Content system of financial management in business is like the blood circulatory system in the body feed all the parts and the whole. Finance can be located in the form of money, supplies, materials assets arise at formation capital or in the process of operation such as the account receivable and payable.
Manage the financial system for profit are rules on the financial casual.
1. MATHEMATICAL FINANCE: INCOME - EXPENSES > 0
All items financial mathematics are rules of the form: revenue - expenses, revenues - capital investment, profit = revenue - expenses net income = the revenue - the branch...
The expenses allocated to the field are (1) human resources, technology, organization, and processes; and (2) customers (and partners), finance.
Meanwhile, the revenues are coming from the customers and the financial sector only.
When re-structure, content management, corporate finance, we don't miss the item cost or revenue and level of priority to resolve to increase revenues, reduce costs to the end of the level to maximize corporate profits.
Vietnamese businesses often encounter two problems when problem solving finance. That is:
• Manage revenue source, source details based on estimates, projections, lack of analysis should not see the source of, does not reduce the cost.
• Control public debt is not regular, closely, yet have a policy for dealing with debt eventually drain can lead to lack of money.
• Control not tight supplies of goods, import, inventory, on the go, order sent wasting capital.
• No financial plan, not even control the cash flow, plans to repay the debt.
Accounting tool combined with the principle of income and expenditure, auditing, internal can solve these problems.
2. PRINCIPLES OF INCOME AND EXPENDITURE
Principles of income and expenditure need to ensure problem:
• Plan (especially cash-flow plan)
• Balance revenues and expenditures
• Cost of investment and ROI (to recoup the investment)
“Increase revenue and reduce costs” may sound simple, but no details (investment) how are revenues? Need separation between investment (income and expenditure of investment projects) and the expenses for production activities regular business of new business rating is investment efficiency as well as profitability of the business. More when blind cutting of investments for development, only aimed at the operation of laying out money now with the reason for reduction in spending to cut the hole without assessment skills investment results will lead to the business no longer innovative products, or no new products are competitive. A principle entrenched another: “There are new costs - whether rice grippers sauce” for safety reasons, the financial but at want to develop also leads to the balance of investment as on.
3. FINANCIAL PLANNING
Planning, content management finance in business is to use a number of assumptions as to forecast revenues, expenses... and the financial statements (cash flow, balance sheet, income...) a few years ago that to take out the financial statements in the future aimed at the goals and priorities of the business. But the real situation changes very quickly, so to react more flexible we can set up financial model.
Financial modeling (financial model) is the model shows the financial condition of the business. It includes the past, present, and anticipated many consecutive years for the financial reports (cash flow, balance sheet, income...). The process of financial models as follows:
• Financial statements of the company in the past (startup entrepreneurs don't have).
• The assumptions include the intention of investors, information about the market, the competitive landscape, the report on business, competitive advantage, business model, from which given all the assumptions about revenues and expenditures (price, sale price...).
• Report predicted “results of operations, business, balance sheet, and statements of cash flows”.
• Business valuation methods discounted cash flow.
• Business valuation by the method of comparison (options listed businesses operating in the same industry to compare with business to value, collect, and adjust the data and financial indicators before applying valuation by the method of multipliers).
• Synthetic and link the two valuation methods to the final value of the business, represented by the graph pricing.
4. MEDIA FINANCIAL MANAGEMENT
There are many levels of financial management in business:
• The primitive: The goal is to invoicing, financial or tax reporting.
• The basics: Take out all the financial reporting and management as required audit require or demand management basics of business related to money.
• Advanced level: the statements, financial analysis and financial modeling on a scale synthesis of many branches and access anytime, anywhere on mobile devices (cloud/ mobile). Capable of fast processing large volumes of data protection and data security almost absolute.
Use Excel tool can respond flexibly to the level of basic and rudimentary, but will take a lot of time, effort, rather than taking a accounting software or a tool that specializes in data analysis. Today there are many accounting software, modern, powerful, flexible, can be integrated in to the ERP system and can operate smoothly on the Internet such as of Microsoft, Vietnam, Workday... it is best to choose a system that each role related can handle financial data in real time on your mobile device at anywhere with Internet.
| Is a business specialized in business equipment, appliances and sporting goods, only less than five years since its inception in 2009, the network of stores that carry the brand KingSport company's East Ocean has expanded to many provinces and cities. And when the scale as well as business networks expand, business immediately encountered management issues. Controlling the quantity of reserves in the store, to managing the number and value of orders, debt management and cash flow... become difficult and complicated. To escape from the jumble of data, increase management efficiency, companies are forced to find a tool to support the new replacement for the manual method performed on software Excel. |
