Practice Financial Management

The owner of an architecture firm should handle...

Best source for hiring

• Network of friends/colleagues

• Interviews

• LinkedIn and other job portals

• Advertising

What topics are covered during an employee evaluation?

Two tools to assess financial performance

Profit & Loss captures the financial status of an office

• During a period of time (year, month...)

• At a particular moment

Balance sheet shows the financial situation of a company

• During a period of time

• At a specific moment

Mark all direct expenses

• Printing

• Shipping

• Lab costs

• Travel expenses

What is the Net Revenue?

• The total revenue minus the total direct expenses

• The total revenue minus consultants fees

• The total revenue plus the total direct expenses

Give examples of indirect expenses

What is operating profit rate?

• Operating profit / total revenue

• Total revenue / net revenue

• Operating profit / net revenue