Course 1 between training courses in financial management
Training courses in financial management are important because since the beginning of this century, Financial management has gone through many developments, from descriptive research to practical research that meets accurate scientific standards, From only the area of interest in finding sources of funding to focusing on asset management and directing available financial resources to more areas of good use and analysis from abroad, let the company or organization focus on internal decision-making.
Objectives of training courses in financial management:
By the end of the financial management training courses , participants will be able to:
- Understanding the nature of contemporary financial management.
- Learn the skills needed for financial analysis, planning and oversight.
- Understand how to reconcile risk and return.
- Learn about working capital management methods (cash and tradable securities, Accounts receivable, credit, inventory, Short-term financing).
- Numbers of feasibility studies.
- Preparing the capital budget.
- Acquire the skills of financial market operations.
- To accommodate new securities issues and investment banking activities.
- Learn how to make strategic funding decisions.
- Acquire corporate restructuring skills.
- Understand the operations of international financial management.
Target groups within financial management training courses:
- Financial planning managers and account heads.
- Financial managers.
- Audit managers.
- Accountants and finance chiefs.
- CFO and other persons responsible for finance.
- Accountants and bookkeepers.
- Those who find themselves in need of this course and want to develop their skills and experience.
These categories will be present with us in financial management training courses.
What financial management will we address in financial management training courses?
Financial management is an essential function of any business, Any organization that needs financial resources to obtain material resources, Implementation of production activities and other business processes, and pay suppliers, And so on. What financial management are you falling into? Financial management refers to strategic planning to regulate, direct and control financial obligations in an organization or institution. It also includes applying management principles to the financial assets of the enterprise, It also plays an important role in financial management. What is the function of financial management? Decision and control. Financial plan. Resource allocation. Cash flow management. Dealing with the surplus. Work acquisitions and mergers. Capital budget.
Financial management as we will learn about it in financial management training courses is planning and guiding the use of the company’s financial resources, And the criticism generated from operations, Funds obtained from investors or lenders.
Although the company may have an accountant or an external accounting firm to provide financial guidance, Financial management is one of the most important aspects of the employer’s job and this gives training courses in financial management particular importance
Financial management can be considered an essential function of any business and hence the great importance of entering into training courses in financial management where any organization needs funding for material resources, Implementation of production activities and other business processes, and pay suppliers, And so on.
Theories about financial management that we will address in financial management training courses
Here we can address some theories about financial management:
Some experts believe that financial management is about providing the money the company needs on more appropriate terms, taking into account its objectives.
As such, This approach is primarily about buying money, Which may include the tools, institutions and practices used to raise funds. It also requires legal attention and represents the relationship between the institution and the source of funds.
Another group of experts believes that funding is about cash. Since all business transactions involve cash, directly or indirectly, The funding is about everything the company does.
The third and most acceptable theory is that financial management involves buying and using funds efficiently. For example In the case of a manufacturing company, The financial department should make sure that funds are available for the installation of production plants and machinery.
In addition Must ensure that profits are commensurate with the costs and risks incurred by companies in developed markets, Most companies could easily increase capital.
However, The real issue is the effective use of capital through effective financial planning and control.
therefore The company must ensure that it takes on tasks such as securing the availability of funds, allocation, management and investment, And cost control, and predict financial needs, And profit planning, And estimate the return on investment, And the evaluation of working capital, Etc.
Definition of financial management
Financial management is a key procedure for any financial resource management organization. It requires activities such as financial planning, regulation, guidance and control of regulatory funds to achieve regulatory objectives and objectives.
A good manager is a good, organized and controlled scheme for the flow of money in and out. The ultimate goal of the CFO is to maximize organizational value
In other words, Financial management is the application of general management principles to the financial assets of the enterprise. Proper management of the company’s funds provides high-quality fuel and regular service to ensure effective performance.
As a result, If the organization’s finances are mishandled, They will face obstacles that can have a serious impact on their growth and development.
The importance of financial management that we will address in financial management training courses
Financial management is very important in business planning, Control financial stability and avoid bankruptcy. Here we will see the importance of financial management at the following points:
Financial management is important for financial planning. Decide on all financial needs related to business issues. Financial planning partners also need to take the right actions and claims and not worry about the later stages of the company’s financial management life cycle. Financial planning seems to be an important area for business issues. Usually all credit depends on success at work largely depends on the financial planning of the company.
2. Money protection:
The importance of financial management includes protecting financial resources to achieve business objectives. Areas that need money must be properly measured and allocated across regions to keep working smoothly. Excessive spending on one project and influencing other business processes because they may in many cases suffer from underfunding. It’s important to protect your money and invest wisely.
3. Allocation of funds:
The importance of financial management in the organization lies in the appropriate allocation of funds. When used appropriately to distribute assets, The operational efficiency of business concerns is enhanced. When financial professionals use the money properly and allocate it wisely, They can reduce business expenses and increase the company’s discretionary capital.
