To practice sound financial management, companies must acquire and allocate funds across their operations and set supportive policies for these activities. A company with strong financial management processes and procedures governing the business generally makes more sound decisions. A financial management information system helps a company connect all these processes and procedures and involve more of its operations in financial decision-making, leading to several long-term benefits.
Financial Management Defined
Financial management involves the creation and installation of financial principles that position a company to achieve its main goal – increasing the value of the business for the owner. Financial management, which includes debt financing and cash flow management, collects and uses information to make sound decisions. Financial management systems enable businesses to leverage financing, management and investment to reach operational and financial goals.
A financial management information system helps facilitate financial management in a company by automating financial operations. It is an automated application that uses one or more software programs, internal policies and documented procedures to record, track and summarize company, departmental and functional budgets. In addition, companies use their FMIS systems to prepare financial statements, track decisions that impact profits and track the consequence of financial decisions.
One key benefit of a financial management information system is transparency of information. Often, the owner and the accounting and finance-related personnel are the only ones who know and understand what is happening financially with the company. Through the use of an FMIS, all individuals with access to the system can check on aspects of a company’s financial performance. This helps managers of other departments and functions better understand how and to what extent what they do impacts the business.
As companies grow larger, the budgeting process becomes more complex. Because different departments can track their spending and make ongoing adjustments through an FMIS, it reduces budgeting complexity. Instead of having to regularly meet to discuss the budget and any changes, department heads can see what they and others are doing and provide insightful commentary on any issues that arose that did impact or could impact their respective budgets. This also facilitates tighter budget control.
Strengthens Financial Controls
For an FMIS to be effective, it requires companies to put systems, procedures, policies and methodologies in place. It may require one or more software systems. For example, an FMIS may require an accounting software package, a database system and an enterprise resource planning software program that pulls financial-related data from the accounting and database systems. All of these working together serve to significantly strengthen a company’s internal financial controls.
Reaching your financial goals is like a trip. While there are many reasons you need a financial plan, here are six to get you started:
If you don’t know the destination, how will you know when you’ve arrived? A financial goal is something that has a time frame and that can be quantified. An aspiration such as a “comfortable retirement” is hard to plan for. The financial planning process will help you define and quantify your goals.
Determining a proper investment allocation is critical. An outgrowth of your financial plan should be a plan for the allocation of your investment assets across all of your accounts. The allocation should reflect the goals you are trying to attain as well as your tolerance for investment risk.
Are you saving enough? Whether you want to fund your children’s college education, save for retirement, or buy a new house, most financial goals mean periodic savings. The financial planning process will help you identify how much you will need to save periodically—and in total—for each of your goals.
What will happen to your assets upon your death? Most of us have someone to whom we would like to pass on whatever wealth we have accumulated during our lifetime. Estate planning is a central part of the financial planning process. Do you need a will or a trust? Are your beneficiary designations on retirement accounts and insurance policies up-to-date? What would happen to your assets if you died today? Is this what you intended?
Are you properly insured? Do you have enough life insurance, and do you have the right kind of policy for your situation? Do you have disability and long-term care insurance? Do you need this coverage? A financial plan addresses all of these issues.
Are you fully using all of the benefits available to you through your employer? This question addresses issues from health insurance all the way to your retirement plan to any types of stock options or company stock benefit you may have access to. Benefits generally range from 30 percent to 40 percent or more of your cash compensation, so understanding what is available to you and how to best use these benefits is crucial.
These six reasons barely scratch the surface of why you need a financial plan. In general, the financial planning process can help you take a thorough look at all aspects of your financial life and organize them in the most efficient fashion for your situation.
Finally, do you need to hire a financial planner to do all this? My answer is yes, but I am severely biased. What a good financial planner will do for you that you cannot do yourself is to take an objective, unemotional look at your situation. He will then apply his expertise, training, and experience to your unique financial needs. One last (biased) suggestion: Always hire a fee-only financial advisor, someone who does not earn a commission based on selling you a financial product. This eliminates a huge potential conflict of interest.
Remember: Financial planning is not a one-time event, but rather an ongoing process. The plan is a base from which to make financial decisions, but the plan can and should change over time based upon changes in your personal circumstances.
