What Is the Scope of Financial Management?
Quick Answer
The scope of financial management involves processes and procedures affiliated with managing a company's cash flow, inventory, fixed assets and debtors, according to Accounting Education. Financial management requires company representatives to collect payment from clients in a timely manner, pay expenses accordingly and create financial plans to ensure cash flow.
Continue ReadingFull Answer
The scope of financial management also includes compiling goals, objectives, and requirements to complete projects that produce revenue by estimating expenses and time required to finish a project to the client's specifications, according to Investopedia. The scope of financial management with a client project may also include estimating the cost and time of gathering materials, performing the actual work and estimating the profit margin to determine if the project is a profitable fit for the company.
Financial managers often oversee projects to ensure deadlines are met, costs are kept at a minimum and client relations are on good terms, according to Investopedia. The scope of financial management also includes evaluating the progress of each project after its completion to determine if the client's business was a venture that resulted in revenue, exposure for the company and potential profits in the future with repeat business. Without evaluating the scope of financial management, companies are at risk of losing profits or taking on projects that may not benefit the company's reputation, client base and financial bottom line.
Learn more about Financial PlanningRelated Questions
-
Q:
What Are Suze Orman's Financial Qualifications and Credentials?
A: Although Suze Orman does not have any academic financial qualifications, she displayed a natural flair for financial planning while working for a number of... Full Answer >Filed Under: -
Q:
How Do You Read Financial Statements?
A: Read a financial statement by examining a company's balance sheet, income, earnings per share and cash flow. Operating, investing and financing activities ... Full Answer >Filed Under: -
Q:
What Is the Function of Treasury Management?
A: Core functions of treasury management include raising funds through capital markets, managing cash flow, aligning a company's corporate and financial strat... Full Answer >Filed Under: -
Q:
How Do You Choose a Financial Advisor?
A: Choose a financial planner who charges a fee as a percentage of the assets managed rather than obtaining a commission for the products he sells, recommends... Full Answer >Filed Under:
You May Also Like
-
Q:
What Is the 401(k) Contribution Limit?
-
Q:
What Assets Should Be Put in a Living Trust?
-
Q:
What Are the Rates of Contribution for the Canada Pension Plan and Employment Insurance?
-
Q:
What Is the Average Fee Paid to the Executor of an Estate?
-
Q:
How Do You Pay Fines Online?
-
Q:
What Is the IRS Penalty for Not Withdrawing an IRA Distribution on an Annual Basis?
