Manageria

» July 2025
» Jan 2025
» July 2024
» Jan 2024
» July 2023
» Jan 2023
» Oct 2022
» July 2022
» Apr 2022
» Jan 2022
» Oct 2021
» July 2021
» Apr 2021
» Jan 2021
» Oct 2020





Add To What You Know

Prepared by: optimanage.com


Financial Management - Some Pointers: (1)

Budgets: They are statements that formalize the goals of an organization in financial terms.
Budgets are a management tool for:
Planning
Organizing
Controlling
Financial performance standards
Framework for comparing businesses

There are two methods that are used to prepare budgets:
Top-Down Budgeting; prepared by Top Management
Bottom-Up Budgeting; prepared by lower-level managers

There are different types of budgets:
Operating Budgets
Cost center budget approach
Revenue center approach
Profit center Approach

Financial Budgets
Cash and capital expenditure budgets
Material budgets
Balance sheet budgets

Flexible Budgets (Probabilistic budgets)

Audits: They are a way to formally evaluate an organization’s financial situation. They are also a tool of control used by management.
Audits are carried out to:
Determine that the financial statements are correct and that they have been developed according to the accepted accounting and auditing standards.

Determine that the actual financial performance of the organization meets the performance standards present in the budget projections.

There are two types of audits:
Internal Audits
Internal audits are carried out to supply management with timely data and information to allow for effective decision making. These audits are performed by internal auditors.

External Audits
External audits are frequently presented to entities outside the organization as proof of financial health of the organization. Such official audits are performed by external accounting professionals (Certified Public Accountants/CPA). The CPA would certify the validity of the audit.


Planning - Some managerial Pointers: (2)

Planning strategy and setting goals have five major components:
  • Identify what an organization might do. Determine the market opportunity.

  • Appraise what an organization can do. Evaluate resources and competences.

  • Decide what an organization wants to do. What values and aspiration key executives have.

  • Determine what an organization should do. What obligations the organization will acknowledge for segments of society (other than the stockholders).

  • Match opportunities, values, capability, and obligations to society (at an acceptable risk) with achieving organizational goals

    • The Benefits of strategy (Peter Drucker):
  • Profitability: producing at a profit (net).

  • Market share: gaining a share of a product market.

  • Human talent: hiring and keeping a high-quality workforce.

  • Financial health: obtaining a financial capital and earning positive returns.

  • Cost efficiency: to use resources well to operate at low cost.

  • Product quality: produce high-quality goods and services.

  • Innovation: develop new products and processes.

  • Social responsibility: make useful contribution to society.


    • References:
    (1) Patrick J. Montana and Bruce H. Charnov, “Management”, Business Review Books, Third Edition, Baron’s (2000), p287-295.
    (2) Patrick J. Montana and Bruce H. Charnov, “Management”, Business Review Books, Third Edition, Baron’s (2000), p136-138.

    >> Solution to the Maze from the previous page:



    Site Map

    HOME   ABOUT US
    VIEWPOINT   FOOD FOR THOUGHT
    TECHTOOL   MANAGERIA
    INFO MIX   ADEL J HELOU COACHING



    "optimanage.com" TERMS & CONDITIONS

    Contact Us on:opti.info@optimanage.com


    © Copyright "optimanage.com" 2024
    Designed and maintained by Tut International Ltd.