scholarly journals IMPLEMENTATION OF EFFECTIVE FINANCIAL MANAGEMENT IN BUSINESS

2021 ◽  
Author(s):  
Kseniia Velykykh ◽  

The article is devoted to discussing and highlighting the importance of financial management for business success. Over time, the importance of existing tools (management and financial) and their contribution to the success and development of the company becomes apparent. This article aims to present the financial management of the company and its functions, as its tools can help achieve better results in the organization. The purpose of the work is to test the importance of financial planning for the success of the organization, justify the need to improve the financial management system, provide financial management for sustainable growth of the company, theoretical and practical recommendations for implementing advanced methods of financial management. To achieve this goal, a bibliographic search was conducted on scientific articles, books, and journals on this topic. As a methodological process, a theoretical basis was chosen to confirm the need for proper use of accounting and financial instruments for the company. It was found that today the planning organization has a better chance of surviving in the market. Based on the results of the work performed, it can be concluded that financial management is an effective tool for finding results. This is a wide range of factors that can influence companies' decisions. This related area includes some factors, such as economic conditions, market direction, training of the necessary specialists and others. The financial administrator must carefully plan every action within the company because the market does not tolerate management errors. The current situation requires entrepreneurs to control their finances, but reality shows that entrepreneurs often make several simple mistakes due to lack of planning and financial analysis of their company. Therefore, financial management becomes a necessary condition for business success. Thus, the purpose of this work was achieved because it confirmed the importance of financial planning for the organization. Organizations must always be in constant search of information, knowledge, technology to surpass all competing companies.

2020 ◽  
Vol 50 (6-7) ◽  
pp. 590-597 ◽  
Author(s):  
Sungho Park ◽  
Craig S. Maher

The novel coronavirus (COVID-19) is an infectious respiratory illness afflicting people to a degree not seen since the flu pandemic of 1968 when approximately one million lives were lost worldwide. What makes COVID-19 distinct is the rate at which it spread throughout the world, stress-testing health care systems and stymieing global economies. To confront this unprecedented crisis, nearly every country has been developing a wide range of policy responses, including fiscal measures. This study aims to discuss government fiscal responses to the pandemic from a financial management perspective. The core question is, “How does each country’s financial management system support its fiscal responses to the crisis?” We are particularly interested in reexamining commonly accepted norms about fiscal federalism and the fiscal condition of national and local governments heading into this pandemic. This study takes a comparative approach to the question, focusing on South Korea and the United States. Our findings suggest that the ability to respond to this pandemic in a comprehensive and effective manner is challenged by each nation’s financial management system that generates variation in policy coordination and responsiveness.


2020 ◽  
pp. 13-16
Author(s):  
Anna CHERNIAIEVA ◽  
Anastasiia KONDRATENKO

Introduction. A necessary condition for effective corporate finance management, rational use of enterprise resources is a reliable and comprehensive evaluation of the financial condition of the enterprise. In the modern practice of financial management, the problem of qualitative and quantitative justification of management financial decisions is solved through the widespread use of information about the financial condition of enterprises, which are the main subjects of economic relations. The purpose of the paper is to research of essence and features of use of a rating evaluation of a financial condition of the Ukrainian enterprises in modern economic conditions Results. There are many methods for evaluation the financial condition of an enterprise: balance methods, express analysis, efficiency analysis, bankruptcy evaluation, rating evaluation, integrated evaluation. The choice of method of conducting a comprehensive evaluation of the financial condition of the enterprise depends on a number of factors: type of economic system, the degree of development of market relations, the peculiarities of the balance sheet and other forms of reporting, industry characteristics, type of activity, form of ownership of the enterprise, etc. We recommend the rating evaluation of the financial condition of the enterprise. The methodology of rating evaluation of the financial condition of the enterprise is based on an integrated approach; indicators of profitability, liquidity, financial independence and financial stability of the enterprise, and also data on efficiency of use of financial resources and production potential of the enterprise are used at its construction. Calculations of indicators of the financial condition of the enterprise according to the rating assessment method were carried out on the basis of the data of the company's public financial statements for the period 2017–2019. According to the results of calculations, the enterprise received a score of 0.615 points, which corresponds to the AA rating. Conclusion. The use of rating assessment of the financial condition of the enterprise is an effective tool of financial analysis, which allows to obtain a final evaluation of the financial and economic activities of the investigated enterprise.


Author(s):  
Milivoje Lapčević ◽  

This paper will analyze various aspects of contemporary attempts to reform the financial management system in the United Kingdom. The traditional model of public budgeting in this country has not remained immune to the trends of rapid adoption of rationalist concepts of modeling financial planning systems, which are initially based on the „umbrella“ conceptual framework - the doctrine of the New Public Management. The paper will describe the main operational instruments for introducing new ideas into the British financial management system, and will point out the key shortcomings that have determined their scope in the practice of public budgeting.


2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Vega Virjinia Orangbio ◽  
Jantje J Tinangon ◽  
Natalia Gerungai

Village financial management is the whole activity which includes planning, implementation, reporting and accountability of village finances. A sound management of village finances must be managed in accordance with the rules and principles and human resource capabilities that implement them. The purpose of this study is to analyze the suitability of financial management in two inobonto villages with the rules of the minister of home affairs number 113 of 2014 which includes the activities of planning, implementation, and accountability by using qualitative descriptive research method. The results showed the regulation of the minister of home affairs number 113 of 2014 on the management of village finance in the village inobonto two subdistricts bolaang mongondow not fully implemented according to existing rules. For financial planning and execution activities in two village inobonto, not yet transparent information to the public on the budget of village expenditure income. The village financial management system in the village of inobonto 2 has not yet used the village financial system (SISKEUDES). So it is expected that in the village financial management activities in the next budget year should use the village financial system.Keywords: Village financial planning, village financial implementation, village financial accountability, APBDes Permendagri No.113 Year 2014.