1. Nice Systems
For connecting banks and other clients to frazzled end users when problems arise. Big brother is on your cell phone—and you just might say, “Thank goodness.” In 2012, Israel-based Nice Systems rolled out Mobile Reach, which seeks to revolutionize customer service for mobile users. Mobile Reach sees knows when you’re in trouble before you even have a chance to look for the FAQ. Not sure if you have enough money to pay your rent? Trouble with your phone payments? Mobile Reach, which is used by 25,000 companies—including telecom giant Telefónica—feels your pain and takes you directly to a representative who can help. Empathy goes a long way: Nice cracked $1 billion in sales at the end of 2013.
For creating an email-based payment system that is perhaps the simplest way to transfer money ever. Square shook up the world of payments (again) with Cash, a mobile app that enables users to send and receive money for free via email. Senders link their debit cards, and recipients can deposit the money directly into their bank accounts. (Transactions clear in one to two days.) “We know everybody has email, so we know everybody’s able to receive money,” says Brian Grassadonia, head of Square’s Cash team. Just a couple of years ago, Square probably said the same thing about smartphones.
For emerging from the shadowy corners of the web into merchants’ cash registers. Bitcoin—sometimes known as cryptocurrency, virtual currency, or fool’s gold—has turned our notion of money upside down. Created by computers and exchanged from person to person (no middleman, no banks, no Federal Reserve), Bitcoin has regulators worried that the untraceable transactions are perfect havens for terrorists and drug dealers. Be that as it may, you can now use Bitcoin to buy Tesla luxury electric cars, schmattes at Overstock.com, basketball tickets in Sacramento, or a cup of coffee. Its value hit a high of $1,242 in 2013, up from $13.50 at the start of the year, and Bitcoin ATMs are popping up in Vancouver, New York City, and areas of Brazil.
For funneling charitable donations to developing countries via smartphone, boosting livestock holdings and income rates. GiveDirectly grants no-strings-attached cash to impoverished families living in Kenya and Uganda, bumping up against the belief that the poor need guidance when spending money. Early data suggest the conventional wisdom is wrong: Kids are less likely to go hungry, and financial investments nearly doubled among GiveDirectly recipients. The brainchild of grad students at Harvard and MIT, the nonprofit has committed and distributed more than $6 million in the past fiscal year, reaching about 30,000 people. The screening process is simple, targeting families with thatched roofs (typically the neediest). Grants average $1,000 each over a nine-month period and are sent directly via SMS—which means no greedy middlemen and they can’t be stolen.
For daring to take on the fee-laden credit card establishment. While other digital-payment startups are built atop a convoluted infrastructure mired in fees and exchanges, Dwolla is building the world a better network. Not satisfied with processing $3 million a day in transactions, it rattled the cages of card companies (and PayPal) when it launched Dwolla Credit, a virtual charge card that costs merchants just 25 cents per transaction, well below the standard 2% to 3% fees most credit card companies charge. Dwolla achieves this by transferring money directly between parties’ banks, which also means merchants receive funds immediately, rather than having to wait three to five business days.
For slashing pesky foreign-exchange costs by creating a transparent peer-to-peer network. TransferWise drives competitors wild with the foreign-exchange rates it delivers: about 0.5% of the transaction (versus the typical 4.5%) to send someone money internationally. The company was launched in 2011 by Taavet Hinrikus—Skype’s first employee—and Kristo Käärmann, Estonians who were working abroad and racking up big exchange bills. TransferWise, which is backed by PayPal cofounder Peter Thiel, has processed more than $400 million in transactions, and services more than 20 currencies, including the U.S. dollar, the euro, and the British pound.
For establishing a single login for web users and taking a giant leap toward eradicating the scourge of the Internet: passwords. Simply put, OneID envisions a password-free Internet. Before browsing, users register their personal and financial information just once, and their data is encrypted and stored in the cloud—but no one can unlock the info unless he is on an authorized device. (Think of OneID as a virtual safety deposit box in which users need two keys turned at the exact same time.) Worried about the kids buying stuff on your desktop while you toil away at the office? Just set up OneID to send alerts to your phone for permission. On vacation? You can shut down OneID remotely.
For luring international customers with a mobile-payment network that lets them purchase with a simple click. MasterCard throws down the gauntlet on payments with MasterPass, an international platform that doesn’t care where or how you are shopping. At the mall, MasterPass will soon let you tap your devices at a cash register or scan a digital barcode. When online, load any credit card you want into the digital wallet—even if it’s not a MasterCard. The system will help users track balances, find bargains, and offer real-time alerts while also providing data to merchants on consumer behavior. Coming soon: the ability to pay for your items while you wait in line or browse in stores.
