Essay On Contemporary Financial Management

In the changing economical condition and economic expansion contemporary financial management has a very pertinent role. Modern reforms of contemporary financial management are the foundation for sustained economic growth and reducing inequalities. Such successful financial management strengthened budget execution. Through this Government is now engaging in a second wave of improving financial systems to deal weaknesses in governance.

The term “Contemporary” means that this approach to new financial management which has a modern objective and outlook for financial system and entail maximum economic growth and strength. It involves new financial decision, tracking the variance between actual and budgeted results and identifying the reasons for this variance etc.

At the most fundamental level contemporary financial management is concerned with managing assets, liabilities, revenues, profitability and financial system. It goes a step further in ensuring that the economic condition and financial system remains on track to attain its goals and maximizing the growth .

Contemporary financial management espouses transparency, accountability and greater review and feedback in the finance and budgeting process, with the aim of promoting sound financial management and ensuring accountability also.

The New financial management introduces a system for use of Funds which intended to finance only the targeted services, programs and projects or pre-conditioned policies and, where the recipient does not have discretionary power to spend those funds. The funds must be appropriated efficiently as per the prescribed method. Spending of money must be approved in accordance with the provisions of the contemporary financial management.

Contemporary fi...

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...l restructuring may also called Contemporary financial management and this restructuring include significant changes in capital structure of an organization, including leveraged buyout, leveraged re-capitalization and debt for equity swap.

At Last, the process of corporate restructuring involves the financial restructuring or changes in financial management as one of the method of restructuring. This changes in the financial management also called contemporary financial management which led to economic growth and expansion. Effect of Corporate restructuring and contemporary financial management on the performance of economy is very positive and very important. A company that has been financially restructured effectively will theoretically be leaner, more efficient, better organized, and better focused on its core business with a revised strategic and financial plan.