BUSI 1600U Lecture Notes - Lecture 17: Cash Flow, Financial Statement, The Item
17 Jan 2016
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Finance: the business function that is responsible for cash acquisition and disbursements. As you can see, a key responsibility is to obtain money and then control the use of that money effectively. Financial managers are responsible for seeing that the company pays its bills. Establishing financial controls: financial control is a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget, most companies hold at least monthly financial reviews as a way to ensure financial control. In virtually all organizations, there are certain needs for which funds must be available. Key areas include: managing day-to-day needs of the business, controlling credit operations, acquiring needed inventory, making capital expenditures. Managing day-to-day needs of the business: the challenge of sound financial management is to see that funds are available to meet these daily cash needs, money has what is called a time value.