Author(s):  
L.I. Sergeev ◽  
◽  
R.A. Mnatsakanyan ◽  

The results of fisheries are effects of important economic and social importance. Therefore, the problems of the development of the fishing industry occupy a special place in economic policy at all levels of government. There is a fairly large set of measures for such a policy. Nevertheless, the scale and complexity of the problems in the fishing industry in our country necessitates a further search for optimal forms of interaction between the state and the organizations of the fishing business. The basis of interaction can be the PPP mechanism — one of the generally recognized ways to solve complex socio-economic problems. The purpose of this article is to develop an approach to the organization of financial management of PPP projects in the field of fisheries. The theoretical basis of the work is the provisions of the methodology of financial planning and project finance management. The article discusses the financial and economic aspects of PPP projects in the fishing industry. A multilevel model for organizing financial planning of such projects is proposed, recommendations are given on its practical application and the selection of tools that serve as its filling. It is concluded that the goal of financial planning of PPP projects in the fishing industry is to ensure long-term sustainable development of enterprises, consistent with the priorities and goals of social development. The scientific novelty of the work done is to systematize the views on PPP finance management and develop on this basis an approach to organizing a financial planning system within the framework of PPP projects taking into account the specifics of the fishing industry. The practical value of the results of this study is determined by the possibility of using them to develop measures of state economic policy in the field of the fishery complex, in particular, in the formation of state and regional target programs, as well as in the implementation of PPP mechanisms in the industry. It seems that the detailed study of financial planning tools and the development of practice-oriented methods that ensure the effectiveness of the PPP financial management system in the fishing industry can become a promising area for further research.


Author(s):  
N. I. Demchuk ◽  
H. A. Tkachenko

The article considers the essence of financial control and its importance in ensuring the economic security of the enterprise. It has been established that financial control is an effective coordinating system for ensuring the interconnection between the formation of an information base, financial analysis, financial planning and internal financial control, which ensures concentration of control activities. In the most priority areas of financial activity of the enterprise, timely detection of deviations of its actual results from the foreseen and the adoption of operational management decisions that ensure its normalization. The views of leading scientists concerning the definition of the concept of financial controlling and its key elements are researched. Also, the key financial control functions are analyzed and analyzed in the article. Six main concepts of financial controlling used for realization of functions of financial control in crisis conditions of management. The concept of generation of integrated planning and control tools; concept of production, sale or service; the concept of taking into account the specifics of the enterprise; the concept of the orientation of the movement of funds; use of the tools of the concept of financial control as the basis for making managerial decisions; management concept and management decision making. The effectiveness of the company in difficult conditions, and especially in the long run, means not just survival in the market, but also ensuring high rates of development and competitiveness, is determined by the level of financial potential and quality of financial management in the enterprise. Which is provided by a certain extent with the effective organization and implementation of the financial system controlling. The application of the financial controlling system at the enterprise will enable to prevent emergence of crises, to identify the causes of financial problems and to effectively search for solutions to them. the primary task of financial control is the maintenance of liquidity and solvency of an enterprise, which can be achieved under the condition of financial planning with the current analysis of financial sustainability.


2011 ◽  
Vol 7 (5) ◽  
pp. 9 ◽  
Author(s):  
John C. Gardner ◽  
Carl B. McGowan Jr ◽  
Susan E. Moeller

The purpose of this paper is to provide a case example to teach students how to estimate a companys sustainable growth by using an extension of the DuPont System of financial analysis on Coca-Cola Corporation. The DuPont system is based on a companys return on equity that is decomposed into three components: net profit margin, total asset turnover, and the equity multiplier. The extended DuPont system of financial analysis multiplies return on equity by the earnings retention rate to calculate sustainable growth. Sustainable growth is the highest level of growth in sales that a company can achieve using internally generated funds only.


Author(s):  
Шубина ◽  
Tatiana Shubina

This book provides a survey about budgetary organizations’ financial mechanism, provided by Russian reform in 2010. Such features like legislation, financial planning, methods of financial analysis were investigated. Authors created an unique system of kea performance items considering those features and provided methods of estimating the quality of budgetary institutions’ financial management performance. The results are approved by actual financial statement valuations.


2020 ◽  
Vol 26 (3) ◽  
pp. 499-507
Author(s):  
P.A. Levchaev ◽  
B. Khezazna

Subject. The article investigates the specifics of strategic financial planning of enterprise operations in conditions of digitalization processes, as well as the introduction of advanced technologies in all spheres of social and economic life. It determines unique opportunities for company development in the international market. Objectives. The study aims at reviewing a set of economic relations and problems emerging in the process of strategic financial planning of enterprise performance in the digital economy, and developing recommendations to improve the financial strategic planning of economic entities. Methods. We employ methods of economic analysis and synthesis, and comparison. The paper rests on works by academic economists on the problems of finance, financial management, and planning. Results. We investigated the most important features and problems of strategic financial planning of enterprises in the digital economy, and how the digital era increases the level of competition of participants for economic dominance. Identified features of financial strategic planning of the corporation's activities in the digital economy are recommended for use in the corporate management system of an industrial enterprise. Conclusions. Improving the strategic management process is a stage of transformations in the digital economy. Enterprises create new priorities through using management models. At the same time, the role of fixed assets is reduced, and intangible assets and information accelerate the business. The effectiveness of company operations is often determined by the availability of accurate and timely information that reflects the necessary aspects of financial and economic practice.


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