Financial Management

Unit 101

Overview

This unit is concerned with the management of the financial functions of an organisation and is directed towards making you competent in financial decision making and the control of financial operations. It will also enable you to understand the professional advice and help that accountants and other finance professionals can give you towards that endeavour.

Aims

After studying this unit you should be able to:

• identify the different types of business organisations
• explain the basic principles of financial accounting and management accounting
• explain the role and content of each of the four main financial statements and describe the methods and principles used to prepare each
• discuss the issues involved in developing a funding structure for an organisation
• discuss the importance of corporate governance in both private and public organisations
• analyse financial statements using common techniques
• demonstrate the use of a range of costing systems and cost control methods
• prepare budgets and evaluate long-term capital investment proposals
• discuss the issues involved in selecting an appropriate approach to managerial performance measurement
• use accounting information for managerial decision making.

Topics

• Financial management - an overview
• Fundamental financial accounting concepts
• Financial statements
• Funding and corporate governance issues
• Analysis and interpretation of financial statements
• Fundamental management accounting concepts
• Costing systems and cost control
• Budgeting and capital investment
• Performance measurement considerations
• Managerial decision making

Unit Chair & Study Guide Author

Ray Anderson

Student Reviews

• Great response from Ray and also the timing of the responses were crucial.
• Another unit I should have done a decade or more ago. Filled in some more fundamental knowlege vacuums.
• I found it informative and gave me a greater understanding of the financial aspects of my current job.
• The unit has given me the understanding of accounts and the underpinning concepts which lead to profitability, which is ultimately the goal of any business.