Financial Management

Financial Management

by Raluca Șandru – Financial analyst

If until now, I have made money listening to my intuition, why to look somewhere else for paid solutions to manage my business?

We all know that when you are an entrepreneur, time is the most expensive matter which you pay, and this is why is important to reflect over the price which we pay for each time consumer.

We are able to know in any moment how much money we do have in the bank accounts, but many times we need a lot of time to consult the accounting evidences in order to know how much money we must receive or pay in the following period and resume ourselves to track only a few receipts or the most important leaving the lower amounts for some other time.

Gathered over time, in receivables, important amounts of money are blocked and can not be used, while the tendency is to transfer the cost of time over the payment deadlines negotiated with suppliers at the expense of a higher purchase cost.

Managing, by random those matters, the following question often arise:  If I have profit, where are the money since I can not pay in time the obligations I have?

Finance management offers a transparent and efficient answer by managing the cash flows using the tools of Cash Flow ( Money Control Board) by whose help you win time by easy access in real time to information besides you take time for the daily evidence and more over you will know permanently where are your money know, what money you need to receive or ought to pay. Also, having the information permanently updated you will know in real time who are the partners who does not respect their payment deadlines contractually committed in order to take all the necessary measures.

Most of the times we know by a rapid calculation using our brain, how much will costs us to do a project, but often it happens to not evaluate the cost of time needed to do the project, reflected by administrative costs, questioning our selves why the monthly does not confirms the expectations.

We receive an answer with the help of Financial Management, by managing the costs over the projects (profit margin per product) which takes account of the execution times for the works, by quantification the indirect costs related to the company functionality.

Of course, it takes time for organizing, structuring and detailed evidence on costs centers, on

Projects/contracts, for having the personnel trained for correct framing of the documents in order to identify correctly the economic processes as a basis of the management analysis, but with the help of analysis tools you may obtain relevant information by which you can layout the foundation of the management decision.

Also, centralization of the information within reporting templates, makes more accessible the information and more efficient the operational processes, by an automated unitary segregation.

By this way, important idle working times are eliminated when reports are conceived for various information needs, while information is received in real time.

Of course, these are just a few of the advantages offered by financial management.

By analytical tools personalized on the company needs, with a structure focused over a reduced number of relevant indicators, we may obtain in real time the true and fair view of the evolution and the sanity of the economic processes, and the true and fair view of the efficiency in the application of the management decisions and its disrespect identification.

Raluca Șandru
Raluca Șandru, Financial Analist at Exprom, brings in 16 years of experience working in finance. She has graduated higher studies in Financial Management and Control and is responsible for developing the Financial Management Support instruments available exclusively at Exprom.