For building a crowdsourced platform for analysts that throws a wrench in the Wall Street monopoly on quarterly-earnings forecasting. Estimize lets anyone—okay, anyone with a taste for spreadsheets and ratios—post his best guesstimates on how much the likes of LinkedIn or Facebook have earned. On Estimize, 3,700 professional (hedge fund managers, asset managers, independents) and amateur users show their chops, besting the pros on Wall Street 70% of the time, says founder Leigh Drogen. (Estimize is reportedly 14% more accurate on average.) Gnip, the social big-data company, is now selling the company’s info to investors, and Bloomberg terminals feature its guesstimates side-by-side with those of traditional financial firms.
For creating a social network that lets traders emulate those with skin in the game. Invest like a guru with eToro, which enables the little guy to follow and copy the market moves of top traders. As it turns out, copying is a shrewd strategy: According to one academic study, returns improve by 10%. It also works out well for the traders, who get $10/month per eToro copier. The system boasts 3 million accounts in 200 countries. eToro, which began as a foreign exchange trading platform, also offers commodities and a handful of U.S. stocks, and will soon debut European equities. Bitcoin was recently added to the menu (of course).
Understanding your small business finances is a huge part of managing your company to success, especially during challenging times. Here at Small Business Trends, we believe small business owners should be empowered, stop worrying about economic forecasts and take control of their own destinies when building their businesses. We hope the resources here help you do just that.
Dealing with rising costs. Faced with a challenging economy that makes growth a little trickier, small businesses also need to watch the other end of the equation by keeping control of their costs. Easier said than done, this is something at which some entrepreneurs have none the less prevailed and here are some tips that can help you and others.
What does double dip mean to you? Nothing probably. With all the wailing and hand wringing going around, remember that most of our small businesses don’t depend on the stock market directly. Customers and clients still need to be served. You can expand your market or enter new ones. Keep doing what you’re doing and stop worrying about “the economy.”
Tax credit for research and development? That’s right, you can get a tax credit for doing something that’s good for your company anyway, researching and developing new products, services and technologies. Here are more details on the tax credit program. Be sure to share this link with others.
SBA funding continues to roll out. The Small Business Administration continues to roll out funding in an effort to boost small business and with it the economy. A recent initiative targets small businesses seeking capital in Michigan. Federal funding has also flowed to a number of other states recently to help with small business lending. Keep watching for funding your business can take advantage of.
Want to cut costs in your small business? Check out these suggestions for cutting costs across the board. Reducing cost is a great way to manage your company’s finances no matter how your business is doing. Cutting expenditures improves your company’s financial situation and frees up additional resources to reinvest in your business.
Cash is king so manage it. In fact, managing cash flow within your business ought to be one of your top priorities. But getting a handle on cash flow within your company may not be as easy as it seems. Resolve to take a systematic approach to addressing your small business issues and you may be surprised at the result.
Mistakes when seeking investors. It seems simple on the face of it. Just go convince someone with money to spend that your idea for a business is clearly awesome :). They write you a check and you’re in business! But when it’s time to approach investors, especially sophisticated ones, you’ll find the prospect is anything but easy.
There are no shortcuts to raising cash. Be ware of claims that seem too good to be true. They may either be “opportunities” of questionable authenticity or they are meant for a very specific kind of business and not for you. See the example given by Peter Ireland of an “opportunity” for businesses that may clearly be out of the typical small business startup’s league.
Have you heard of crowdfunding? A way to get the financial boost your business needs to grow, expand or survive harsh economic times, crowdfunding is a new practice often carried out over the Internet. For a more detailed look at the process and what’s involved, check out the story at the link above.
Buying a home can be a fun and exciting experience. But finding the right home is just one step in the process. Choosing the right home loan can be just as important. Here are some tips to help make finding the right home loan as easy as possible.
1 – Start saving for a down payment
Depending on your lender and the type of loan you choose, your required down payment can range from 2.25% to 20% of the purchase price of the home. Establishing a monthly budget will help you put away enough money for your down payment.
Once you’ve assessed what your budget will support, consider having money automatically deposited from your paycheck or bank account to a savings account to make it easier and more convenient to put aside money each month. An account like Discover Bank’s AutoSavers Plan can help you start saving today.
