Role of Financial Management

Strategic Role of Financial Management

Objectives of Financial Management

Liquidity Objective

Profitability Objective

Efficiency Objective

Solvency Objective

Growth Objective

Short-Term Objectives

Long-Term Objective

Interdependence with Other Key Business Functions

Influences on Financial Management

Internal Sources of Finance

Retained Profits

Owners' Equity / Capital

External Sources of Finance

Short-Term Debt Finance

Overdraft

Commercial Bill

Factoring

Long-Term Debt Finance

Mortgage

Debentures

Unsecured Notes

Leasing

Equity Finance

New Issues

Rights Issues

Placements

Share Purchase Plans

Private Equity

Financial Institutions

Banks

Investment Banks

Finance Companies

Life Insurance Companies

Unit Trust

Superannuation Funds

Australian Securities Exchange

Influence of Government

Australian Securities and Investments Commission

Federal Company Taxation

Global Market Infliences

Global Economic Outlook

Availability of Funds

interest Rates

Processes of Financial Management

Planning and Implementing

Financial Needs

Developing Budgets

Record Systems

Financial Risks

Financial Controls

Advantages of Debt Finance

Disadvantages of Debt Finance

Advantages of Equity Finance

Disadvantages of Debt Finance

Matching Terms and Sources to
Business Purpose

Controlling and Monitoring

Cash Flow Statement

Income Statement

Balance Sheet

Financial Ratios

Liquidity Ratio

Solvency Ratio

Profitability Ratios (3)

Efficiency Ratios (2)

Comparative Ratio Analysis

Limitations of Financial Reports

Normalised Earnings

Capitalising Expenses

Valuing Assets

Timing Issues

Debt Repayments

Notes to the Financial Statement

Ethical Issues Relating to Financial Reports

Audited Accounts

Record Keeping

GST Obligations

Reporting Practices

Financial Management Strategies

Cash Flow Management

Working Capital Management

Control of Current Assets

Control of Cash

Control of Accounts Receivables

Control of Inventories

Control of Current Liabilities

Control of Accounts Payables

Control of Loans

Control of Overdrafts

Strategies of Working Capital Management

Leasing

Sale and Lease Back

Global Financial Management

Exchange Rates

Interest Rates

Methods of Payment

Payment in Advance

Letter of Credit

Clean Payment

Bill of Exchange

Hedging

Derivatives