FINANCIAL

FINANCIAL
MANAGEMENT
MANAGEMENT
GROUP 4

THE FUNCTION:

manages the nancial status

of a business or company

helps a company by deciding

when and how much money
is needed to spend
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THE 7 FINANCE FUNCTIONS
 ?
WHAT IS A...
 HARNESSER

PROVIDER ALLOCATOR
OF FUNDS
BALANCER OF
REPORTER GROWTH, PROFITS,
AND SUSTAINABILITY
GATHERER OF
INFORMATION
corporate planner
who assesses
where the funds
should go, and
what action
programs should
be undertaken
 requires give
and take

a process where two or

more parties with di erent
needs and goals discuss
an issue to nd a mutually
acceptable solution
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the art of crafting deals through
negotiations focused on an
integrative, or value-creative
process, rather than through
distributive bargaining, or a
haggling process
 JOINT VENTURES
AND PARTNERSHIP
AGREEMENTS
FRANCHISING
AND
LICENSING MERGERS AND
CONTRACTS ACQUISITIONS

SUPPLY AND
REAL ESTATE
DISTRIBUTION
LEASES
ARRANGEMENTS

SUBCONTRACTING AND NETWORKING

 INTERNAL BUDGET
DELIBERATIONS

COLLECTIVE BARGAINING
AGREEMENTS

RESEARCH AND
DEVELOPMENT PROGRAM
 FINANCIAL ADMINISTRATION
or
FINANCE PERSON

manages nancial tasks for a

company or organization

risk hedgers
money keepers
credit collectors
expense bashers

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 FINANCE PERSON:
nancial planning
comptrollership
accounting
budgeting

MIS
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NUMBERS GENERATION

The Finance Person records

the numbers according to
needs of the company's
many stakeholders
 NUMBERS GENERATION
cash ow
net income
pro t and loss
sales
price point
gross margin
total inventory
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 ANALYSIS
process of evaluating
business, projects,
budgets, and other
nance-related
transactions to
determine their
performance and
suitability
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ANALYSIS
The Finance Person
primarily carry out their
work in Excel, using a
spreadsheet to analyze
historical data and make
projections of how they
think the company will
perform in the future
REPORTING
The Finance Person is the
corporate crier who announces
monthly, quarterly, and yearly
accomplishments and reports to
the management and
periodically, to bankers and
government regulators
REPORTING

Financial Reports:
- Balance Sheet or Statement
- Income Statement
- Statement of Changes in Equity
- Cash Flow Statement

managing the ow
of funds, starting
from the source of
where to get it to
how and where the
money is used
Treasury
Management
Cash
Management
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Financial Planning
converges everything into a
coherent and comprehensive
enterprise evaluation process and
a corporate nancial plan
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 Financial Evaluation
the logical continuation of
nancing, investing, negotiating,
administering, numbers
generation, and cash
management functions
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