Annotated Bibliography: Trends In Financial Management

This process reduced not just customer’s satisfaction but also profit; there is a need for a financial information management to integrate all their business processes. SAP (System Applications Program) was introduced to the company to ensure efficient communication among the different modules of the business process.

Advantages- Less liability for stakeholders. Ability to raise funds/capital in the form of stocks as needed.

As the financial management firm grows and transformations of the times, it becomes essential to advance the technological components that comprise it. Furthermore, technology is only growing further advanced, and the cost of business does not go down, so naturally increasing efficiency and reducing cost needs to be a priority. The greatest way the company, Northcentral University, can develop and grow is through a new technological initiative that centers around centralizing staff, an integrated team outside of the headquarters in boundaryless fashion, and implementing new software technologies to connect these two things.

1. The cause to the conflict in the rankings is that while the IRR ranking shows a percentage so that you can see what percentage you are making on certain amount, it does not show the size of the project.

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Organizational Design - Mrs. Mary Doe must educate the company in the use of the new software so that the bank ultimately benefits in terms of bottom-line results and to use the software to identify those sectors of business in which the bank does exceptionally well so that better and more focused strategic decisions can be made. The software, although difficult to implement, has proven to be very useful in institutions with postures of

Seven years ago, Jason Fernando, after 15 years as a public accountant with a major accounting firm, started Software Inc. in 2006. In the preceding two years he had developed a sophisticated cost-accounting software program that became Software’s initial product offering. As the firm grew, Jason intended to develop and expand the software product offerings which would relate to streamlining the accounting processes of medium- to large-sized manufacturing companies.

The ABC Company has recently revealed plans to launch a new product the electronic cigarette. This item is already present and sold within the market, but the demand for it is rather underserved. The competition in the field is quite low as the product is relatively novel and there are not many companies producing it.

Through different studies on evaluating people’s financial management, it is easy to find that financial knowledge produce significant effects on the effectiveness of people’s financial behaviors. On the one hand, the level of people’s financial knowledge will affect their financial investment and financial management. Chen and Volpe surveyed 924 college students to examine their financial literacy and the relationship between financial literacy and student’s characteristics. They found that the level of personal financial literacy could affect the students’ personal perspective of finance and further influence their financial decisions. According to their study, college students with less financial knowledge had negative opinions about financial management, and they were more potential to make inefficient financial decisions. The low level of college students’ financial knowledge limited their abilities to make effective financial choices (Chen and Volpe, 1998).

2) Having a complete understanding of the market and the company’s competitors is crucial for a business to flourish. If a company invests in a certain information system that helps it to stand out in the market in comparison with its competitors, while gaining from that initiative, this adds strategic value to the company. As a startup, SmoothPay had to utilize different strategies to aid in penetrating the market, while minimizing the costs of doing so, and that was achieved using Information Systems. Transaction Processing Systems (TPS) are implemented by SmoothPay as a way of increasing their strategic value, giving them the upper-hand over their competitors. TPS is a “computerized system that performs and record the daily transactions necessary to conduct a business.” (Laudon & Laudon, 2006). According to the case study, “Merchants were provided with a number of items during the installation process. Depending on the point-of-sale system used by the business, SmoothPay would deliver an integrated point-of-sale solution or a stand-alone payment terminal.” (Halliday & Dong, 2016) By implementing this information system, SmoothPay was able to initiate the payment process and organize the different financial transactions made with all

Net present value (NPV), also called net present worth (NPW), is an approach to evaluating investments that assesses the difference between all the revenue the investment can be expected to achieve over its whole life and all the costs involved, taking inflation into consideration inflation and discounting both future costs and revenue at an appropriate rate. It can be challenging to calculate NPV because it is not always clear what discount rates should be used.

Some decades ago, business financial activities were far different from they are now. Transactions were made using cash or bank notes, which were given directly from hand to hand or sent via mails. It could take a week for a transaction to be complete due to distance. Orders given to brokers on financial markets were made through phone or face-to-face communication. Nowadays, those activities are totally transformed thanks to Information Technology.

AIS helps organisation to occupy and sustain a strategic position by providing accurate information on a timely basis. Although AIS improves the value chain of an organisation, there existed a greater need of the integration of financial and non-financial events due to a dynamic competitive environment. Consequently, the advent of highly integrated set of standardised modules such as Enterprise Resource Planning (ERP) enabled organisations to automate and integrate key organisational activities (Hall, 2008). Thus, the integration of both the financial and non-financial information system has radically enhanced the decision making process of an organisation.

The Transformation is facing financial management as a growing industry that provides a well-rounded wealth of information that is rapidly evolving along with the economic growth. As you well know our finance and accounting departments are under fire to perform dynamically. More exceptional than before is the weight to drive real-time intelligence and the constraints to develop a forward-looking analysis to support a business decision. In retrospect, this coincides with dramatic shifts in business simulations, and regulatory environments, the risk assessment with doing nothing are ever-growing, and companies who are adapting to the new modern way of finance are at an economic advantage. In this report, we will discuss these critical shifts

Companies using computerized accounting systems often face high implementation and maintenance costs. Most business owners and managers are unable to update these systems on their own, so they must contract with an outside agency to set up the system. Ongoing technical support costs may also be necessary for these systems.