Finance Management in Companies

Introduction:

It is a fact that money is the backbone of our society; it may not give us any abstract pleasure, however, it is definitely needed for fulfilling most of the necessities of our lives. Thus, managing money is also important in all aspects of the society and so finance management is a very important attribute of any business organization.

The financial management team of a business deals with the analysis, or systematic review of its commercial activities and its financing, in order to determine its ability to create value for its shareholders or to repay all kinds of debt to its creditors. The financial analysis focuses on several key issues for the prosperity of the company. Thus, all major corporations have a finance management team to take care of all their monetary needs and transactions.

What does the Finance Management team deal with?

The various aspects of a business that it deals with includes the economic environment of the company, its growth prospects, the degree of competition observed and expected, the different stakeholders and their power relationship (suppliers, distributors, employees) and finally the production tools.

If the monetary aspects of a company are not taken care off then it will not be able to function in a way which will be conducive to the overall growth of the company. The salaries of the employees, the purchase of resources, paying the support staff, paying utility bills, managing cost of production, sanctioning funds for new projects, sending invoices or bills to the clients, following up on the payments etc. are all different functions that this department efficiently handles.

Other key functions:

This department also analyzes investments to determine their status; if the investments are not able to generate the estimated amount of profit, then finance managers are expected to come up with solutions that will turn these investments in to profit generating tools. They are also required to analyze the market and point out new avenues of investments that can yield higher returns. Their main goal is to ensure the flow of cash in a way, that the balance sheet of the company can show profit and create goodwill among the shareholders.

The other important function is to manage a balance between the assets and the liabilities of the company. It is an alarming sign if the liabilities are more than the assets and so the finance management team should take preventive steps from time to time so that the liabilities can be paid off and reduced.

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Finding the Right Finance Manager Through a Professional Recruitment Agency

If you are headhunting for a financial manager, you must already know how increasingly difficult it can be to hone-in on one, especially the right one. Finance managers must possess the necessary skills to make quick decisions in particularly dicey situations and must also know how to efficiently interpret financial reports, making it convenient for company executives.

In simpler words, a financial manager plays a key role in the success of a business establishment. And with that being said, there is no doubt there is a considerable increase in the demand for specialist finance managers. And this can make it all the more difficult for you to find the one you require, which is why opting for the services of a professional recruitment agency specializing in finance manager recruitment can be a wise decision.

And here are some good reasons why you should consult a recruitment agency right now:

They will help you Promote your Job Ad

At times most employers find it difficult to hire a good finance manager because of the description they have used in their advertisement. The description could be vague or too short or could seem outdated. A recruitment agency can help guide you into attracting the right candidates. Plus, a professional recruitment firm can also help you design a competitive salary and benefits package for potential employees.

A Wider Database

Another great thing about working with a reputable recruitment agency is the fact that they have a considerably large network of industry specialists and professionals. This also means that they don’t waste any time, they don’t have to go out headhunting. Instead they get in touch with talented finance managers in their database; this database may include working professionals and specialists who are currently not in search of employment, which also means they won’t see your advertisement.

Pre-evaluation of Possible Candidates

When you hire a recruiter to find the best possible candidates for you, they don’t just forward resumes to you and leave. They take care of everything and every detail, saving you time, energy and resources. Your in-house recruiters don’t have to waste time evaluating every resume, sifting through each document, evaluating every minor detail. With a professional recruitment agency working with you, all you need to do is expect the potential candidate to arrive at your door-step, evaluated and assessed, ready for anything.

The Bottom Line

The aforementioned details of how recruiting agencies specializing in finance manager recruitment makes it abundantly clear why you should save your resources and outsource your staffing requirements to industry professionals.

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Simple Personal Finance Management Tips

It is important that we start saving for a rainy day as early and as soon as possible. Personal finance management is essential in today’s day. In today’s capitalist society most people don’t think twice about taking loans to buy unnecessary and expensive things. The recession however has woken up most people and scared them into learning to manage their finances. Because of the daunting nature of this task or because of insufficient knowledge most people never know how to effectively manage their finances.

Getting started

There are many steps to follow during personal finance management. These are some of the most essential ones you need to know to get you started.

Prepare your Budget

Preparing a budget will help you to curb overspending. Total your net income from all sources like work salary, any mutual funds, alimony, etc. Prepare a list of all your monthly expenditures and how much it is going to cost. These would include your bills, shopping and household budget, insurance premiums, etc. This is a great way to learn to adjust your expenses and create an estimate of your actual monthly expenses.

Saving

After preparing a budget the next thing you need to do is save money. Preparing a budget gives you an idea of where you overspend. Depending on your income, open a saving account and contribute a suitable percentage of it towards your account. This account should be used only in the case of emergencies.

Invest

Investing is a great way to earn a little extra income. The best place to invest is in the mutual fund of a reputed company. There is minimum risk involved when investing in mutual funds compared to other stocks. Further more you can leave the worrying caused as a result of volatile stock markets to experienced and professional fund managers.

Insure

Insurance is a great way to secure your future. It also reduces the risk of needing to empty out your saving account in the case of an emergency. You must at least take out insurance for your house, car and life. Choose a reputable company whose premium rates suit your income to avoid defaulting and wasting your money.

Tax Planning and Retirement Planning

Plan your tax so as to minimize the amount of your taxes. Reducing your income will bring down your taxable income. An easy way to do this is to contribute towards a retirement plan at work. As a result you can also plan for your retirement while planning your tax. You can also deduct your taxable income by donating to charity. State tax and mortgage interest will also deduct your taxable income. Having more dependents or getting married is another way to deduct your taxable income. You can also get tax credits for adopting children or college expenses.

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Stop Working Hard and Grow Money on Trees

For the average person today, getting ahead financially seems like an almost impossible feat. It’s difficult for many to envision ever escaping the rat race when the cost of living is so high and wages are so low. Seeing no way out, most just suck it up and push through, trying to make the “best of it” the only way they know how – by working harder.
WORKING HARD DOESN’T WORK
The problem with this approach is that the rules of money have changed, and working hard simply doesn’t work anymore. Most people have no idea that the rules of money have changed and that they are being penalized for playing by the old rules. Working hard used to work. Saving money used to work. However, after the rules changed in 1971, working hard and saving money progressively makes you poorer.
Because of a lack of financial education, a number of people find themselves metaphorically attempting to push a boulder up the side of a hill. A very few might make it, but for the majority the hill wins. This is what life is like today for those who don’t have a financial education and choose to play by the old rules and work hard.
The new rules require that your money work hard for you, instead of you working hard for money. You can look at this as “growing money on trees.” The rich don’t work hard for money. The rich have their money grow on trees, and so should you!
WORK TO ACCUMULATE ASSETS
The rich work to accumulate assets. In very simple terms, assets are things that place money in your pocket. Some examples are businesses, stocks, real estate, and precious metals. When we speak of growing money on trees, the asset is represented by the tree. Whether it is a business, real estate, stocks, or precious metals, the tree – as an asset – represents something that places money in your pocket.
How the asset performs is represented by its quality of DIRT. DIRT stands for debt, inflation, retirement, and taxes.
IT’S ABOUT HAVING GOOD DIRT
Having a sound financial education provides you the ability to increase the amount of money that goes into your pocket because of a high quality of DIRT. The poor and middle class suffer due to a lack of financial education. This is why they end up deeply in debt, destroyed by inflation, sold the riskiest of investments, and paying the highest in taxes.
Playing by the old rules is a losing proposition and dangerous! Learn to have your money work hard for you. Learn to grow your money on trees through assets – just like the rich.

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