Question

WHAT IS A LITERATURE REVIEW OF FINANCIAL MANAGEMENT AND CONTROL SYSTEM (FMCS)?

Outline:

Preliminaries

Introduction

Fundamental Concepts of FMCS

Issues and Trends on FMCS* (as applied in various organizations)

FMCS Best Practices** (of various organizations, as documented)

Synthesis (of the Related Literature Reviewed)

References***

* identify 2 issues and trends

** identify 2 best practices

*** Use APA Style (see referencing guide to be uploaded separately)

Notes:  8-10 pages (excluding preliminaries and references)

 A4 size bond paper

 Double space

Answer 1

Financial management refers to the coordination of a business’s accounting and finance activities.

Accounting: management tool used to record financial transactions to provide a summary of the business’s financial position.

Finance: coordination of how a business funds (pays for) its activities

Key elements include:

* FINANCIAL PLANNING

* FINANCIAL CONTROL

* FINANCIAL DECISION MAKING

Management needs to ensure that enough funding is available at the right time to meet the needs of the business e.g. short term, funding may be needed to invest in equipment and stock and pay employees.

Long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions in order to grow the business and achieve market share.

Financial Control

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as”

• Are assets being used efficiently?
• Are the businesses assess secure?
• Do management act in the best interest of shareholders and in accordance with business rules?