Business Application Software & Productivity

Business Application Software

• Business software is software used by business users for various functions.
• This software increases and measures productivity and ensures accuracy.
• Examples of business application software uses include Finance, Sales, Human Resources, and Marketing.

Productivity

• Productivity is a ratio of output to inputs.
• It can be measured in units per worker-hour.
• It also reflects company efficiency when given the cost of worker-hour.
• Productivity is the state of being able to create at high quality and quick speed.

Ways to Improve Productivity

• Write down tasks to stay organized and focused.
• Prioritize tasks to avoid feeling overwhelmed and ensure focus.
• Focus on one task at a time to improve quality and efficiency.
• Create a work environment that reduces interruptions for better concentration.
• Organize workspace to think more clearly and work more efficiently.
• Use tools to monitor time spent on tasks to identify areas for improvement.
• Use productivity tools and apps to streamline workflow.
• Set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals.
• Surround yourself with supportive and encouraging people.
• Take initiative to acquire new skills and knowledge independently.
• Avoid overcommitting by declining tasks that don't align with priorities.
• Plan ahead and take control rather than just responding to events.
• Limit the number and duration of meetings to free up time for productive work.
• Concentrate on tasks that directly contribute to goals and outcomes.
• Maintain a healthy work-life balance to sustain long-term productivity.

Busy People vs Productive People

• Busy people:
  • Have goals
  • Say yes to everything
  • Get things done just in time
  • Have many items on their to-do list
  • Often get distracted and sidetracked
• Productive people:
  • Have priorities
  • Know when to say no
  • Set realistic deadlines
  • Have few items on their to-do list
  • Focus on the most critical things first
  • Avoide distractions and sidetracks
  • Ask themselves, "What's my highest priority?" and "What can I eliminate?"
  • Avoid inventing unnecessary tasks

Fundamentals of Management

• It is the art of getting things done through people.
• Managers are task-oriented, achievement-oriented, and people-oriented.
• They operate within an organization.
• Management is the pursuit of organizational goals efficiently and effectively.
• Management integrates work of people through planning, organizing, leading and controlling the organization's resources
• Effectiveness is about doing the right task and achieving goals.
• Efficiency is about doing things optimally (e.g., fastest, least expensive).
• Effectiveness means "doing the right thing", while efficiency means "doing things right".

The 4 Principal Functions of Management

• PLANNING: Set goals and decide how to achieve them.
• LEADING: Motivate, direct, and influence people to work hard.
• CONTROLLING: Monitor performance, compare it with goals, and take corrective action.
• ORGANIZING: Arrange tasks, people, and resources to accomplish the work.

Planning, Strategy, and Strategic Management

• Planning involves setting goals and deciding how to achieve them.
• A plan outlines how goals are going to be met
• A plan serves as a blueprint for action.
• A business plan is a formal written document outlining business goals.
• It states the methods and the time frame to achieve them.

Fundamentals of Planning

• VISION STATEMENT poses the question: "What do we want to become?"
• MISSION STATEMENT poses the question: "What is our reason for being?"
• VALUES STATEMENT poses the question: "What values do we want to emphasize?"
• Strategic planning is done by top managers for the next 1-5 years and provides goals and action plans.
• Tactical planning is done by middle managers for the next 6-24 months and provides goals and action plans.

Vision, Mission, and Values

• VISION STATEMENT describes where the company aspires to be.
• MISSION STATEMENT is an action-oriented vision statement, declaring an organization's purpose to its audience.
• A mission statement clarifies the "what," "who," and "why" of a company.
• It’s the roadmap for the company’s vision statement.
• VALUES STATEMENT expresses what the company stands for.
• Values Statement includes core priorities, values employees embody, and what products contribute.
• It guides employee behavior and company decisions and actions.

