Financial Management Activities

Financial Management is an important aspect of how a business operates efficiently. The way that the finances are controlled can determine how successful the company is. The finances of a business allows for the growth of the company. The five practices of financial management: capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment are critical when assessing a company. The performance of a company plays a key role on how successful the company is on meeting goals. There are different strategies and tools that a company can implement and if they are used to effectively the company can meet their goals. If a company has good finances, a good

Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).

Agree with the individual the process and criteria for measuring the effectiveness of methods, services and support for managing finances.

According to Gitman, the goal of the firm, and therefore of all managers and employees, is to maximize the wealth of the owners for whom it is being operated (2009). The financial manager is responsible for acquiring sources of financing and allocate amongst competitive investment alternatives. The ultimate goal is to invest in projects yielding higher returns than amount of financing used to invest, so profits can be used satisfy claims and increase shareholder wealth. The issues facing financial managers are therefore to 1) increase sources of financing from investors and 2) increase shareholder wealth while maintaining a

“Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials….discipline yourself to live within your budget plan.”

Illustrate the use of budgets as a means of exercising financial control of a selected company

A budget is a plan on how to meticulously and effectively disperse your income prior to spending it. It’s a tool used to guide your financial decisions (Ramsey, 2009 & Solin 2012). Regardless money will be exchanged for goods and services, whether you utilize a budget or not. On the other hand, remaining diligent in monitoring the ins and outs

This paper will enumerate the objective of the financial management course offered at the Benedictine University. I will investigate the pertinent questions that will help evaluate the course objectives. Furthermore, the paper will evaluate the lessons learned. In the end, an inferred decision will be made based on my evaluation of the course. I will infer from the analysis whether the course will be worth the stakeholders investment.

1. Brigham, Eugene F. and Michael C. Ehrhardt. Financial Management Theory and Practice, 13th Edition, Thompson South-Western, ISBN-13# 978-14390-7809-9, ISBN-10#1-4390-7809-2

Choosing a long term career is an essential life decision. Therefore, I have concluded that my five-year objective consists of obtaining my degree as well as pursuing a career in Management within the Finance industry. With 15 years of finance experience achieved it makes considerable sense to continue my pursuit within this industry. This provides a significant amount of available career options. Career options include management of a small department within Finance such as Payables, Receivables, or Tax. Additionally, managing on an executive level is composed of positions such as Company Controller, Director of Finance, as well as Chief Financial Officer. Finance managers act as the responsible party for the financial health of an organization. As a Finance Manager, it is a requirement to develop as well as motivate staff. Financial managers require an in-depth working knowledge of the entire financial industry. The Finance manager plays a crucial role in how the organization functions collectively. I will benefit from the information in this thesis by using it to encourage me in making an appropriate career choice for my future.

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

Rarely do we hear people asking us, "How is your relationship with money?" Do you spent your money wisely? This question is a little sensitive but honestly, if you 're asked this question, how would you answer? Are you guys still "talk" to each other, separated or worse, "divorced"? Understanding your relationship with money is important in helping you manage it wisely.

budget is a forecast of your cash flow for a period of time, generally a month. Most income and expenditures recur on a monthly basis. They need to control their expenses immediately, Budgeting is the key of controlling all the debts, expenses, planning how to get out of debt, and save money for financial independence.

Once you have the tools to track your finances, you can begin using them. Separate your expenses into categories, and then prioritize those categories. Expenses such as rent, food and transportation should be of the highest priority, and items that you purchase for recreation such as lattes, movies, CD’s and concert tickets should be of the lowest priority. Most software that is designed to track expenses will show you how much you are spending on each category once you have started using it.

A budget is a financial plan. It is a projection (forecast) of what will happen financially if certain strategies and decisions are implemented. This is something we all do from time to time.