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The Role Of Financial Management in economic decisions

أهمية الإدارة المالية في القرارات الاقتصادية للمنشأة | ECPA

All companies seek to achieve success and grow to achieve the profits they want. this will only be achieved with a robust system that helps them regulate their accounting form, whether their transactions, record their financial statements, and record all the company's revenues and expenses, etc., which is known as the financial management system.

In the past, traditional financial management systems were used to regulate the flow of funds and record financial inputs and payments, so they were sometimes seen as an excessive burden and cost to the company and unnecessary.

Still, with the development of the times, financial management became a key to improving the profitability of the company and a measure of how far its success, and we can even consider it the personal assistant and right hand for corporate managers.

To begin with, we can summarize the concept of financial management in the following definition:

?What is financial management

It means all programs and rules based on studying and determining the best ways to increase the company’s financial profits and helps manage all company operations successfully by achieving the necessary financial planning and financial control over all the company’s capabilities. It also contributes to drawing a map of the company’s financial status.
Successful financial management imposes its dominance over the rest of its departments. It represents the mastermind that infuses all the financial data and information of the company and its management, which helps it assess the company’s financial situation accurately and accurate financial control, which will enable managers and business owners on thoughtful financial planning and ensure success.
However, this depends on how intelligent and powerful the Board of Directors is, which requires the establishment of financial management and has a positive view of the need to form it. It is of no less importance than other departments and more. We can summarize the great benefits of financial management in the following:

The importance of financial management in companies

 The participation of business owners in providing funding sources to the company from various sources- 

 Contribute to financial planning and directing it towards achieving the desired profit- 

Financial control provided by financial management reduces the chances of productive failure- 

 Please contribute to the planning and implementing successful financial investment and ensure its achievement- 

Raise the efficiency of organizing work within departments- 

Reduce costs- 

 Participate in successful investment decision-making- 

 Control the financial aspects of the company’s business and management- 

Raise the percentage of net profit earned by each shareholder partner – 

 Prepare financial reports efficiently- 

Control the company’s financial performance indicators and discover the financial problems that the company faces early- 

Sensitize employees to ways to save money and not waste – 

 Assist in employing human competencies and making good use of human resources – 

Reduce the number of accounting errors – 

Comply with tax law and its branches – 

Raise the value of annual and monthly cash flow – 

Spare the company from entering any future financial crises – 

How do you ensure the professionalism of the financial management of the institution

We can summarize all these points in five essential functions

Planning –

Guidance –

Regulation –

Employment 

Censorship –

Financial management characteristics

  Broad, complex management overlaps with other departments and sometimes imposes authority on them
Financial decisions made by the financial management are considered enforceable, and all departments are obliged to implement them. Otherwise, the minor will cause losses and errors.
Some decisions taken by financial management are considered fateful decisions. For example, when deciding to buy machines and have been financed from the loan, it must commit to making profits from the machines and paying the loan. Otherwise, the company will offer losses.
Some financial management decisions are long-term and do not show their results directly. They must be studied well and monitored so as not to fail.
 Financial management is comprehensive management. It carries out planning, control, organization, recruitment, guidance, etc.

Financial management of small enterprises

In startups and small enterprises, the project’s financial needs vary depending on the stage it goes through. Undoubtedly, establishing financial management for the project from its beginnings will help make your project very successful. Among the functions performed by financial management for small projects are

First, identify sources of capital and initial funding.

It is drawing up the funding structure, whether short-term or long-term? Will it be through personal finance or bank loans? In the latter case, the financial administration draws up a blueprint for the funds and interest to be paid monthly.

Record the daily financial transactions of the project.

Financial planning for the itinerary, flow of funds within the project, disbursement, and registration aspects.

Drawing up a general budget plan that estimates the company’s expected expenses and revenues during the following year.

Please contribute to the preparation of financial reports consistent with tax laws and are committed to tax planning from the beginning of its inception, which reduces the tax value to a minimum.

Ensure dealing with financial markets.

Good asset investment to achieve the required profitability. 

International Financial Management

Financial management in international companies is no different from small enterprises. It performs several vital functions, including

Preparing investment decisions

It means determining the form of operation and investment of financing funds in ways that ensure profits and repay financing funds

Preparing funding decisions

This means funds for internal or external financing and studying and identifying which methods are less expensive and valuable for the project

Preparing dividend distribution decisions

Financial management divides profits based on shareholders' participation percentage, and dividend distribution time is taken into account after deducting previously agreed precautions and provisions values

Financial planning and analysis

It analyzes the company's performance during the period and detects recent financial errors, which helps resolve errors quickly before they worsen. Financial management also performs the planning task, assessing the opportunities presented to the company and the extent to which the company can implement them

What are financial performance indicators

Financial management uses the company's financial performance indicators, includin

Profitability Measurement Index

Funds, assets, equity, and profit ratio are measured.

Investment Risk Index

These are insurance risks and taxes.

Liquidity

Which measures the value of cash, liquidity, salaries, and asset value.

Capital Distribution Index

It measures the compatibility of capital distribution to assets, investments, loans, and deposits.

Control

It means internal audit is one of the most critical indicators that reassure the hearts of shareholders and capitalists, especially if external audit reports are compatible with them.

Financial management services

Our office ”ECPA" is  One of the most prominent accounting offices in Egypt and the Middle East, we have the best advisors and financial specialists. Experts in all accounting, financial and legal services and compliance with Egyptian and international accounting laws and standards can take responsibility and uphold your company in the least period.

Our professional Team at ”ECPA" continuously follow all the latest developments and amendments to Egyptian law, international accounting, and tax laws. We are also constantly updated on the latest electronic accounting programs and applications. In addition, we provide you with professional privacy accuracy and invest your time in a prosperous place.

There is no doubt that your company's success depends on strong financial management, and you will certainly need to rely on the best accounting office to achieve the success you plan. This is what we guarantee you with us as we provide you with peace of mind through the best services while ensuring the highest quality and lowest price.

We also offer you a free consultation when you visit us for the first time. So please feel free to book your first consultation with us.

What the ECPA team Will Provide You

For ten years and more, thanks to God, our office has been able to gain many customers and provide many services that we constantly develop to provide our best to gain the satisfaction of our customers and share their joy in achieving the profits they want and more

One of these services

 Prepare feasibility studies for small enterprises and companies and guide them towards the best suitable investment

Follow up on the steps to establish and develop companies in Egypt

building the company’s chart of accounts and tax planning from the beginning

The latest electronic financial management software will enable you to register and review your financial statements without any error

Control internal audit and quickly detect and address any error quickly

External review of all your financial statements and prepare them by Egyptian accounting laws and their new developments

Financial improvement and reorganization

Evaluate your company’s internal control system with the utmost impartiality and fairness

reset your company’s internal organization by redistributing human resources in line with their capabilities to achieve the best exploitation and productivity

Use and report on the best and most accurate financial performance indicators

Prepare accounting systems and form accounting books accurately

record all daily financial statements and periodically review all registration books and financial statements

Provide periodic, monthly, and annual financial performance reports at any time

our team provide  Technical support to provide tax and accounting consulting services throughout the day

Our team loves to work in a team spirit, so we guarantee you fruitful cooperation with your company team

The accounting office of the ECPA Company is one of the most essential and most prominent Chartered Accountants offices in Cairo. Our first and last goal is to satisfy the client, share his success story, and achieve the desired profit. We will strive to provide the best accounting programs and the latest financial management systems that are sufficient to get your company to the world

فريقنا - اشرف حجر

Chairman of Board of Directors

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