Considering Financial Management
Clint JhonsonFinancial management encompasses all of financial accounting, and it further deals with the role and requirement of finance in the future of the firm. Thus besides bookkeeping and taxation, financial management concerns itself with making effective financial decisions in the present, which may make the firm more profitable in the future.
Subjects covered under financial management
Principles and practices of financial managementEvaluation of financial performance using ratiosFinancial planning and forecastingDeveloping financial projectionsCapital budgeting analysisBookkeepingPurchase ledger management, sales ledger managementManaging cash flowVAT administrationTaxationPAYE administrationManaging risksManaging capital structuresAnalyzing cost of capitalFinancial management during mergers and acquisitionsValuation of target companiesPost merger integrationAnti-takeover defensesCreating value such as economic value added and value based managementCost of intellectual capitalData warehousingStrategic planningCompetitive intelligenceActivity based costingFinancial modelingProcess improvementLeadership
Outsourcing financial management
Small, medium-sized and growing companies need to give more time to sales and execution of projects, rather than to managing financial administrative tasks like bookkeeping, maintaining purchase ledgers and sales ledgers, VAT administration, and PAYE administration. They need professional help in this field. Finance companies offer their services and help these businesses grow with their expert financial management and advice.
Financial management services
Many finance companies offer financial management services where they undertake to perform financial services such as:Sales invoicing and credit controlBookkeepingExpense claims administrationPurchase ledger management, sales ledger managementVAT administrationPAYE administrationManagement of accounts and reports
Benefits of outsourcing financial management to finance companies
1.More time to attend to the growth of the business by concentrating on generating new business.2.Record maintenance is computerized. This ensures you know how much you owe to your suppliers and how much you get from your customers at any given point in time.3.Many offer 24-hour Internet access to your key data and figures ensuring that you remain in total control.4.Professionals handle VAT and PAYE administration, filling out forms, and submitting them on time. Penalty for late submission is avoided.5.Chasing of clients for payment is undertaken in a systematic way by well-defined credit control exercises performed by experts.6.To ensure your business remains competitive, financial experts provide financial guidance.7.The cost is negligible compared to the benefits obtained.8.Other financial services like factoring, invoice discounting, stock finance, etc., can be availed from the same finance company with greater ease.Purchase ledger management
from Bibby Financial Services.