Financial Management involves planning and directing the financial resources. Sometimes there might be accounting professionals inside the company and consultants for managing account, it is the duty of MBA professionals to handle the financial management effectively.
Management of Cash
The ultimate goal of managing cash is to maintain the financial resources required for a business organization. A deficit in cash can create harm to the image of the company and hinder the operations. This can occur in instances like an order is not fulfilled due to the scarcity of cash in the company. Managing Accounts Receivable / Payable effectively is essential for the success of the organization. The cash that is due to be receivable should be collected at the earliest in order to maintain cash flow smooth.
Forecasting and Planning
An MBA professional should forecast the company’s revenue and plan everything according to it. This budget is used by the business owner for managing the company. It is also important to forecast the negative variance that may occur during the financial aspects of the business management process. By proper forecasting and planning a successful financial management professional can help the company reach goals.
Financial Reporting Management
The reports concerning the financial aspects should be given to the management regularly for keeping updated about the various aspects. The key information which is needed to take decisions should be reported to the financial management professionals whenever required.