FINANCIAL MANAGEMENT

FINANCIAL MANAGEMENT

      The financial management means that you need to have a planning, organizing and controlling the financial activities.This three finance in the financial management it categorized according their functions in the financial management.

1. Managerial Finance- this is the branch of the finance that have the concern for the managerial significance of the finance techniques.
2. Corporate Finance- this is the type of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions.
3. Financial Management for IT Services- this is the financial management of IT assets and resources.                                                                                                                                         

The Accounts Receivable also known as debtors, this is the money owed to a business or a clients and this will be shown on the balance sheet as an asset. The accounts receivable usually use the sales ledger and it’s because a sales ledger normally it called records. It will in charge for receiving funds on behalf of a company and applying it towards their current pending balances. The collections and cashiering teams are part of the accounts receivable department.

The Accounts Payable also known as the creditors, is the money owed by the business to its suppliers and it will shown also in the balance sheet as the liability. It will record here the accounts payable sub-ledger at the time an invoice is vouchered for payment. The payable will considered as the Trade Payables, payables for the purchase of goods and it will record in the Inventory and Expense payables for the purchase of goods and services that are expensed.

      The General Ledger is the collection of the group of the accounts that supports the value items that will shown in the major financial statements and it is built by posting transactions recorded in the sales daybook and general journals daybook. The general ledger has a seven basic categories in which all accounts are grouped ASSETS, LIABILITY, OWNER’S EQUITY, REVENUE, EXPENSE, GAINS, AND LOSS. 

The Fixed Assets also known as a non- current asset or as property, plant and equipment(PP&E), this is the term used in accounting for the assets and the property which it will cannot be easily converted into the cash. And it includes here the tangible or non-tangible assets.

The Cash Management or Treasury Management is the cash inflow and cash outflow in the bank. It is the certain services offered in primarily to larger business customers. It will be used to describe all bank accounts( such as the checking accounts) that provided in to business in a certain size, but it is more often called to used to describe the specific services such as the cash concentration, the zero balance accounting. It usually used the checks deposit slip to deposit the cash in the bank. Sometimes it is called as the private banking that customers are given cash management services in the bank.

POSTED BY: ALYSSA MARIE P. GABI