Question

After reading the below posting, how might this all tie into SMART goals, task types and running a better meeting?

The information from income statements and balance sheets can encourage better

management practices in the following manner:

1. The amount of debt in the balance sheet is a critical factor in deterring the "going concern" of a business. If the long-term debt is very high, then the overall cost of capital for the company as such and projects in general will increase which can be corrected by the management.

2. The Current assets and the current liabilities give a clear picture of the working capital scenario and the liquidity situation of the business. This information will be captured in the balance sheet. Higher current assets are always preferred, and management can take corrective steps if required to better manage the liquidity.

3. The Shareholders equity when seen with the total number of shares outstanding of the business help the financial managers in calculating the book value of the business. From this, the investors can check whether the current share price is overvalued or undervalued.

4. The Net profit is the most important figure in the income statement which provides information about the profitability of the business and how the business is performing when compared to its peers in the industry.

5. The Revenues or the top line help analyses when the profits are generated due to the increase in revenue or better operational efficiencies.

https://www.youtube.com/watch?v=vKMrWsjUOZQ

https://www.youtube.com/watch?v=J832kryICZI

https://www.youtube.com/watch?v=450J3wmEMEI

Answer 1

"SMART" is a management term used to set goals.

S - Specific
M - Measurable
A - Attainable
R - Relevant
T - Time-bound

• Specific - It stresses on specifying a specific goal rather than a general one. A specific goal will usually answer the "Why", "What", "Who", "Which" and "Where" questions.
• Measurable - It stresses on measuring the progress towards the attainment of goal. A measurable goal usually answers the "How many?" and "How much?" questions.
• Attainable - It stresses on setting up the goal that is realistic and attainable.
• Relevant - It stresses on setting up the goal that matters to organization or individual.
• Time-bound - It stresses the importance of grounding goals with a deadline. A Time-bound goal can answer the "When" question.

Task Type :

Methodical : System - Schedule - Habbit

Quick Fix : Problem- Reason - Soluation

Long range : Goal -Plan - Resources

By following above definations, the above company's financial task is classified as follow:

SMART		Goals	Task Type
S	Specific	The Net profit is the most important figure in the income statement which provides information about the profitability of the business and how the business is performing when compared to its peers in the industry	Long range
M	Measurable	. The Revenues or the top line help analyses when the profits are generated due to the increase in revenue or better operational efficiencies.	Methodical
A	Attainable	The Current assets and the current liabilities give a clear picture of the working capital scenario and the liquidity situation of the business. This information will be captured in the balance sheet. Higher current assets are always preferred, and management can take corrective steps if required to better manage the liquidity.	Methodical
R	Relevant	The Shareholders equity when seen with the total number of shares outstanding of the business help the financial managers in calculating the book value of the business. From this, the investors can check whether the current share price is overvalued or undervalued.	Long range
T	Time Bound	The amount of debt in the balance sheet is a critical factor in deterring the "going concern" of a business. If the long-term debt is very high, then the overall cost of capital for the company as such and projects in general will increase which can be corrected by the management.	Quickfix