Question

Objective: To provide you with an opportunity to collect and collate for analysis, data and information on the effectiveness of financial management processes within the work team.

Activity: Collect and collate data about the effectiveness of your financial management processes. What data can you use? Consult with relevant staff to seek feedback on the effectiveness of your organisation’s financial management processes – who did you ask? What was their feedback?

Are these methods effective? How would you suggest they be improved? (minimum 300 words)

Answer 1

We will look at four different data collection techniques – observation, questionnaire, interview and focus group discussion – and evaluate their suitability under different circumstances.

Data collection is the process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Effective Financial Management -

Effective Financial Management gives advice on raising money for a business, maintaining investor relationships, accounting, reporting and communicating effectively with a wide range of stakeholders, budgeting, forecasting and managing business costs and cashflow, assessing projects and buying assets.

There are four recognized elements of financial management: (1) planning, (2) control- ling, (3) organizing and directing, and (4) decision making.

What data you can use ...--

Financial data consists of pieces or sets of information related to the financial health of a business. The pieces of data are used by internal management to analyze business performance and determine whether tactics and strategies must be altered.

So data will be regarding the funding method of the company, assets & liabilities of the company, cash inflow & cash outflow, past financial data, assumptions used in future forecasting, Management decision regarding changes in the business process, Trade payables & trade receivables, debt of the company, etc..

If the information is likely to be critical & confidential then we should ask the data from CEO or finance head.

If the information is for public, then we can get the data from annual report, Investor report & other public documents.

If the information is only for insider use of company, then we should ask the same from finance head or group manager.

These methods are effective but it's a subjective in nature because there is different roles & responsibilities of the staff in company. So if you found other method suitable then you can use that method.