Aligning Strategy, Culture, and Structure

• Organizing begins with studying organizational culture and structure.
• Organizational culture encompasses values and behaviors to the unique social and psychological environment of a business.
• Examples of organizational culture values includes:
  • Walt Disney: The Happiest Place on Earth being the Happiest Place to Work
  • Twitter: Where Fun meets Inspiration to bring out the Best
  • Netflix - Where Trust is the Keyword of Culture

Leadership vs Management functions

• Leadership involves inspiring and motivating people to achieve a vision with innovation and relationships.
• Management involves planning, organizing, and consistency with policies and resource efficiency.

Manager functions

Makes sure details are taken care of. Exercise control make sure that things work well. Solve today's problems by addressing difficulties caused by changing events. Focus on problem behavior and try to improve it through counseling, coaching, and nurturing. Make sure people put in an honest day's work for their pay. Organize and plan to meet the current year's objectives. Create efficient policies and standard operating procedures.

Leader functions

• Set broad purposes and directions.
• Create commitment that things may work together.
• Create a better future by seizing opportunities stimulated by changing events.
• Focus on what is right and praise it.
• Go beyond standard procedures.
• Inspire people to do their best.
• Create a vision of the years down the road.

Controlling

• Controls assist in discovering irregularities and errors
• It helps detect opportunities
• It helps reduce costs
• It helps reduce costs, increase productivity, or add value
• It provide performance and feedback

Steps in the Control Process

• Establish standards to define the desired performance level for a goal.
• Measure performance to identify the actual outcome.
• Compare actual performance to the established standards.
• Take corrective action to obtain the desirable outcome.

Financial Management System

• It ensures efficient and effective management of funds.
• It ensures the planning, organizing, controlling, and monitoring of financial resources.
• It helps organizations make effective and efficient use of resources.
• It also helps prepare them for long-term stability.

FMS Components

• Financial Accounting involves preparing financial statements for public use and reporting transactions.
• Management Accounting uses cost information to aid management and performance control.

Financial Statements

• Balance Sheet
• Profit and Loss Statement
• Statement of Cash Flow

Balance Sheet

• It states a company's assets, liabilities, and capital at a point in time.
• It provides insights into a company's financial standing.
• Assets can be converted into cash

Current Assets:

• They are assets that can be easily converted to cash within a year or less.
• Examples are: can be quickly converted to cash such as currency, checks, savings accounts, and short-term investments.

Long Term Assets:

• They are assets that won't be converted to cash within a year.
• Examples are: Fixed assets are Property, buildings, machinery, and equipment like computers.
• Long-term securities are investments that can't be sold within one year

Liabilities

• Liabilities represent the money that a company owes to others.
• This includes recurring expenses, loan repayments, and other forms of debt.
• They can be current (settled within a year) or long-term (due beyond one year).
• Shareholder's equity refers to the amount of money generated by a business and put into the company by its owners.
• Shareholder's Equity = Total Assets - Total Liabilities
• Shareholder’s equity is an important measure of a company’s financial health and stability.

Balance Sheet Formula

Assets (cash, inventory, property) = Liabilities (rent, wages, utilities, taxes, loans) + Shareholders' Equity (retained earnings)

Profit and Loss Statement

• An income statement summarizes a business's revenues and expenses over a period of time.
• Direct costs can easily be traceable as part of the cost of goods sold

Managerial Accounting

• Managerial accounting is the process of identifying, measuring, interpreting and communicating information to management to assist them in planning, decision-making and risk management.
• In general, the Financial Accounting Standards Board is GAAP (Generally Accepted Accounting Principles).

Primary users of financial statments

• An entity's existing and potential investors, lenders and creditors are the primary users of financial statemets

Differences between Financial and Management Accounting

• Financial Accounting is for external users and is heavily regulated focusing on past performance.
• Management Accounting is for internal users and is less regulated focusing on future estimates.

Features of a Good Financial Management System

• Keeping all payments and receivables transparent.
• Amortizing prepaid expenses.
• Depreciating assets according to accepted schedules.
• Keeping track of liabilities.
• Coordinating income statements, expense statements, and balance sheets.
• Balancing multiple bank accounts.
• Ensuring data integrity and security and keeping all records up to date
• Maintaining a complete and accurate audit trail and minimizing overall paperwork.