Unit 15 Financial Management Assignment Example – BTEC-HND-LEVEL 4

This unit aims to provide an understanding of basic financial accounting strategies and principles. It emphasizes the importance of maximizing shareholder value and growth. This course introduces the students to financial decision-making and explains how decision-making supports and influences organizational growth.

Buy Non Plagiarized & Properly Structured Assignment Solution

This Unit likewise gives an understanding of the role played by Management Accountant and Control systems to support sustainable financial development. It defines the role of management accountants in a financial management system.

On completing the assignment, students will be able to support senior-level management in taking decisions that affect the economical growth of an organization. They will be able to contribute to the financial management function of an organization. Besides, learners will gain skills and advance to a higher level of education.

Assignment solutions of Unit 15 Financial Management

Since ancient days, accounting has been utilized by businesses to document economic transactions. However, time brought about changes in the accounting system; transaction recording and use of records became simplified. Accounting provides valuable information to the company’s investors, stakeholders and helps them to make insightful decisions.

Financial accounting assignments assist management in making informed decisions and solve business issues by using accounting tools. It likewise reduces the complexity of recording business transactions and improves the financial performance of the organization. The financial statement gets audited to increase the reliability of the records and frames corrective measures on current business activities. It helps to clear misinterpretations and detects fraud made when documenting financial statements.

LO1: Purpose for developing and presenting financial information

  • This section focuses on users of financial information including investors, banks, and federal agencies.
  • It states why management should incorporate financial information into accounting records.
  • It emphasizes on the use of profit, and loss statements, cash flow statements, balanced sheets and trial methods as effective methods to present financial statements.

Importance of accounting records

Accounting records promote business Growth by providing valuable information on business processes. It is the statutory requirement of the business to maintain records for at least 7 years. These records help the stockholder to make decisions regarding investments and more. Reliability or credibility of human resources gets examined by an independent auditor. The audited records get used as solitary proof to make decisions on financial statements. Financial Statements act as evidence of financial and non-financial transactions of a firm and Act as asset ownership records for the formation of liabilities.

Following are the purposes and uses of the financial records:

  • Purchase ledger: The purchase ledger must provide records of the Business’s creditors and the amount that gets paid to them.
  • Sales ledger: sales ledger (aka sold ledger) provides records of personal Account of the clients of the business. It has to record the sales of the business, track whether the customer paid the amount and how much is due.
  • Cash flow statement: The purpose of a cash flow statement is to record the cash inflow and outflow of the business within a specific period. The cash flow statement helps to maintain the Liquidity of a business organization. Desh document separately records cash inflow from investing, financing to operating activities that assist the management to take effective decisions for the organization.
  • Income statement: it helps to compare or record expenses within a certain period with the cost of items sold. In general, Income statements are divided into two parts. While the first part records expenditures that are of homogeneous and regular nature, the second part includes expenditures that are of heterogeneous and no regular nature. The income statement helps to analyze the profit made in the current year.
  • Balance sheet: The balance sheet helps to estimate the financial position of the organization at a specific period. It is one of the critical tools used by investors that inform them about the financial operations of businesses. It allows the manager to make informed decisions by comparing financial operations of current and past years.

Please Write Fresh Non Plagiarized Assignment on this Topic

LO2: Analyze financial management principles and how it helps in the effective running of businesses

Financial accounting incorporates a set of regulations that a company has to follow while developing a financial statement of the organization. Businesses all across the globe follow these principles to increase the accuracy and reliability of accounting records. It helps to figure out basic differences between the businesses, as all businesses follow the same rule while creating financial statements. The key financial accounting principle that businesses follow when preparing statements are as follows:

  • Historical Cost: This accounting principle requires the companies to list assets at the value when it was acquired, and record expenses made to bring pieces of machinery back to working condition. It helps companies to refrain from listing inappropriate asset pricing and prevent fraud.
  • Prudence: This accounting principle requires the companies to record the loss or profit as they get released, and consider liabilities with the smallest chances of existence. It prevents companies from recording excess profit and avoids contingent liabilities by creating provisions against such li
  • Going expenses concern: As per this accounting concept, business records transactions considering that it will run its activities soon. As a result, businesses don’t record the cost of machinery acquisitions and distribute it over the past years.
  • Consistent: This accounting concept mandates the companies to follow the principle consistently when recording financial transactions over the years. In general, Companies deviate from their method to include unlawful expenses in the financial statement. Now, the company needs to provide valid reasons for changing the methods. An auditor needs to mention the impact of changes made in the financial statement in notes.

