Financial management encompasses all of financial accounting, and it further deals with the role and requirement of finance in the future of the firm. Thus besides bookkeeping and taxation, financial management concerns itself with making effective financial decisions in the present, which may make the firm more profitable in the future. Subjects covered under financial management Principles and practices of financial management Evaluation of financial performance using ratios Financial planning and forecasting Developing financial projections Capital budgeting analysis Bookkeeping Purchase ledger management, sales ledger management Managing cash flow VAT administration Taxation PAYE administration Managing risks Managing capital structures Analyzing cost of capital Financial management during mergers and acquisitions Valuation of target companies Post merger integration Anti-takeover defenses Creating value such as economic value added and value based management Cost of intellectual capital Data warehousing Strategic planning Competitive intelligence Activity based costing Financial modeling Process improvement Leadership Outsourcing financial management Small, medium-sized and growing companies need to give more time to sales and execution of projects, rather than to managing financial administrative tasks like bookkeeping, maintaining purchase ledgers and sales ledgers, VAT administration, and PAYE administration. They need professional help in this field. Finance companies offer their services and help these businesses grow with their expert financial management and advice. Financial management services Many finance companies offer financial management services where they undertake to perform financial services such as: Sales invoicing and credit control Bookkeeping Expense claims administration Purchase ledger management, sales ledger management VAT administration PAYE administration Management of accounts and reports Benefits of outsourcing financial management to finance companies 1.More time to attend to the growth of the business by concentrating on generating new business. 2.Record maintenance is computerized. This ensures you know how much you owe to your suppliers and how much you get from your customers at any given point in time. 3.Many offer 24-hour Internet access to your key data and figures ensuring that you remain in total control. 4.Professionals handle VAT and PAYE administration, filling out forms, and submitting them on time. Penalty for late submission is avoided. 5.Chasing of clients for payment is undertaken in a systematic way by well-defined credit control exercises performed by experts. 6.To ensure your business remains competitive, financial experts provide financial guidance. 7.The cost is negligible compared to the benefits obtained. 8.Other financial services like factoring, invoice discounting, stock finance, etc., can be availed from the same finance company with greater ease.
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
