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Introduction To Finance
Introduction To Finance
Introduction To Finance
Welcome to the
Introduction to
Finance Module
Module Objectives
The planning,
Directing,
Monitoring,
Organizing, and
Controlling of the monetary resources of an organization.
Objectives of Financial Management
1. Financial Planning
2. Financial Control
3. Financial Decision-Making
Elements of Financial Management (continued…)
Financial Planning
Management need to ensure that enough
funding is available at the right time to meet
the needs of the business.
In the short term, funding may be needed to
invest in equipment and stocks, pay
employees and fund sales made on credit.
In the medium and long term, funding may
be required for significant additions to the
productive capacity of the business or to
make acquisitions.
Elements of Financial Management (continued…)
Financial Control
Financial control is a critically important activity to help the business ensure that
the business is meeting its objectives. Financial control addresses questions
such as:
Are assets being used efficiently?
Are the businesses assets secure?
Does management act in the best interest of shareholders and in accordance
with business rules?
Elements of Financial Management (continued…)
Financial Decision-making
Preparing a budget
Forecasting
Asset Management
Revenue management
Tracking Business Expenses
Using Accounting Software
Ethical issues surrounding accounting
Managing Profit Performance
Comparing Investment Opportunities
Credits vs. Debits
Bookkeeping
Monitoring Financial Processes and Procedures
Inventory management
The management of accounts receivable
Cash management
Supply Chain Management
What is an inventory
What is Inventory Management
What are the key principles of Inventory
Management
Why it is important to keep stock
Understanding of economic benefits and
business principles
Inventory policy and procedures
Inventory Management
Turn to page 46 in your participant guide for Group 1 and page 49 for
Group 2
In groups , refer to your activity , work through and record answers
30
Summary
A company has to know where their money is coming from and where it's
going out. That's the importance of accounting and of the financial
statements.
Budgets usually represent a detailed analysis of how a company expects to
spend money in future time periods.
A major benefit to using a business budget is the ability to limit how much
money is spent on certain operations.
Budgets usually count expense accounts to ensure that capital is not
wasted on unessential items or the company does not overpay for
economic resources used in the business.
References & Links
References
Business Management : Contemporary approach by Cecile Nieuwnhuison and Dirk
Rossouw
Supply Chain Logistic Management: Donald J Bowersox’ David J.Clo, M. Bixby
Cooper, John C.Bowersox
Financial Accounting Volume 1 by PR Berry; ES DE Klerk; F.Dousin; JS Jansen Van
Rensburg; RN Ngcobo; A Rehninkel; D Scheepers; D. Scott
Principles of Managerial Finance Ninth Edition by Lawrence Gilman
Links
Account Learning: http://accountlearning.blogspot.com/
Small Business: http://smallbusiness.chron.com/
http://www.usanfranonline.com/
http://www.businessdictionary.com/
Wrap Up for Module …