Daily decisions made by financial managers affect the company's cash position and its overall financial health – including the company's ability to grow and expand. Missteps can have serious and costly repercussions.
What is the role of debt in a company's financial recaps?
- One important element in many recaps is the use of debt. Debt helps enhance values. Why?It seems that when an organization operates under heavy debt loads management is forcedto make better decisions for the shareholders. Under high debt, the company must makeinterest payments and this forces management to watch how it invests scarce resources.
What is the role of Management Accounting in business?
- Management accounting plays a vital role in a business. Management accountants lookforward and use financial information to help a business make key decisions about its future. This demonstrates the value of the qualification in supporting business.
What is the purpose of this course financial management?
- This course provides a concise overview of howfinancial management is used to create highermarket values for an organization. This course dealswith advanced topics and the user should have agood working knowledge of both accounting andfinancial management prior to taking this course.
How does financial management create value?
- We have focused our attention on how financial management creates value, such asdeparting from the traditional accounting model and measuring value with EVA, CFROI, andRCF. We have also emphasized that value is a function of cash flows. However, we have nottruly identified what drives this entire process of cash flows and higher values.
The financial manager in a small business is a key decision maker, often the second most important decision maker in the organization besides the owner. Daily decisions made by financial managers affect the company's cash position and its overall financial health – including the company's ability to grow and expand.