Details

32 mins, 1996

How does a firm plan and monitor its financial performance? This video looks at the experience of Linda and Brian who run a small business. How they first set up their business is told in the film Into The Fire.

Now several years after setting up, Linda explains how their financial systems work.

We look at the firm’s sources of finance. Linda demonstrates how she forecasts the company’s profit & loss and its cash flow. In the process we discover the role of the sales and purchase ledgers and how the net profit is calculated.

We see how Linda uses the balance sheet to monitor the financial health of the firm. She feels that tight financial control is essential to running the business. But Brian thinks she’s taking things too far…