Finance Management

Abstract

Financial management is the foundation of a good business. Companies must have robust financial control systems that ensure the commitments made to the managing director are delivered. The three most important elements are profit, cash and return on capital employed, and it is the responsibility of the finance director to exert financial controls to continually manage the business performance. Most finance departments are functionally orientated with similar divisions of labour to those found in other business activities. Therefore the finance team’s area of responsibility must be expanded from the traditional role of producing legal accounts into a service department providing accurate and timely management information supporting the total business process.