Ammad awan glasgow - role of financial management in the efficiency of financial performance
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Financial management is a regulated and continuous process that includes many actions such as planning, regulation, guidance, and control of how to use the current and future financial sources.
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The document provides a job description for a finance manager position. The finance manager oversees treasury operations and manages funds to maximize returns while minimizing risk. Key responsibilities include forecasting cash flow, ensuring sufficient funds, hedging financial risks, maintaining banking relationships, arranging financing, investing funds, managing budget preparation, analyzing costs and competitors, and reporting financial metrics and analyses to management. The ideal candidate has 10+ years of finance experience, preferably with an accounting degree and CPA/CMA designation.
Financial management: concept and roles
The document discusses the importance of financial planning and management for businesses. It outlines key financial documents like balance sheets, profit and loss statements, and cash flow statements that are used for financial planning and decision making. The objectives of financial management are to maximize profitability, liquidity, efficiency, return on capital, and growth for businesses. Financial planning is crucial for businesses to effectively manage costs, inventory, cash flow, debt, and financial resources to achieve their goals and objectives.
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The document outlines various financial objectives and targets that a business may have, including cash flow targets, cost minimization, return on capital employed (ROCE) targets, and shareholders' returns. It discusses examining the types of targets involved in each area, as well as internal and external influences that could impact achieving the financial objectives. Students are asked to prepare a short presentation and/or case study analysis on these topics.
Selecting financial strategies
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1. A financial strategy is a long term plan of action to achieve the financial objectives of a business.
2. Decisions about financial strategies should be taken carefully because they involve committing large amounts of money and resources over an extended period of time. Getting these decisions wrong could negatively impact the long term viability of the business. Careful consideration needs to be given to factors like potential costs and benefits, opportunity costs of alternatives, and how strategies align with the overall objectives of the business.
3. A chain of high street coffee shops like Costa Coffee might choose to operate each shop as a profit centre to help monitor and improve financial performance at an individual shop level. Operating shops as profit centres
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Cash is king and so is your working capital.
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Job design
The document provides a job description for a finance manager position. The finance manager oversees treasury operations and manages funds to maximize returns while minimizing risk. Key responsibilities include forecasting cash flow, ensuring sufficient funds, hedging financial risks, maintaining banking relationships, arranging financing, investing funds, managing budget preparation, analyzing costs and competitors, and reporting financial metrics and analyses to management. The ideal candidate has 10+ years of finance experience, preferably with an accounting degree and CPA/CMA designation.
Financial management: concept and roles
The document discusses the importance of financial planning and management for businesses. It outlines key financial documents like balance sheets, profit and loss statements, and cash flow statements that are used for financial planning and decision making. The objectives of financial management are to maximize profitability, liquidity, efficiency, return on capital, and growth for businesses. Financial planning is crucial for businesses to effectively manage costs, inventory, cash flow, debt, and financial resources to achieve their goals and objectives.
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The document outlines various financial objectives and targets that a business may have, including cash flow targets, cost minimization, return on capital employed (ROCE) targets, and shareholders' returns. It discusses examining the types of targets involved in each area, as well as internal and external influences that could impact achieving the financial objectives. Students are asked to prepare a short presentation and/or case study analysis on these topics.
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Here are the answers to the questions:
1. A financial strategy is a long term plan of action to achieve the financial objectives of a business.
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Lucrum, a part-time CFO service, provides three tiers of financial expertise to business owners to improve cash flow, reduce costs, and advise on growth opportunities. An initial meeting outlines the client's needs and goals, followed by an investigation and customized proposal of services. Upon agreement, the part-time CFO focuses 100% on the client's business to deliver accurate reporting, identify efficiency improvements, and provide expert financial leadership.
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This document discusses different criteria for financial decision making, including profit maximization (PM) and wealth maximization (WM). It outlines several limitations of PM, such as its vagueness, ignorance of timing of benefits, and exclusion of risk/uncertainty. WM is presented as a superior alternative that considers cash flows over time and discounts for risk. WM aims to maximize the net present worth and market value of the firm, balancing the interests of shareholders, lenders, employees, management, and society.
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Cash is king and so is your working capital.
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Lecture 02
The document provides an overview of core concepts in financial management, including:
1) The four major decisions in financial management are the investment, financing, dividend, and liquidity decisions.
2) The objective of financial management is to maximize shareholder wealth and firm value.
3) Financial management involves making continuous decisions about acquiring and committing funds to long-term assets and current assets.
Mmi finance 3
A budget is a financial plan that translates strategic goals into expected revenues and expenses over a period of time. The budgeting process involves setting goals, evaluating options to meet goals, and identifying the budget impacts of choices. Budgets are coordinated across departments and include operating, capital, and cash budgets. Operating budgets cover day-to-day expenses for one year, while capital budgets outline long-term investments. Preparing a budget requires setting assumptions, forecasting sales, and estimating costs and profits. Communication during the budgeting process is important.
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Ammad awan glasgow - role of financial management in the efficiency of financial performance
- 2. Financial management is a regulated and continuous process that includes many actions such as planning, regulation, guidance, and control of how to use the current and future financial sources. It means applying public financial principles on various resources of the organization.
- 3. It refers to the profit gained by the company's sales from the cost of the goods sold. This indicates to the efficiency of using the available raw materials, fixed assets, human resources and others, and making a profit through them. It is noted that this margin varies and it is better to be higher.
- 4. This margin clarifies the efficiency of the company to manage the profits resulting from the project through when comparing the ebitda and interest. It is worth mentioning that the operating profit margin should be lower than the gross margin, and it includes management and sales costs, material and operating costs.
- 5. It is after deducting all financial obligations including taxes of profits that the institution has gained. It indicates to the efficiency of the financial management of the institution.
- 6. Making profit is not only managing the profits of sales but also taking into consideration the reduction of costs. If the costs are higher than the profit margin, this will affect the institution position against competitors. Many institutions try to reduce costs by adopting less expensive plan or service providers to reduce the bills of electricity, water, internet and others.
- 7. Institutions seek to increase their market share; the market share gives a general idea of institution position in the market and among competitors. They tend to enlarge its market by using other categories of customers, reducing prices and advertising. It is calculated by counting the company's sales during a certain period and dividing by the total sales during the same period.
- 8. Write long-term financial objectives such as debt disposal or early retirement, then short- term ones such as increasing income or reducing costs in institutions, and arranging points according to their priority taking into consideration that goals like saving for retirement is important during the achievement of other objectives.
- 9. It is one of the most important tools that ensure financial success, it means balancing costs with revenue to achieve the desired goals. Set a budget is essential, because it ensures that there is enough money to achieve the necessary things.
- 10. Debt holds achieving the financial goals. Instead of paying low sums of more than one debt at the same time, it is possible to pay all the money to one debt at first, then pay other debts.
- 11. Fixed costs: Such as invoices, rent, employees' benefits, they have to be paid and difficult to be reduced. Variable costs: Such as using free software instead of paid ones, they are a variety of fees that can be controlled and reduced.
- 12. Distinguishing between needs and desires: Setting priorities can help achieving pre- planned goals. Managing emergency expenses: They are unregulated expenses, such as training fees, car license fees, fines, etc., and saving money in an account will be useful in such cases.