The Wonderful World of Finance
"Financial Management not only addresses an organization's financial resources, but also its financial sources." Do you agree or disagree with this statement. Why?
I agree. Financial sources affect managerial decision-making. From stockholders to institutional investors the decisions made by management in the role of Financial Managers will determine what if any financial sources will be available.
I agree. I also agree with the Cash is King video that was played in the lesson. In G-D we trust. All others pay cash. A steady and heathly bottom line allows for a heathy business expansion.
I agree with this statement. Having the ability to understand and effectively manange the organizations finances entails understanding where those are coming from. How can one effectively manage the resource if they do not manage and understand the source. This is an aspect that gets overlooked by many. Knowing how to hone in on key areas that drive up revenue or lower expenses is essential to the future of the organization.
Yes, i agree, the responsibility of managing a company from a financial perspective requires that the leader demonstrate a strong understanding of both the companies resources and sources. The designated financial manager of the organization will be expected to report how much money there was, where it came from, how much was spent, what it was spent for and on and how much is left.
Well put Sean,
It's all about accountability and the bottom line!
Jay Hollowell
ML141 Facilitator
I agree. I think that management is the key.
We have a department where the sole purpose of that individual is come up with different ways to make the company money. Anything from grants to fundraisers. I think having someone just particularly in that department plays a big part in making our company successful. She not only identifys the availble sources she identifies the process for getting the resources.
Hi Sharon,
Thanks for your comments! And as you reference, procedures for obtaining funds and other resources is equally important to the sources of funding. To have someone on professional staff that is knowledgeable about the grant writing process, for example, is a real asset!
Jay Hollowell
ML141 Facilitator
I agree. Company managers should have enough vision to establish not only where they're driving the company but how they are going to get there as well. New Business and Cost Control go hand in hand when making a budget.
Planning, Communication and organization are key to a be successful company.
Catherine,
Thanks Catherine for your observations!
To your point, vision not only involves the destination and direction, but must address the process.
Jay Hollowell
I agree. I believe it is important for organizations to know its financial resources so that it can plan for the future (growth, downsizing as needed, reinvestment of capital,etc) as well as sources of revenue for continued growth or to find alternative sources of revenue.
Yes I agree. The leadership team should use a clear understanding of financial resources and financial sources. They should know how to use them to impact the bottom line.
I agree totally with statement.Understand how to manage the ressources of the company is essential for a financial officer but I would add that understand the source of revenue for a particular indurstry allows the finance department to create more effective budget and therefore help increase the company income which is the ultimate objective of all for profit business company.
I agree with the statement. One has to completely understand the entire business as it relates to finance in order to be profitable. A healthy bottom line is great, but if you have no idea on how to manage the nuances, you will never be a good financial planner or manager.
I agree. Sound financial decisions are made by taking into account financial sources.
I agree with this because one needs to know what his sources of money are and not just what money/assets they currently have. It's part of the process of looking forward as one forecasts, budgets, and plans.
I AGREE!! Strong financial resources helps in understanding the financial growth of a company and how to make money from the resources is essential. Having a good understanding of the sources of financial health for your company will allow for good profitability.
The Question this brings to mind is, "What are the Key Performance Indicators?" Typically, identified with SWOT, as presented in this training. I agree that the sources of cash flow can be identified through financial management.
I absolutely agree that financial management addresses both resources and sources. One only has to look at the basic and advances table of contents of financial management texts to see this. Financial management is exactly that: the management of finances (external and internal facing). Financial management from a personal or corporate perspective addresses the same categories of issues. Namely, in your personal lives you look at how you spend and where your funds for spending come from. From a corporate perspective (small or large, new or old) you look to the balance sheet (assets representing the uses of resources -- liabilities and net worth representing where resources come from).
Bob
I agree with this statement. Financial management encompasses the organization's available resources, but also provides insight into the financial sources. Resources speak to the options available within the organization and sources are those options which the organization can utilize that may not be currently within the organization, but at its disposal. It is important for all organizations to be aware of both the resources available throughout the course of business,but also the various sources which can be tapped. It is also important that financial information be shared within the organization at each level so that the entity as a whole can contribute to the financial management of the company incorporating various perspectives.
