Financial Management has a lot to do with the duties of the financial manager working in a business. Their function can come in two approaches; one being an executive finance function which involved mainly decisions, the second is the routine finance function. These could be such things as supervision of cash receipts, safeguarding of cash balances, and custody of valuable documents, mechanical details of financing, record, reporting to top management and supervising fixed and current assets. For a financial manager, it is important to approve or reject the lines of credit, and commercial, real estate, and personal loans. There is so much that a financial manager is responsible for, and the decisions they make can also make or break a bank. It’s important for them to develop and analyze information to insure that the company is doing well and can finance another loan as well as look as making decisions to ensure company growth and profitability. The major goal of a financial manager should be to maximize the value per share of existing stock. To maximize value per share, also motivates the capital-budgeting decision rules, and firms will then only accept projects if they add value to the firm. Our Chief Financial Officer is Kenneth S Avner who is stationed out of Illinois. Ken Avner is responsible for decision-making processes related to product pricing, experience analysis, financial strategy, financial reporting, budgets, cost accounting, tax, receivables, disbursements, underwriting, travel, administrative services and procurement. I am not sure how all this comes down to New Mexico. I do see that our New Mexico President, Kurt Shipley has duties of financial management in the New Mexico Region, who I might add, is a certified...
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... profitability being a goal in the industry, the function of rivalry among companies will exist. I found that financial management is a huge benefit in any company whether it is large or small. A company that thinks that they can do without it must not have their company’s interests in mind at all. From balance sheets to pro forma balance sheets, every company needs them.
Works Cited
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Standard & Poors Financial Services. (2012). Ratings Direct. Retrieved June 3, 2013 from http://www.hcsc.com/pdf/standard_poors_report.pdf
The Brattle Group, Inc. (2013). Project Evaluation and Capital Budgeting. Retrieved June 1, 2013 from http://www.brattle.com/AreasExpertise/FunctionalPracticeAreas/Expertise.asp?ExpertiseID=111&SubItemID=206
Making an investment towards a new project/product/company is hardly a simple process. Numerous factors including costs, benefits, time, and resources need to be taken into account before a decision to pursue a new project should be ventured into. At the end of the day prioritising projects and investing funds into projects that have the most potential towards favourable return on investment should be considered. Investment appraisal should not only be used for projects with a monetary return, it is also pertinent to use the tools where the return may not be easy to quantify such as training or development programs. Investment
Financial records are very important aspects to any corporation and making sure the records are accurate is essential. Determining how a corporation is going to do is a guess but it is based on previous year's financial statements and that is a reason finical records are so important. Making a profit is a goal for any corporation.
Regardless of how departmental budgets are established, best practices in capital budgeting clearly state that all side-effects of a project must be included in cash-flow projections (Schiff, 1988 *2). In fact, transportation costs have a significant impact on cash-flows and also on the value of the project.
Gerald, J. M., Samuel, J. Y., W, B. H., & Rabin, J. (2005). How financial managers deal
Schedule and cost variances were identified at the month two and month three reporting periods, increasing in value as the project moved forward. A schedule variance is calculated by subtracting planned value (PV) from earned value (EV), and a cost variance is determined by subtracting actual cost (AC) from the EV (Usmani, 2016). Given the equations for cost and schedule variances, one can identify those variances by a dollar amount, or a percentage. Using both equations, a negative result indicates either over budget or behind schedule (Usmani,
Understanding corporate finance is important for a number of reasons. The financial status indicates the health of a corporation. Corporate finance allows managers to make decisions concerning corporate strategies, projects and even funds management. Managers will also be able to identify risk and growth potential.
It seems that the company might not have experienced many changing circumstances and therefore, a budgeting method that produces a stable, simple, and easily understandable budget might have been appropriate.
The financial manager is responsible for giving financial advice and support to clients and colleagues that will enable them to make good business decisions. Particular work environments differ considerable and involve both public and private sector organizations such as retailers, corporations, financial institutions, charities, and even small manufacturing companies and schools (Financial Manager, 2011).
Harvard Business Review Press (2012). HBR Guide to Project Management. Boston, Massachusetts: Harvard Business School Publishing Corporation. P123-124
Yes indeed, the execution of new strategy will primarily require good financial management to achieve success. The following functions tend to be the most important:
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
Time-phased project work is the basis for project cost control. Work package duration is used to develop the project network. Further, the time-phased budgets for work packages are timetabled to establish fiscal measures for each phase throughout the project. The time-phased budgets are to emulate the real cash needs of the budget, which will be used for project cost control. This information is useful to estimate cash outflows. The project manager's attention is on when the costs are to occur, when the budgeted cost is earned, and when the actual cost materializes. This information is made up to measure project schedule and cost variances (Gray & Larson, 2005). The following are typical types of costs found in a project:
This part of the study includes readings in literature and studies which have bearings on the present study. In view of this, the literature reviewed were those that concentrate on financial management capability, financial resources, financial management skills, performance, and eatery business.
Project management for engineering, business and technology / John M. Nicholas and Herman Steyn. -- 4th ed.p. cm
Stevens, P. (2013). Cost Analysis: Determining the ROI of Project Management Solutions. Retrieved from http://online-project-management-review.toptenreviews.com/cost-analysis-determining-the-roi-of-project-management-solutions.html