Approaches for Supporting Financial Decisions in Financial Management

FINANCIAL
MANAGEMENT

TABLE OF CONTENT
■ INTRODUCTION
■ MAIN BODY
■ CONCLUSION
■ REFERENCES

INTRODUCTION
■ Financial management refers to strategic planning, to organize,
direct and control of financial undertakings of the organization.
■ Financial management include application of management
principles over financial assets of organization. It plays and
important part in fiscal management of business (Matthew, 2017).
■ Present report will be providing approaches used for supporting the
financial decisions.
■ It will also provide principles for supporting the effective financial
strategies. The role of accountants and management accounting in
business and the ways in which the financial decision making helps
in sustainable performance.

Different Approaches used for supporting
the effective decision making.
Knowledge based approach
■Knowledge based approach involves recognizing
knowledge as the resource to gain organizational
competitiveness, knowledge suggests the method for
managing and improving the performance of
organization.
■ It is essential for the business enterprise to have
knowledge based approach so that the decisions taken
for the improvements are having some authentic base.
■This have significant impact over the decision
making approach of the executives of organization.

Formal and Informal approach
■ It provides an structured approach to the organization in the decision making process.
■ This approach reduces subjective approach of making the decisions and expose details
of decision rationale.
■ It helps in improving probability of selecting solutions meeting the multiple
expectations of the stakeholders of company.
■ The uncertainty associated with the tasks is reduced by having reasonable alternatives

Techniques used in decision making
Decision matrix
■ It is used by managers in evaluating all options
for decisions. In this matrix all options are placed in
first column of the table and factors affecting the
decisions in first row. It involves scoring and
weighing factors based on their importance and
selects the best options.
T -Chart
■ The chart is made for weighing plus and minus of
options. This ensures that all the negatives and
positive are considered in making decisions.