Financial Management: Strategies, Planning & Analysis
Financial Management
Financial Management is a crucial phase of general administration. It aims to maximize long-term wealth, raise funds and contributions, and manage loan resources. It also involves coordinating working capital, investments, and results.
Division Concept Analysis
This phase of general administration focuses on maximizing long-term assets, raising funds and resources for contributions and loans, coordinating working capital and investments, and coordinating results. It involves gathering data, studying and interpreting it, and making sound decisions.
Financial Control
Financial control is the implementation phase where financial plans are put into action. Monitoring is the process of feedback and adjustment required to ensure the plans are followed and to modify existing plans in response to unforeseen changes.
What Does Financial Control Sense?
Financial control senses deviations and variations.
Company Classification
Companies can be classified as: Public, private, social, domestic, mixed commercial, industrial, and financial.
Objectives of a Company
The objectives of a company include optimizing utilities and services.
Financial Strategy
Understanding Strategic Planning
The strategic planning process involves both personal and business aspects. The business is divided into equity and integral components.
Components of Financial Strategy
A financial strategy comprises financial objectives, financial policies, and financial planning.
Financial Planning Methods
Planning Approach
Planning should be viewed as a guiding principle or philosophy.
Financial Plans
Types of Financial Planning
Types of financial planning include personal, business, asset, integral, normative, strategic, tactical, and policy planning.
Business Planning
Business planning involves a set of plans that project cash surpluses to optimize assets. It also includes the total or integral projection of the company’s activity, which may be proprietary or integral.
Estate Planning
Estate planning involves a set of plans that project surplus cash to optimize the company’s equity assets.
Comprehensive Planning
Comprehensive planning involves a set of plans that express the total projection or complete integration of the company’s activity in the short, medium, and long term.
Strategic Planning
Strategic planning involves a set of plans that express the measurable results the company expects to achieve long-term, as well as the means to implement to achieve the goals or objectives.
Financial Plans Defined
Financial plans are joint projects and policy plans, strategic, tactical, operational, and quantifiable contingent in time and monetary figures, to refine the development of future business activities in the short, medium, and long term.
Financial Analysis
What is Financial Analysis?
Financial analysis is a financial technique needed for the historical evaluation of a private or public entity.
Alternative Concept of Financial Analysis
Financial analysis is a tool for the historical evaluation of a social agency, private, or public entity.
Characteristics of Financial Analysis
Two characteristics of financial analysis are that it is a financial tool or technique, and its main objective is real evaluation.
Method of Interpretation
The method of interpretation is vertical analysis.
Ways to Analyze Financial Statements
There are three ways to analyze financial statements: horizontal, vertical, and historical.
Vertical Analysis Explained
Vertical analysis is applied to analyze a financial statement at a fixed date for a specified period.
Horizontal Analysis Explained
Horizontal analysis is applied to analyze financial statements of the same company at different dates or periods, such as for two years.