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Managing financial resources and decisions

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Finance officer
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economics
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London...

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case study
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  1. Introduction
  2. Managing financial resources and decisions
  3. Upon completion of preparation of the statements of finance, different users use it differently
  4. Sources of fund
  5. Conclusion

Financial resource management is a process through which the management maximizes resources available through implementing controls and managing cost. This is made boosted by the use of financial statements that reflect the real position of the firm. In essence, financial planning is the brainchild of any investment. It facilitates decision making on the best investment, how much to spend on it and what to expect from the investment. Financial managers use investment appraisals to present their decisions. It gives a detailed report on the viability of the investment and whether or not it should be adopted.

Financial planning involves making financial decisions over time for the benefit of the company. This helps in cash management. Since businesses go through cycles of booms and recession, they may be thrown out of the market due to setbacks like debt and recessions of economic crisis. Financial planning helps minimize expenditures during the low revenue periods and avoid overspending. Through this cash can be saved which is later invested in other capital investments of the company. Financial planning also helps businesses stay organized. Progress and change are inevitable in any business. Keeping a record of this helps businesses stay organized and stable. With time, plans are updated and revised to suit current situation and trends. Once identified, profiting trends can be followed.

[...] Financial planning also helps businesses stay organized. Progress and change are inevitable in any business. Keeping a record of this helps businesses stay organized and stable. With time, plans are updated and revised to suit current situation and trends. Once identified, profiting trends can be followed. These trends help in future profits determination through estimation of future earnings and spending. Estimation of company's growth assists in market tracking and strategy making. It is upon this that actual results can be evaluated against projected ones (business essentials 2007). [...]


[...] Creditors such as banks and raw material supplier are very strict with the payment period. The government harbors interest in the financial statements. It's entitled to a percentage of the company's profit as tax. This makes the balance sheet a crucial statement to the government. Investors are the most skeptical persons in business. They tend so carefully that their money may not be misused. For this reason, they will scrutinize every available source of financial information available about a certain company before investing their money there. [...]


[...] Managing financial resources. Oxford: Butterworth-Heinemann. Levy, H., & Sarnat, M. (1994). Capital investment and financial decisions. New York: Prentice Hall. BPP Learning Media (Firm). (2007). Managing financial resources and decisions: Course book. London: BPP Learning Media. Pfeffer, J. (1992). Managing with power: Politics and influence in organizations. Boston, Mass: Harvard Business School Press. [...]

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