If you won’t be able to come up with a large down payment, then you should look into an FHA loan, which helps home buyers who can only make a small down payment.
2 – Check your credit score
Having a good credit score puts you in a position to attract the best deal on your home loan. So it’s a good idea to obtain a copy of your credit report before starting the home buying process. You will see what your credit profile looks like to potential lenders and can then take steps to improve your credit score if necessary.
3 – Get your financial documents in order
When you apply for a mortgage, you will need to provide your lender with a number of financial documents. Having these documents already assembled will help accelerate the processing of your loan application. At a minimum, you should be prepared to provide your last two pay stubs, your most recent W-2, your last two years of tax returns, and current bank and brokerage statements.
4 – Utilize a mortgage calculator
Mortgage calculators are great tools for helping you understand how much home you can afford. They are very easy to use and can show you how much your monthly mortgage payment would be under different home price, down payment and interest rate scenarios. Check out a variety of our handy mortgage calculators.
5 – Learn how to compare offers
All mortgages are not created equal. Even if loans have the same interest rate, there could be differences in the points and fees that make one offer more expensive than another. It’s important to understand all of the components that go into determining the price of your mortgage, so you can accurately compare the offers being made. You can click here for a good explanation of the components of mortgage pricing.
6 – Start tracking interest rates
The interest rate will be one of the biggest factors in determining the cost of your mortgage. Interest rates for mortgages change almost every day and it is helpful to know which way they are heading.
7 – Get pre-qualified
Many real estate agents want you to be pre-qualified for a loan before they will start to work with you. The mortgage pre-qualification process is fairly simple, usually just requiring some financial information such as your income and the amount of savings and investments you have. Once you are pre-qualified, you will have a better sense of how much you can borrow and the price range of the homes you can afford.
8 – Understand the various loan options
Maybe your parents had a 30-year fixed-rate loan. Maybe your best friend has an adjustable-rate loan. That doesn’t mean that either of those loans are the right loan for you. Some people might like the predictability of a fixed-rate loan, while others might prefer the lower initial payments of an adjustable-rate loan. Every home buyer has their own unique financial situation and it’s important to understand which type of loan best suits your needs.
9 – Be prompt in responding to your lender
After you have applied for a home loan, it is important to respond promptly to any requests for additional information from your lender and to return your paperwork as quickly as possible. Waiting too long to respond could cause a delay in closing your loan, which could create a problem with the home you want to buy. Don’t put yourself in a position where you could end up losing your dream home, as well as any deposit you may have put down.
10 – Don’t mess up your credit during the loan processing
It’s not uncommon for lenders to pull your credit report a second time to see if anything has changed before your loan closes. Be careful not to do anything that would bring down your credit score while your loan is being processed. So, pay all of your bills on time, don’t apply for any new credit cards, and don’t take out any new car loans until your home loan has closed.
When it comes to buying a recreational vehicle (RV), loan is a better alternative to shelling out hard cash. If you are looking for used motor homes for sale, you will be happy to know that financing is available for both brand new and used models. Given a vast array of options, zeroing in on a particular lender, and deciphering the fine-prints of the loan contract can often be overwhelming. The information below will come handy in landing a good financing deal at competitive rates, and with flexible terms.
RV-financing is a stringent, credit score-driven procedure. The lender will run a credit check before approving the loan. Before you apply for a loan, obtain a copy of your own credit report. It will act as a good eye-opener to understand whether you are in a position to pay off a loan or not. In addition, it will let you rectify any misinformation on your report in advance, and avoid embarrassment.
Fair Isaac and Company (FICO) score has become an integral part of any loan-sanction procedure in the US. This tool is designed to provide a complete picture of an individual’s personal finance status through a single score. The factors that are considered include a candidate’s employment history and the duration of his/her stay at the current residence, among others. Expect to get a low score if you have a history of bankruptcy or defaulting on mortgage payment for an asset.
Long Term Versus Short term:
Any vehicle is a depreciating asset and for used motor homes, the depreciation rate is much higher. A long-term loan will keep you tied to a payment obligation for a considerable amount of time, with an outstanding amount, which is greater than what your dated rig is worth. Therefore, when it comes to pre-owned RV-financing, always go for a short-term (less than five years) program. Before finalizing the deal, make sure you lender will not charge any pre-payment penalties, in case you choose to pay off your loan early.
