Finance and Accounting

Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to:

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

  • To ensure regular and adequate supply of funds to the concern.
  • To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
  • To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
  • To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
  • To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.

Functions of Financial Management

  • Estimation of capital requirements
  • Determination of capital composition
  • Choice of sources of funds
  • Investment of funds
  • Disposal of surplus
  • Feedback and offer
  • Management of cash
  • Financial controls

Capital Budgeting

  • Net present value
  • Internal rate of return
  • Modified internal rate of return
  • Payback period

Budgeting and Flow of Funds

A good monthly budget can help ensure you pay your bills on time, have funds to cover unexpected emergencies, and reach your financial goals.

Financial Planning

This course enhances participants with advanced tools and techniques for organizational financial planning and analysis to enable them to make appropriate and effective managerial decisions. Topical content of this course covers financial planning, financial accounting and budgeting, strategic cost control, and computer applications in financial management.

The course includes case studies, case discussion and study visit program to explore and learn relevant issues discussed in classroom sessions.

Financial Control

Strong financial controls will allow for reliable financial reporting throughout the organization, which will allow for more solid financial management of the operation. Strong controls also provide greater peace of mind that the accounting data is correct and the money is better protected from potential frauds.

Financial Decision Making

  • Discuss the financial analysts’ role in an organization.
  • List at least six financial analysis topics.
  • Describe the 3 main financial management decisions.
  • Identify 5 forces that influence the average profitability of an industry.
  • List the four balanced scorecard perspective.