What is a good financial management ?

public sector
1. - Is more difficult and complex.
2. - Is based on the political reality.
3. - Is related with legal issues.
4. - It's objectives depends on the guidelines of the dynamics of the private sector.
5. Government Drawbacks
  1. - The sources of resources have benn exhausted.
  2. - Almost all nation are poor in terms of cash.
  3. - Without cash, the budgets cannot be executed.
  4. - The existence of external economic influences.
  5. - THe insatiable demand of public services.
  6. How we can solved it ?
    1. establishing effective management systems that are appropriate or acceptable to solve the financial drawbacks of the different governments. "implement a coordinated financial management system."
private sector
1. - Wants to provide prudential and intelligent judgments about the information to the decisions makers.
2. - Is less difficult than the public sector.
Characteristics of the financial management in both sectors:
1. - Manage the cash flow to finance activities and operations.
2. - Safeguarding resources.
3. - Provide a financial structure for the planning
4. - Manage transaction processing systems for the control of operations and activities.
5. - Ensure the legality and regularity use of public funds.
6. - It focuses on to the concepts of efficiency and effectiveness.
7. - Report and interpret the results of the activities and operations.
Importance of Financial Management
1. "the financial administration is a discipline that helps us to plan, producing, controlling and directing our economic life"
  1. Financial management in our daily life:
    1. Is the personal manage of our resources, based on the necesities and desires
  2. Financial management in the business:
    1. Budgets: Is the estimated cost of a work or service.
    2. Analysis of financial opportunities: It makes our savings becomes an efficient investment.
    3. Money Management: records and posts our income and expenditure.
    4. Investments and assets: Asset investment according to its functionality for the company.
    5. Payment of taxes: take an advantage of the deductibility of costs, which happens in our productive activities.
    6. Acquisition of funds: Perform a good planning of the necessary funds
    7. Maximize utilities:Through operations (marketing and / or production), you can increase financial resources.

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What is a good financial management ?

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	Created by Daniel Segura about 7 years ago