A number of banks, credit unions and other financial institutions offer loans for used motor homes at competitive rates. You can even obtain direct financing from your motor home dealer. Many dealers have tie-up with lenders, so they help you get a loan in a hassle free manner. Research well before you sign a loan contract – compare between several dealers and their packages. In normal circumstances, an RV-loan gets approved within a day or two after the application is received.
There is one very strong reason to choose financing over cash-down and that is tax advantage. A fully self contained RV, which offers basic sleeping, bath and kitchen facilities is considered a second home and therefore qualifies for tax exemption. For detailed information regarding tax cuts on RV loan interest, refer to the website of the Internal Revenue Service (IRS), the revenue service department of the United States federal government.
Financing your motor home allows you to acquire your home-on wheel without making a dent in your savings, all the while enjoying some cool tax cuts. While trying to find out the best financing deal for a well-maintained used motor home for sale, do not, however, let too many lenders run a credit check, as it is likely to hinder and delay the loan approval process.
What is financial planner?
A financial planner is a professional who helps a person deal with his/her financial issues. A financial planner helps a person in areas such as personal financial planning, investment planning, risk management and insurance as also his/her cash flow management.
About the financial planner
A personal financial Planner is entrusted with the job of evaluating the performance of companies or that of a portfolio of securities and providing valuable guidance to individuals regarding the suitability of investments. In other words, a financial Planner is responsible for asset management and financial planning. Analysis and forecasting as well as budget and grant preparation and accounting. The incumbent will prepare periodic budget vs. actual analyses, will monitor and analyze research grant spending and plans for future spending, and will prepare financial reports for funding agencies
Financial Planner Career Overview:
A Financial Planner advises individuals on setting personal financial goals and strategies. Many work independently or in small firms, though larger financial services firms either are adding Financial Planners to their staffs or are insisting that their Financial Advisors (or Financial Consultants) also become certified as Financial Planners
A Bachelor’s Degree is expected for a Financial Planner. Coursework in finance, accounting and/or economics is helpful, though not required. Strong quantitative and analytic skills are essential. An MBA may be valuable in the hiring process, depending on the firm.
Requirements to function as a Financial Planner vary by state. Even in jurisdictions where it is not mandated by law, passing the exam to become a Certified Financial Planner (CFP) is highly advisable. The CFP designation increases credibility and marketability, both to employers and to clients.
As per the Princeton Review, average salaries for Financial Planners can range from $20,000 starting to $40,000 for those with 5 years’ experience, to $90,000 for those with 10-15 years’ experience
Responsibilities & Duties of a professional Financial Planner:
Under the direction of the Chief Technology Officer, this position provides planning, guidance, and oversight of the IT department’s budget development, license and asset management, legal and contractual adherence, performance monitoring and improvement, operational and financial reporting, and internal financial controls. The position serves as a high-level advisor on a broad range of financial and management matters for the department. The position directly supervises clerical staff, and provides indirect guidance to staff department-wide. This is a “hands-on” supervisory position in a diverse and fast-paced environment. What are the duties of a financial planner? Duties and responsibilities of a financial planner are as follows
A Financial Planner helps clients create personal budgets, control expenditures, set goals for saving and implement strategies for accumulating wealth. He or she may have working relationships with Financial Advisors, Investment Managers and/or Mutual Fund Companies, utilizing these specialists for the actual investment of their clients’ funds. The job requires keeping current about developments in financial products, tax laws and strategies for personal financial management, particularly with respect to retirement plans and estates. Success also requires sales ability, both in the acquisition of new clients and in the development of new ideas to improve the financial situation of existing clients.
A financial planner studies the different aspects of the financial picture of his/her client and provides a suitable financial solution. Some financial planners deal with the various facets of personal finance, while others specialize in fields like risk management or retirement planning.
The job of a financial planner can be described by means of a 6-step process given by the ISO.
• The first step is of setting financial goals with the client.
• The second step includes the gathering of relevant financial information from the client. The •Third step is of analyzing the gathered information, which is followed by the creation of a financial plan.
•The last two steps include tasks such as implementing the plan’s strategies and monitoring the implementation of the plan.