LO3: Analyze financial management principles that support effective financial strategies

Strategic Financial Management isn’t limited to managing the financial assets of organizations, but it also manages resources intending to succeed. Photo

Before a company manages its resources strategically, it needs to define the objectives and quantify accessible resources. It needs to plan a strategy to manage the financial and non-financial resources that leads it towards accomplishing their goals.

It is all about creating profit for the organization and generating an acceptable return on investment. Financial management includes setting up financial controls, building financial plans, and making effective decisions.

What are the elements of strategic financial management?

An organization applies Strategic financial management across business operations, which includes developing elements that would maximize the financial resources and use them effectively.

Since there is no such term as one-size-fits-all, an Organization needs to be innovative or creative. An organization must create remains that meet the needs and objectives.

Some of the common elements of strategic management may include the following:

  • Financial management includes understanding, Allocating, and obtaining the liabilities and assets of a company. It entails close monitoring of operational expenses, profitability, cash flows, account payable, and receivable.

Strategic financial management includes all the following. Additionally, it includes constant planning and evaluation to keep the company on track towards accomplishing its long-term goals.

When the company manages strategically, it resolves the short-term issues that do not prevent it from achieving the goals in the long run. Strategic financial management requires assessing And monitoring the capital structure, equity-debt mix, thereby ensuring long-term solvency.

Tactical vs. strategic financial management principles

The word Strategic in the Strategic financial management implies management approaches that incline towards long-term success, as opposed to tactical decisions that relate to Short-term positioning. If a company is strategic instead of being practical, it might take decisions based on what it considers to be effective.

Pay & Get Instant Solution of this Assignment of Essay by UK Writers

LO4: Evaluate the responsibility of Managerial accountants and accounting control systems.

Definition of Managerial accounting

Managerial accounting refers to the preparation, accumulation identification, Understanding, and Communication of information that helps managers to fulfill the objectives of an organization.

It helps the managers to perform their activities. It includes planning, managing, recruiting, controlling, and directing.

Managerial accounting is the branch of accounting that provides relevant information to management. It keeps the team members informed, allowing them to take part in the group discussion.

What are the important functions of managerial accounting?

The function of managerial accounting is to assist management to make effective decisions. It helps management perform its activity. Basic functions of Management include Controlling, organizing, directing, and Planning.

Updates data

Management Accounting updates existing accounting data, modifying it such that it becomes understandable.

Moreover, the Modification of data in groups helps management to understand, organize it. To make decisions, the manager requires accounting data that gets compiled and categorized.

Management uses data of months and assesses purchases made by the company. It uses data categorized upon Supplier, demography, and product.

Assess the risk of fraud within an organization, and suggest measures to prevent such fraud

An organization faces huge losses due to fraud, and it might even lead to the closure of the company. As such, a business needs to regulate key areas of the organization where there is a chance of fraud.

Fraud control requires management to focus on the effectiveness of the internal control framework, and check whether there is authority to monitor the financial transactions. Companies can follow certain measures to Track and control fraud in business processes. These are the measures that the company can follow to control frauds:

  • Internal auditor: An organization needs to appoint an internal auditor to assess the effectiveness of the internal control system, and assist the manager to control frauds. Auditors should audit business areas where there are more chances of fraud. He can examine the records to help the manager to detect and prevent fraud.
  • Delegation of authority: manager to manager needs to set up the internal control system. He has to effectively allocate tasks to staff members and ensure that the transactions get properly authorized. Lack of proper delegation of authority is one of the reasons behind theft and fraud in an organization.
  • Unusual behavior: The organization has to supervise the employee’s activities, and check whether there is a sudden change in their behavior. Employees who are involved in the fraud go for leaves in a fear of getting suspected or caught. Organizations need to rotate the shifts of employees and send them on a leave once a year.
  • Reporting suspicious Activities: Internal control system should be such that every employee reports inappropriate and suspicious transactions. It requires the management to conduct constant evaluation, ensuring that the whistleblower hotline is active.

