Book Reviews: MONEY Master the Game: 7 Simple Steps to Financial Freedom

Tony Robbins is a pioneer in the personal development space, but his book on finances is like a graduate course in college.

A novice in finance could read this book and walk away an expert.

Tony takes complicated financial strategies and distils them down to the average reader’s level.

Money is not everything in life, but it is important, especially in the business. There are many entrepreneurs who are great at making income but are clueless as to how to make their money work for them through investing.

You started your business to create freedom, Tony’s book can help you take that freedom to a level you didn’t think was possible through the right investment strategies.

MONEY - MASTER THE GAME

Learning Point: Understanding How to Improve Your Commercial Awareness

Being commercially aware involves having a deep understanding of the internal and external environment in which you operate.

There are a whole host of reasons why it’s important to be commercially aware: it can help you to make better decisions, generate more ideas, solve problems more effectively, lead your team with greater insight and make a successful contribution to your organisation’s strategic aims.

The following suggestions will help you to develop and maintain a strong level of commercial awareness.

Stay up to date with the industry you work in: Keeping up to date with the activities of other organisations in your industry will give you a good idea of the key influences and challenges that might affect your organisation. You can get useful information about your industry from the following sources:

  • Trade press. Many industries have a trade magazine or paper that will keep
    you up to date with current trends, issues, new innovations and international developments.
  • Professional bodies. Professional bodies (e.g. the Chartered Institute of
    Personnel and Development, the Chartered Institute of Management Accountants) can be a useful source of information and ideas, and often send regular updates to their members. While many professional bodies require you to have certain qualifications to become a member, you can often get access to their resources on an associate basis. Membership of most professional bodies is dependent upon the payment of an annual fee.Continue reading

Learning Point: Understanding How Accrual Accounting Differs from Cash Basis Accounting?

We cannot all accountants but as a leader in an organisation, it can be useful to have a basic understanding of some of the key financial terms and processes used to manage the organisation's finances. 

So, how does accrual accounting differ from cash basis accounting?

In simple terms, the main difference between accrual and cash basis accounting lies in the timing of when revenue and expenses are recognised.

The cash method is mostly used by small businesses and for personal finances. The cash method accounts for revenue only when the money is received and for expenses only when the money is paid out.

On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been received or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses.

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