Tools in corporate financial management
Management rules
Institutional and operational institutions and corporate resource management rules and regulations, including regulatory regulations, financial and accounting policies, management and operational rules revenue source, distribution, use, protection of assets, regulations on expenditure and accounting
Enterprises need to concretize their financial regimes, policies and plans into rules and regulations to guide and frame all activities, especially activities related to the establishment and use financial resources. The rules must always be renewed and updated in a timely manner with the regulations of the legal environment.
Financial planning
The core parts of the financial plan are the capital plan, the financial investment plan, the allocation plan, the use of resources, the cost of production and business, the plan for debt and debt repayment. , profit planning and profit distribution, setting up reserve funds ...
Monetary tools
In order to have good financial management, it is necessary to be especially knowledgeable and flexible in using monetary tools, measures of value, and predicting the volatility of the financial market. These are operations in management activities that can only be performed when the administrator, understands the market, prices, knows the cost and income metrics related to the business, promotes the strength and power of the business. , avoid and limit losses when the market fluctuates.
Economic leverage
Economic benefit is the main driving force to help actors actively participate in the economic process, generating profits and creating benefits for the community and themselves.
Using economic levers, especially the leverage of wages, bonuses, welfare, and caring for real workers, will give a great boost to business. Business administrators and financial administrators should know and use this tool well.
To make good use of the leverage of interests, it must be open, transparent, democratic and truly fair, to avoid arbitrary and abuse.
Financial analysis
Regular financial analysis, stating criteria on the situation and results of using resources in business will make finance always stick to the goal of improving business efficiency.
Financial analysis can only achieve results when it is based on a system of scientific methods, based on reliable and authentic information and documents.
Good financial analysis will help correct production and business operations and corporate governance activities towards high efficiency and sustainability.
Internal control system
The internal control system is a regular tool, installed in all governance institutions, regularly maintained and implemented according to rules and standards, helping to control cash flows. in and out, the revenue and expenditure activities were strictly and effectively.
System for management and provision of economic - financial information
Today, official information is a very important resource for businesses.
Information systems are the foundation of governance, and can not do anything without the correct information. They can only evaluate, comment, and make decisions when they have enough authentic, objective and reliable information.
Improving the organizational structure, organizing the accounting and accounting work, building a financial, economic and market information system is an essential condition for the management. Financial governance promotes effective governance.