4. Investment opportunities:
As a person, If you are good at managing your money and saving, You will have the opportunity to explore investment. Investment opportunities will help you make a fortune so you can enjoy retirement. You can explore many investment opportunities such as investing in stocks, gold, mutual funds, real estate, land and more. You can study investments in detail to understand the risks and rewards of investment. Depending on your ability to take risks, You can choose the right investment option.
5. Financial decision:
The importance of financial management points lies in financial decision-making. Once a financial decision is made based on business concerns, It can’t be returned. Because once you make any wrong decision, The funding will not be repaid once. Financial options can affect entire business processes. Because it has a direct relationship with all sections of the company such as: Production, advertising, rent, human resources payroll, etc.
6. Economic growth and stability:
Proper financial planning will ensure your economic growth. progressively you will expand the formation of your wealth, This will help you achieve financial growth. The most important thing in human life is financial stability. The only way to ensure financial stability is through economic growth, The only option to ensure this is through financial management.
7. Improving the standard of living:
Once you learn and master good financial management, This not only provides you with financial stability and peace of mind, It also improves your standard of living, Your economic growth will translate into a better standard of living.
8. Company evaluation:
The importance of financial management in the organization in expanding the diversity and business interests of speculators. The maximum in any business is that it will maximize profits more efficiently. This may be related to increased production or expansion of operations to other countries. Outstanding management and financial professionals can also help improve any company.
9. Tax planning:
Your financial planning should also include your tax planning. If you fail to plan taxes properly, You’ll end up spending more of your pocket. For example: If you can analyze the current fiscal year, You’ll spend less on taxes, But next year you may pay a high tax and you have to manage your budget and save it accordingly. This will help you develop your economy, Otherwise, your money may run out and your investment decisions may be disrupted.
10. Capital reserves:
Money has always been possible when business profits rise to higher levels and expansion occurs. This is how important financial management is to business success through an expanded approach and the creation of capital reserves in the company’s ledger
therefore The importance of the above financial management points is useful in several ways. It provides financial stability, and enhances your standard of living, It gives you peace of mind and protects you from financial pressures.
The principles of financial management that we will learn in financial management training courses
Financial management is the process of managing funds for individuals and institutions to ensure the proper use of funds. The basics of financing apply to the principles of financial management.
The principles of financial management are:
Barter and return risks
Investors should be careful when creating a portfolio of investment opportunities, We therefore advise them to enter into financial management training courses where investment options depend on the individual’s trade-off between risk and return. There is a positive relationship between risk and return. Higher risk and higher expected return rate. The portfolio must consist of less risky investments as well as one high-risk investment. One of the basic principles of financial management is that CFOs deal with these risks and benefits carefully and it is one of the principles that we will expand within financial management training courses.
Shaping the optimal capital structure
The capital structure is the ratio of debt and equity to the company’s total assets. By looking at the capital structure, Investors can easily understand the business finance model. A financially sound organization must rely more on debt financing than capital financing. The reason is that the private fund is a debt-insured share. therefore When you increase capital, The task of the CFO or CFO is to ensure the optimal mix of debt and equity in the company so that the weighted average cost of capital is kept to a minimum. You can’t ignore the importance of this principle, which is one of the principles that we will expand into financial management training courses.
Diversification of investment and borrowing
Portfolios made up through diversification are suitable for investment and borrowing. Remember that your goal is to ensure minimum borrowing costs and maximum return on your investment. What you should worry about when making a decision is the balance between risk and reward. Therefore, The overall currency risk is still within reach.
Aware of the time value of the money
Always pay attention to the time value of the money, Otherwise, you risk becoming more financially flexible. The money received is now more valuable than the money received later. So when you’re responsible for dealing with money, You have to keep in mind the time value of the money and the average interest rate due to inflation or any other factor, which is one of the principles that we will expand within the financial management training courses.
Forecasting cash flows
Cash is the most liquid asset that flows in or out. Flow patterns affect financial decisions. More reliable cash flow is better than uncertain cash flow. To ensure that cash is available for all regulatory activities, It is necessary to predict cash flow and manage cash as required. Which – maintaining the right amount of liquid capital is a manifestation of the application of the principles of money management.
Take the right insurance plan.
The correct regulated insurance plan will help transfer risk to the insurance company. Risks can be transferred through premiums paid by the insured. Financial decisions include policy choice, The amount of the premium depends on the nature of the policy. therefore As part of financial management, Your company must purchase a suitable insurance plan.
