Conclusionp. 279
19 Financing and investingp. 281
Chapter survival toolkitp. 282
The financing imperativep. 284
Sources of financep. 284
Demanding debtp. 285
Enticing equityp. 287
Debt and equity comparedp. 291
Debt restructuringp. 292
Analysing debtp. 293
Investment indicatorsp. 294
Mergers, acquisitions and joint venturesp. 297
The cost of capitalp. 298
Other management issuesp. 300
Ten hard questions to ask or be askedp. 300
Moving onp. 301
20 Business across bordersp. 303
Chapter survival toolkitp. 304
New marketsp. 305
Doing the numbersp. 306
Dealing with dealersp. 308
How do exchange rates happen?p. 310
Coping with uncertaintyp. 312
Trade financep. 316
Booking foreign currency transactionsp. 317
Currency translationsp. 318
Ten hard questions to ask or be askedp. 322
Conclusionp. 322
21 Appraising projectsp. 323
Chapter survival toolkitp. 324
Project appraisal and managementp. 325
Will it pay off?p. 326
Project planningp. 332
Project managementp. 337
Ten hard questions to ask or be askedp. 338
What's next?p. 338
22 Brilliant budgetsp. 339
Chapter survival toolkitp. 340
The budget banep. 341
Should you bin the budget?p. 355
Ten hard questions to ask or be askedp. 356
What's next?p. 356
23 Making better decisionsp. 357
Chapter survival toolkitp. 358
Understand better, report betterp. 359
Tough decisionsp. 359
Break evenp. 363
Capacity planningp. 365
Marginal likelihood of shutting downp. 366
Inventory costsp. 368
Ten hard questions to ask or be askedp. 369
Conclusionp. 370
24 The finance director did itp. 371
Chapter survival toolkitp. 372
Managing the numbersp. 373
Financial reportingp. 375
When things go wrongp. 378
Ten hard questions to ask or be askedp. 380
Whodunnit?p. 380
The finance director's languagep. 383
Indexp. 403