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The Essentials of Finance and Budgeting


Subject Adviser: Samuel L. Hayes

Series Content Adviser: Wendy Bliss

2005, 329 pages, Paperback

ISBN: 978-1-59139-572-0

SHRMStore Item: 61.11500

Order from the SHRMStore or call (800) 444-5006

No organization can survive and fulfill its purpose if it spends more money than it takes in. Human resource professionals must have a solid understanding of foundational financial concepts if they are to meaningfully support their firm's strategic goals and make the smartest possible use of limited resources.  

The Essentials of Finance and Budgeting explains how HR professionals can understand and use basic financial information and tools to:

  • Analyze key financial statements.
  • Create and implement an HR scorecard.
  • Understand the implications of tax laws.
  • Make accurate forecasts and budgets.
  • Measure and report human capital.
  • Perform cost/benefit analysis, EVA, discounted case flow and more.

Co-published by SHRM and Harvard Business School Press.


 Table of Contents



Chapter 1. Finance and the HR Professional: A Crucial Competency

Chapter 2. Financial Statements: The Elements of Managerial Finance

Chapter 3. Finding Meaning in Financial Statements: A Look Behind the Numbers

Chapter 4. From Financial Measures to a Balanced Scorecard: Measuring Activities That Drive Future Financial Performance

Chapter 5. Important Accounting Concepts: The Rules That Shape Financial Statements

Chapter 6. Taxes: Important Details You Should Know

Chapter 7. Financial Operations and Growth: Funding the Different Stages of Growth

Chapter 8. Money and Capital Markets: Another Option for Funding Growth

Chapter 9. Budgeting: Forecasting Your Company’s Financial Future

Chapter 10. Practical Tools for Management Decisions: Making the Numbers Work for You

Chapter 11. Measuring and Reporting Human Capital: A Vital Exercise

Chapter 12. The Time of Money: Calculating the Real Value of Your Investment

Chapter 13. Business Valuation Concepts: Evaluating

Chapter 14. Developing and Using Your Financial Know-How: Next Steps for You and Your Firm’s HR Department

Appendix A: Activity-Based Budgeting

Appendix B: Balance-Sheet Template

Appendix C: Income Statement Template

Appendix D: Cash-Flow Statement Template

Appendix E: Cash Budget Template

Appendix F: HR Department Budget Template



For Further



 About the Business Literacy for HR Professionals Series


The Business Literacy for HR Professionals Series, copublished by the Harvard Business School Publishing and SHRM, educates HR professionals at all levels in the principles, practices, and processes of business and management. These books provide a comprehensive overview of the concepts, skills, and tools HR professionals need to be influential strategic partners in their organizations.

The other books in the Series:

The Essentials of Corporate Communications & Public Relations

The Essentials of Managing Change and Transition

The Essentials of Negotiation

The Essentials of Power, Influence & Persuasion

The Essentials of Project Management

The Essentials of Strategy


 About the Series Adviser


Wendy Bliss, J.D., SPHR is an attorney and founder of Bliss & Associates Consulting in Colorado Springs. She is the author of Legal, Effective References and the co-author of Employment Termination Source Book.


 About the Subject Adviser

Samuel L. Hayes holds the Jacob H. Schiff Chair in Investment Banking, Emeritus, at the Harvard Business School. Hayes is coauthor or editor of several books about the finance and securities industry. He has consulted for a number of corporations, financial institutions, and government agencies, including the Justice Department, the Treasury Department, the Federal Trade Commission, and the Securities and Exchange Commission.