Question

List and dicusss as many tools for financial analysis/ management.

Answer 1

Tools of Financial management- These are as following:

Reporting & Analytics- It keeps the reports of day to day function and transaction. It includes Accounting information system, Integrated management system, Enterprise resource planning, Customer relationship management etc. It also includes budgeting analysis, audited financial statements, inventory management system and external industry analysis.

Cash management- It includes management of day to day cash and cash required for financing the project and investing into a project. This section studies advance cash planning so as to enhance the cash in the business and better utilization of cash.

Accelerate Receivables- This tools studies how to improve performance of account receivables. Functions related to account receivables can be improved by Automated clearing house, speed up collections, enforced payment policies, outsourcing billing services, e-commerce business etc.

Control Payable- This tool includes control over the payables, Payables affect the cash and profitability of business. This section studies how to make the payable system efficient by Invoice scanning, electronic invoice and payment, Automatic PO generation, electronic approval etc.

Manage expenses- This is very important tool to manage the expenditures, when expenses are minimized, profitability increases. There are number of tools who minimize waste and expenses including, spend optimization, strategic outsourcing, procurement outsourcing etc.