Financial management (2010, para.1) defines financial management as planning for the future of a person or a business enterprise to ensure a positive cash flow. It captures the administration and proper management of financial assets. It also entails processes of identification and management of risks whereby reflective activity means integrating whatever has been learned in financial management into practice either where one is attached, in an internship or in gainful employment (Reuters, n.d,p.5). This essay is going to illuminate aspects of financial management and the reflective activities involved.
A financial manager is supposed to be having diverse knowledge relating to provision and interpretation of financial information, monitoring and interpreting cash flows and predicting future trends, managing budgets, efficient supervision of staff, conducting reviews and evaluation for cost reduction opportunities, analyzing competitors and market trends, and finally developing financial management mechanisms that minimize risks (Ray &Noreen, 1999, para 4).
Financial manager and management of budgets
Dosset (2004, p.1) posits that the drawing of good budgets is very central in the smooth running of any business venture. Good budgets are used for planning, coordinating and controlling the financial issues of an organization. In the budget, the financial managers address the fiscal integrity of an organization and the ongoing processes. The budget helps in formulation, presentation, and execution of planned activities by ensuring adjusting programs, review of reports, preparation of reports and controlling of funds (UNESCO,2006,p.6).
Managers and accounting
Financial manager’s work involves planning programs, adapting accounting systems, undertaking day-to-day maintenance of ledger, classification and recording of financial transactions, managing total accounting program, application of accounting concepts. (Prudential,2009, p.5).
Managers and managerial financial reporting
Managerial financial reporting encompasses recurring budget, accounting, financial reports, program operation evaluation, statistical reports and work performance reports. Involve provision of data to officials at different levels of management to come up with the most effective program (U.S. office of personnel management, 1963, p.5).
Financial managers and advice to managers
Financial managers offer advice to management from a financial perspective. They act as technical officers on matters pertaining to finances in any organization (U.S. office of personnel management, 1963, para.6).
Financial managers and paperwork management
They handle correspondence, control directives and disposition of records. They manage administrative control systems, services and processes (Debora, 2003, p.5).
Financial Managers and auditing
Auditing involves putting in place and modification of audit policies, programs, methods and procedures and attainment of high standards of auditing (Leacy, 2009, P.8).
The aspects of financial management that I have learned have been of great help to me especially when I was doing my internship in a renowned soft drinks processing company. I was able to use my statistical ability to collect and interpret quantified information relating to market trends. My knowledge of cost accounting enabled me to know how the beverage food company’s past performance was perceived by the competitors in the market. I was able to prepare reports that touched on the performance of different departments of the company. Some were updates on orders received by the company, sales and capacity utilization. I also prepared many analytical reports that touched on the profitability of different brands of beverages that we manufactured. I did reports that analyzed different developing opportunities in different locations of the country. When our company acquired a new production line and had to remove the line that there was there initially, some corporate organizations developed an interest in this old line. The services of an appraiser were then needed. I took the challenge and estimated the value of the old line appropriately. The appraisal process was accurate and all the parties were happy with whatever they got. My knowledge in auditing helped me to carry out basic and advance auditing techniques in different departments of the company. My knowledge of budget-making enabled me to draw budgets for different departments like the quality control department, production department, human resource department and marketing department. With the drawn budget, I was able to keep track of how different departments use the resources that were disbursed by creating a conducive environment for planning and controlling organizations’ funds. I was also in opposition to come up with the paperwork of the estimated income and expenditure of the organization. Most of the decision-making processes were made depending on the budget. The budgets I drew were used by the management of the beverage company to adjust, analyze and evaluate programs and activities. Future plans were made depending on the subsequent budgets drawn. At the beverage company, I did managerial financial reporting where I consolidated and reported on the company’s results. I prepared consolidated financial statements. I assisted in coming up with accounting policies and procedures. I oversaw the smooth operation and cost-effectiveness of operating procedures, programs and systems. When the external and internal auditors wanted assistance I was always willing to furnish them with the information they wanted.
Aspects of financial management like accounting, budgeting, managerial financial reporting, management analysis, auditing and statistics if substantially reflected in various government departments can help curb the loss of resources (University of Waterloo School of Accounting and Financial Management, n.d, p.6)
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Prudential. (2009). Manager Financial Reporting. New Jersey: Newark. Web.
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Reuters, T. (n.d.).Internal Auditing and Financial Management Package. New York: Web.
UNESCO. (2006). Budget and Financial Management. Paris: International Institute for Educational Planning. Web.
University of Waterloo School of Accounting and Financial Management. (n.d) Work term/Professional reflection requirements. Waterloo: Ontario. Web.
U.S. office of personnel management. (1963). Position Classification Standards for Financial management Series. Web.