Focus on maximizing wealth
Maximizing wealth is the process of maximizing the value of the organization, Any process of maximizing the net current value of the organization. As a chief financial officer or senior executive of an organization, If you want to manage your money, You should focus on how to maximize the value of your organization. A wealthy company can invest more in developing innovative products. This will help the company grow softer;
Reinvest instead of consumption
If your company is financially strong enough, Don’t just consume what your business produces, Rather, invest in the most profitable opportunities. Reinvestment helps expand businesses, create jobs, create value and share value with the economy. The good practice of financial management is that if there is any chance, Always look for new opportunities, valuable investment opportunities, Then go and reinvest the available funds, which is one of the principles that we will expand within the training courses in financial management
Determining the cost of capital
The cost of capital here refers to expenses associated with expenses paid to finance debt and property rights. The real cost of capital is the real cost of capital, The average cost of financing property rights and debt. Effective financial management always compares financial returns and costs associated with this capital cost. You can invest if the expected rate of return is greater than the cost of capital.
Financial decision compatibility with business life cycle
Work always goes through ups and downs like the cycle. When making financial decisions, You should take into account the current situation in the working life cycle and the expected location of the course. therefore You can develop a plan to ensure the ultimate financial benefit to your organization and this is what we will help you with in the financial management training courses. A good financial plan helps you get the best out of investment and financing opportunities. period during the business life cycle, Different financial decisions may be needed and must comply with the company’s financial position, which is one of the principles that we will expand within financial management training courses.
Financial management departments in companies that we will learn about in financial management training courses
The parts that can be included in financial management are as follows:
1- Accounting Department
The Accounting Department provides accounting services and financial support to its organizations, The section records payment accounts, debtors, inventory, payroll, fixed assets and all other financial items, and we will take up parts of this section preferred within financial management training courses.
Department accountants review the records of each department to determine the company’s financial situation and any changes required to manage the organization in a cost-effective manner.
2- Fund section
The rights of university staff and its colleges are paid with cheques issued by the Accounting Department (university employee’s expenses check) and cheques issued by the Department of Payment Orders (university employee’s benefit check). We will take up parts of this section preferred within the training courses in financial management
3- Department of Administrative Services
He receives transactions from the Financial Department and submits them to the head of the department and takes out the transactions of certain receipts, forms, reports and letters to the relevant departments. We will take up parts of this section preferred within the training courses in financial management
4- Archive section
After handing over cheques to receive collection transactions from the Fund section and payment orders, It also prepares documents and transactions, sends them to the GAO, receives them, sorts them and sorts them for preservation. We will take up parts of this section preferred within the training courses in financial management
The financial management action plan that we will learn about in financial management training courses
The company’s growth strategy plan is critical to the business plan, But it is not complete without the numbers that support it. Here are some tips on how to include things like sales forecasts, expense budgets, and cash flow data.
The action plan is a concept before you start filling out numbers and terms. It’s interesting to read your section on your marketing plan and strategy, But that doesn’t mean anything if you can’t justify your work with good results.
You can do this in different parts of the business plan for forecasts and financial statements. One of the key components of the plan is the financial part of the action plan, Which you’ll need if you’re hoping to win investors or get a bank loan. So if you don’t need funding, You should set up financial forecasts to guide you to the success of your business and this is what we will address in the financial management training courses
So what does the project’s financial plan include?
It depends on what you do with it. first If your plan is to get funding, You usually need to expect for 5 years. If the purpose of your small business plan, He planned at least two years in advance.
Your financial plan should include:
Statement of actual income for the previous year (if possible, Not if you’re a startup) and predict the planning period;
Your balance sheet – if possible, Actually again, Then expect the planning period;
Actual cash flow for the past year, Cash flow forecasts for the period under review; some companies also operate separate working capital management plans – showing the actual and expected.
It is important to play with caution – many companies collapse because they reduce the depletion of the company’s capital.
For example What happens if a large number of your customers (your accounting fees) go from paying within 30 days to paying within 60 days? Do you have cash reserves to deal with this possibility?
Your financial ratios: These ratios focus on four areas and we will identify them in detail within the training courses in financial management: Liquidity ratios, profitability (e.g. gross margin), efficiency and solvency.
The importance of financial management in companies that we will learn about in financial management training courses
therefore We conclude that financial management is one of the most indispensable responsibilities for employers and managers. You need to consider all the potential impacts of your management decisions on profits, cash flows and the company’s financial position.
to implement strong financial management, You should get resources and specialize in your operations and develop policies to support these activities.
As a result, Organizations with strong financial management tend to make more informed decisions.
This is the importance of corporate financial management, In general, It involves shaping and implementing the financial principles that drive the Organization towards its primary objective, It is an increase in the value of the business.
In addition Financial management includes debt financing, cash flow management, data collection and analysis to make sound decisions. Financial management information systems help companies connect all financial management processes and procedures, This leads to many long-term benefits. The company also benefits from funding, management and investment to achieve operational and financial objectives.