Financial planning is one of the most speedily growing industries as it deals with the management of the most important means of living, which is money
The primary responsibilities of this role are to provide the financial information and associated analysis necessary to manage and optimize company manufacturing performance. This is a global role and reports to the Commercial Finance Director of the company with dotted lines to two other senior corporate officers. The selected candidate must be willing to proactively engage with senior managers to constructively challenge them in the development of their plans and to assist them in managing performance to deliver these plans. Specific responsibilities include
A. Budgeting, Forecasting and Planning
1. Coordinate the production of a zero-based, bottom-up Annual Budget and long range company plan for the various manufacturing locations
2. co-ordinate three in-year re-forecasts to the same level of detail as the annual budget
3. Ensure all manufacturing locations update monthly full year forecasts
4. Ensure that the numbers produced by the Global FP&A team are recognized throughout the organization as the ultimate reference point
B. Performance Management
1. Work with global functional leaders of Commercial Finance, Operations, Supply Chain and IT/MIS to identify.
2. Continuously monitor and improve the quality of the Period Management Accounts (PMA) report in order to ensure that relevant, actionable information is headlined.
3. Coordinate the monthly PMA review process, ensuring insightful commentary and analysis is delivered in standardized form, from all manufacturing locations
4. Provide monthly analysis and commentary on the company’s operations consolidated financial and commercial performance, for distribution to senior management, in the form of a monthly performance pack
C. Decision Support
1. Driving appropriate financial disciplines, developing financial capabilities and
Providing training, coaching and mentoring of finance skills to non-finance management
2. Contributing to the development of appropriate management information systems and reporting
The FP&A manager must establish a collaborative working relation with his/her peers and other members of the Global Finance Team, comprising other members of the Commercial Finance team, Group Financial Control; regulatory, legal, fiscal and socio-economic developments.
At a glance:
01. Approves payments, purchase authorizations and other financial transactions to ensure compliance with staff rules, financial rules and implementing instruments/authority.
02. Supervises the preparation of the end of month accounts before forwarding them to
03. In close coordination with Field/Sub Offices/Programmed Section, maintains a system to monitor and forecast cash requirements to meet administrative and project expenditures. Establishes monthly cash requirements for the office and requests timely replenishments from Headquarters.
04. Constantly reviews banking arrangements to ensure timely transfer of funds and minimize exchange loses and bank charges;
05. advises the head of office on all budgetary and financial matters;
06. Briefs new staff members or staff assigned to the Field on finance matters;
07. In close coordination with Field Offices, coordinate replies to finance related audit comments
08. Normally supervises and coordinates the work of GL staff;
09. Undertakes other duties as required.
10. Performs other duties/projects as assigned/required
Conclusion: To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Previous experience accounting for grants and contracts (Government, Foundations and Private) is required. Must be self motivated with the ability to work independently and to deal with complex accounting issues with little supervision Familiarity with government grant guidelines
Even though money is not the single factor that makes the world go round, it is certainly one of the most important factors. A Finance management course would not only help you implement the basics of financial management in your business or in your workplace, but it would help you manage your own finances in a better way. However, not every institute can give you a comprehensive course that would put your career on the fast track to success. This would require you to find the best institutes such as the Indian Institute Of Financial Planning.
Financial management is increasingly becoming a popular field of study, especially because of the evergreen nature of the job market in this segment. There are students who want to pursue Finance management course and there are others how want to continue their education and enhance their qualifications while working. There are many benefits of pursuing a financial management program, without whether it is a full-fledged MBA degree or a diploma program.
When you join financial management stream through MBA Admissions, you are joining a niche segment in the finance industry. So, after completing your management course in finance, you would get a head start compared to those who are already working. With these benefits, it becomes extremely important to choose the right financial management college.
There are courses like Diploma In Financial Management that give you a solid ground for specializing further in different economic fields. Even if you don’t have the time or resource to further pursue an advanced course, you would still have a good platform in economics and finance to rely upon. A course in financial management is always going to be helpful, even if you change your course of career due to some reason. The basic principle of the subject apply to almost all fields and industries.
It doesn’t matter whether you are a business owner, en existing employee or a student seeking to create a career, a Finance management course is going to make you stand out from the crowd. This is especially important in today’s tough economic situations when businesses are looking to manage their existing resources in the best possible way.
How would you find the right financial management college to apply for MBA Admissions? Search for a college that is accredited by a national education authority or university. It would be detrimental to your career and a waste of money if you study a course that is not recognized by the central authority on education. However, that is not the benchmark for quality education.
