Question

Objective: To provide you with an opportunity to analyse data and information on the effectiveness of financial management processes within the work team and identify, document and recommend any improvements to existing processes.

Activity: How might you determine your company's performance regarding the above? What processes could be improved? Provide a snapshot of your organisation against these three criteria. (minimum 300 words)

Answer 1

OBJECTIVE:

Financial Management: It is the effective and efficient management of funds in a manner as to accomplish the objectives of the organization.The following are the keys to be followed for the effective financial management.

1.Be Insight Driven- As the office of finance is seen as the guardian of the information, it has a key role in leading or participating in this change. Finance has long data driven when it comes to managing a business with high level strategic decisions such as planning, budgeting, forecasting, and reporting. However, to be truly data driven, there is a need to demonstrate best practice leadership in these key financial sectors.

2. Simplify and Systemise where Possible: The more complex data driven the plan is, the more critical variables are the business involved in identifying and moving to a more data driven culture. To get a driver based plan, you need an organized approach. Modern CPM tools are designed to simplify economic activities in many ways, including-

(1) Reduction of manual processes and dependencies on traditional spreadsheet based approaches

(2) Switching to more dynamic planning techniques,such as rolling forecasts,to move away from annual budget cycles to more accurately predict revenues and expenses when fluctuations occur.

3.Know Your Figures: To plan a consistent budget ,you need to consider all the areas that your business needs to run smoothly. These factors include employee turnover,sales growth and material costs in addition to fixed costs.

ACTIVITY:

One's companies performance might be improved by conducting effective audit control - Effective internal audit system helps to achieve performance and profitability and prevents in fraud making. Further it also ensures reliable finance reporting and compliance with laws and regulations.

The improve the companies performance one must have financial control on their organization- Financial control systems are intended to provide adequate security to the company's finances and assets. Systems provide checks and balances, which help the company to prevent fraud or misuse or deviation from accepted policies and procedures.

By following the above steps one must have control over their financials and can improve the effectiveness of financial management process.