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ASK THE EXPERT
Q
The finance of an organization can at times be
seen as a maze built of data and statistics—a
maze that appears impossible to solve. Realis-
tically, successfully managing an organization
involves the most important aspect of any busi-
ness, that being Financial Management imple-
mentation. Utilization of financial data main-
tains the increase of the importance of Financial
Management; similarly as business units accrue
benefits via analysis of product mix and margin
data, or even customer profiles and product be-
havior.
Core capabilities such as operational visibility, in-
sight and superior decision making are brought
to the enterprise via the painstaking application
of Financial Management
With the proper knowledge and resources, all of
such can be achieved. Andwithmaking the right
financial decisions, such will create a significant
difference to business outcomes, performance,
and wealth.
The best means of describing how important
Financial Management can be, is by reviewing
some of the tasks involved:
• Refrain from over investing in fixed assets.
• Obtain enough short-term working capital
in order to manage accounts receivables
and inventory.
• Set targets in sales revenue to deliver
growth.
• Increasing gross – set the proper pricing for
products and services, reduce raw material
costs, negotiate suppliers’ prices, and man-
age other factors that can influence product
or service cost.
• Control the level of expenses in terms of
general and administrative capacities by
Why is Financial Manage-
ment so Important?
finding cost-efficient ways of operating
the business.
• Minimize the taxes to pay by Tax Plan-
ning.
• Manage employee benefits.
• Use numbers generated by financial
statements to perform financial analysis.
A well-oiled Financial Management system
helps to:
1. Manage proactively instead of reac-
tively.
2. Provide investors with information for
financial planning.
3. Access an efficient decision-making tool
for vital financial considerations.
4. Make your operation more profitable
and efficient.
5. Borrow money with ease; one can not
only plan ahead for finance needs, but
sharing your allotted budget with a
banker will definitely assist in the pro-
cess of loan approval.
Effective Financial Management can lead
to transparency of figures, as well as sup-
porting a deeper and real understanding of
the numbers involved in your business. This
makes it much easier to find savings, show
how profitable your business is, and basi-
cally allow you to rest easy!
- Ivanka Menken
To learn more about Financial
ncial
Management Toolkit COMING SOON!
“Manage proactively
rather than reactively”
A
