Financial Management

World-Class Financial Management

World-Class Financial Management considers not only the internal financial strategy for a single company but considers the financial stability of its value chains.  Internally, the core roles are development of financial plans, goals for achieving specific revenues, profit margins and gross profits, setting targets for overhead and production expense levels, and debt-service management.  A key document is the Master Budget that is tied to the company’s balance sheet, accounts receivable and payable reports and cash flow and profit-and-loss statements.  Financial managers also determine the best investment options for excess cash and review ways to acquire capital for expansion or acquisitions.  Another major role is to control the company’s expenses with cost containment plans both internally and across the value chain via requests for proposals, bidding processes and purchasing policies for contractors, vendors and suppliers to ensure the company gets the best combination of quality and price.  Additional world-class capabilities include plans for managing debt, tax strategies, managing cash flow and maintaining credit and cash reserves.