There are institutes like Indian Institute Of Financial Planning that have been accredited with higher grades for the quality of education they deliver. Therefore, it is important to find a college that offers quality and versatility in their curriculum programs. Exposure to the real world environment is another feature that the institute must offer. This is one of the most essential ingredients that would help you get a feel of the application of principles of management in the real world while studying.
Anything that has got to do with money, its management, accountability of the same, transactions, running of a company, costs etc. is covered under a wide terminology known as business finance. Let us look at some of the basic concepts that are involved here.
Health of a company
One of the main concepts involved in the financial market is to check the health of a company. By health, we mean the company’s capacity to sustain financially. This is done by checking the cash flow of a company. This will help you ascertain if a company has enough cash inflow to meet the expenses. In other words, it simply helps you understand, if the company is healthy or not, when it comes to its finances. By knowing this, you can arrive at an important decision of knowing if it is worthy to invest in this company or not.
Kinds of inflow
Businesses can borrow money from a lot of sources to run their operations. Some of the most important sources ofcapitalare equity, investments from venture capitalists and the like. The art of knowing the various sources of finance, how to utilise them to the maximum possible extent, what risks are one subjected to in each of these sources, what level of inflow can one expect them, how to develop further with these sources etc. are all widely covered in the concept of business finance.
For the benefit of owners, there are some formulae available in the financial market for calculating the soundness of their venture.. For example, a company’s current ratio can be calculated with the help of formula, current assets/current liabilities. In order to check a company’s quick ratio, that is, how quickly a company is able to generate cash for its needs, the formula is quick assets/current liabilities.
Some of the important terms used in this field are cash flow, budget, balance sheet, dividends and the like. They are not jargons and it is important for everyone involved in this field to know about these. Only if the proper meaning, inclusions, exclusions and applications of these terms are understood properly, will an owner be able to sustain himself in the competitive world today. Today, there are lots of businesses vying for competition and it is important to have a unique edge over the other if you want to position yourself in the minds of customer. This edge could be in terms of your knowledge. You can get this by hiring experts in this department.
Accounting is the basic need for every business. It performs the basic role in any organization to perform in better way. Accounting covers all the aspects of organization related to recording and managing the transactions and business dealings. These transactions are the daily performance of organization. Like, any company do sale or purchase comes under the provision of transactions. Any company, who is providing services to other also fall in this. Recording of transactions involves the sale, purchase and services provided to clients and customers in a systematic way.
Accounting keeps the records of negotiations in proper books of accounts. These books are organized by accounting firm to perform in a better way. These books include General Journal, ledger, trail balance and final balance sheet. Accounting Company manages the recording first in General Journal. All the transactions firstly record in this book. Then the values from this are transferred to Ledger accounts. These accounts have complete information of company`s all dealing accounts with their amounts and values. Then further, values from ledger accounts are move to trial balance, where first report is prepared regarding to all features of company. These features involve assets, liabilities, debtor, creditor, capital and many others. In the end, final balance sheet is prepared from the values of trial balance. This balance sheet must be show equality on both sides. It shows the fair performance done by the organization. All these aspects are performed in well and accurate way, if all these are record and managed well. All is done by Accounting Company.
Accounting Company fulfills the needs of bookkeeping services of businesses. Bookkeeping is much relates to accounting but it is not all accounting. Bookkeeping is also relates to finance. It also manages financial aspects of the organization. All the financial statements are prepared in bookkeeping services. Finance includes all the information of company`s assets and cash flow. It show the strength of organization`s profile. If, company is financially strong then it can raise their capital by improving their services in financial features. Accounting company manage and control the financial dealing of company and perform for the betterment in achieving company`s goals and objectives.
Stephen R. Sefcik Professional Corp. is one of the best Accounting Company in Calgary. They work in the three provinces of Canada to achieve their maximum level of clients. They satisfy their client by utilizing their skills and performance. They are working in the region from last 35 years. They have chartered accountants who are professional in their work. They have qualified staff members, who`s first priority is the clients satisfaction. What you demand, is deliver to you in same and trusted way. They manage your books of accounts with trustworthy relation and give you suggestions, how you can improve your working procedure and achieve your goals and objectives. You can just visit their website to get acknowledged with their services and make a free appointment any time.