17 May 2015

Finance for Non Finance Professionals

Many companies are now enrolling managers on courses to improve the business decisions with financial information. 'Learn as your lunch' workshops during lunch-time are also held to share the learning with a wider audience of employees.

Lately my 2 new C&B teammates were enrolled in a finance for non-finance folks workshop and were puzzled why I was not enrolled by our boss too. I jokingly brushed it off that it must be because of their compensation and benefits function (that have to do with numbers) and that I do not have the time with increasing projects falling on my shoulders... darn it boss! (lesson for you: don't let anyone make you think less of yourself)

No matter what level in the organization a white-collar employee is in the organization, I do realize there is always some interactions with the Finance department, be it preparing purchase orders to discussions on performance management objectives tied to financial figures.

Financial Abbreviations

CM: contribution margin

DO: delivery order

EBIT: earnings before interest and taxes

ERP: enterprise resource planning

GL: general ledger

P&L: profit and loss

PR: purchase requisition

PO: purchase order

ROC: return on capital

ROS: return on sales

While this is by no means a comprehensive list of financial abbreviations, I hope that this is useful to fellow non-financial folks. And of course if you have more must-know financial terms to share, please by all means post in the comments section.

Other than Google and Wikipedia, I also found this resource useful when checking on financial terms: http://www.investopedia.com/dictionary/