Finance for Managers - Your Guide to How it Works

This textbook took us over five years to complete—not because the writing itself was so time consuming, but because of the essential insights gained from working with a variety of international companies, both in the Netherlands and beyond. Addressing the financial challenges of these organizations and collaborating with hundreds of managers and executives gave us invaluable perspectives on what people need to learn to effectively work with, understand, and communicate about financial management.

One of the most common issues we’ve observed is that non-financial managers—those outside the finance department but responsible for managing part or all of an organization—often struggle with financial data. This difficulty arises from the complexity of calculations, terminology, and concepts. Many of these managers seek a deeper understanding so they can engage in more meaningful discussions about financial matters. Traditionally, however, these managers fall into the trap of relying heavily on the expertise of specialists, such as the CFO, controller, or audit committee.

While these specialists offer valuable insights, excessive dependence can be risky. Why? Because financial data can be selectively framed or even manipulated—intentionally or unintentionally—to support a particular perspective. When non-financial managers rely too heavily on the subjective interpretations of the CFO or controller, it can lead to a sort of blind spot, where they adopt these interpretations uncritically, without asking necessary questions.