Financial management

Financial management is a crucial skill as proven by the recent world-wide economic recess. Managers of many companies saw no end to their sleepless nights, suffered from deteriorated health conditions and worked under the duress of stress and anguish. The majority of them ended up bankrupt and lost their companies. Most probably, most of them contemplated the importance of having a highly competent finance director capable of sensing the changing circumstances before it was too late, warning about upcoming unforeseen changes and offering solutions to unfavorable situations.

Are you a director or, perhaps, an owner of the company? Are you the one controlling the entire information about the company? Are you sure? Check it. YOUR FINANCE DEPARTMENT will answer all the questions.

For shareholders:

  • Is the value of the company increasing?
  • Are you satisfied with the amount of received dividends and ROA/ ROE?
  • Is the growth of the turnover and the overtaken market portion satisfactory?
  • Is the company managed efficiently?


For directors:
 

  • Is the working capital sufficient? Are the clients making payments in a timely manner?
  • Are you sure you are not overpaying the banks or other financial institutions?
  • Do you truly need such expenditure? After all, it is worth looking for hidden reserves;

Why plan one’s future and finances?

Financial planning is one of the most important functions of financial management. Properly planned operation of the company will minimize the risk of unforeseen “scenarios”, help avoid setbacks and distribute the resources reasonably and purposefully, which in turn help save funds and increase the company’s efficiency and profit.

Financial management is comprised of the following:

  • Modeling of possible future scenarios of the company, reasonable and substantiated selection of one alternative from many available options;
  • income/ expenditure budget according to the company’s structural parts (profit/ cost centers);
  • cash flow budget;
  • investment budget.