On successful reporting of suspicious activities, employees should get promotions.

Internal and external controls of an organization

Financial statements get audited by the Internal or external auditor of an organization to increase the reliability of the report. The auditor analyzes the document to verify whether fraud or misinterpretation has taken place within the company.

While auditing the financial statement, the auditor collects Proof from the accounting record to frame an opinion on the financial statements. Following are the measures get taken by an auditor when auditing the financial statement:

  • Review audited documents:

The auditor needs to collect past year’s reviewed documents from the client, as it would help him in preparing the audit reports.

  • Recent innovations in the company:

The audited needs to inquire about recent mergers and acquisitions, and the company’s product line to reflect changes from the previous year.

  • Identify key business activities:

When preparing the documents, the auditor needs to analyze the key areas where there are chances of fraud, and make important decisions.

How does financial decision-making help organizations to achieve goals?

Strategic decision-making refers to managing the finances of a company to meet its strategic goals. This management approach makes use of financial tools and techniques to plan an effective strategy. Strategic financial management makes sure that the strategy chosen gets implemented to meet the desired outcomes.

Features of strategic management decision-making

  • It focuses on the long-term profitability, growth, and sustainability of the business, and maximizing the shareholder’s wealth.
  • It makes use of the financial and organizational resources and focuses on the outcome of Strategies in place.
  • Strategic management offers solutions by analyzing the problems existing within an organization.
  • strategic Financial management assist the executive to take decisions
  • It focuses on the long-term management of funds and liabilities, considering the strategic perspectives of the organization.

The main aim of Strategic financial management is to structure decision-making considering the long-term objectives of the business.

It not only helps the Management in setting targets but also forms a platform that governs and monitors plans to overcome the impediments that come in the way.

It likewise includes the steps that would guide the management in a competition for long-term objectives. The purpose of strategic management is to plan strategies that are capable of maximizing market value. Apart from managing the financial resources, strategic management helps to attain the long-term and short-term goals of the organization.

How can the role of the Management Accountant improve to support sustainable decision-making?

As a Management Accountant one needs to prepare, crunch and record data that heals the contrary to plan Budget and increase organizational efficiency. Often Management Accountants supervise the low-level managers to manage Accounting tasks such as recording income and expenses and tax liabilities. They use the information to prepare balance sheets, cash flow, and income statements.

In smaller firms, Management Accountants handle all the jobs themselves. He has to do analyses for Budgeting and performance plans and present them to the top-level management to make important decisions.

Management Accountants need to figure out the opportunities and Trends for improvement, manages risk, and handles funding and financial activities. Likewise, they might develop and maintain the financial system, and supervise the data processor and bookkeepers.

Conclusion

From the above information, students can conclude that accounting helps businesses to record transactions and facilitate decision-making. It prevents fraud within the organization and promotes control of activities. A financial statement gets audited by an auditor, and this Increases its reliability.

Get solved Financial Reporting assignment in UK

Do you need urgent assignment help  UK? If you’re searching Solved BTEC Assignment Answers, we got you covered. We have a team of the best essay writers in the UK. They have years of experience helping students with case study help online in UK.

If you want professional writers for Management assignment samples or law assignments, contact us today. We are aware of the fact that more than 50% of our clients are learners. Students often say I’m looking for online exam help  UK. I will pay for coursework in UK before the deadline.

To know the quality of work provided by our writers, look at Unit 5: Management accounting assignment sample. Now, you can also download our Unit 10 Financial Accounting Assignment Sample, Unit 4 Management and Operations Assignment Example UK. Reach out to us for homework help in the UK. Are you looking for an ONLINE homework helper in the UK? Do you need essay writing help UK? If yes, get in touch with us.

Our plagiarism-free articles, on-time delivery, and reasonable rates earned us a reputation for reliable thesis writing service UK.

Buy Non Plagiarized & Properly Structured Assignment Solution

do you want plagiarism free & researched assignment solution!

Get Support Instantly
info@studentsassignmenthelp.co.uk
Quick Connect