Question

Objective: To provide you with an opportunity to determine and access resources and systems to manage financial management processes within the work team>

CaseStudy: Outline the following resources and systems, as they pertain to your organisation:

• Hardware and software

Many organizations use some type of computerisation, keeping their financial records digitally using computers.

Software can include:

• A universal ledger
• End to end spend management program
• Budgeting, planning and forecasting program
• Reporting program
• Process and control automation program
• Human, physical or financial resources

Human resources

Skillsets that an organization has within its staff such as staff experience, qualifications, training standards and other factors like morale, business culture and work relationships.

Physical resources

• production facilities
• marketing facilities
• Information Technology
• Record keeping systems (electronic and paper-based)

Paper-based record keeping

Keeping records manually – especially in cash accounting approach—

Divided in to some sections; Receipts, Payments, Wages and superannuation, Bank reconciliation, Inventory.

Electronic record keeping

Keeping records in electronic portals. It is the most efficient way to keep financial records and accounts. Computer-based accounting programs can create many things an organization needs such as:

• Orders
• Invoices
• Aged debtor reports
• Financial statements
• Specialist advice or support.

Asking for an advice or support from other stakeholders like accountants, bookkeepers and mentors

Question:

Why are they needed? How do you access them? Is there any current discussion within your organisation to change any of these resources? What impact will that have?                            

(minimum 300 words)

Answer 1

Financial Management Processes are needed to record the financial transaction of business and keeping good record of business would assist in reviewing business performance, manage it effectively and meeting expectation of stakeholders and regulators.

Legally and for tax purposes we required to keep records related to income and expenditure, taxation and other payments for a specific period.

Currently they are accessed through manual ledger system which includes entering records into a ledger or notebook.

Yes there is current discussion happening within organisation to change manual bookkeeping system to electronic system. This will use web-based applications and generally have other functions allowing us to issue invoices, receipts, track stock and also use spreadsheets to record financial transactions. Better control, keeping all payments and receivables transparent, Keeping track of liabilities, Coordinating income statements, expense statements, and balance sheets, Ensuring data integrity and security, keeping all records up to date, overall productivity, insights and customer focus are the key areas that it will have an impact on.

An effective financial management system would improve business performance by streamlining invoicing and bill collection, eliminating accounting errors, minimizing record-keeping redundancy, ensuring compliance with tax and accounting regulations.